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International Adviser April 2012


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  • 1. APRIL 2012For Distributors of International Fund, Life and Banking Products plans Indian bondfund launch for Q3 3 Generali eyes UK clients FEIFA creates conduct codeHMRC settles with draftQROPS legislationHolborn Assets opens in 3 with assets of £3m plus for members BY MARK BATTERSBYGhana and South Africa 3 BY HELEN BURGGRAF relationships at Canada Life International, has been In a refreshing move toGraham Barnes calls time In one of the boldest moves named to head up the new boost industry standards,with Fry Group 5 by an offshore life compa- Generali PanEurope opera- the Federation of EuropeanScottsdale OS unveils ny in recent years, Generali tion as executive director IFAs (FEIFA) is raising theQuilter DM funds 5 PanEurope will formally of UK and international bar for its own 31 exist- begin to target the UK business, beginning on 2 ing member firms, spreadHK insurance comp plan high-net-worth and UHNWI April. He will continue to across the continent, with aconcern for the industry 6 market in April with a flag- be based in London. new code of conduct.AES reveals ME expansion ship portfolio product and Gregory said the PWP FEIFA chief executivein IA online interview 6 wealth structuring services, “allows the portfolio man- Paul Stanfield told dele- which it plans eventually Gregory: ‘much wider access’ ager of the private bank to gates at its central LondonMifid II risks ‘unintended to roll out to private banks, access a much wider selec- spring conference onconsequences’ 6 private wealth managers – and a related wealth tion of asset classes than is 19 March that the code ofCMI’s Dean Waddingham and family offices around structuring services com- normally available”. conduct would be sent outjoins NFU Mutual 9 the world, International ponent through a handful Meanwhile, the compa- “within weeks”. Adviser can reveal. of UK-based private banks, ny is recruiting at least two The code covers ten keyMan Group launches For the past three years according to Generali head additional “team” members, areas ranging from anti-commodities fund 9 Generali has been quiet- of wealth protection Cillin with plans to hire sup- money laundering, capi-‘ROSIIP was not a ly trying out its new UK O’Flynn. port staff, during the next tal adequacy, complaintsQROPS’ rules UK court 9 Private Wealth Portfolio David Gregory, for- 12 months. process, clients’ interests, (PWP) – an offshore bond merly head of institutional Continued on page 3 and conflicts of interest,Guardian WM opens in to data protection, profes-Hong Kong 10 sional indemnity insurance,Ranks of UK non-domsdrop by 16% 10 Tunnicliffe and Pain exit FPI in reshuffle recruitment, regulation and compliance and tax and Paul Tunnicliffe is to leaves with my thanks for following the management legal responsibilities.Jupiter to launch offshore leave Friends Provident building the FPI business changes announcement on The idea for the codebond fund for Bezalel 13 International (FPI) at the to where it is today and I 5 March. of conduct was sparkedUS banking giant Wells same time as Bob Pain, as wish him every success for Tunnicliffe moved to by some of the recruit-Fargo plans expansion 15 part of the recent strategic the future.” FPI in 2002, where he was ment activities within the review by Friends Life. Both the men’s roles are responsible for the inte- industry, Stanfield said,New Lux laws halt launch Tunnicliffe, who in 1992 ending due to their UK gration of the acquired “active ‘poaching’ if youof SIFs before approval 16 joined Friends Provident focus as the Friends Life Royal & Sun Alliance like – which many of our one year after internation- international division shifts International Financial members felt was inappro-Offshore bond sales in UK al sales director Pain, will the focus of the senior Services business. priate. We thus decided thatfall over 7% in 2011 19 cease to be managing direc- management team to Asia. Pain continues as deputy a recruitment code of con-51% of accountants admit tor of Friends Provident A new position as exec- chairman of AILO though duct might help to clarifylimited LDF knowledge 56 International in April. utive director for Asia with he is expected to step what we believed was the John Van Der Wielen, responsibility for business- down from his much longer appropriate way to operate. Features – page 2 managing director at es in Asia and the Middle standing chair of the sales Continued on page 5 Friends Life, said: “He East, has yet to be filled committee.Life trends 21-22 Country profile 24-25 Intermediary profile 27-28Skandia South Africa Creechurch CapitalInternational A fall in growth Chief executiveCommercial has prompted John Greenwooddirector Michelle the authorities hopes the IsleAndrews explains to establish of Man is set tothe new Wealth ‘macroprudential’ become a wealthInteractive service type rules management centre
  • 2. contents ANALYSIS PROFILES TECHNICAL PORTFOLIO Country profile: Briefing: Fund selector: South Africa 24-25 Regular gifting 35-36 European equities Africa’s hub weathered the global Exemptions from inheritance tax 39-41 financial crisis well, but has for UK-based individuals is a European equity investors fled recently seen a fall in growth, tricky path to follow that requires the field as managers which prompted the authorities guidance of a financial planner, waited for the end of 2011’s to establish a new framework of explains Julie Hutchison, head of annus horribilis, says OBSR ‘macroprudential’ type rules international technical insight at investment research analyst Standard Life International Intermediary profile: Muna Abu-Habsa Creechurch Capital STATISTICS 27-28 Isle of Man-based Creechurch The IA Quality FundsLife trends: Skandia Capital CEO John Greenwood 43-48International 21-22 hopes the island will become A list of the blue chipsSkandia International commercial a wealth management centre of the offshore fund worlddirector Michelle Andrews competing with mainland UKexplains the new Wealth Bank profile: Banking deposits 50Interactive service and how itaims to help advisers tackle Lloyds TSB Int’l 31-32 The top-paying offshore accountsregulatory changes across According to several surveys bythe world. The re-engineering Lloyds TSB Int’l wealthy Britons CLASSIFIEDSprocess also will streamline the are deciding to follow manyanalysis with information being others leaving the UK and the Life listings 51-52 Recruitment 54-55used more effectively, but only bank is adding to its services to Find the job that suits you in IFAonce to produce advice meet this need for future expats Service listings 53 firms operating around the globeIA Intermediary Panel IA Tax Panel Graham Barnes Tony Shah Paul Stanfield Margaret Jago Rachael Griffin Director, Associate director, Chief executive, International Head of product international Christchurch FEIFA technical law and financial division, Investment Mgt, manager, planning, Skandia The Fry Group, UK UK Aegon Ireland International Glen Cochrane Tim Searle Sean Kelleher Gerry Brown Mark Green Investment Chairman, CEO, Mondial, Head of trusts Head of estate director, Globaleye, Dubai Dubai and taxation, and tax planning, Creechurch Prudential Legal & General Capital, IoM International David Bellingham Gary Boal Robert Parker Brendan Harper Julie Hutchison CEO, Professional Managing Chief executive, Technical Head of Investment director, Holborn Assets, services international Advisory Services, Boal & Co, Dubai manager, FPI technical insight, Singapore Isle of Man Standard Life Int’l Mark Rawson Rex Cowley Mahmoud Brian Murphy Neil Chadwick CEO, The Henley Principal, Nodjoumi Senior financial Technical Group, Hong Kong Newdawn Chairman and planning manager, Royal Consultancy & chief exec, Nexus manager, London 360º Research, Jersey Group, Dubai Axa Sun Life Ernest Chan Sam Instone Mike Coady Glenn McIlroy Sandra Hogg Chief commercial CEO, AES Director, deVere Technical services Senior tax officer, Convoy International, UK Group, Western manager, Generali manager, Scottish Financial Services, Europe International Widows Hong Kong Bill Blevins Sarah Lord Rainbow Pan Chris Allatt Anthony Rothwell Managing Wealth planning CEO, ipac, Hong Senior tax Technical director, Blevins director, Killik Kong consultant, consultant, Franks, & Co, Middle Sanlam UK Canada Life pan-Europe East & Asia International 2 INTERNATIONAL ADVISER [] APRIL 2012
  • 3. NEWS NEWSHMRC settleswith draft HSBC plans to expand Sicav IN BRIEFQROPS rules with Indian bond fund in Q3 DeVere’s Green buys 24% of QROPS firm BY SIMON DANAHER of this year. The spokes- its Hong Kong office. It is Nigel Green, the chief person also said the fund managed by Alfred Mui, an executive and founder HSBC Global Asset would likely be run from investment director in the of global IFA group Management is planning Asia, either by fund man- Asian fixed income team deVere, has bought to launch a fixed income agers based in Hong Kong – which may be responsi- a 24% stake in STM fund targeting bonds in or India itself. ble for the management of Group, the London- India. HSBC already has an the new India bond fund. listed cross-border It is understood that the Indian equity fund within Launched in April last year, provider of QROPS and fund will be part of HSBC’s its GIF range. The HSBC the Asian Currencies Bond other financial products. Luxembourg-domiciled GIF Indian Equity Fund is Fund had returned 2.7% by The stake was acquired Global Investment Funds managed by Sanjiv Duggal the end of January, accord- as part of a £1.59mCowley: ‘No change to stance’ Sicav umbrella and is who is part of HSBC ing to its latest fact sheet. ($2.52m) purchase expected to be called the Global Asset Management, Similarly, the fund has a of new shares in theHMRC is pressing on with HSBC GIF India Fixed Singapore. The equity minimum investment of company, and is subjectits planned changes to Income Fund. fund has an annual charge $5,000 but has a slightly to regulatory approval.the QROPS regime, with The launch is current- of 1.5% and a minimum lower annual management Skandia SE Asia headleaked documents pub- ly subject to appropriate investment level of $5,000 charge of 1.25%.lished by International regulatory approval, but or equivalent. HSBC’s range of GIF MacDonald bows outAdviser showing no signifi- a HSBC spokesperson was The company also funds typically have both The principal ofcant changes to the draft able to confirm that it may runs the HSBC GIF Asian institutional and retail Skandia International’srules released in December launch in the third quarter Currencies Bond Fund from share classes. Singapore office and2011. The two documents head of the Southobtained by IA, entitled East Asia region,“2012 QROPS Guidance”and “Overseas Transfers of Holborn Assets opens two African offices David MacDonald, has decided to leave thePensions Savings FAQs”, Dubai-headquartered also said it aims to have tive Bob Parker said: “As company. MacDonaldwere, it is believed, due to Holborn Assets has 100 advisers based in its RDR approaches IFAs are handed in his noticebe published at the time of expanded into Africa, with Dubai office by the end looking more than ever earlier this monththe UK’s annual Budget. new offices in both Ghana of 2014 – the headcount at a career overseas. The and the two parties The unintentional publi- and South Africa, and has stands at 50. offshore market presents are working together to find a suitablecation of the documents has announced plans for an Holborn said it hopes bigger opportunities today departure date, whicheased fears in the QROPS aggressive recruitment to recruit advisers who than ever before as Irish is likely to be withinindustry that there are to be drive. have become disillusioned and British workers move the next few months.any significant amendments The company has with the environment in overseas to escape the Skandia has begun theto the draft legislation. And partnered with adviser the UK, saying that the downturn in the economy recruitment processfor some jurisdictions, such recruitment firm ifamatch. purpose of seminars is and find work in boom- Guernsey, it is a “green com, with which it is to to “provide informative ing economies such aslight” for it to continue hold a series of seminars unbiased information in the United Arab Emirates, Guernsey, Jersey andworking on plans to have a across the UK and Ireland. a post-Retail Distribution Qatar and even places like Malta sign DTAsQROPS-compliant pension Through the seminars the Review (RDR) world to Ghana.” Guernsey and Maltaregime in place when the companies hope to recruit highly qualified advis- The first seminar will have signed a double-new laws come into effect more than 20 “highly qual- ers who have seen their be held in London on taxation agreementon 6 April. ified” advisers this year industry slowly eroded 29 March, where Brian (DTA), while Jersey has Rex Cowley, principal to work within either and are looking for a new Cosgrove, chief executive signed one with Qatar,of Newdawn Consultancy, Holborn’s UAE or African challenge”. of, will be as the march towardssaid: “The documents operations. Holborn Holborn chief execu- one of the key speakers. tax transparency byachieve the same outcome “offshore” financialas the drafts. It seems that centres continues.HMRC has not changed itsstance and this must be Generali eyes UK clients with assets of £3m plus The Guernsey DTA is that island’s third,seen as a positive step as Continued from page 1 markets as Italy, Spain and News of Generali the other two havingit means the work jurisdic- Generali does not have any Germany, where he notes PanEurope’s move to roll been with the UK andtions are doing to ensure business presence in the Generali’s insurance prod- out a new offshore bond Jersey. The Channelcompliance is not going to mass-affluent or retail space ucts are popular among product – albeit a high-end Island-based domicile’sbe wasted.” in the UK and, according to those who took advan- one – comes as offshore DTA is its fourth full In addition to new pen- O’Flynn, it is not interested tage of such tax amnesty bond sales into the UK one that compliession legislation from the in competing for market schemes as Italy’s scudo market fell by more than with the OECD Modellikes of Guernsey and the share at this end of the off- fiscale. 7% in 2011, according to Agreement.Isle of Man, it is widely shore bond market. He added that the client the Association of Britishanticipated that Jersey is Instead, O’Flynn said, Generali expects to be most Insurers (see story on page For the current and allabout to enter the QROPS it plans to leverage the interested in the product 19). A lack of confidence previous editions, withmarket, with some antici- expertise it has developed will have at least £1m in in the economy on the part full news archive, go topating a launch around 3 catering for wealthy indi- investable assets, and prob- of would-be buyers was viduals in such European ably £3m or more. among the reasons cited.APRIL 2012 [] INTERNATIONAL ADVISER 3
  • 4. T R U S T E D H E R I T A G E A D V A N C E D T H I N K I N G Built for success “Intelligent portfolio construction is at the heart of the QEP Investment Team’s approach. With foundations laid in Value and Quality, we analyse the DNA of over 15,000 companies from around the world to build exceptionally well-diversified portfolios, invested across over 500 stocks. The result? Maximised global opportunity, minimised stock-specific risk.” Justin Abercrombie, Head of Schroders’ QEP Investment Team since 1996 – A proven track record across a range of global strategies including Value, Quality and Core – An experienced team of 22 investment professionals based in London and Sydney* – Over EUR 16 billion** under management for a global client base. Built for success. Built for you. Find out more about Schroders’ QEP Investments at Schroders’ QEP Investments professional investors or advisers only. *Source: Schroders as at 31 January 2012. **Source: Schroders as at 31 December 2011. Past performance is not a reliable indicator offuture results, prices of shares and the income from them may fall as well as rise and investors may not get back the amount originally invested. Issued in March 2012 by SchroderInvestment Management Limited, 31 Gresham Street, London EC2V 7QA. Registered number 1893220 England. Authorised and regulated by the Financial Services Authority. w41322
  • 5. NEWS NEWSFEIFA createsconduct code Graham Barnes calls time IN BRIEFfor members on 30 years with Fry Group Marks to succeed Gregory at Can Life Canada Life, theContinued from page 1 BY HELEN BURGGRAF UK-based insurance“This idea then developed and investmenta stage and it was felt Graham Barnes, who is products provider, hasthat a code of conduct to thought to hold the record named Andy Marks toencompass all of the main among offshore-focused succeed David Gregoryareas of activity could be firms for time spent with as head of institutionalhighly beneficial to our the same firm, is retiring at sales. As reportedmembership.” the end of March after 30 (see page 1), Gregory The aim then became years with the Fry Group. has left Canada Lifeto create sensible and clear He is being succeeded to head up Generaliguidelines, “the parameters as head of Fry’s interna- PanEurope’s new UKof which would be set tional operations by Aidan a great degree by the Bailey, who has been withmembership, as to what the company for 18 years, Handing over: Barnes (r) with Bailey (l) and founder Wilfred T. Fry Guernsey zero-10 taxis deemed to be relevant and who returned to the regime up for reviewbehaviour within regulated UK from Fry’s Singapore a London magistrate. (He high-cost products, when The EU Code ofand well-run businesses. office last year, after a was sworn in at the Old the same result could be Conduct Group willThis would then reflect decade there, to prepare to Bailey on 12 March.) achieved for less. discuss Guernsey’svery well on the member- take Barnes’s place. When asked how the “There is no reason why zero-10 corporateship and have a positive Those who know him industry has changed in the equity content of a port- tax regime at its nexteffect outside of FEIFA.” say Barnes’s lanky, 6ft 2in the three decades since he folio, say, would be any meeting on 17 April, He added that it would presence will be much joined Fry’s Exeter office in better or worse because it as the only one ofalso provide a template for missed in industry circles, 1982, after ten years with was an odd collection of the three Crownprospective member com- and not just because of other financial services unit trusts, a multi-manager Dependency islandspanies, “setting principles his generous and gentle businesses, he responds fund, an Oeic, or sat on a not to have receivedthat they would need to nature, mind for business that he does not think the platform,” he notes. “But the Code Group’s nodbuy into, thus protecting and razor-sharp wit. industry has changed “any- the costs of each of these of approval for itsexisting members and the For unlike many who thing like enough”. will be hugely different. zero-10 scheme lastintegrity of FEIFA.” talk about the importance “There are still commis- So attacking those costs is year looks to get it in The new code spells of looking after clients, sion-hungry advisers out really important, especially 2012. It is thought theout that members should Barnes is known for his there who are still selling at a time when it is difficult island could have itsnever proactively directly fervent belief in practising commission-heavy prod- to generate returns on the scheme approved bycontact or “poach advisers what he preaches. ucts,” he grumbles. “I still stock market.” the end of June.or other staff from other Having recently moved see clients being ripped off Fry was founded 114FEIFA member compa- with his wife to central in the same way by the years ago as a tax consul- ‘Frozen pensions’ nownies”. It states: “In fact, London after 22 years same type of product.” tancy by Wilfred T. Fry,such poaching from any in Sussex, where Fry is And even when they are and in addition to sever- affect over half millionother IFA company in the based, he has been pre- not being overcharged on al UK offices and one in More than half a millionsame region should be paring in recent weeks for commissions, Barnes says, Singapore, has outposts in British expatriates whoavoided where possible.” a post-retirement career as they’re often being put into Hong Kong and Cyprus. have retired abroad are Another point covers “missing out on their full pension”, accordinga formalised and statedcomplaints process whichshould meet any nation- Scottsdale OS unveils Quilter DM funds to figures revealed by the UK government. The figures wereal and European Union Scottsdale Overseas, a a “global and multi-asset Powell said. published by welfarerequirements, where UK-expat-focused, Javea, basis”, are a first for the Scottsdale clients ini- minister Lord Freud, inrelevant. Spain-based financial advi- Spanish market, and will tially will be offered a response to a written This latest step towards sory group, has unveiled be welcomed enthusiasti- choice of three invest- question. Accordingcommon good practice sits an exclusive range of cally by investors for their ment strategies designed to the Internationalwell with one of FEIFA’s discretionary manage- tax efficiency. to meet a range of financial Consortium of Britishstated objectives, to raise ment portfolios for its cli- The funds in which objectives based on their Pensioners, thestandards in the industry. ents which are managed the portfolios invest are goals and attitudes to risk: figures show 555,650In the accompanying state- by the same investment accessed through Skandia’s Defensive, Conservative pensioners are notment to members, FEIFA team behind the UK-based Spanish collective invest- and Balanced. receiving a full pensionstates that “it has become Quilter Managed Portfolio ment bond, and are being The Skandia Ireland because their pensionsincreasingly clear that a Service. managed on the Praemium fund range, from which are not increased incode of conduct is an Scottsdale director custody platform to reduce the Verdant portfolios line with inflation.appropriate way of assist- David Wallis-Powell said costs to the client. This are constructed, currentlying this goal and making the company believed the means an annual custody encompasses more than For the current and allmembers, in particular, “Verdant” portfolios, which fee of 0.35% on top of 500 Spanish tax-compliant previous editions, withprospective members, invest “solely in Spanish an annual management funds from major global full news archive, go toaware of the standards that tax-compliant collective investment fee of 0.40% fund houses, according to expected.” investment schemes” on plus 20% UK VAT, Wallis- Scottsdale.APRIL 2012 [] INTERNATIONAL ADVISER 5
  • 6. NEWSMifid II risks‘unintended HK plans for insurance comp Skandia Int’l and Concept toconsequences’ scheme concern the industry launch QNUPSAILO believes BY HELEN BURGGRAF vide a desirable layer of add risks to the industry.” BY SIMON DANAHERBY WILL JACKSON extra protection for con- Under the proposed Skandia International and Hong Kong’s insurance sumers, or merely an extra scheme, all insurance com- Guernsey-based ConceptThe Association of industry is reportedly layer of costs for insurers. panies in Hong Kong would Group have unveiled aInternational Life Offices “fuming” over govern- Now the fund is due to be required to contribute to QNUPS to complement the(AILO) has written to the ment plans to implement a be launched either next year the setting-up of two com- co-branded QROPS whichEuropean Parliament’s compensation scheme that or in 2014, though, insur- pensation funds: one for the two firms launched inEconomic and Monetary would pay policyholders ance executives in China’s life insurance policyhold- March 2010.Affairs Committee, to in the event that an insurer Special Administrative ers and another for general The Aurora Quantumwarn over potential “unin- were to collapse. Region “have become wor- insurance policyholders. QNUPS (Qualifyingtended consequences” In particular, industry ried about a government The funds would pay Non-UK Pension Scheme)stemming from the inter- insiders are alarmed about proposal to expand a safety policyholders up to HK$1m will be targeted ataction between Mifid II a new element to the plan net to corporate policyhold- ($129,000) each in the event UK-domiciled individu-and other European Union which would require small- ers in the event an insurer that their insurer failed. als outside the UK, who(EU) financial services and medium-sized insur- collapses”, according to the Quoting HK insurance can use it as an additionallegislation. ance industry enterprises to South China Morning Post. industry insiders, the SCMP pension. In a letter to Sharon participate. “Having the safety net noted if the proposed com- While contributions toBowles, who chairs the A consultation recently in place is good for policy- pensation scheme were the scheme will not attractCommittee, the trade body concluded on the so-called holders and is in line with expanded to cover SMEs, tax relief, the QNUPS canadvised against including Policyholders’ Protection international practice, but the risk profile would be used to provide a taxsimilar investor protection Fund (PPF), after years of industry insiders said the increase “substantially” as efficient wrapper in whichand commission prohibi- discussion about whether proposal had undergone it would cover “such things investors can build up ation provisions to those such a scheme would pro- some changes, which may as natural catastrophes”. pension while overseas.set out in Mifid II, in other There is no limit onEU legislation – specifically the single and regular pay-Packaged Retail InvestmentProducts and Insurance AES reveals ME expansion in inaugural ments that can be made into the scheme – althoughMediation Directive II. According to AILO, International Adviser online interview to ensure UK inheritance tax efficiency, Skandia andincluding such measures AES International has January next year. Concept advise contribu-would result in a narrower announced plans to open In the interview, Instone tions should be kept withinchoice of products for con- two further offices in the discusses the challenges the spirit of “retirementsumers and policyholders, Middle East over the course of establishing an office in planning”.and less opportunity to of the next 12 months. frontier locations such as The companies highlightobtain investment advice. AES chief executive Sam the Middle East and offers several benefits, including Another concern, the Instone revealed the plans in guidance to advisers con- access to as much as a 30%Association said, is the the inaugural International sidering similar expansions. lump sum, and the abilityimpact a “cut and paste” Insight interview – a new Emery and Instone also to pass on any residue ofof the Mifid proposals into series of filmed interviews discuss the potential inter- the fund to beneficiariesthe Insurance Mediation available to watch on national impact of the RDR on death.Directive would have on the International Adviser l-r: Emery and Instone and the difficulties faced There is no requirementthe European single market. website. when an adviser wants to to purchase an annuity andInsurers would no longer Speaking to editorial ry approval, in the summer leave another company no maximum age limit forhave access to independent director Dylan Emery, of this year and in Saudi and join your firm. investing, meaning indi-channels, and would be Instone said the company Arabia, again pending To watch the full interview, viduals may continue toprevented from competing is hoping to open an office completion of the required visit contribute into the schemein local markets, it claimed. in Qatar, pending regulato- regulatory approvals, on 1 after the age of 75. Dylan Emery Editorial director Mark Jennings Head of online Rod Boulogne Managing director Published in Great Britain by Last Word T +44 (0)20 7065 7565 T +44 (0)20 7065 7562 T +44 (0)20 7065 7560 Media, 4th Floor, 120 Moorgate, London E E E EC2M 6UR, UK © Last Word Media 2012. Emily Proctor Head of event operations All rights reserved. No part of this publica-Mark Battersby Editor Stephen Grasso Head of production SUBSCRIPTIONS tion may be reproduced or transmitted,T +44 (0)20 7065 7567 T +44 (0)20 7065 7571 T +44 (0)20 7065 7561 whether by photocopying or storing in anyE E E or go to medium by electronic means or otherwise,Gary Corcoran Group editor Dean Andrews Production editor Victoria Parker Senior event coordinator PUBLISHER without the written permission of the ownerT +44 (0)20 7065 7566 T +44 (0)20 7065 7570 T +44 (0)20 7065 7564 Last Word Media (UK) Ltd, 4th Floor, of the copyright. 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  • 7. The new land of opportunity is the land of opportunity. We will not rest
  • 8. NEWSLuxembourgacquisition CMI’s Dean Waddingham ‘ROSIIP was not a QROPS’key strategy joins team at NFU Mutual UK appellatefor Kinetic BY HELEN BURGGRAF to be based in the Clerical court rules Medical House building inBY MARK BATTERSBY Dean Waddingham, man- Douglas. The parent of the Panthera aging director for the past A spokesman for Lloyds QROPS range has lost itsGlobal professional servic- three years of what is still said Waddingham’s duties appeal against a Highes firm Kinetic Partners has known to many in the off- there would be assumed Court ruling last May,acquired Luxembourg- shore life insurance indus- by Nigel Rothery, who will which found that HMbased fund advisory firm try as Clerical Medical move to the IoM from else- Revenue & Customs wasAB Fund Services, as part International (CMI), has where in Lloyds, and within its rights in strippingof its bid to serve clients joined NFU Mutual, which whose title will be manag- the Recognised Overseaswho operate in multiple specialises in providing ing director, Isle of Man, Self Invested Internationaljurisdictions. insurance products to Waddingham: new role for Lloyds Banking Group. Pensions Retirement Trust AB Fund Services advis- Britain’s rural At NFU Mutual – the full (Singapore) of its QROPSes on regulatory and com- communities. Scottish Widows operation, name of which is the status in 2008.pliance requirements for Waddingham, who took which marketed offshore National Farmers Union An appeal to theinvestment funds domiciled up his new role as client bonds to the UK market, to Mutual Insurance Society – Supreme Court is beingin Luxembourg, with a par- services manager on 1 new business, citing “falls Waddingham is involved in reviewed but is unlikely,ticular emphasis on the risk March, is moving to the in new business levels as a running its national according to TMF requirements Midlands from the Isle of result of competition”. Flexible Payments opera- The ruling has potentialof the regulator – the Man, where he has lived However, the company tions and customer support implications for thoseCommission de Surveillance and worked for the past said 150 out of the 160 staff services within Mutual whose pensions weredu Secteur Financier. three years. employed by the business Direct, the company’s transferred into Panthera’s This will be Kinetic As reported, Lloyds at the beginning of direct sales and service ROSIIP scheme, as it couldPartners’ first office in Banking Group announced February would remain on operation. He reports to mean their transfers willLuxembourg, the second- on 7 February that it was its payroll, and that the Donny MacLeod, manager have been an “unauthor-largest investment fund closing its IoM-based CMI/ company would continue of NFU Mutual Direct. ised payment”, attractingcentre in the world after the significant UK tax liabili-US. The office will provide ties, a pensions tax expertsupport for global and localfinancial services organisa- Man Group launches commodities fund noted. Equity Trust, the parenttions operating in BY ESTHER ARMSTRONG The Man Commodities Systematic Strategies, said: of Panthera and originalLuxembourg, with a focus Fund was launched with “More investors want to defendant in the case, saidon regulatory compliance Man Group has launched a $50m of seed assets and is add commodities to their in a statement that it “fun-and risk management serv- Commodities Fund for actively-traded, seeking to portfolios, but there are damentally disagree[d]”ices. The service offering both retail and institutional outperform passive indices relatively few options for with the decision and waswill be extended to include investors, offering expo- while minimising downside them in a Ucits format. “extremely disappointed”.corporate recovery and sure to the asset class risk. “Passive investment It added, in a statement:forensic services. within a Ucits format. It has long-only expo- products like [ETFs] and “The transfer of funds by Raymond O’Neill, a The underlying strategy sure to the Man Systematic index-linked swaps are gen- members was only madefounding member of Kinetic of the fund has been devel- Commodity Index, which is erally poor at dealing with on the basis of expressPartners, said: “The acquisi- oped by Man Systematic based on trading in 25 severe drawdowns and representations by HMRCtion is in line with the firm’s Strategies, and is aimed at liquid futures contracts, in heightened volatility in that ROSIIP was a QROPS.planned expansion strategy investors who want to precious metals, energy commodity bear markets, so In particular HMRC issuedto open in new jurisdictions diversify their portfolios and agricultural products. we think an actively-man- a letter of confirmationin response to the changing from investments in equi- Sandy Rattray, the chief aged, systemic approach is acknowledging thatneeds of our clients, who ties and bonds. investment officer at Man a better solution.” [ROSIIP] was regarded as arely on our ability to oper- QROPS at the time. HMRCate seamlessly across bor- also included ROSIIP onders. Expansion is a crucialrequirement given the Frontier unveils offshore share classes the list of QROPS on the HMRC website.growing global nature of BY SIMON DANAHER ness development manag- asset range, which has “There was no sugges-our industry.” er for international markets more than $700m in AUM, tion from the court that Established in 2005, Frontier Investment at Frontier, said: “The is inspired by US university Equity Trust (Singapore) orKinetic Partners serves Management has partnered Frontier Multi-Asset Fund endowment funds, which the members acted in any-more than 1,200 clients glo- with IFA service provider is being successfully used it said have been “pio- thing other than good faith,bally, providing a bespoke Acordias, to launch off- by financial advisers across neers” of multi-asset invest- but unfortunately the origi-service for firms who need shore share classes for its the UK as a core holding ing for over 30 years and nal decision stands.industry advice, analysis multi-asset fund range. The within clients’ portfolios, consistently achieved “Equity Trust have vig-and valuation across bor- portfolios are available in providing them with an attractive annual returns. orously opposed the deci-ders. It has six offices – in dollar, sterling, euro and efficient method of captur- London-based Frontier sion by HMRC for moreLondon, Dublin, Grand Swiss franc with “attractive ing returns across the claims to be the first com- than four years but mayCayman, New York, Geneva terms for offshore IFAs”. global capital markets.” pany to offer “true multi- now have no further ave-and Hong Kong. Conor O’Donnell, busi- Frontier said its multi- asset style investing”. nues of appeal.”APRIL 2012 [] INTERNATIONAL ADVISER 9
  • 9. NEWSRanks of UKnon-doms Guardian WM opens in HK Barclays group blocked fromdrop by 16% and pushes Asia manoeuvre using ‘abusive’BY HELEN BURGGRAF BY WILL JACKSON and mainland Chinese. The tax schemes Chinese markets will be Barclays has been blockedThe number of individuals Advisory firm Guardian handled by a separate team, by the UK governmentregistered with HM Wealth Management has which the firm is building. from using two “highlyRevenue & Customs as opened an office in Hong Howell, who is heading abusive” tax avoidancenon-domiciles in the UK Kong, and intends to the Hong Kong office until schemes, which it ishas fallen by 16% in the launch further operations he can find a suitable claimed have cost the UKtwo years since a £30,000 in Malaysia, Singapore and person to run it, said the Treasury £500m in lost($47,000) annual levy, mainland China. mainland Chinese sector revenue.which permits non-doms David Howell, the firm’s will be the hardest to crack. According to a Treasuryto keep their income free chief executive officer, told “It is about relationships,” statement, the schemesof UK tax obligations, was International Adviser that Howell: ‘It is about relationships’ he added. were voluntarily disclosedintroduced, data obtained he expected the business to Expanding into Asia is a to HM Revenue & Customsby law firm McGrigors expand more quickly in the Kong, has opened its office significant development for by the bank.shows. Middle East – it has offices at the Hopewell Centre, Guardian, which previously The Treasury said the News of the decline in in Qatar and Dubai – than located at 183 Queen’s only had a presence in “aggressive tax avoidance”the number of non-doms Asia, but it has identified Road East in Wanchai. Europe and the Middle schemes were designed tocame as the annual levy several attractive opportuni- Howell says the office, East. Building on its “work around legislationthey pay was due to rise to ties for growth in the which houses a team of European business, the firm introduced in the past to£50,000 this month. region. eight plus administrative opened an office in Qatar block similar attempts at According to the data, The company, which staff, will target three mar- in 2009, with the aim of tax avoidance”.which was obtained by trades as Guardian Life kets in Hong Kong: expats, tapping into the country’s Owing to the nature ofMcGrigors through a Management in Hong local Hong Kong Chinese, burgeoning expat market. one of the schemes, theFreedom of Information Treasury took the unusualAct request, the number of step of introducing legisla-non-doms slumped to ‘Best ideas’ EM debt fund launched by BNY Mellon tion not only preventing its118,000 in 2009/10 from use in future, but also retro-140,000 in 2007/08. The BY SIMON DANAHER financial derivative instru- market issuers, compared spectively blocking itsnumbers, the law firm says, ments issued by emerging with similar corporate issu- recent use.are continuing to fall. BNY Mellon has unveiled market issuers. ers in developed markets. The scheme was aimed McGrigors said the an Emerging Market With a focus on invest- Furthermore, BNY at dodging corporation taxannual £30,000 levy on Corporate Debt Fund, ing in issues from compa- Mellon said the fund invests when the bank purchasednon-domiciles is thought managed by Insight nies big enough to ensure in the credit improvement its own be a “significant con- Investment Management. good liquidity, BNY Mellon of newer issuers, as emerg- The Treasury added thattributory factor” in the The Dublin-domiciled said the fund is a globally- ing countries gain a more the second scheme, whichdecline in the number of Ucits portfolio was diversified “best ideas” significant share of both it will block from futureUK-resident non-doms. launched on 31 January portfolio which seeks “to global GDP and trade. use, including the instance Just 4% of non-doms are and is run by Insight’s invest in the most compel- Alan Mearns, chief raised by Barclays,paying the charge, and the emerging market debt ling risk-adjusted opportu- executive officer of BNY involved Authorisednumber is still falling. It team, headed by Colm nities, irrespective of Mellon Asset Management Investment Funds and wasdropped to 5,100 in McDonagh. benchmark weighting, International, said: “We designed to convert non-2009/10 from 5,410 in BNY Mellon said the from both dollar and local believe that the emerging taxable income into an2008/09, the data reveals, fund aims to generate a currency issuers”. market corporate debt amount carrying a repaya-while the amount of tax total return comprised of The firm added that a asset class is the next sig- ble tax credit, in an attemptcollected by the charge income and capital growth, core objective is to capture nificant ‘structural’ compo- to secure “repayment”also fell, to £153m in by investing primarily in the structural premium nent within the emerging from the exchequer of tax2009/10. corporate debt and related available from emerging market universe.” that had not been paid. • Good investment options • No NZ tax on fund income or gains. Benefits also tax free QROPS Advisors NZ Endeavour Fund fully complies with new QROPS • Advisory fees can be negotiated regulations in force from April 6, 2012 • Trail commission for on-going service To find out more visit: or email: info@nzendeavour.com10 INTERNATIONAL ADVISER [] APRIL 2011
  • 10. 5.9%* yield and market-beating performance When talented people work together and share their ideas they find fresh perspectives and new investment opportunities. You can see this philosophy INVESTMENT PERSPECTIVE: New technology is opening up at work in the outstanding performance of our Global Equity Income Fund. vast oil and gas reserves across the USA but since production Global Equity Since launch peaked in 1969 there has been little growth in the industry’s 1 yr 2 yr 3 yr 4 yr distribution infrastructure. Income Fund July 2007 Fund -4.5% 17.3% 39.0% 12.1% 14.6% The manager of the Global Equity Income Fund spotted this opportunity and, after sharing ideas with our commodities team, MSCI World Index -6.2% 9.6% 32.1% 6.4% 9.1% became a keen investor in an oil and gas pipeline manufacturer. Sector -9.7% 4.9% 30.0% -1.8% -0.2% With an American network of oil and gas pipelines that is already Quartile 1st 1st 1st 1st 1st over 50,000 miles long – enough to go twice round the equator – the company is expanding to meet the increase in demand. Please remember that past performance is not a guide to future returns. This is just one of the outstanding investments behind the Fund’s All data as at 31.12.2011 unless otherwise shown and all Fund performance success and shows how we continually strive to out-think and is net of charges including comparison with index. Fund is in IMA Global out-perform for our clients. Growth Sector. The Fund is managed against the benchmark and the sector is included for comparative purposes only. Out-think. Out-perform. information Information for investment professionals only. *Fund has an historic yield of 5.9% as at 31.12.2011 The value of investments and any income from them can go down as well as up. Threadneedle SpecialistInvestment Funds ICVC (“TSIF”) is an open-ended investment company structured as an umbrella company, incorporated in England and Wales, authorised and regulated in the UK by the Financial Services Authority (FSA) as a UCITSscheme. The value of investments can fall as well as rise and investors might not get back the sum originally invested, especially if investments are not held for the long term. Where investments are made in assets that are denominatedin foreign currency, changes in exchange rates may affect the value of the investments. The Fund may exhibit significant price volatility. Subscriptions to a Fund may only be made on the basis of the current Prospectus or SimplifiedProspectus (to be replaced by the Key Investor Information Document in 2012) and the latest annual or interim reports, which can be obtained free of charge on request. Please refer to the ‘Risk Factors’ section of the Prospectus for allrisks applicable to investing in any fund and specifically this Fund. This material is for information only and does not constitute an offer or solicitation of an order to buy or sell any securities or other financial instruments, or to provideinvestment advice or services. The mention of any specific shares or bonds should not be taken as a recommendation to deal. The research and analysis included in this document has been produced by Threadneedle Investments for itsown investment management activities, may have been acted upon prior to publication and is made available here incidentally. Any opinions expressed are made as at the date of publication but are subject to change without notice.Information obtained from external sources is believed to be reliable but its accuracy or completeness cannot be guaranteed. This document is a marketing communication. The research and analysis included in this document havenot been prepared in accordance with the legal requirements designed to promote its independence and have been produced by Threadneedle Investments for its own investment management activities, may have been acted uponprior to publication and is made available here incidentally. Any opinions expressed are made as at the date of publication but are subject to change without notice. Information obtained from external sources is believed to be reliablebut its accuracy or completeness cannot be guaranteed. Issued by Threadneedle Investment Services Limited. Registered in England and Wales, Registered No. 3701768, St Mary Axe, London EC3A 8JQ, United Kingdom. Authorisedand regulated in the UK by the Financial Services Authority. Threadneedle Investments is a brand name and both the Threadneedle Investments name and logo are trademarks or registered trademarks of the Threadneedle group ofcompanies. AD0083
  • 11. NEWSShift to Shariahmodel ‘could Jupiter to launch offshoreincrease value’BY HELEN BURGGRAF strategic bond for Bezalel BY SIMON DANAHER The UK-domiciled unit the fund is to “achieve aConverting a financial serv- trust, which the new fund high income with the pros-ices business to a Shariah- Jupiter Asset Management will mirror, is one of the pect of capital growth bycompliant model could is to launch an offshore company’s more popular seeking out the best oppor- Fuhr: ETF growth tremendousincrease the value of a mirror of its high perform- funds, with assets under tunities within the fixedcompany by 18% to 25%, ing Strategic Bond Fund management at the end of interest universe globally”.due to the current scarcityof genuine Islamic invest- for manager Ariel Bezalel. The new fund will be January of £695m. Launched in June 2008, The fund is currently weighted towards the mid- Fuhr sets upments, a report issued bySwitzerland-based Bank part of the company’s Luxembourg-domiciled the fund has achieved con- sistently strong perform- rated bond range, with a total allocation of around independent ETFSarasin concludes. However, the third edi- Jupiter Global Funds Sicav. Euro-denominated, it will ance through investment in a mixture of high and mid- 50% towards bonds rated between BBB and B. research firmtion of the Bank Sarasin offer investors the choice rated government and In geographic terms, the BY ESTHER ARMSTRONGIslamic Wealth Management of four currencies: the company bonds from fund has its highest weight-Report notes that there are euro, the dollar, Swiss across the world. ing towards the UK and Former BlackRock ETFrisks involved, as convert- franc or sterling. The stated objective of Europe. guru Deborah Fuhr hasing a business to Islamic established an independ-principles is “complex”, ent research and consul-and there are many issues tancy firm, ETF Globalto consider, including the Insight, aimed at providingbusiness’s location. services to the rapidly For example, “a butcher expanding exchange-trad-in Germany who might ed fund industry.wish to be publicly Fuhr and her long-declared halal to attract We’re not here established team will pub-new or different types ofcustomers would need to to make waves. lish independent research on the industry and itsaddress many issues”, it products, as well as com-says, that a company based We’re here to petitor analysis and assist-in Saudi Arabia might not navigate you ance to investors on prod-need to. uct comparison. The Sarasin Group, safely through them. She was previouslywhich has its roots as a global head of ETF researchSwiss private bank, and implementation strate-launched a full range of Asset management for institutions gy and a managing directorShariah-compliant banking at BlackRock (and Barclays and private clients. tminvestment.comproducts and services in Global Investors) from2009. 2008 to 2011. These now include Co-founders Shaneestate and succession plan- Kelly and Matthew Murrayning and financing and are both former-Merrillasset management servic- Lynch and BlackRockes, including money employees, where theymarket and structured worked under Fuhr.products such as Wakala Sir Robin Knox-Johnston. Fuhr said: “Having cov-Murabaha and Maraya. The first man to sail single-handedly around the globe, non-stop. ered the ETF industry since The most compelling Thomas Miller Investment Ltd is authorised and regulated by the Financial Services Authority No 189829. 1997 when there were onlyargument for businesses to Calls may be recorded. Clients are advised that the value of investments can go down as well as up. 21 products and $21bngo after the Muslim market AUM, I believe ETFs haveis its size, the report notes, been one of the most suc-pointing out that it accountsfor around 23% of the IoM targets Asia with new Singapore office cessful financial products of the past 25’s population, or 1.9 BY MARK BATTERSBY growing number of its busi- founder members and it “While asset growth inbillion people “across 112 ness interests in the region. will have a stand at the ETF industry has beencountries”. The Isle of Man govern- A key player with a Singapore’s yacht show. tremendous, regulators, The Muslim population ment is building its com- presence in Singapore is Anne Blythe, senior reg- ETF mangers, index pro-is expected to increase by mercial ties with Singapore the Isle of Man Ship Registry istrar at the Isle of Man Ship viders and all of the mem-26% to 2030 to approxi- by opening a representative which, since 2009, has put Registry, said the show bers of the ETF eco-systemmately 2.2 billion. In office in the country’s cen- its flag on 20 vessels oper- attracts high net worth indi- have been citing the neednumerical terms, the 1.9 tral business district. ated from Singapore. viduals and hopes fiduciary for more and better inde-million Muslims of 2010 Based in Raffles Place, Earlier this year, the reg- services and other business- pendent education,will beget a further 300 the ambitious plan is for the istry joined the Asia Pacific es from the island will research and customisedmillion. Isle of Man to represent a Superyacht Association as come over for the event. assistance to investors.”APRIL 2012 [] INTERNATIONAL ADVISER 13
  • 12. Fortunately, our Multi Asset Fundsare ideally suited to the climate. 2008Like the Inuits, our investment managers Ashburton’s Multi Asset Investment Style* 2005 Lehmans Bros 1400 a 30 year track record Global Collapseknow how to survive and flourish in an Credit Bubble 1200 % Growthadverse climate, finding shelter when 2001 1000it’s needed and making the most of any 9/11 9/11 2007 Global 1994opportunities that present themselves. Bond Liquidity Crunch 800 Crisis 2010Multi Asset Funds. Welcome to our territory. 1987 Black 1990 1999 EU debt crisis 600 Recession Monday Bubble 400 1997 China becomes Asian No.2 Economy 1992 Scan the code to find out more UK leaves Crisis 200 ERM or email 0 81 83 85 87 89 91 93 95 97 99 01 03 05 07 09 11*The Replica Sterling Asset Management Fund was launched in February 1992. The Fund’s investment policy and portfolio content replicated the existing Ashburton Sterling Asset Management Personal Portfolio.The above graph details average performance of the Sterling Asset Management Personal Portfolio (Jan 1981 - Jan 1992) continued by the Replica Sterling Asset Management Fund from its launch December 2011.www.ashburton.comA member of the FirstRand Group Active Investment Managers Scan the code to find out more. Find us This advertisement is for professional financial advisors only and should not be relied upon by private investors. Issued by Ashburton (Jersey) on Linkedin. Search Limited, PO Box 239, 17 Hilary Street, St Helier, Jersey JE4 8SJ, Channel Islands. Regulated by the Jersey Financial Services Commission. The value of ‘Ashburton (Jersey)’. investments and the income from them can go down as well as up and you may not recover the amount of your original investment. Past performance is not necessarily a guide to future returns. Where an investment involves exposure to a currency other than that in which it is denominated, changes in exchange rates may cause the value to go up or down.
  • 13. BANK NEWS US banking giant Wells Fargo Guernsey bank deposits fall in plans international expansion fourth quarter BY HELEN BURGGRAF BY SIMON DANAHER which Wells acquired in 2008. Total deposits held with Wells Fargo has reportedly Under its strategy, Wells Guernsey banks at the endMazaud: moving up drawn up plans to build its is expected to open full of December 2011 were international operations. corporate banking services down by 6%, or £6.7bn The bank, the largest in 20 countries including ($9.8bn), from the end ofSoc Gen names such institution in the US by market value, wants to the UK, Germany, the Netherlands, France, China, September, and 3.1% from a year earlier, as two banksnew head of expand into 20 markets, providing full corporate Hong Kong, Australia, Japan, India, South Korea surrendered their licences and the low interest rateprivate banking banking services to its US customers as they grow Yorke: leading the charge and Singapore. The drive is reportedly being led by environment continued to put people off keepingBY GARY CORCORAN globally. Richard Yorke, the former money on deposit. Last year the company not publish a financial chief executive of HSBC Total deposits wereJean-François Mazaud has saw net revenue of just breakdown of its business China who joined the com- £107.5bn in December,been promoted to head under $81bn – a small pro- by geography, it is esti- pany in 2010. compared with £111bn atSociété Générale Private portion of which was gen- mated that just 2% of its Wells Fargo, which was the end of 2010.Banking, reporting to erated outside of the US. 260,000 employees are founded in 1852 by Henry Total assets and liabili-Jacques Ripoll, who leads Tellingly, the company’s located outside of the US. Wells and William Fargo, ties decreased by £5.9bn,the group’s private bank- full-year and quarterly The majority of these over- had 70 million customers or 4%, to £133.6bn overing, asset management and results are split into East seas workers are based in and assets of $1.3trn at the the quarter, although thissecurities services division. and West US components. representative offices end of 2011. It had a market was just 0.4% lower than a Mazaud took on the While Wells Fargo does inherited from Wachovia, value of some $145bn. year before, data releasedrole last month from Daniel by the Guernsey FinancialTruchi, who “decided to Services Commissionpursue new opportunitiesin the financial sector out- Lloyds TSB Int’l closes Hong Kong office shows. Swiss fiduciary depositsside Société Générale”. Lloyds TSB International Kong, “in the near term”. The Hong Kong branch – a tax-efficient product He moved up from his has closed its representa- It said existing custom- of Lloyds TSB remains offered by banks whichposition as deputy head of tive office in Hong Kong, ers would not be affected open. It is understood that enables Swiss taxpayers toglobal finance for Société as part of a strategy to only and will continue to be six jobs were under threat take advantage ofGénérale Corporate and focus on geographies serviced by the “Lloyds TSB owing to the closure, four European trust arrange-Investment Banking, a where it believes it can International Offshore employees have been relo- ments, and an importantposition he took on in “build scale”. Centre in the Isle of Man” cated within the business component of Guernsey’s2008. In a statement, Lloyds and by “24/7 banking”, and two have been made total deposit picture – were Mazaud was also said that its decision fol- adding that relationships redundant. among the categories ofappointed to the private lowed the group’s aim to with Asian-based interme- The closure came short- deposit affected by the lowbanking, asset manage- “focus on geographies diaries are now serviced by ly before the Lloyds bank- interest rate environment,ment and securities servic- where it can invest and a “dedicated relationship ing group announced a according to Philip Marr,es executive committee, build scale from its existing management team in the £3.5bn ($5.5bn) loss, director of banking.and to the general manage- position”. Isle of Man”. although the company did They fell by £1.6bn inment committee of Société The company added It was not clear whether not link the two events in the quarter to £37.7bn inGénérale group. that it did not believe this the relationship manage- its statement. December, representing He began his career in strategy was possible for ment team in the Isle of The Lloyds TSB 35% of all deposits, with1991 as a manager at Bank the representative office Man would work hours International Mortgage seven banks in GuernseyIndosuez in Paris, and later servicing the wealth and compatible with the seven- Service is unaffected by the active in this area ofmoved to Tokyo. investment market in Hong hour time difference. change. business. Wealth Management Getting the right balance is a fine art. is easy when you know how. * To make your move to the Best International Wealth Provider*, please call 0800 289936 or visit Fairbairn Private Bank is a registered trade name of Fairbairn Private Bank (IOM) Limited. Fairbairn Private Bank (IOM) Limited is licensed by the Isle of Man Financial Supervision Commission. Registered office: St Mary’s Court 20 Hill Street Douglas Isle of Man. The London office is authorised and regulated in the UK by the Financial Services Authority. UK Financial Services Authority registration number: Fairbairn Private Bank (IOM) Limited 313189 (INTA) distinctly differentAPRIL 2012 [] INTERNATIONAL ADVISER 15
  • 14. FUND NEWSDeutscheset to sell to New Lux laws halt launch Aberdeen to run BrazilGuggenheim of SIFs prior to approval portfoliosBY WILL JACKSON BY SIMON DANAHER ing those launching the sibility for funds to launch BY ESTHER ARMSTRONG funds to receive approval before receiving formalDeutsche Bank has entered The Luxembourg Parlia- prior to carrying out their authorisation from the reg- Aberdeen Assetinto exclusive negotiations ment has adopted a law activities. This requirement ulator (which often takes Management will make itswith US-headquartered which tightens the regime will slow down the process three months), Gibraltar first foray into managingfinancial services firm regulating specialised through which SIFs have emerges as the fund juris- Brazil-specific mandates,Guggenheim Partners, investment funds (SIFs). been brought to market diction within the EU that following its appointmentregarding the sale of sev- In part, the changes since their introduction has the quickest potential as adviser on two Crediteral parts of its asset man- anticipate requirements under the Luxembourg law time to market for a fund. Suisse funds investing solelyagement division. due to be introduced by of 13 Feb 2007. “Under the Gibraltar in the country. The proposed deal the Alternative Investment According to James Experienced Investor Fund Both funds will beencompasses: DWS Fund Managers directive – Lasry, head of funds at (EIF) regime, a fund can merged into Aberdeen’sAmericas, the Americas specifically with regards to international law firm launch on the basis of opin- Luxembourg-domiciledmutual fund business; DB risk management, conflicts Hassans, the change may ion from senior Gibraltar Aberdeen Global Sicav inAdvisors, the global insti- of interest and the delega- make other fund juris- counsel stating that the fund June, but Aberdeen willtutional asset management tion of third parties. dictions more attractive, has been set up in accord- manage them from 2 April.arm; Deutsche Insurance The most significant including Gibraltar where ance with the EIF regula- The $94m Credit SuisseAsset Management; and part of the law, which was his firm is based. tions [provided] that within Equity Fund Brazil andRREEF, the global alter- passed on 6 March, strength- Lasry wrote: “As a result 14 days of launch it notifies $153m Credit Suisse Bondnative asset management ens the regulatory frame- of the new Luxembourg the regulator with copies of Fund Brazil will be knownoperation. work for SIFs by requir- law, that removes the pos- all the documents.” as Aberdeen Global – Brazil However, the sale will Equity and Aberdeen Globalexclude the DWS franchise Jupiter expands with new Zurich office – Brazil Bond Germany, Europe and Aberdeen’s globalAsia, which Deutsche said emerging markets team,it considers a core part of Jupiter Asset Management Kevin Scott, executive headed by Devan Kaloo,its retail offering. has opened a represent- director international at will run the Brazil equity The negotiations ative office in Zurich, Jupiter, said: “The open- strategy. The emergingfollow the announcement Switzerland. ing of our Munich office market debt team, led byof a strategic review last Headed by Evelyn in 2010 signalled Jupiter’s Brett Diment, will manageNovember, in which the Lederle as senior sales man- commitment to extending the bond said it remained com- ager, the office extends the our presence in the region. Diment said: “Frommitted to asset management reach of the firm’s continen- Evelyn’s appointment and a fixed-income perspectivebut wanted to “maintain an tal sales team, which is led the opening of our new Latin American economies,optimal business mix”. from Munich by European Zurich office is an impor- and in particular Brazil, In particular, the firm sales director Martina Lederle: extra European reach tant step towards growing have weathered the globalsaid it was focusing on Guenzl. our business in Switzerland. financial crisis well. Yet thehow regulatory changes Jupiter said the open- in Europe, including pri- We see the considered yields available remain atand the associated costs ing “reflects the growing vate banks, funds of funds, expansion of our interna- a premium to those offeredwere affecting its growth demand” for its products family offices and wealth tional business as crucial to by fundamentally weakerprospects. from professional buyers managers. Jupiter’s overall strategy.” G7 nation bonds.” Fund launch round-up Man Group launches Fund managed by Insight of its Strategic Bond to a US strategy it has Markets Fund will target a Commodities Fund Investment Management. Fund for manager Ariel been running for nearly number of “high growth” Man Group has unveiled The Dublin-domiciled Bezalel. Jupiter said it 25 years. The portfolio countries, specifically a Ucits-compliant Ucits fund aims to hopes to make the fund will be run by Alan those with GDP forecast Commodities Fund for generate a total return available in Q2 2012. The Muschott, who has lead- to grow at more than 4% retail and institutional comprised of income UK-domiciled unit trust managed the US Franklin over the next ten years. investors. The fund was and capital growth, by had £695m in AUM in Convertible Securities fund launched with $50m of investing in corporate January. See page 13 for since 2002. Schroders launches new seed assets and is actively debt issued in EMs. See more details. European Total Return Fund traded. See page 9 for page 10 for more details. Focused frontier portfolio Schroders has launched more details. Franklin brings global unveiled by Renaissance a European Total Return Jupiter to launch offshore convertible fund to Europe Renaissance Asset Fund for new recruit ‘Best ideas’ EM Corporate strategic fund for Bezalel Managers has added a Nicholette MacDonald- Franklin Templeton will Debt Fund from BNY Mellon Jupiter Asset Management frontier markets fund to Brown. The fund aims to launch its first global its Luxembourg Sicav. offer access to long-term BNY Mellon has launched will launch a Luxembourg- convertible securities The Ucits IV-compliant capital growth in the an EM Corporate Debt domiciled version Sicav, a fund similar Renaissance Frontier region.16 INTERNATIONAL ADVISER [] APRIL 2012
  • 15. ADVISER INTERNATIONAL Hong Kong Expert Investor Forum FOUR SEASONS HOTEL, HONG KONG 10 MAY 2012 a date for the diary For a place at this exclusive, one-day educational investment forum, featuring some of the top fund managers in the world, email: angela.yong@lastwordmedia.comHot investment strategies... ...a great networking opportunityl Are China and India still the dominant emerging l Meet and talk to some of the most respected markets for investors today or should they be looking fund managers in the world further afield? l See a mixture of mainstream managersl And what about the Western developed world? With its and boutique specialists economies drowning in debt, what opportunities, if any, l Meet respected investment professionals do they offer? and associates, locally and globallyl Where should investors look for those ever-diminishing l Attendance is by invitation only sources of income and are there non-traditional asset classes or regions investors should be considering? in association with For more information, contact events manager Angela Yong email: Telephone: +65 6222 1596
  • 16. For superior performanceyou need a reliableteam behind you. SponsorWe appreciate that as a Financial Adviser, your clients rely heavily on you To find out how Generali can help you,to deliver high quality advice and seamless service. To perform to the level telephone your nearest regional office/branch:your role demands on a consistent basis, you need to have a team behind Europe/Latin America: +353 (0) 45 906 0222you that you can rely upon. Middle East/Africa: +357 (0) 22 661418 Far East: +852 2526 1899Generali International has proven international expertise, a long pedigree Singapore branch: +65 66729152and a range of award-winning products that can give you the top classsupport you need to perform to your full potential.
  • 17. LIFE NEWSSkandia unveils ‘end-to-end’wealth management service Offshore bond sales in UKBY SIMON DANAHER ries in which it operates. The company said it will fall more than 7% in 2011Skandia International has “power Skandia’s offshore BY HELEN BURGGRAF worth in 2010, according The 2011 total looksunveiled plans for a new proposition into the UK” by to data released in March respectable next to thewealth management serv- providing products compli- Total new business sales of by the Association of 2009 result, which wasice, which it intends to roll ant with the impending UK distributed offshore British Insurers, which barely above £4.6bn.out during the course of Retail Distribution Review bonds last year came in obtains it from the 11 major Offshore bond industrythis year. which comes into effect on more than 7% below 2010 insurance companies active experts cite various possi- The company, which 1 January next year. levels, after what industry in the market. ble reasons for the declinealso revealed a 16% increase From Q2 this year, experts said was a difficult Sales of regular premi- in offshore bond salesin profits for 2011, said the Wealth Interactive will be 12 months for those in the um offshore bonds in par- from 2010 levels, includingnew “end-to-end” wealth launched via a phased pro- business of marketing ticular lost their way in the a decline in consumer con-management service, called gramme on a region by these tax-efficient long- fourth quarter, plunging fidence and uncertaintyWealth Interactive, is being region basis. Over time, all term investment products. 51% compared with the about the future directionlaunched in response to of Skandia’s existing portfo- In total, some £5.96bn same three-month period of global financialchanges in regulatory envi- lio bond business will ($9.44bn) worth of off- in 2010, although single- markets.ronments around the world. become integrated with the shore bonds were sold into premium offshore bonds Few were able to offer Skandia International new service. the UK market in 2011, fell by more than 25% in an explanation for the dra-has so far invested more Steven Levin, chief exec- compared with £6.44bn the quarter (see chart). matic decline in the fourththan £21m ($33m) on the utive at Skandia, said: quarter, particularly in reg-service which it said will “Historically customers UK OFFSHORE BOND SALES ular-premium product“re-engineer the way it have had a rather fragment- sales, although it was 2010 2011works with financial advis- ed view of their offshore noted that this was a timeers and customers” in par- wealth and the internation- Single prem Reg prem Single prem Reg prem of constant media cover-ticular, through being able al nature of our industry Q4 £1.6bn £10.8m £1.2bn £5.3m age of the European singleto respond more quickly to has inhibited the develop- currency’s problems, and -25.3% -51%the needs of investors ment of really efficient busi- the related sovereign debtacross the multiple territo- ness models.” Source: Association of British Insurers. NB: New UK distributed business. crisis in Greece.
  • 18. » » » » » » »Financial Strength Rating A M BEST B++ Good
  • 19. LIFE TRENDS SKANDIA INTERNATIONAL analysisAn Interactive way forwardHeading up the imminent launch of a service called Wealth Interactive, Skandia’s MichelleAndrews explains how the essential requirement for investment analysis is to make sure alldata is used only once but effectively, ensuring advice is supported throughout the processSkandia International will UK platforms. But out- “launch a new service side of the UK, platforms W We have built acalled Wealth Interactive in and wraps mean differentthe second quarter of 2012. things to different people. configurable systemWhat are the key features of So we have purposely where we can rapidlythis offering? not called it a wrap orEssentially, we have a platform. This is a re- and intuitivelyre-engineered the back engineering of what roll out changesoffice, but at the same Skandia International does,time made sure that what particularly with its portfo- in response tofinancial advisers see at the lio bonds. regulatory demands,front end is consistent and What we are offering isseamless. a series of services that will without significant IT ” When the adviser does significantly upgrade what interventionanalysis for his client, using we do today – as opposedthe tools we are introduc- to launching something thating, that information will is completely used only once. So he will start by doing The service is designedanalysis on fund-profiling to help advisers cope withand attitudes to risk, for regulatory changes aroundexample, and all of that the world. How will it help ininformation can be re-used this regard?and reconfigured. We need to be able to The feedback we had demonstrate our ability tofrom advisers was that the react quickly to regula-offshore business model, tory change, across mul- starting in the second quar- ent and high net worthparticularly in the portfolio tiple markets. We have ter. Where will we see it first? investors in the single-bond space, where we play built a configurable system We have got some key premium investment spacemost, is often clunky. where we can rapidly and milestones that are hard- – building on estate plan- So we will be streamlin- intuitively roll out changes coded into the plans. One ning, wealth planning, anding all of that – making sure in response to regulatory area is the RDR, and we security for high net worthdata is used once and used demands, without signifi- are focused on ensuring we individuals.effectively, and adding cant IT intervention. have a broad set of solu- In 2011, more than 60%tools and services so the There is probably no tions for the UK market. of our business was port-advice process is supported better example [of where folio bond business, for BIOGRAPHYthe whole way through. this is needed] than the Skandia International’s 2011 example, and 70% was UK, given what is going on results showed net and gross single-premium business. Michelle Andrews is the commercial director atIs Wealth Interactive a with the Retail Distribution inflows were down slightly on Skandia International andplatform or a wrap? Review [RDR]. Not every- 2010. How did sales break Other groups reported is responsible for globalIn the UK it will probably thing is clear yet – we down in terms of regular- and single-premium business marketing, businessbe labelled an offshore know in which direction single-premium products? was hard to come by, particu- development and productplatform, given the nature the review is heading and Over the past three or larly towards the end of the law. She is also on theof the market – a platform what it aims to achieve, but four years, while we have year. Did you see a significant boards of Royal Skandia Lifeis an understood concept it has not been ironed out maintained a presence drop-off in the fourth quarter? Assurance Company, Royalin the UK. Therefore, we in fine detail. in the regular-premium We saw a slowing in the Skandia Trust Company, Skandia Global Fundscan position what we are market, we have focused fourth quarter, but I would and Skandia Internationaldoing from an offshore Wealth Interactive will be on developing the wealth not say it was a significant Middle East.perspective alongside the rolled out region-by-region, proposition for more afflu- drop.APRIL 2012 [] INTERNATIONAL ADVISER 21
  • 20. LIFE TRENDS SKANDIA INTERNATIONAL“ In South Africa, One of the big areas net inflows were going Did any third-party groups What are your priorities in we focus on is wealth into cash and fixed inter- stand out last year, in terms terms of the Skandia productwe saw significant planning. So we have our est, for Asia. And a sig- of demand for their fund range this year?demand for protected own trust company, and nificant amount of it was ranges? We have invested a sig- we focus a lot on manag- coming from Hong Kong The popularity of fund nificant amount in Wealthsolutions, where ing people’s wealth in the and Chinese equity funds. groups reflects demand Interactive, so rolling that mature stages of life. Which, given the volatility, from the clients for par- out and encouraging advis-clients have some In addition, a major area is not surprising. ticular asset types. So we ers to try it will be a majorcertainty about what for Skandia International But it was interesting saw good inflows going focus. has been QROPS, which is to see these clients have into the likes of Franklin We will continue tothey are going to recycled money – money moved away from their tra- Templeton, for its fixed develop protected solutions ”get back that has already been invest- ditional heartland of the interest capabilities, and and we are working on ed in a pension scheme equity markets, and particu- Pictet and BlackRock one or two other product and where clients are look- larly in relation to China. for gold. Also Invesco areas. Because a lot of our ing to improve their retire- We see similar trends Perpetual, because it has a business has moved into ment capability while living in other markets. In South good range of asset classes the single-premium space, outside of the UK. Africa, we saw significant and it is an internationally we are looking at where We saw significant demand for protected solu- well-known name. we can leverage off the growth in underlying invest- tions, where clients have It is probably unfair to high net worth investment ment QROPS business in some certainty about what pick out particular names positioning that we have, 2011, and that helped us in they are going to get back. because we hold a lot of and what wealthy individu- our single-premium busi- As a consequence, we assets from a significant als are likely to buy. ness through the year. launched some capital- number of fund groups. The other area [of con- protected funds to meet sideration] is where we are On underlying fund selection, those needs. Even in the Are investors returning to equi- going to prioritise from a cash and bond funds account- Middle East, where short- ties in significant numbers? market perspective. ed for half of all money term volatility is normally We are seeing outflows We are not going to invested into Skandia’s prod- tolerated, we have seen – I would describe them change our market strategy ucts in 2011. Were they the a greater interest in wanting as steady outflows – from – it works very well for top-selling sectors through- to control that volatility. cash. So it implies investors us. Our core markets – the out the year? are starting to feel more UK, Middle East, Europe, We saw a real shift towards Skandia launched a protected confident. Asia, which incorporates those assets in Q3 and it FTSE 100 fund in January. We are seeing sectors Hong Kong and northeast continued into Q4 – there Will you roll out more of that such as US equity, man- Asia, as well as Singapore was a definite shift towards type of product in future? aged funds, and emerging and southeast Asia, Latin cash, fixed interest and Demand existed last year markets benefitting among America and Europe, which gold. It eased a bit by the because of stock market others. includes Sweden – will end of the year. volatility. But we know So there is a greater remain core markets for us We have seen a little bit that even when it stabilises, appetite for equities. But in 2012. more recently going into investor sentiment lags and I would say it is steady at equity-based assets. remains nervous – that is an the moment, as opposed to Are there areas in which Skandia old adage but it is true. a real shift. is deploying more resources, in Were you able to distinguish So there is ongoing terms of marketing? any differences in risk appe- demand for assets that Have you noticed any other We are boosting our com- tite, region-to-region? are understandable and trends in fund selection? mercial staff. So we are in In Asia, typically one sees that give some downside Fixed interest funds are the stages of building in that Chinese, or Hong protection. still popular. We are also more product capability, to Kong Chinese, investors We launched a product seeing some interest in make sure we can develop are quite bullish on equi- for the UK and a protected areas such as healthcare, and launch a proposition ties – it is the reported fund for South Africa ear- energy, biotech and, to across our markets. And norm for an Asian investor. lier this year. We antici- some extent, gold. hand-in-hand with that, When I looked at the pate rolling out more of In the confidence survey we are also recruiting and data this time, there were them internationally, or in we did in the second half developing sales staff. dramatic changes in Hong specific markets where we of last year, advisers indi- Our most recent recruit Kong investor saving need to do that. And we cated gold was likely to was to support the business behaviour in 2011. We saw are looking at what we can be heading towards bubble in Europe which, as I men- a lot of switching into cash. do on a fund basis, as well territory. But it is still being tioned, was one of those In fact, for our as on a tranche-based basis, bought at the moment. It markets that saw substan- unit-linked products – that so it is a particular focus will be interesting to see if tial growth in 2011, versus is the non-portfolio bond for us in terms of product demand reduces as we go 2010. We are also boosting range – almost 70% of all development. into Q2. staff numbers in Asia.22 INTERNATIONAL ADVISER [] APRIL 2012
  • 21. Say hello toSEB Life International A new beginning...SEB Life International (formerly known as Irish Life International)launched its new brand in February 2012.Why not get to know us at SEB Life International is part of the SEB GroupSEB Life International, Bloodstone Building, Sir John Rogerson’s Quay, Dublin 2, Ireland.Telephone: +353 1 487 07 00 | Fax: +353 1 487 07 04 | E-mail us at: | Visit our website: www.seb.ieSEB Life International Assurance Company Limited, trading as SEB Life International is regulated by the Central Bank of Ireland, P.O. Box 559, Dame Street, Dublin 2, Ireland.SEB Life International Assurance Company Limited is registered in the Republic of Ireland. Registration number 218391.It is the responsibility of intermediaries to ensure that this document is only used or distributed in compliance with laws and regulations applicable in the places where theydo business. SEB Life International Assurance Company Limited does not intend this document to be an advertisement or an offer or a solicitation of business in any placewhere such an advertisement or solicitation would be unlawful. Past performance is not a reliable guide to future performance. The value of your investment may go down aswell as up. You may get back less than you invest. This product may be affected by changes in currency exchange rates. When you speak to us on the phone, some calls maybe monitored or recorded to help improve our quality of service.Some fund management activities are carried on by other companies which do not act independently of SEB Life International Assurance Company Limited.All information is correct as at February 2012 but is subject to change.
  • 22. COUNTRY PROFILE SOUTH AFRICA The land of change KEY FACTS Corporate income tax: 28% Personal income tax: 18%-40% tiered Type of government: Republic BY CHERRY REYNARD given lead responsibility for Size: 1,219,090 km² prudential regulation and South Africa’s international the Financial Services Board Population: 48.8 million ties have left its financial looked after consumer Currency: South African Rand services industry with a protection. ($1 = R7.6) familiar feel. Financial The Association for GDP (PPP): $554.6bn (’11 products are distributed Savings and Investments SA estimate) through a blend of tied (ASISA) was formed in 2008 agents, independent advis- as an amalgamation of vari- Inflation: 5% ers and direct channels. ous representative bodies, Stock of domestic credit: Platforms are common- and now represents the $324.4bn (31 Dec 2011 est.) place, and unit trusts and majority of South Africa’s Regulator: Financial Services Oeics tend to be the prod- asset managers, collective Board ucts of choice for most investment scheme man- investors. agement companies, linked Source: CIA World Factbook Equally, it has left it with investment service provid- some familiar problems – ers, multi-managers, and accusations of commission life insurance companies. bias and a heavy compli- The National Treasury’s ance burden. analysis of the sector in South Africa had a ‘good’ 2011 was unflinching, in crisis, thanks largely to its spite of its decade-long relatively conservative and growth at an average of domestically focused bank- 9.1% (broader economic ing sector, but also to the growth has averaged 3.6%). exchange restrictions that “The South African had limited the holdings of financial sector is character- foreign assets. ised by high and opaque Following a relatively ‘good’ crisis compared The football World Cup fees, and, in some cases, in 2010 also came at a ser- the unfair treatment of cus- South Africa has nevertheless undergone a r endipitous moment, bring- tomers. For savers, particu- ing capital inflows into the larly the poor and vulnera- financial sector, prompting the Government t country at a time when the ble, savings instruments are rest of the world was in limited, expensive and been holding their own, trend. According to ASISA, chaos. Nevertheless, the inappropriate.” they have reduced in tied agents still dominate in crisis did reverse some of number. the mass retail market, but the phenomenal growth l Consistent standard “The compliance burden their influence is waning. seen in the financial servic- has been a tremendous Tied agents’ overall con- es sector over the past ten The result has been the strain on the financial tribution fell 13% from 2002 years and prompt a govern- implementation of a models of advisers, which to 2010. Most of this market ment rethink on its ‘Treating Customers Fairly’ has helped tied agents.” was picked up by inde- supervision. initiative, which aims to He says many financial pendent brokers, who create consistent standards advisers have now adopted gained 12.2% market share.“ Very few offshore l New framework of consumer protection. RDR-style changes (the Standard Bank uses In practice, the sector UK’s Retail Distribution internal and external inter-players have a In February 2011, the has developed in a similar Review) to their business mediaries alongside itsregulatory presence National Treasury created a way to the UK. Jaco van models. Product providers direct offering. new framework for South Tonder, sales director at have followed suit, building Michael Nudlbichler,in South Africa – the African financial services. In Investec Asset Manage- an advice fee component head of offshore services atmarket is not open to effect, this looked like the ment, says: “Independent into their offering, or reduc- Standard Bank, says there is ‘macroprudential’ type rules financial advisers reached ing high upfront commis- generally a climate of trust ”big foreign groups that had been put in place around 50% of the market sion payments. for financial advisers withinJaco van Tonder, sales director, in a number of the major in the heyday of the 1990s To some extent, this South Africa.Investec Asset Management developed markets. but, although product and seems to have reversed the He adds: “Clients are The Reserve Bank was fund flow-wise they have24 INTERNATIONAL ADVISER [] APRIL 2012
  • 23. profiles growing fast and remain a result of exchange con- relatively under-penetrated trols, which – although South African GDP per capita (projections) in terms of financial servic- diminishing – continue to 10,000 es, particularly long-term influence the market. insurance. South Africans have not 8,000 For example, according been immune to the cli- to Old Mutual analysis, mate of risk aversion that there has been a 46% has been seen globally over 6,000 growth in the retail mass the past few years. Statistics $ market potential over the from ASISA show that, in 4,000 past five years, from 4.11 spite of a strong shift to million in 2006 to 6.0 mil- asset allocation funds in 2,000 lion in 2010. recent years, investors still It says there are an hold the bulk of their 0 increasing number of black money in domestic fixed and young people with interest funds (money 2012 2012 2013 2013 2014 2014 2015 2015 2016 2016 Source: International Monetary Fund. more disposable incomes market, bond, income and in this area. In contrast, the varied specialist funds). top segment of wealth has tain structured products at shown some declines. l Positive start least reduce or eliminate South African investors one of the variables. use a relatively sophisticat- At the end of last year, Of course, South Africa ed range of products. more than 50% of domestic is not without its problems. Nudlbichler says for South assets under management Corruption and crime still Africans, one of the prime were invested in fixed hold back growth across reasons to invest is for interest funds. the country, in spite of diversification. That said, the Domestic government initiatives. “The relaxation of Asset Allocation category The currency can still exchange controls means did better than the Domestic be extremely volatile, infla- investors can look at hedge Fixed Interest Money tion is an issue and there is funds, bonds, equities Market category at the end a crisis in education that within South Africa and of 2011. The former now may continue to derail across various currencies.” holds R277bn ($36bn, or wealth creation. The coun-d to the rest of the world, 28% of the industry), com- try’s political legacy l Trend reversal pared to R252bn for money undoubtedly weighs heavyreversal in growth in the market funds (25% of the across its society. Nudlbichler says the recent industry). This is in spite ofto rethink its supervision crisis also reversed an his- a relatively strong perform- l Projected growth toric trend to look at inter- ance from the commodi- happy to take the direction national providers for ties-heavy South African But through its commodi- of financial advisers. As exposure to these diverse equity market, which is up ties wealth, the country is such, it is a very important asset classes. 81% over the past three exposed to some of the part of our distribution.” He says: “People real- years, helped by a positive fastest-growing regions in Client segmentation ised they never knew what start to 2012. the world. It is projected to KEY POINTS also mirrors the UK market the organisations’ liabilities This puts it substantially grow between 3% and 4% The National Treasury’s – ultra-high net worth and were when investing inter- ahead of many major for the next five years creation of a new framework family office money tends nationally. The exposures developed markets, but it (source: IMF) with per-cap- for South Africa’s financial to be managed by the pri- of the South African banks has been volatile, seeing ita income rising from services in February 2011 vate banks, while the were a lot clearer.” significant falls in 2008 as $8,658 to $9,973 by 2016. has led in part to the wealth of the mass affluent Van Tonder agrees South capital fled the country. It continues to benefit implementation of a ‘treating wealth is spread across dif- Africans tend to use domes- This capital flight also from the commodities customers fairly’ initiative. ferent markets and the tic providers, but adds this put pressure on the cur- wealth across sub-Saharan South Africans use relatively lower end tends to be is also logistical rather than rency, which has been a Africa – its relatively sophisticated products and served by tied agents. necessarily out of choice. perennial problem. sophisticated financial mar- there are an increasing “Very few offshore play- Nudlbichler says that, kets mean companies number of black and young people with more disposable l Retail mass ers have a regulatory pres- among Standard Bank’s across the region continue incomes. ence in South Africa. The product range, structured to use it as a local base. As Of the different markets, market is not open to the products have proved par- with all emerging markets, More than 50% of domestic the ‘retail mass’ and ‘retail big foreign groups.” ticularly popular. Investors the opportunities are sig- assets under management mass affluent’ sectors are He adds this is largely as are trying to hedge market nificant, but they do not were invested in fixed interest funds, as at 31 Dec 2011. and currency risk and cer- come without risk. APRIL 2012 [] INTERNATIONAL ADVISER 25
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  • 25. INTERMEDIARY PROFILE CREECHURCH CAPITAL Man management “ If we get to £200m plus at the end of this year, we are knocking at the door of the biggest guys on the Isle of Man in terms of private client wealth ” John Greenwood,CEO, Creechurch CapitalDomiciled in the Isle of Man, Creechurch Capital is a younginvestment boutique with plenty of aspirations for the island as anoffshore wealth management centre that competes for business withthe same credentials as the Channel Islands and mainland UKBY MARK BATTERSBY director Glen Cochrane, Greenwood says current- wish to build on a level who is on International ly comprises land at one playing field.Although Creechurch Adviser’s intermediary of the old hangars and a Creechurch’s headCapital chief executive panel, have great aspira- 20-year-old jeep to convey office in Douglas, a shortofficer John Greenwood tions for the Isle of Man people to and from there. saunter from the govern-officially resides in the Isle as a wealth management “It has divided opinion ment minister’s building,of Man, he jokes that his centre that competes for because some people who fits perfectly with the imagehome is really Premier Inn. business with the same are not party to the busi- Greenwood is conjuringThat is because he had credentials as the Channel ness community see it as up. Refurbished about 18over 600 meetings in the Islands and mainland UK. pandering to the wealthy.” months ago, it was on theUK last year drumming up This duo has already built verge of being condemnedbusiness for this young up two businesses togeth- l Planning regime before local tradesmanboutique investment house er, one from a start-up transformed it into a verywhich has already built up position, so their words do A lack of available upmar- plush affair with deep pileover £125m in assets under have resonance. ket property or building carpet, solid wood panel-management. Their approach chimes plots due to the island’s ling, and beautiful office “This figure puts us into with new initiatives from protective planning regime views of the Irish sea.the pack of the discretion- the Isle of Man’s latest is another known deter- There are also companyary fund managers. Then chief minister, Alan Bell, rent. However, Greenwood suites in London’s Mayfairif we get to £200m plus who Greenwood says he anticipates in the future and the end of this year, we sees very much as a like- more “accessibility in plan- Given his views it isare knocking at the door of minded businessman. ning” while arguing there perhaps not surprising thatthe biggest guys on the Isle Highly symbolic is is no shortage of space and Greenwood has roots inof Man in terms of private Bell’s plan to build at the done in the right way a Yorkshire and his fatherclient wealth.” island’s airport a new pri- deal could be struck to sat- was a builder. But he was He and his investment vate jet terminal, which isfy the local Manx man’s schooled on the islandAPRIL 2012 [] INTERNATIONAL ADVISER 27
  • 26. INTERMEDIARY PROFILE CREECHURCH CAPITAL and started his career with Creechurch name appear- existing core of investment Natwest, which became ing on the helmet and car professionals, very institu- FACT BOX Coutts, where he worked of one of the drivers in tional minded.” Number of clients: 40 for eight years. the Porsche championship Assets under management: that supports the British l Personal approach £120m plus l Hard graft touring cars this year. That gives Greenwood an The twist with Creechurch, Staff: Ten Fast forward to January last opportunity to go and see majority owned by an Regulator: Licensed by year when the full team all the motorsport events Isle of Man businessman, the Financial Supervision of ten came together at at such venues as Brands Douglas Barrowman, is to Commission of the Isle of Man Creechurch, having been Hatch from the clubbable get back to an old fash- Head office: Isle of Man licensed in the previous atmosphere of the Porsche ioned personal approach“ We are risk- year. A small number of enclosure. akin to that of Coutts but Number of offices: Three, clients found them, to the Greenwood departs for also keen to marry up comprising Isle of Man HQ plusaverse because company suites in London and value of £25m, but the rest another of his many meet- some modern investment Manchesterhistorically we have came from the sheer hard ings as Cochrane explains techniques. work of numerous face-to- how he moved to the Isle Cochrane designsrun institutional face meetings. of Man from Northern the investment strategy, investment managementmandates. We All clients need to have Ireland, aged 13, jesting describing himself as agreement can be severed investable assets of at least that he is slightly disowned someone who challenges but their account staysare minded to be £500,000 and Greenwood by his family for his lack of the consensus opinion there.” He says this modelconservative but gives an example of some- emerald-isle accent. with evident keenness in is similar to how it works one working in the City “I think they wanted having a team around him in Europe where invest-when we have of London, introduced a fresh start. My father who are made up of differ- ment management firmsconviction on a trade through a professional had a business in Northern ing investment views. do not own assets as such. connection tax consultant, Ireland and he had lived The approach is corewe will stick by itGlen Cochrane, investment ”director, Creechurch Capital who has around £4m in a variety of structures includ- ing a qualifying non UK pension scheme (QNUP) through a lot of the trou- bles there – he wanted something better for the family. You have to be a satellite and top down, so the focus is on the macro picture and score cards for the asset classes to deter- l Engine room Geographically, the inten- tion is always to have and self invested personal bit guarded growing up in mine the positives and Creechurch’s headquarters pension (Sipp). Having an environment like that.” negatives. in the Isle of Man per- gone to the big players and On the career front, he “We are risk-averse forming the function of an offered uninspiring off-the- had no desire to get into because historically we engine room, but with the shelf solutions, he turned financial services but the have run institutional man- client activity focused on to Creechurch, looking for dealing room interested dates. We are minded to be the UK and in time, other something a little different. him and he found oppor- conservative but when we parts of the world such as “We simplify the struc- tunity to learn the business have conviction on a trade the Far East. ture and go out of our way at Coutts. we will stick by that.” The next exciting salvo to make the process very Their paths first con- Not only that, as new is an application for FSA KEY POINTS smooth, because these are verged when Greenwood entrants to the investment authorisation, currently very busy guys. What one was setting up the Isle market, the wish to take the in the pipeline, to enable Creechurch Capital is a client once said to me was of Man’s Jardine Matheson fear away from investors Creechurch to market port- fast-growing investment he was a wealthy guy, but business and Cochrane was reinforced by setting folio management to UK boutique with a team of ten, he wanted to be treated applied to get involved. up a custodial relationship based advisers who are cur- working out of its Isle of Man headquarters but with clients like a very wealthy person. This therefore marked the with RBC Guernsey, one of rently battling with the RDR mostly in the UK. We do service on a high beginning of their com- the largest fund custodians and considering options for personal level.” bined skill set in creating in the Channel Islands. outsourcing the investment Clients have upwards of a fresh idea and bringing it Cochrane conducted side of the business. £500,000 in investable assets and they are often looking for l Attention to quality to market. a beauty parade prior to Greenwood highlights something a little different, “Creechurch is our third appointing them and he how this initiative will which the big players cannot There is good evidence reincarnation in trying to was impressed that on a open doors onto wrap offer with off-the-shelf of joined-up thinking in build a financial institu- number of counts, includ- platforms such as Transact solutions. Creechurch’s attention tion. Jardine Matheson ing credit rating and liquid- and Ascentric, where UK The company’s investment to quality marketing and was from zero and we ity, RBC came out as one permissions are required, approach is risk-averse, using literature, making use of had some good success of the safest organisations while Cochrane concludes: core satellite and top-down fine detail photos of the there. Thomas Miller was for client money. “We believe there is a huge analysis, plus a custodial glorious peacock bird and a different animal – their “The client contracts opportunity in the UK once relationship with highly rated its multi-coloured feathers. main business is managing directly with them and if we have that licence to RBC Guernsey as the home for A piece of high end the assets of mutual insur- they don’t like us they market in the UK and to client money. sponsorship also sees the ance companies – with an can say goodbye, and our build that business out.”28 INTERNATIONAL ADVISER [] APRIL 2012
  • 27. ADVERTORIAL MORNINGSTAR OBSRProviding support and advice at allstages of the investment processHardly a week goes by in Should I rely on the toolsthe press without commen- and solutions availabletary on the tougher regula- to me from the Lifetory backdrop which is companies?going to emerge in interna- Should I consider usingtional markets in which an independent invest-IFAs, Wealth Managers and ment research and con- identify suitable funds, or ment process from risk tol-International Life sultancy partner to groups of funds that erance assessment, throughCompanies operate. As a enhance my investment could be used in tandem? asset allocation, fund selec-result of these regulatory proposition? What are Am I offering solutions tion and construction.headwinds, it is notable the pros and cons of this that address different Beyond the skills infirms are adopting the fol- approach? levels of investment selecting and blending “lowing characteristics: How do I create long- expertise among inter- funds, creating model port- Client engagement A desire to create a more lasting “corporate” rela- mediary clients? – some folios, or recommended predictable outcome for tionships with my intermediaries recognise fund shortlists, our new begins with an the customer; customers? they have limited exper- combined capability of understanding of A steady move away How important is the tise; others may be Morningstar OBSR provides from commission to fee quality of the investment sophisticated. its clients with a wider clients’ needs, goals and aspirations ” based models; proposition being offer- Morningstar OBSR, an range of solutions, such as: A move towards evi- ed by the product award-winning provider of State-of-art risk tolerance dence based investment provider? investment solutions, cur- tools and asset Ben Bird, international gover nance/research rently works for many allocation: development director, processes; leading IFAs, wealth man- Morningstar and Ibb- Morningstar OBSR l Key questions To build tangible and agers, platforms and prod- oston Associates, one of lasting value in From the perspective of an uct providers in the UK Morningstar’s registered businesses; International Life Company, and internationally. investment advisers, holds Build a stable client base. some of the key questions Its reputation has devel- two patents for its world- are as follows: oped through the experi- renowned asset allocationl Future investment How comfortable am I ence it has built in inter- techniques. Using our pro- with my existing invest- viewing and selecting fund prietary data to depict long-To this end, a number of ment proposition and managers, but more impor- term historical performanceorganisations are in the quality of underlying tantly, in how it helps cli- and the relationshipsprocess of considering the fund managers? ents understand what a between asset classes, werole played by independ- Would my due diligence manger is trying to achieve can help ensure client stra-ent investment research process stand up to regu- and whether or not we tegic portfolios are allocat-and consulting companies latory scrutiny? Does it believe a fund is likely to ed to meet the development of their sufficiently capture what meet its investment objec- Portfolio planning toolsfuture investment and busi- is happening at the fund tives over the longer term. and on-line deliveryness proposition. level? tools: There are a number of Can I create scalable l Understanding needs Using Morningstar’skey strategic questions solutions and processes skills in technology, datawhich IFAs and Wealth at a central level and still At Morningstar OBSR, and design, we have devel-Managers need to address: offer local nuance? client engagement begins oped tools that enable us Is my investment propo- Does my investment with an understanding of to deliver solutions that sition sufficiently robust? proposition sufficiently the client’s needs, their integrate with our client’s Benjamin Bird, international development director, Morningstar OBSR. If not, what should I do? help the intermediary goals and aspirations. workflow processes. These Through Morningstar’s portfolio planning tools are Mailing address: 1 Oliver’s Yard, 55-71 City Road, London, EC1Y 1HQ acquisition of OBSR in an effective way for clients 2010, the amalgamation of to access fund shortlists, Telephone: +44 (0) 20 3107 2935 these two companies asset allocation models, Fax: +44 (0) 20 3107 0001 means it offers an unparal- fund based models portfo- Email: Manager Portfolio leled range of services to lios and client reporting Asset allocation research construction support all stages of invest- functions. Website: 2012 [] INTERNATIONAL ADVISER 29
  • 28. Wh15p3r We don’t need to shout. Because it seems everyone’s already talking about how fast our business is growing. Visit and see why we’re quietly confident that we’ll soon be every IFA’s offshore provider of choice.Royal London 360 Insurance Company Limited. Registered Office: Royal London House, Cooil Road, Douglas, Isle of Man IM2 2SP, British Isles. Royal London 360 Insurance Company Limitedis authorised by the Isle of Man Government Insurance and Pensions Authority. Registered in the Isle of Man Number 053002C. A Member of the Association of International Life Offices.
  • 29. BANK PROFILE LLOYDS TSB INTERNATIONALLloyds TSB Int’l rides FACT BOX Founded: Through component entities “has had an international presence since 1862 with office locations in Argentina and Brazil” Based: Geneva, also a major office in Jersey Locations: An undisclosed number of offices in “nearly all major expat cities” in “more than ten countries”Home may be where the heart is, but it is not, it seems, where many wealthyBritons intend to stay. So says Lloyds TSB Int’l, which is responding to suchfindings of its own recent surveys with products and services designed tomeet these future expats’ needs, as well as those already living in ExpatlandBY HELEN BURGGRAF (LTSBI), to expand its mated 5.5 million Britons pany is LTSBI, according to range of products and live abroad, or about one Nicholas Boys Smith, whoAffluent Britons are notori- services targeted at Brits in ten of the population. heads up its Internationalously peripatetic, and few abroad, is practically a “Around half [of the Affluent arm, and who,know this as well as Lloyds no-brainer. more than 1,000 wealthy unusually for someone inTSB International. According to LTSBI’s Britons surveyed] think the offshore financial serv- Making use of resources most recent study of that the UK has a worse ices sector, also happens “that its smaller rivals can wealthy Brits still resident quality of life (47%), lower to be a former parliamen- The recentonly envy, the Geneva- in the UK, published in levels of happiness (50%) tary candidate who hasbased arm of Lloyds January, 17% of those and higher stress levels served as a front bench experience we haveBanking Group has com- with at least £250,000 (55%) than other devel- adviser in government and had in the part of themissioned numerous ($395,000) worth of sav- oped countries,” the in opposition.YouGov surveys over the ings and investments study’s authors noted in That is not to say LTSBI business I run haslast few years into the atti- excluding property, report their executive summary. is “about to open uptudes of wealthy Brits still they are considering leav- branches in every town in shown it does notliving in the UK as well as ing the UK to live abroad, l Statistical interest China”, nor is it a simple take a huge amountthose abroad, in an effort to either temporarily or per- matter of “Britain is notunderstand their thinking. manently, in the next two Not surprisingly, such sta- growing, therefore let us to dramatically up our success rate ” A central finding of years, an increase of three tistics are viewed with do stuff abroad”, says Boysall this research suggests percentage points from the interest by companies that Smith, who has been with Nicholas Boys Smith, Lloydsthat the current strategy of last time the survey was cater for wealthy British Lloyds TSB International TSB InternationalLloyds TSB International conducted. Already an esti- expats. And one such com- since 2007 and who has aAPRIL 2012 [] INTERNATIONAL ADVISER 31
  • 30. BANK PROFILE LLOYDS TSB INTERNATIONAL total of 11 years of experi- tised product, the Multi- clients interested in buying occasional setbacks, par- KEY POINTS ence in the wealth man- Strategy Fund, which has property internationally ticularly since the globalLloyds TSB International agement and financial a minimum of just £10,000. for longer than any other downturn that began in(LTSBI) is marking its 150th services sector. (Prior to It’s not yet available in all major UK bank (more than 2008, which saw its parent,year with overseas operations joining LTSBI, he helped geographies, but it will be 30 years), and its multi- the Lloyds Group, becom-by seeking to expand its build a wealth manage- shortly,” Boys Smith says. currency mortgages remain ing part (40%) nationalised.presence globally, in part ment business in China Beyond this, LTSBI among its best-known Most recently, LTSBIthrough the introduction ofnew investment products and and ran part of a private seeks simply to make products. revealed in February thatservices. bank in Geneva.) more expats and soon-to- it had closed a representa- be-expatriate Brits aware l Point of contact tive office in Hong Kong asThe company is a division of of such LTSBI staples as part of a strategy to “focusthe part-nationalised, part- l Almost infinite its international mortgag- Globally, it has offices in on geographies where itLSE-traded Lloyds BankingGroup, created by the mergers But it is hardly a secret the es; its wealth structuring an undisclosed number of can invest and build scaleof Lloyds Bank, Bank of economy in the UK, where solutions team (normally locations in ten countries, from its existing position”,Scotland, Trustee Savings the major share of Lloyds for high net worth cli- which provide a point of and that existing clientsBank and Halifax Bank, among Group’s current business ents with £2m or more in contact to intermediaries there would continue to beothers. is, is not growing as fast investable assets); and its as well as to such “busi- looked after by the LloydsThe company has an as some other parts of the core product, the Premier ness introducers” as corpo- TSB International Offshoreundisclosed number of offices world, or that its bank- International Account, an rations, whose employees Centre in the Isle of Man”in “nearly all major expat ing market is mature and online current account are offered LTSBI prod- and by its online “24/7cities” in “more than ten competitive. which comes with certain ucts and services; its undis- banking” service.countries”, which provide a Meantime, Boys Smith expat-friendly extras such closed number of clients The Hong Kong branchpoint of contact to clients, notes, the opportunity as multi-currency capabili- may, it says, be found of Lloyds TSB remainsintermediaries and “business internationally is “almost ties and worldwide travel in more than 100 coun- open for business as usual,introducers”, such as multi-national corporations whose infinite”. insurance. tries across Europe, the and the Internationalemployees increasingly are So it makes sense, he Americas, Asia and Africa. Morgage Service businessbeing offered LTSBI products says, to make a greater l Not an expat newbie While the obvious strat- there also remains unaf-and services. effort than previously to egy for a UK-based bank fected, the company said. reach, internationally, more Although the Lloyds TSB to tailor its services toAmong LTSBI’s best-knownproducts are its multi-currency of the “many thousands International name may expatriate Brits might seem l Rising profitsmortgages; the bank claims of people leaving the UK still be unfamiliar to many, to be one that is basedto have been providing each year, permanently or the entity itself is far from on geography, Boys Smith Despite such setbacks,mortgages for international for long periods of time, new to the international says LTSBI finds “custom- Boys Smith notes that, cor-property purchases for more with whom we have a UK scene. er segments rather than porately, the internationalthan 30 years, “longer than relationship at the moment If you travel back physical location” actually operation is viewed withany other major UK bank”, and of their departure”. through the family trees of works far better. increasing interest by thethat it currently “lends in more “Certainly, the recent the banks that combined Thus it is that whether parent banking group. Andcountries than any other majorbank”. experience we have had over the years to form they are living in Zurich given that profit in his par- in the part of the business the business that LTSBI is or South Africa – or have ticular area rose, he says, I run has shown it does today, you discover that not even left the UK yet, by “just under 45% last not take a huge amount to its international presence but are in the process of year”, this is possibly not dramatically up our suc- dates back to 1862, when planning their move – surprising. cess rate.” it had offices in Argentina Lloyds TSB International “More and more Britons Measures Boys Smith and Brazil. (South America clients come in three sizes: are leaving the UK, so we says LTSBI has taken to remains one of its most mass affluent, affluent and are in a market the bank is boost its visibility and important regions.) high-net-worth. interested in,” he says. presence among expatriate In 1919, again through For obvious reasons cli- “We are now one of Britons include an effort one of its component enti- ents are not told of these the areas where there is a to form more relationships ties, it became the first distinctions, but they do recognised clear potential with the multi-national foreign bank to open a enable LTSBI’s relationship at the most senior level for companies that employ branch in Switzerland, and managers to accommodate top-line growth. British expatriates around in 1962, it was the first the needs of those with, “Although we are in a the globe, and the intro- merchant bank to open say, £100,000 to £250,000 constrained and difficult duction of new investment in the Channel Islands, an in investable assets; those environment for expendi- products and services, area where, through its with £1m to £2m; and ture and investment, we such as the LTSBI Lifestyle Islands Personal Banking those with more than £2m. [LTSBI] are getting good discretionary portfolio, operation, it remains a key investment and good sup- launched in 2010. local player, as it also is in l Hong Kong closure port, in order to be hiring “The minimum invest- the Isle of Man. the right people, devel- ment for that is £100,000, LTSBI claims to have A business the size of LTSBI oping new products and but we have a similar, uni- been offering mortgages to rarely develops without the improving our services.”32 INTERNATIONAL ADVISER [] APRIL 2012
  • 31. Prestige Equity Option AdvantageGlobal / Equity Market NeutralFundamental market based experienceis more important than ever....So is protecting the downside when markets fall. F U N D S Institutional Marketing & Administration Services Prestige Asset Management Limited 33 St. James’s Square, London, SW1Y 4JS, United Kingdom T: +44 (0) 203 178 4055 F: +44 (0) 203 004 9690 E: Authorised and regulated by the Financial Services Authority (FSA) Member of the Alternative Investment Management Association (AIMA) Member of the Chartered Institute for Securities & Investment (CISI)
  • 32. The right technical support could grow your business. Who can help? Having access to accurate technical information is important for you. Call your local account manager first to find out more. But it’s arguably even more important that the information you get is Technical Services: 01707 422999 relevant to you. Our Technical Services Team understand this fact, and are dedicated to identifying the data that will really add value for your clients, and therefore make a difference to your business. We’ve recently united our Technical Services offering under the ican banner, a new initiative that reflects our commitment to helping you grow. Technical Services Best Tax and Estate Planning Solutions Provider Empowering Professional AdvisersFor professional adviser use only.Canada Life Limited, registered in England no. 973271. Registered office Canada Life Place, Potters Bar, Hertfordshire EN6 5BA. Tel: 0845 7226232 Fax: 01707 Canada Life International Limited, Canada Life House, Alexandra Road, Castletown, Isle of Man IM9 1TG Tel: +44 (0) 1624 820200Fax: +44 (0) 1624 820201 Registered in the Isle of Man no. 33178. Member of the Association of International Life Offices.Canada Life group consists of Canada Life Limited, Canada Life Asset Management Limited (both authorised and regulated by the Financial Services Authority),Canada Life International Limited and CLI Institutional Limited (Isle of Man registered companies authorised and regulated by the Isle of Man Insurance andPensions Authority). All promotional material produced is approved by Canada Life Limited. ID – 4868
  • 33. TECHNICAL BRIEFING REGULAR GIFTING technicalRegular income giftingcan bring IHT benefits Julie Hutchison, head of international technical insight, Standard Life InternationalWith a large proportion of the UK population unaware of the exemptionsto be gained from inheritance tax, opportunities abound for financialplanners to navigate clients through this particularly difficult fieldFor clients with a UK dom- provided it meets the crite- be satisfied. These are: IHT403, found at www.icile, the impact of inherit- ria, the gift is effectively a the gift is from income; tax (IHT) can be an non-event for IHT purposes the gift forms part of a cetax/iht403.pdf. Often,advice point where finan- for the donor, since the pattern of gifting; this exemption is onlycial planners can add exemption means no sev- making the gift does not scrutinised after a client’svalue. Leaving to one side en-year clock is running for undermine the client’s death, when the lifetimethe option to make larger IHT. Secondly, a discretion- standard of living, which gifts are reported by theone-off gifts, there is a par- ary trust could be used with can still be funded from executors as part ofticular IHT exemption for no 20% IHT entry charge, remaining income (ie. winding-up the estate. Thisregular gifts from surplus with careful planning, dipping into capital to IHT form is used for thatincome, if the criteria are which gives maximum flex- top-up does not help purpose.met. Recent research car- ibility over who benefits with this exemption).ried out by Standard Life and when. Thirdly, there is Perhaps the best aspect of l Detailed approachshowed only 38% of the the possibility of no ten- this exemption is that theBritish public is aware of year IHT charges in the test is personal to the The last page of the formthis valuable IHT exemp- trust, if the values are kept client. Unlike other IHT shows a spreadsheet thattion. This represents a within certain limits. exemptions, which are for gives the best indication ofgreat opportunity for finan- This article will look at fixed amounts, this exemp- how detailed an approachcial planners to guide cli- some scenarios to show tion all depends on the HMRC will take. There is KEY POINTSents through this area. how this IHT exemption income and expenditure of no reason why this form can work, as well as high- the individual. This means should not be used as a A trust that holds an offshore lighting a few pitfalls. The the client who lives quietly lifetime record, to capture bond can be used in a way tol Minimise the impact minimise the impact of IHT, paperwork that supports with smaller overheads will the evidence in each taxWith careful planning, a the exemption is the key to not be judged against the year. subject to three key exemption criteria.client can end up with a success. Financial planners client who has higher Using the form alsopot set aside for relatives in involved in annual reviews expenditure. helps in another way – it The pattern of gifting criteriaa way that minimises the to make the most of UK tax The figures in each case says something about the is a mixture of evidence ofIHT impact. A trust that year-end planning are well have to stack up, looking at client’s intention in making the client’s intention togetherholds an offshore bond placed to support clients. the income, expenditure the gift(s). Evidence of this with the number of payments made.could be of use here, as it and then demonstrating intention could prove to beis a way to hold regular there is a surplus available vital if the client dies unex- There is an important l Exemption criteria distinction between Scottishgifts, while making use of to make gifts. pectedly after only one ora regular premium facility. Section 21 of the The best way to see the two gifts had been made. It law and English law in relation to regular gifting with surplus There are several client Inheritance Tax Act 1984 level of evidence HMRC would also be sensible for retirement income.benefits here. Firstly, sets out the three criteria to requires is to look at form clients to write a letter atAPRIL 2012 [] INTERNATIONAL ADVISER 35
  • 34. TECHNICAL BRIEFING REGULAR GIFTING“ Gifts when in the time of making the first IHT – analysis of receipts (£m) gift, setting out their inten-serious ill health tion to make future income 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 gifts. This all helps to pointcan affect how to a pattern of gifting. Transfers on death 2,876.0 3,196.3 3,495.5 3,765.7 2,769.4 2,320.2 2,631.3inheritance tax Transfers to discr. trusts 13.6 15.0 10.9 11.7 15.8 13.4 10.6applies to a client’s l The pattern of gifting Charges on discr. trusts 32.3 47.8 38.8 46.3 54.0 49.9 75.9estate in a number There is no fixed test as to Net cash receipts 2,921.9 3,259.1 3,545.2 3,823.7 2,839.2 2,383.6 2,717.9 how many years must pass Additional non-cash 6.7 18.1 13.3 9.7 8.5 12.1 6.0of ways, and it would before a pattern is estab-probably rule out the lished. It is a mixture of Source: HMRC. NB: This table shows the amounts of inheritance tax received in each year to 31 March. evidence of the client’savailability of this intention together with the her sons, as she did not written intention and also There is an important ”exemption number of payments made. need it. Each of her three that the gift was made distinction between The more there is in the sons received £9,000 in when the client was in Scottish law and English way of written evidence, one year, and £60,000 the good health. Gifts when in law here. In Scottish law, the less is required in terms following year. Mrs Bennett serious ill health can affect an attorney could have of number of years of gifts. died, and the question how inheritance tax applies power to make gifts, if that Equally, without written arose over the status of to a client’s estate in a wording is in the evidence of intention, it these gifts. number of ways, and it Continuing Power of will take more time for a would probably rule out Attorney document. pattern to be “read into” l Exemption qualifying the availability of this Under English law, an the gifts made. The leading exemption. attorney can only make case in this area looks at HMRC argued the gifts gifts in more limited cir- what constitutes a regular were PETS (potentially l Surplus income cumstances, and would pattern – the case of exempt transfers) since need Court of Protection Bennett v IRC in 1995. there was not a regular Another scenario involving authority for this sort of gift- Mrs Bennett was a pattern to them, so they regular gifting relates to ing. If your client does not widow and received did not qualify for the those with surplus retire- have capacity, proceed income payments from her exemption as they were ment income. This was the with care when it comes to late husband’s Will Trust not “normal expenditure”. situation in the Scottish advice on gifts. (she was the life tenant). Mrs Bennett’s executors case of McDowall v IRC in For a while, these pay- disagreed, and the judge 2003. l Good solution ments were quite small – held that the exemption The pension income of around £300 a year – aris- did apply here. Mrs the late Mr McDowall was In relation to investment ing from dividends in the Bennett’s direction to the paid into his bank account. bonds, there has been family company. When the trustees was an important When he moved into resi- some discussion about the family firm was sold, how- factor, as evidence of her dential care, it was rela- status of the 5% withdraw- ever, the trust income rose intention. The fact her tively straightforward to als and whether they count significantly. Mrs Bennett death was unexpected was show his standard of living as either income or capital. gave a direction to the trus- also a relevant factor: was being supported The safer viewpoint is the tees that the excess trust “deathbed gifts” would not through the expenditure 5% withdrawal is counted income should be gifted to satisfy the exemption involved in paying the care as a return of capital, where someone made an home fees – the surplus in which means it cannot be Were you aware of IHT exemptions? initial gift and knew they the bank account was clear gifted using this IHT 60 were unlikely to live. to see. exemption. It is possible that, in Ultimately, this case was The role of an invest- 50 Fe Female some cases, a single income not successful for the ment bond here is more Male M gift could satisfy the exemp- family, due to an important likely to be as the receiving 40 tion. This could occur point about powers of vehicle for the gift, rather where someone document- attorney. While all the than the source of what% 30 ed their intention to make ingredients were in place funds the gift. regular gifts, made the first, for the IHT exemption, As usual when making 20 and died unexpectedly. unfortunately the power of gifts, if family members are attorney document did not young, it may not be desir- 10 contain the specific word- able to place more signifi- l Key factors ing needed to authorise cant sums in their hands. 0 The two key factors in the attorney to make gifts, Holding the funds in a trust I was aware I was not aware Do not know proving the case with when Mr McDowall could be a good solution in Source: Standard Life/YouGov Plc HMRC would be the lost capacity. larger cases.36 INTERNATIONAL ADVISER [] APRIL 2012
  • 35. CPD COMPLIANT Offshore bonds remain a hugely important part of financial planning for advisers who have clients with cross-border interests. International Adviser is running this half-day seminar giving you the latest information on how and when to use offshore bonds for investing, retirement planning and tax mitigation. The seminar is hands-on, practical and free-to-attend for financial intermediaries. Offshore Bond Workshop Bristol Tuesday 17th April 2012, Bristol Royal Marriott 2012 To reserve your complimentary place, please go to For more information, please contact Victoria Parker on 0207 065 7564 or by email at l There are a limited number of places – attendance is through registration only l The workshop will take place in the morning ending with lunchSponsors include:
  • 36. dominionqrops.comDominionThe Dominion Malta Retirement Plan 2010, established in In particular, Dominion QROPS* may be used to assist those:Malta, continues to be a transparent and more secure QROPSsolution for informed advisors and their clients. There are approaching the lifetime allowance restrictionsmany good reasons for establishing a retirement scheme inMalta. Being an EU member state with a similar tax system Looking to reduce or eliminate UK income tax chargesto the UK, their registered schemes qualify automatically as associated with UK RPS in respect of the payment of lumpQROPS and they are one of the most tightly regulated andaudited pensions jurisdictions in the industry. Interested in using Malta’s extensive treaty network toWhat sets Dominion apart is our in-house technical expertise provide a pension on an advantaged basis; particularlyand a shared commitment to promote the highest levels of through Dominion’s dedicated US qualifying plan which isservice, professional conduct and security both within our own open to US citizens, green card holders, as well as to thosecompany and across the industry. As a client of Dominion, you resident in Maltacan be sure you will be getting the most insightful and up-to-dateinformation to enable you to make the right, informed decisions. jurisdiction, or our development and supervisory work withinOur dedicated team of UK and international tax and technical the industry, please email, visitspecialists are on hand to support client advisors in the advice or call +44 (0) 207 747 1115and solutions they provide to their clients.
  • 37. FUND SELECTOR EUROPEAN EQUITIES portfolioEuropean equitiesWe analyse the best, the newest and the biggest European equities funds.Commentary from Muna Abu-Habsa, investment research analyst at OBSR Top ranked funds Three-year performance FUNDS TO WATCH JOHCM Continental European’s experienced management make it an Top 10 European equities funds by 3-year performance appealing offering for core 3-year 3-year 3-year 3-year 3-year 3-year M’star Fund Dom European equity exposure. % chg Alpha Beta R² Sharpe volatility Ratings size ($m) The fund’s modest fees are then the cherry on the cake: it BGF Continental European Flexible A2 € -8.26 0.72 1.02 0.92 0.23 8.06 752.14 Lux is one of the cheapest actively CMI FR European Focus -8.82 0.6 0.87 0.91 0.23 6.89 N/S IoM managed funds in its category and it has a performance fee Henderson Horizon Eurp Gr R € -6.63 0.34 0.92 0.92 0.19 7.22 N/S Lux structure in place that helps Edinburgh Partners Europe Opp I € -7.45 0.26 0.99 0.98 0.18 7.52 489.71 Ireland align managers’ interests with BNPP L1 Equity Best Sel Europe ex UK -2.52 0.26 0.92 0.98 0.18 6.98 16.96 Lux those of shareholders. Aberdeen Global European Eq (ex UK) -5.39 0.27 0.95 0.95 0.18 7.39 31.72 Lux Henderson Horizon European MFS Meridian Continental Europ Eq A1 £ -6.2 0.34 0.92 0.98 0.2 6.98 36.73 Lux Growth has been run by Richard Pease and Simon 2CG European Cap Gr Retl € -6.27 0.23 0.91 0.95 0.18 7.04 N/S Ireland Rowe since June 2010. JOHCM Continental European £ -9.24 0.18 1.02 0.92 0.16 8 813.7 Ireland However, Pease ran the fund at New Star for nearly Russell IC Cont € Eq A -10.46 -0.04 1.05 0.98 0.14 7.93 634.22 Ireland eight years. The fund and 20 Feb ’09 – 22 Feb ’12. Bid to bid, $, gross income, no cap. Source: Morningstar its managers moved over to Henderson following its Top funds – 3-year risk and return takeover of New Star in 2009. Pease is a key attraction on -2 the fund as he boasts nearly BNPP L1 Equity Best Sel Aberdeen Global European Eq (ex UK) A2 three decades of experience -4 Europe ex UK C C 2CG Euro CG E European Cap in European equities. G Retl € Gr MFS Meridian Continental Edinburgh Partners Edinburgh Partners European Return (%) -6 Europe Opp I € Opps is an impressive Europ Eq A1 £ BGF Continental European Flexible A2 € offering with a strong -8 process. Dale Robertson is CMI FR European Focus an experienced manager who Henderson Horizon JOHCM Continental European £ has seen plenty of investment -10 p Eurp Gr R € cycles. He enjoys the support Sector average of a ten-strong team, where -12 Russell IC Cont € Eq A responsibilities combine fund 6 8 10 management and research Standard deviation (%) coverage of companies on a To 22 Feb ’12. Bid to bid, gross income, no cap. Source: Morningstar global sector basis. The last four years have Index falling a hefty 19.5%. As a result, skittish inves- proved turbulent for A clear pattern was tors fled European equity European equities, but no nearly any kind of risk cost funds during the year, more so than last year. fund managers and their completing a year to forget Even the mild strength in investors in the second half for most managers. European equities seen in of the year. Going down the first half of 2011 was the cap ladder hurt; many l Key differentiators eclipsed by an eventful commodities hurt. Against summer and European this backdrop, active While 2011 was therefore a investors awaited the end European equity managers difficult one for European of 2011’s annus horribilis. did not acquit themselves equities, returns for mega The MSCI Europe Index well – Morningstar data cap, quality stocks wereFUND SELECTOR’S closed 10.4% down in the saw 20% of funds in the generally robust. For exam-COMMENT MUNA ABU- year to 31 Dec, with the Morningstar Europe Large- ple, in the UK, 40 of theHABSA, INVESTMENT MSCI Europe Mid-Cap Cap Equity categories out- FTSE 100 stocks rose overANALYST, OBSR Index down 15.7% and the performed the MSCI the year with 23 producing MSCI Europe Small-Cap Europe Index over 2011. double-digit returns. InAPRIL 2012 [] INTERNATIONAL ADVISER 39
  • 38. FUND SELECTOR EUROPEAN EQUITIES“ Experts expect adifficult year ahead Top ranked funds Newcomerswith high levels of Top European equities funds with less than a 3-year, but more than a 1-year track recorduncertainty 1-year 1-year 1-year 1-year 1-year 1-year Launch Fund Dompersisting. Risks to % chg Alpha Beta R² Sharpe volatility date size ($m)growth are high given Aegon Intl Ignis Agnt Euro Alpha A 6.44 0.61 0.87 0.92 -0.03 3.74 7 Jul ’10 0.16 Ireland HLL BlackRock European Dynamic 7.88 0.38 1.06 0.92 -0.04 4.22 17 Sep ’10 0.13 Irelandthe relatively fragile MM Europe ex UK Equity Defensive 1 7.5 0.2 1.02 0.96 -0.06 4.27 21 Jan ’10 23.52 Irelandstate of European CMI IS European Focus 7.02 0.01 0.94 0.93 -0.07 4.06 22 Jan ’10 N/S IoM ”economies CMI IS European Special Situation 5.92 0.4 1.07 0.95 -0.06 4.39 22 Jan ’10 N/S IoM CMI IS European 6.42 0.26 1.12 0.94 -0.07 4.76 22 Jan ’10 N/S IoM GlobalAccess Europe (ex UK) Alpha 6.5 -0.11 1.01 0.85 -0.07 4.38 22 Jan ’10 N/S Ireland Aegon Intl Neptune Euro Opps A 4.12 -0.5 0.75 0.95 -0.09 3.44 29 Jun ’10 0.32 Ireland FOUR Active European ex UK Equity A € 6.76 N/A N/A N/A N/A N/A 21 Apr ’11 12.88 Ireland 20 Jan ’11 – 22 Feb ’12. Bid to bid, $, gross income, no cap. Source: Morningstar Top funds – 1-year risk and return -2 Aegon Intl Ignis -4 Agnt Euro Alpha A MM Europe ex UK Equity Defensive 1 Return (%) -6 HLL BlackRock European Dynamic CMI IS European -8 Sector average Special Sits -10 CMI IS European Focus GlobalAccess Europe CMI IS e Aegon Intl Neptune (ex UK) Alpha A Acc European -12 Euro Opps A 3 4 5 Standard deviation (%) To 22 Feb ’12. Bid to bid, gross income, no cap. Source: Morningstar FUNDS TO WATCH Another strong contender offered through Aegon is Neptune European Opportunities. Manager Rob Burnett took charge of this Investors have been dismayed by the lack of positive returns fund in May 2005, marking his first stint in running a European in European equities over the last year, though it is of some equity fund single-handedly. However, despite his relatively short consolation these funds have protected capital better than their tenure in the industry, Burnett has so far generated an impressive rivals. The winner over the last 12 months is Aegon International risk/return outcome for shareholders, implementng his investment Ignis Argonaut European Alpha. Barry Norris has run the fund strategy consistently over the years. since launch in 2005 and has delivered excellent results. addition, nearly a fifth of which shed 9.1%. This gap, more significant with thanks to a surge in the oil stocks in the Euro Stoxx 50 however, was larger in Ireland being the only price towards the end of Index generated positive 2010, when the growth country to end the year the year. On the other returns. Many of these index outperformed its above water, followed by hand, banks, mining, utili- strong stocks were blue- value counterpart by 13.4 the UK. Conversely, Greece ties, telecoms and basic chip dividend payers such percentage points. Still, this was at the other end of the materials struggled. as Sanofi and BAT. As well trend has carried through spectrum with Austria, However, investors as market-cap, style was a into 2012. Although value- Hungary and many others have recently glimpsed differentiator in returns, oriented stocks have registering losses in double hope. Over the last few although to a lesser extent bounced back into positive digits. At a sector level, months, the PMI has than in previous years. territory, with the MSCI investors who shunned climbed from its October This is reflected in the Europe Value Index return- cyclicals and sought refuge lows, pointing to a better performance of the MSCI ing 7.5%, they have contin- in defensives were reward- outlook for short-term Europe style indices, as the ued to lag growth stocks. ed in H2. Indeed, the top- growth. Coupled with a MSCI Europe Value Index performing sectors in 2011 significant improvement in sealed the year 11.7% down l Performance were tobacco, food pro- business and consumer compared with a slightly ducers and pharmaceuti- confidence, this has trans- lower loss for the MSCI At a country level, the dis- cals. The oil & gas sector lated to stronger returns in Europe Growth Index, parity in performance was also performed strongly European equities so far40 INTERNATIONAL ADVISER [] APRIL 2012
  • 39. FUND SELECTOR EUROPEAN EQUITIES Top ranked funds Assets under management FUNDS TO WATCH BGF Continental European Flexible features as the best-performing fund by Top 10 European equities funds by assets under management three year performance. 3-year 3-year 3-year 3-year 3-year 3-year M’star Fund Dom Alistair Hibbert took over the % chg Alpha Beta R² Sharpe volatility Ratings size ($m) fund in February 2008 when he joined BlackRock from BlackRock Europe ex UK Index Flex -9.65 -0.07 0.98 0.99 0.14 7.44 1,678.87 Ireland SWIP We value the backup . CMI Continental Europ Eq SC1 Dis -9.01 -0.02 1.03 0.97 0.14 7.89 1,547.88 Lux he enjoys from seasoned members in his team, as well Henderson Gartmore Fd Cont EuropR € -5.6 0 0.92 0.98 0.15 6.99 1,105.49 Lux as BlackRock’s sophisticated JOHCM Continental European £ -9.24 0.18 1.02 0.92 0.16 8 813.7 Ireland risk management tools. The BGF Continental European Flexible A2 € -8.26 0.72 1.02 0.92 0.23 8.06 752.14 Lux fund makes a good choice for investors who understand its iShares MSCI Europe ex UK (IE) -9.96 -0.07 0.99 1 0.14 7.49 639.86 Ireland risks as the manager does not Russell IC Cont € Eq A -10.46 -0.04 1.05 0.98 0.14 7.93 634.22 Ireland shy away from taking sizeable SEI GMF European Ex UK Eq £ Wealth B -11.16 -0.13 1.07 0.97 0.13 8.22 563.5 Ireland stock and sector bets. Edinburgh Partners Europe Opp I € -7.45 0.26 0.99 0.98 0.18 7.52 489.71 Ireland Henderson Gartmore Continental European has GAM Star Cont European Equity £ -3.83 0.06 0.93 0.96 0.15 7.12 394.17 Ireland managed to deliver well 22 Feb ’09 – 22 Feb ’12. Bid to bid, $, gross income, no cap. Source: Morningstar for investors through time. Manager John Bennett’s Top funds – 3-year risk and return process is robust and disciplined and despite the -2 brevity of his tenure on this GAM Star Cont European fund we have high confidence -4 Equity £ Acc in his skills and approach. Henderson Gartmore Fd Edinburgh Partners CMI Continental Europe The fund holds an OBSR A -6 Cont Europe € Acc Europe Opp I € Eq SC1 Dis rating. Return (%) With $1.68bn in assets under -8 BlackRock Europe ex BGF Continental European Flexible A2 € management, BlackRock UK Index Flex Inc Europe ex UK Index Flex is JOHCM Continental European £ the largest fund in this list. -10 We also note with interest iShares MSCI Europe another passive fund: iShares ex UK (IE) SEI GMF European Ex UK Eq £ Wealth B MSCI Europe ex UK, which is -12 Sector average Russell IC 6 Cont € Eq 8 10 popular given that few active Standard deviation (%) managers have been able to To 22 Feb ’12. Bid to bid, gross income, no cap. Source: Morningstar skilfully navigate the market. “into 2012. The MSCI euro economy. tightening and austerity funds rated by our analysts The LTROEurope Index is up 8.3% The take-up of the packages as well as restric- at OBSR. Indeed, managerthis year, recouping some ECB’s first three-year LTRO tive bank credit policies are selection is exceedingly programme hasof the substantial losses in December totalled some of the headwinds to crucial as a large number of represented ansustained in 2011. This is €490bn ($643bn) with contend with. In addition, active fund managersthanks to the ECB efforts to funds lent to 523 financial constraints to the oil supply investing in Europe have expansion of theadd more liquidity, effect- institutions, and the second and geopolitical tensions typically struggled to keeping a three-year long-term was to the tune of €530bn escalating in Iran have pace with their benchmarks central bank’s balancerefinancing operation allotted to 800 financial caused oil price increases. over various time periods. sheet and banking(LTRO) for banks, broad- institutions. This has eased Further increases in oil Over the last three, fiveening their collateral pool funding concerns in the prices or even their persist- and ten years, the average system liquidity,and cutting reserve require- banking system with the ence at current peak levels fund in the Morningstar reducing the risk of aments. In all, this has eased total take-up of nearly could affect consumer Europe Large-Cap Blendconcerns from most of the €1trn equivalent to 72% of spending and hinder the Equity category has lagged financial shock and ittrouble spots that had wor- European bank bond economic recovery. the MSCI Europe Index. is expected to helpried investors. maturities through 2013, For investors seeking This also holds true for the thereby helping considera- exposure to European equi- average fund in the support the upswing inl Risk reduction bly in the refinancing of ties, there are a number of Morningstar Europe Large the euro economyThis LTRO programme hasrepresented an expansionof the central bank’s bal- maturing bank debt. That said, the outlook is not all rosy. Experts expect a difficult year ahead with European equity funds available. Jupiter European Special Situations, JOHCM Continental European, BGF Cap Value Equity category relative to the MSCI Europe Value Index. It is therefore no sur- ”ance sheet and banking high levels of uncertainty European, BlackRock Euro- prise a substantial propor-system liquidity, reducing persisting. Risks to growth pean Dynamic, Neptune tion of investments havethe risk of a financial shock are high given the relatively European Opps and Ignis been piled into low-cost,and it is expected to help fragile state of many Argonaut European Alpha passively managed offer-support the upswing in the European economies. Fiscal are prime examples of ings in recent years.APRIL 2012 [] INTERNATIONAL ADVISER 41
  • 40. For further information please contactJames PainterDirect Dial: +44 1534 761510 | Email: | Website: enhance.jeEnhance Wealth Consultancy Limited is regulated by the Jersey Financial Services Commission to conduct investment business under the Financial Services (Jersey) Law 1998
  • 41. QUALITY FUNDSData and ratings supplied by The IA Quality Fundsincluding ratings by The IA Quality Funds is a dard & Poor’s, Morningstar ous Morningstar GIF sec- list of UK registered for list of the blue-chip funds or OBSR Research qualify. tors, so the funds listed are sale funds. of the offshore universe: it Funds in each category are firstly a reflection of which contains only well-estab- ranked according to their styles have done well, sec- Offshore bond platforms lished, high-performance Morningstar Rating, which ondly of which managers Many of the Quality funds in the most popular is calculated based on a have been successful. Funds that appear in the categories. fund’s total returns, adjust- following pages will be ed for risk and sales charg- Three-year vol This meas- available on life company Methodology Starting from es, relative to other funds urement is an annualised offshore bond platforms, the Morningstar offshore in its category. volatility of the fund over as mirror funds or direct database of 8,600 funds, three years. fund links. Where they only those with a qualita- Sectors The 13 bespoke are not, it will be possible tive rating from independ- category divisions are the UK reg The ‘UK reg’ flag to request they are added ent rating agencies Stan- result of combining vari- is based on Morningstar’s to product fund ranges.Data source: © 2012 Morningstar, Inc. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. NeitherMorningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance is no guarantee of future results. Performances have been calculated on a bid-to-bid, $, gross income basis. Volatility isexpressed as standard deviation of 36 monthly total returns (bid-to-bid). The Morningstar Rating is calculated based on a fund’s total returns, adjusted for risk and sales charges, relative to other funds in its Morningstar Category. The Overall Morningstar Ratingpublished here is based on a weighted average of a fund’s three-, five- and ten-year ratings, depending on the length of its record. Asia Pacific equity Offshore/int’l funds 3-year 3-year Min init Curr Manager name Domicile Morningstar S&P Fd OBSR Morningstar UK % chg volatility inv ($) Rating Rating Rating Analyst Rtng reg? Macquarie Asia New Stars Fund A1 226.66 29.52 3,000 $ Macquarie Funds Mgt HK Caymans A Neutral Templeton Asian Growth A YDis $ 178.98 25.93 5,000 $ Franklin Templeton Investment Luxembourg AAA A Y Investec GSF Asian Eq A Inc Grs $ 130.86 24.22 3,000 $ Investec Asset Mgt Lux Luxembourg AA Y Invesco Pacific Equity A 97.77 22.16 1,500 $ Invesco Global Asset Mgt Ireland A Y Baring ASEAN Frontiers A $ 184.18 25.5 5,000 $ Baring International Fund Mgrs Ireland A Y Fidelity Emerging Asia A $ 142.07 26.3 2,500 $ Fidelity Luxembourg A Y Invesco Asian Equity A 126.53 25.14 1,500 $ Invesco Global Asset Mgt Ireland AA A Y Fidelity South East Asia A $ 122.15 26.59 2,500 $ Fidelity Luxembourg AA AA Y Schroder ISF Emerg Asia A 119.57 24.9 1,000 $ Schroder Investment Mgt Lux Luxembourg AA Y Fidelity Asian Special Sits A $ 113.53 23.53 2,500 $ Fidelity Luxembourg AA Y Robeco Asia Pacific Equities D € 105.39 20.98 0 € Robeco Luxembourg Luxembourg A Y Cap Int Global High Income Opp A 63.83 9.03 6.5m € Capital International Luxembourg AA/V5 Y Kames Investment Grade Global Bd A € 52.84 16.79 131,154 € Kames Capital Ireland A Y CapitalAtWork Corporate Bonds at Work C 47.75 13.01 0 € Capital at Work Luxembourg A/V4 Europe ex UK equity Offshore/int’l funds 3-year 3-year Min init Curr Manager name Domicile Morningstar S&P Fd OBSR Morningstar UK % chg volatility inv ($) Rating Rating Rating Analyst Rtng reg? BGF Continental European Flexible A2 € 123.13 27.75 N/S € BlackRock (Luxembourg) Luxembourg AAA AA Y Allianz RCM Euroland Eq Growth W € 116.27 24.63 13.1m € Allianz Global Investors Luxembourg Y MFS Meridian Continental Europe Eq A1 £ 84.02 23.94 3,934 £ MFS Meridian Funds Luxembourg A Y Edinburgh Partners Europe Opp I € 83.32 25.74 131,154 € Edinburgh Partners Ireland AA Y JOHCM Continental European £ 83.17 27.53 1,573 £ JO Hambro Capital Mgt Ireland A AA Y GAM Star Cont European Equity £ 71.74 24.65 9,442 £ GAM Fund Management Ireland A Y Axa WF Frm Eurozone IC € 71.36 27.92 6.5m € Axa Investment Managers Luxembourg CapitalAtWork Contr Euro Eq at Work C 68.76 24.41 0 € Capital at Work Luxembourg A UniExtra: EuroStoxx-50 55.97 26.04 1 € Union Investment Luxembourg Luxembourg A MainFirst Classic Stock Fund A 86.84 28.67 3,278 € MainFirst SIicav Luxembourg Luxembourg A Y BNPP L1 Equity Best Sel € 68.11 25.25 1 € BNP Paribas Investment Ptns Luxembourg AA A Y BGF Euro-Markets A2 € 67.6 29.11 6,557 € Blackrock (Luxembourg) Luxembourg AA AA Y Pioneer Fds Euroland Equity E € ND 67.25 27.21 1,311 € Pioneer Asset Management Luxembourg AA Henderson Gartmore Fd Cont EuropR € 63.54 23.98 3,279 € Henderson Management Luxembourg AA A Y Schroder ISF Euro Equity A Acc 59.83 29.13 1,312 € Schroder Investment Mgt Luxembourg A Neutral Y Fidelity Euro Blue Chip A-€ 57.2 27.29 N/S € Fidelity Luxembourg A Y Eurizon Stars Fund Euro Q-Equity I 52.59 28.09 3.9m € Eurizon Capital S.A. Luxembourg ING (L) Invest Euro Hi Dividend P Acc 40.87 27.28 0 € ING Investment Management Luxembourg AAAPRIL 2012 [] INTERNATIONAL ADVISER 43
  • 42. QUALITY FUNDSGlobal emerging markets equityOffshore/int’l funds 3-year 3-year Min init Curr Manager name Domicile Morningstar S&P Fd OBSR Morningstar UK % chg volatility inv ($) Rating Rating Rating Analyst Rtng reg?Comgest Growth GEM PC Acc 165.98 25.22 13,115 € Comgest Asset Mgt Int’l Ireland AA YAberdeen Global Emerging Markets Eq A2 156.72 23.31 1,500 $ Aberdeen Asset Managers Luxembourg AA AAA YFirst State Glbl Emerg Mkts Leader I 136.7 19.85 1,500 $ First State Investments Ireland AAA YVontobel Emerging Markets Eq B 131.01 18.48 N/S $ Vontobel Management Luxembourg AARobeco Active Quant Emerging Eq D 160.74 28.23 0 € Robeco Luxembourg Luxembourg ATempleton Emerging Mkts Sm Cos A $ 150.76 27.65 5,000 $ Vontobel Management Luxembourg A YLazard Emerging Markets Equity $ 141.24 25.04 2m $ Lazard Fund Managers (Ireland) Ireland A YRaiffeisen-EmergingMkts-Aktien R VT 140.01 29.4 1 € Raiffeisen Kapitalanlage Austria A NeutralPrincipal Emerging Market Eq A 118.38 25.6 N/S $ Principal Global Investors Ireland AA YJPM Emerging Markets Eq A (dist)-$ 117.99 25.45 35,000 $ JPMorgan Asset Mgmt Luxembourg YComgest Growth Emerging Markets Acc 100.19 22.58 10,000 $ Comgest Asset Mgt Int’l Ireland AAA YGlobal equityOffshore/int’l funds 3-year 3-year Min init Curr Manager name Domicile Morningstar S&P Fd OBSR Morningstar UK % chg volatility inv ($) Rating Rating Rating Analyst Rtng reg?Calamos Global Equity A € Acc 136.62 27.3 26,231 € Calamos Global Funds Ireland AA YWarburg Value A 108.74 22.61 131.15 € Warburg Investment Luxembourg AAVeritas Global Eq Income A £ 96.5 17.43 47,213 £ Veritas Asset Management UK Ireland AA YAberdeen Global World Equity A2 95.79 19.42 1,500 $ Aberdeen Asset Managers Luxembourg AA AA YVeritas Global Focus A GBP 94.01 16.92 47,219 £ Veritas Asset Management UK Ireland AA YSchroder ISF QEP Global Quality A 89.3 17.12 1,000 $ Schroder Investment Mgt Luxembourg AOrbis Global Equity 86.56 21.17 50,000 $ Orbis Investment Management Bermuda AAAOrbis SICAV Global Equity Inv 86.03 21 N/S € Orbis Investment Management Luxembourg AATweedy, Browne Intl Value Fd (€) B 79.59 20.88 32,788 € Tweedy Browne Co LLC LuxembourgVontobel Global Value Equity B 77.94 13.63 N/S $ Vontobel Management Luxembourg AAPlanetarium - Riverfield Eqs 74.64 18.13 6,558 € PKB Privatbank AG Luxembourg AABL-Global Equities B 70.66 15.81 3,279 € Banque de Luxembourg Luxembourg AMercLin Sicav Global Equity F 68.94 16.32 1 € Mercier Vanderlinden Asset Mgt LuxembourgAmundi International Sicav AU-C 63.32 11.6 1 $ Amundi Luxembourg LuxembourgCapitalAtWork Contrarian Eq at Work C 113.18 23.67 0 € Capital at Work Luxembourg AALOYS Sicav - LOYS Global P 104.52 22.88 3,279 € Alceda Fund Management LuxembourgSchroder ISF Global Smaller Comp A Acc 97.95 20.14 1,000 $ Schroder Investment Mgt Luxembourg YSchroder ISF QEP Global Core C Acc 92.39 18.47 500,000 $ Schroder Investment Mgt Luxembourg A YMFS Meridian Glbl Equity A1 $ Acc 86.56 19.3 5,000 $ MFS Meridian Funds Luxembourg AA YSauren Global Growth A 85.61 19.81 0 € Sauren Fonds-Select Sicav LuxembourgMFS Meridian Global Research A1 $ 82.76 21.22 5,000 $ MFS Meridian Funds Luxembourg A YRobeco Global Stars Equities D € 82.34 21.81 0 € Robeco Luxembourg Luxembourg A NeutralSchroder ISF Glbl Eq Alpha A $ Acc 80.24 21.15 1,000 $ Schroder Investment Mgt Luxembourg YInvestec GSF Glbl Str Eq A Inc Grs $ 79.71 21.23 3,000 $ Investec Asset Mgt Luxembourg AA YInvestec GSF Glbl Eq A Inc Grs $ 79.57 19.66 3,000 $ Investec Asset Mgt Luxembourg A YDWS Invest Top Dividend LC 76.35 16.66 1 € DWS Investment Luxembourg YING (L) Invest Glbl Opps P € Acc 75.57 20.76 0 € ING Investment Management Luxembourg A NeutralOasis Global Equity A 74 18.07 5,000 $ Oasis Global Mgmt Co Ireland AAGamax Funds Junior A 73.75 18.56 327,885 € GAMAX Management AG Luxembourg ADWS Invest Global Value LC 73.07 19.5 0 € DWS Investment LuxembourgDWS Global Value 72.62 19.54 656 € DWS Investment LuxembourgBGF Global Opportunities A2 $ 70.47 20.68 5,000 $ Blackrock Luxembourg AA A YBGF Global Dynamic Equity $ A2 69.13 16.47 5,000 $ Blackrock Luxembourg AAA AA YGlobersel Equity 65.35 20.99 3,279 € Ersel Gestion Internationale LuxembourgSarasin EquiSar – Global A 61.93 18.58 1,312 € Sarasin Investmentfonds Sicav Luxembourg A YValueInvest LUX Global A Cap 59.39 15.77 0 € ValueInvest Asset Mgt LuxembourgGAM Global Diversified $ 55.01 16.8 10,000 $ GAM Fund Management BVI AA44 INTERNATIONAL ADVISER [] APRIL 2012
  • 43. QUALITY FUNDSJapanese equityOffshore/int’l funds 3-year 3-year Min init Curr Manager name Domicile Morningstar S&P Fd OBSR Morningstar UK % chg volatility inv ($) Rating Rating Rating Analyst Rtng reg?Fidelity Japan Advantage A-¥ 67.18 16.45 N/S ¥ Fidelity Luxembourg A YOrbis Sicav Japan Equity (¥) 65.59 18.9 N/S ¥ Orbis Investment Management Luxembourg AAA AAInvesco Japanese Eq Advantage A Acc 60.29 14.05 N/S ¥ Invesco Global Asset Mgt Luxembourg AA YLindsell Train Japanese Equity A ¥ 40.75 12.74 2,477 ¥ Lindsell Train Ireland A YUni-Global Min Variance Japan B1 ¥ 40.62 12.39 1 ¥ Unigestion LuxembourgUBAM IFDC Japan Opportunities Eq A 84.08 16.95 1 ¥ Union Bancaire Privée Luxembourg AAAB Japan Strategic Value A 64.04 18.51 2,477 ¥ AllianceBernstein Luxembourg ANippon Growth 58.82 22.38 N/S ¥ E.I. Sturdza Strategic Mgt Guernsey APolar Capital Plc Japan $ 58.42 17.38 0 $ Polar Capital Funds Ireland AA AA YHenderson Horizon Japanese Eq A2 48.15 16.21 2,500 $ Henderson Management Luxembourg A YPineBridge Japan Small Cap Equity ¥ 47.84 17.17 1m $ PineBridge Investments Ireland AA YInvesco Japanese Equity Core A 47.41 21.95 1,500 $ Invesco Global Asset Mgt Ireland AA A YIFDC Japan Dynamic A ¥ 46.7 15.46 1 ¥ IFDC Luxembourg AAA AAFidelity FAST Japan A Acc ¥ 42.31 16.01 N/S ¥ Fidelity Luxembourg A YMelchior ST Japan Advantage B3 ¥ 41.2 15.72 N/S ¥ Dalton Strategic Partnership Luxembourg A YPan-European equityOffshore/int’l funds 3-year 3-year Min init Curr Manager name Domicile Morningstar S&P Fd OBSR Morningstar UK % chg volatility inv ($) Rating Rating Rating Analyst Rtng reg?MainFirst Top European Ideas A 135.27 25.78 3,279 € MainFirst Sicav Luxembourg Luxembourg A YUIS Bestinver International R 121.89 26.18 0 € Sycomore Asset Management LuxembourgDanske Invest Europe Focus A 108.86 26.43 1 € Danske Invest Management Co. Luxembourg AABGF European Focus A2 € 99.7 25.91 N/S € Blackrock (Luxembourg) Luxembourg AAA AA YAshburton European Equity € PC 91.69 27.25 13,115 € Ashburton (Jersey) Jersey A A YBL-Equities Europe B € Acc 90.4 22.26 3,279 € Banque de Luxembourg Luxembourg AAMFS Meridian Europ Value A1 € 85.94 20.37 5,246 € MFS Meridian Funds Luxembourg AA YAxa WF Frm Europe IC € 79.62 21.93 6.6m € Axa Investment Managers Paris LuxembourgInvesco Pan European Structured Eq A 72.18 20.21 N/S € Invesco Global Asset Mgt Luxembourg AA YHenderson Horizon Pan Eurp Eq A2 65.88 22.56 3278.85 € Henderson Management Luxembourg AA AA YStandard Life Sicav Euro Smaller Cos D 128.59 27.23 1.3m € Standard Life Investments Luxembourg AA YJOHCM European Select Val € 127.1 23.67 1,312 € J O Hambro Capital Mgt Ireland A YMetzler European Smaller Companies A 124.61 29.75 3,279 € Metzler Ireland Ireland AA AMontanaro European Smaller Comp £ 122.99 23.94 1,574 £ Montanaro Asset Mgt Ireland AAA AA YAllianz RCM Small Cap Europa A 111.76 27.4 1 € Allianz Global Investors LuxembourgAllianz RCM Europe Small Cap Eq AT € 109.35 27.39 1 € Allianz Global Investors LuxembourgBGF European Growth A2 € 103.83 22.9 N/S € Blackrock Luxembourg AA A YJupiter JGF European Growth L € 103.64 24.31 1,312 € Jupiter Asset Management Luxembourg AA YBSF European Opps Ext Strategies A2 € 100.54 23.95 N/S € Blackrock Luxembourg AA YAlken European Opportunities R 95.31 28.29 0 € Alken Asset Management Luxembourg YNordea-1 European Value BP 94.57 23.18 65.58 € Nordea Investment Funds Luxembourg AA A YFranklin European Growth A Acc € 90.54 20.48 6,558 € Franklin Templeton Investment Luxembourg A A YSkandia European Best Ideas A1 90.1 29.01 1,312 € Skandia Fund Management Ireland A YNordea-1 European Alpha BP 88.02 27.22 65.58 € Nordea Investment Funds Luxembourg A YInvesco European Growth Equity A 87.86 20.95 N/S € Invesco Global Asset Mgt Luxembourg AA YFidelity European Dynamic Grth A-€ 87.4 22.7 N/S € Fidelity Luxembourg A Neutral YBNPP L1 Equity Europe Growth C C 85.81 22.91 0 € BNP Paribas Investment Ptnrs Luxembourg A YMetzler European Growth A 85.37 22.53 3,279 € Metzler Ireland Ireland AABGF European A2 € 85.24 25.81 N/S € Blackrock Luxembourg AA AA YAXA WF Frm Europe Small Cap AC € 84.54 25.81 0 € Axa Investment Managers Paris Luxembourg A YCarnegie European Equity 1A 83.6 21.52 1,312 € Carnegie Fund Services Luxembourg AAGLG European Equity Class S 83.17 26.97 6,558 € GLG Partners UK Ireland AA YFranklin European Sm-Md Cap Gr A Acc € 81.39 21.94 6,558 € Franklin Templeton Investment Luxembourg A A YMFS Meridian European Research A1 € 80.77 23.06 5,247 € MFS Meridian Funds Luxembourg A AA YUniDynamicFonds: Europa A 79.42 24.06 1 € Union Investment Luxembourg Luxembourg AAPRIL 2012 [] INTERNATIONAL ADVISER 45
  • 44. QUALITY FUNDSPan-European equity (cont)Offshore/int’l funds 3-year 3-year Min init Curr Manager name Domicile Morningstar S&P Fd OBSR Morningstar UK % chg volatility inv ($) Rating Rating Rating Analyst Rtng reg?Schroder ISF European Special Sit A 79.16 23.02 1,312 € Schroder Investment Mgt Luxembourg AA YBNPP L1 Equity Best Sel Europe C C 79.09 22.76 1 € BNP Paribas Investment Ptnrs Luxembourg AA A YCapitalAtWork European Eq at Work C 78.26 22.93 0 € Capital at Work Luxembourg AH&A Lux Equities - VALUE Invest B 77.78 25.44 6,558 € Hauck & Aufhäuser Inv Luxembourg APioneer Fds Top European Plyrs E € ND 76.89 23.29 1,312 € Pioneer Asset Management. Luxembourg AIgnis Intl Argo Pan Eur Alpha I € Acc 72.77 22.46 4m € Ignis Asset Management Ireland A A YJupiter JGF European Opportunities L € 71.77 23.91 1,312 € Jupiter Asset Management Luxembourg AA YJPM Europe Dynamic A (dist)-€ 69.38 25.84 N/S € JPMorgan Asset Mgmt Luxembourg A YFidelity European Larger Cos A-€ 64.5 23.37 3,279 € Fidelity Luxembourg A Neutral YFidelity European Growth A-€ 64.37 25.1 1 € Fidelity Luxembourg AA YGAM Star European Equity € Acc 62.76 23.31 13,115 € GAM Fund Management Ireland A YGS Europe CORE Equity Base 57.7 25.88 6,558 € Goldman Sachs Asset Mgt Intl Luxembourg AA YUni-Global Min Variance Europe B1 56.13 17.93 1 € Unigestion LuxembourgFranklin Mutual European A Acc € 54.81 21.44 6557.7 € Franklin Templeton Investment Luxembourg AA AAA YDJE Dividende & Substanz P 49.31 19.75 0 € DJE Investment Luxembourg UK equityOffshore/int’l funds 3-year 3-year Min init Curr Manager name Domicile Morningstar S&P Fd OBSR Morningstar UK % chg volatility inv ($) Rating Rating Rating Analyst Rtng reg?Cazenove UK Equity B £ 123.7 22.43 7,869 £ Cazenove International Fund Ireland A YFour Active UK Equity A 103.52 23.38 393,440 £ Four Capital Funds Ireland A YMFS Meridian UK Eq A1 £ 106.68 20.74 3934.4 £ MFS Meridian Funds Luxembourg AA Y US equityOffshore/int’l funds 3-year 3-year Min init Curr Manager name Domicile Morningstar S&P Fd OBSR Morningstar UK % chg volatility inv ($) Rating Rating Rating Analyst Rtng reg?Findlay Park American $ 95.98 15.91 100,000 $ Findlay Park Investment Mgt Ireland AAA YAllianz RCM US Equity C2 $ 92.79 18.7 1,000 $ Allianz Global Investors Ireland A YW.P Stewart Holdings . 111.03 17.99 1 $ W.P Stewart Asset Mgt . Luxembourg AAFranklin US Opportunities A Acc $ 104.07 19.71 5,000 $ Franklin Templeton Investment Luxembourg A YBrown Advisory US Equity Value £ A 101.83 18.09 7,869 £ Brown Advisory Funds Ireland A YFidelity America A-$ 93.05 18.74 2,500 $ Fidelity Luxembourg A Neutral YBNPP L1 Equity USA Growth C C 90.72 17.65 0 $ BNP Paribas Investment Pnrs Luxembourg A YRobeco US Large Cap Equities D € 87.99 18.38 0 € Robeco Luxembourg Luxembourg AACap Int US Growth and Income B 86.52 16.81 1,312 € Capital International Luxembourg YSchroder ISF US Sm & MdCp Eq A $ 85.05 17.59 1,000 $ Schroder Investment Mgt Luxembourg AA AAA YRobeco US Premium Equities D $ 81.59 18.9 N/S $ Robeco Luxembourg Luxembourg YING (L) Invest US High Dividend P Acc 78.14 13.89 0 $ ING Investment Management Luxembourg A NeutralPerkins US Strategic Value A $ Acc 74.8 16.29 2,500 $ Janus Capital Funds Ireland YNeuberger Berman US Large Cap Gr $ 70.15 16.42 10,000 $ Neuberger Berman Ireland AA YBL-Equities America B 69.63 15.32 N/S $ Banque de Luxembourg LuxembourgLM CB US Appreciation A Inc (A) $ 68.88 14.25 1,000 $ Legg Mason Global Funds Ireland A YCorporate and high-yield bondsOffshore/int’l funds 3-year 3-year Min init Curr Manager name Domicile Morningstar S&P Fd OBSR Morningstar UK % chg volatility inv ($) Rating Rating Rating Analyst Rtng reg?Aberdeen Global Sel Euro HY Bd A2 $ 145.84 28.02 1,500 $ Aberdeen Asset Managers Luxembourg AA YPimco GIS Gl Inv Grd Crdt Ins € 52.97 15.66 N/S € Pimco Global Advisors Ireland AA YInvesco Euro Corporate Bond 51.67 18.51 N/S € Invesco Global Asset Mgt Luxembourg AA/V5 AA YKames High Yield Global Bond A £ 120.42 18.84 157,375 £ Kames Capital Ireland A YKames High Yield Global Bond A € 106.87 20.17 131,154 € Kames Capital Ireland A YFidelity European High Yld A-€ 100.7 21.86 N/S € Fidelity Luxembourg AA/V6 YRobeco European High Yield Bonds 99.49 21.81 0 € Robeco Luxembourg LuxembourgKames High Yield Global Bond A $ 96.96 10.85 100,000 $ Kames Capital Ireland A YAB Global High Yield A $ 96.76 11.51 2,000 $ AllianceBernstein Luxembourg A/V646 INTERNATIONAL ADVISER [] APRIL 2012
  • 45. QUALITY FUNDSCorporate and high-yield bonds (cont)Offshore/int’l funds 3-year 3-year Min init Curr Manager name Domicile Morningstar S&P Fd OBSR Morningstar UK % chg volatility inv ($) Rating Rating Rating Analyst Rtng reg?Robeco High Yield Bonds DH € 94.98 20.96 0 € Robeco Luxembourg Luxembourg AA/V5 YInvesco Global High Income A € Hdg 94.65 20.01 1,967 € Invesco Global Asset Mgt Ireland A/V6 YGS Glbl High Yield Base € Hdg 94.54 19.85 6,557.7 € Goldman Sachs Asset Mgt Intl Luxembourg A/V6 YHSBC GIF Euro High Yield Bond 92.93 23.24 N/S € HSBC Investment Funds Luxembourg AA/V6 YAviva Investors Global High Yld Bd A € 91.03 19.71 2,623 € Aviva Investors Luxembourg Luxembourg AA/V5 YInvesco Global High Income A 84.89 9.8 1,500 $ Invesco Global Asset Mgt Ireland A/V6 YNeuberger Berman HY Bd € Adv Acc 82.97 19.77 13,115 € Neuberger Berman Ireland AAA/V4 AA YFidelity US High Yield A-$ 80.43 10.07 2,500 $ Fidelity Luxembourg AAA/V5 A YBlueBay High Yield Bond Acc B € 79.48 20.71 131,154 € BlueBay Asset Management Luxembourg AAA/V5 AAA YMuzinich Europeyield H/Y 76.88 22.16 131,154 € Muzinich & Co. Ireland AA/V6 YPimco GIS Global Hi Yld Bd E 67.85 9.65 5,000 $ Pimco Global Advisors Ireland A YSchroder ISF Glbl Corp Bd A € Hdg 39.98 14.16 1311.54 € Schroder Investment Mgt Luxembourg AA/V3 YStandard Life Sicav Eurp Corp Bd D 37.85 15.35 1.3m € Standard Life Investments Luxembourg AA/V4 YBlueBay Investment Grade Bd Acc B € 35.82 15.01 131,154 € BlueBay Asset Management Luxembourg AAA/V3 A YAxa WF Euro Credit Plus AC € 35.2 15.02 0 € Axa Investment Managers Luxembourg Fixed income EuropeOffshore/int’l funds 3-year 3-year Min init Curr Manager name Domicile Morningstar S&P Fd OBSR Morningstar UK % chg volatility inv ($) Rating Rating Rating Analyst Rtng reg?Pimco GIS Glbl Real Ret Ins € Hdg Acc 50.49 14.54 N/S € Pimco Global Advisors Ireland AA YSchroder ISF US Dollar Bd A € Hdg 32.79 12.9 1,312 € Schroder Investment Mgt Luxembourg AA/V2 YBNY Mellon Euroland Bond C € Acc 32.5 13.08 6.6m € BNY Mellon Asset Mgt Ireland AAA/V3 YRaiffeisen-Euro-Rent R VT 30.66 13.04 1 € Raiffeisen Kapitalanlage Austria AA/V3LGT Bond Global Inflation Linked € B 30.53 13.67 1 € LGT Capital Management Liechtenstein A/V4AB European Income A2 € 76.37 19.33 2,623 € AllianceBernstein Luxembourg A/V6LM WA GMS A Acc (Hdg) € 62.34 19 1,312 € Legg Mason Global Funds Ireland A/V4 YPimco GIS Euro Bond Ins Acc 34.82 13.76 N/S € Pimco Global Advisors Ireland AA YHSBC GIF Euro Bond A Acc 32.22 13.8 N/S € HSBC Investment Funds Luxembourg AA/V3 YBGF Euro Bond A2 € 29.11 13.03 N/S € Blackrock (Luxembourg) Luxembourg AA/V3 AA YInvesco European Bond A Acc 28.01 11.95 N/S € Invesco Global Asset Mgt Luxembourg A/V3 YPioneer Fds Euro Aggt Bd A € ND 26.83 14 1,312 € Pioneer Asset Management LuxembourgDelta Lloyd L Bond € B 21.09 11.79 1 € Delta Lloyd Asset Management Luxembourg AA/V3Global bondsOffshore/int’l funds 3-year 3-year Min init Curr Manager name Domicile Morningstar S&P Fd OBSR Morningstar UK % chg volatility inv ($) Rating Rating Rating Analyst Rtng reg?Templeton Glbl Total Return A MDis £-H1 95 18.93 7,869 £ Franklin Templeton Investment Luxembourg AA/V5 A YTempleton Glbl Total Return A Acc €-H1 85.24 21.6 6,558 € Franklin Templeton Investment Luxembourg AA/V5 A YPimco GIS Global Bond Ins CHF Hdg 81.66 14.65 N/S CHF Pimco Global Advisors Ireland AA YTempleton Glbl Total Return A MDis $ 77.96 11.35 5,000 $ Franklin Templeton Investment Luxembourg AA/V5 A YKames Strategic Global Bond A € 56.12 16.34 N/S € Kames Capital Ireland A YTempleton Global Bond A Acc € H1 54.98 20.11 6,558 € Franklin Templeton Investment Luxembourg AAA/V5 AA YMuzinich Extrayield Glbl Loan Instl € 54.6 15.74 1.3m € Muzinich & Co. Ireland AAPimco GIS Global Bond Ins € Hdg Acc 51.46 13.62 N/S € Pimco Global Advisors Ireland AA YTempleton Global Bond A MDis $ 48.72 9.87 5,000 $ Franklin Templeton Investment Luxembourg AAA/V5 AA YPimco GIS Global Bond Ins Acc $ 42.43 3.89 10m $ Pimco Global Advisors Ireland AA YTempleton Global Bond A MDis £-H1 65.36 17.12 7,869 £ Franklin Templeton Investment Luxembourg AAA/V5 AA YPimco GIS Global Bond Ins GBP Hdg Inc 60.88 11.97 N/S £ Pimco Global Advisors Ireland AA YLM BW Glbl Fixed Inc A Inc (S) (Hdg) £ 55.22 11.67 1,574 £ Legg Mason Global Funds Ireland AA/V4 A YLM BW Glbl Fixed Inc A Inc (S) $ 53.34 7.18 1,000 $ Legg Mason Global Funds Ireland AA/V4 A YPimco GIS Global Bond Inv $ Unhdg 51.36 7.35 5m $ Pimco Global Advisors Ireland AA YLM BW Glbl Fixed Inc A Acc (Hgd) € 48.14 12.53 1,311 € Legg Mason Global Funds Ireland AA/V4 A YLoomis Sayles Glob Opp Bd Fd I/D $ 42.23 8.34 100,000 $ Natixis Global Asset Mgt Ireland YInvestec GSF Glbl Bd A Inc Grs $ 34.18 7.34 3,000 $ Investec Asset Management Luxembourg A YBNY Mellon Global Bond A $ 29.09 6.86 5,000 $ BNY Mellon Asset Management Ireland AA/V4 YAPRIL 2012 [] INTERNATIONAL ADVISER 47
  • 46. QUALITY FUNDS Global bonds (cont)Offshore/int’l funds 3-year 3-year Min init Curr Manager name Domicile Morningstar S&P Fd OBSR Morningstar UK % chg volatility inv ($) Rating Rating Rating Analyst Rtng reg?Raiffeisen-Global-Rent R VT 27.89 8.1 1,312 € Raiffeisen Kapitalanlage Austria AA/V4BL-Global Bond B 21.89 11.48 3,279 € Banque de Luxembourg Luxembourg A/V3Robeco Lux-o-rente D € 17.44 11.93 1 € Robeco Luxembourg Luxembourg AA/V3 YGlobal emerging markets bondsOffshore/int’l funds 3-year 3-year Min init Curr Manager name Domicile Morningstar S&P Fd OBSR Morningstar UK % chg volatility inv ($) Rating Rating Rating Analyst Rtng reg?ING (L) Renta Fd EM Dbt HC P $ Acc 92.16 9.69 N/S $ ING Investment Management Luxembourg AA/V6 YING (L) Renta Fd EM Dbt HC € Hdg 102.67 19.58 0 € ING Investment Management Luxembourg AA/V6Aberdeen Global Sel Emerg Mkt Bd A2 84.9 10.11 1,500 $ Aberdeen Asset Managers Luxembourg A/V6 YTempleton Emerging Mkts Bd A QDis $ 80.58 11.32 5,000 $ Franklin Templeton Investment Luxembourg AA/V5 AA YAB Emerging Markets Debt A $ 79.13 9.35 2,000 $ AllianceBernstein Luxembourg AA/V5Fidelity Emerging Mkt Debt A-$ 77.98 10.51 2,500 $ Fidelity Luxembourg AA/V5 YGS Glbl Emerging Mkts Debt Base Dis 74.89 8.59 1,500 $ Goldman Sachs Asset Mgt Intl Luxembourg A/V6 YBNY Mellon EM Debt Lcl Ccy X $ 72.66 13.04 0 $ BNY Mellon Asset Management Ireland AA/V6 YPIMCO GIS Emerg Local Bond Instl $ 72.52 12.99 10m $ Pimco Global Advisors Ireland YInvestec GSF EM Lc Ccy Dbt A Inc Grs $ 69.75 13.66 3,000 $ Investec Asset Management Luxembourg A YAllianz Emerg Markets Bond A 69.58 17.3 1 € Allianz Global Investors Ireland Ireland AA/V5 YBNPP L1 Bond World Emg Local C C 69.16 14.37 N/S $ BNP Paribas Investment Luxembourg AA/V5 YLGT Select Bd Emerging Markets ($) B 68.67 11.16 1 $ LGT Capital Management AG Liechtenstein A/V5BNY Mellon Emerg Mkts Dbt A $ 66.01 7.71 5,000 $ BNY Mellon Asset Management Ireland AA/V5 YMFS Meridian Emerg Mkts Dbt A2 $ 63.93 7.88 5,000 $ MFS Meridian Funds Luxembourg AAA/V5 A YPictet-Global Emerging Debt-HP € 63.5 17.34 0 € Pictet Funds (Europe) Luxembourg YPictet-Global Emerging Debt-P $ 55.85 6.52 0 $ Pictet Funds (Europe) Luxembourg Y Funds of hedge fundsOffshore/int’l funds 3-year 3-year Min init Curr Manager name Domicile Morningstar S&P Fd OBSR Morningstar UK % chg volatility inv ($) Rating Rating Rating Analyst Rtng reg?Permal Emerging Markets Holdings 44.01 10.83 100,000 $ Permal Asset Management Inc. Curaçao APermal Fixed Income Holdings NV € A 40.28 16.36 131,154 € Permal Asset Management Curaçao AAGAM Multi-Emerging Markets $ Open Cl 24.48 9.87 15,000 $ GAM Fund Management BVI AAPermal Japan Holdings 21.5 8.32 100,000 $ Permal Asset Management Curaçao AAPermal Advantage Multi-Strategy € A 20.2 16.64 32,789 € Permal Asset Management Luxembourg AAPermal Advantage Multi-Strategy € C 16.73 16.64 32,789 € Permal Asset Management Luxembourg AAPermal (LUX) Natural Resources € C 14.22 17.77 32,789 € Permal Asset Management Luxembourg AAPermal Advantage Multi-Strategy $ C 12.22 6.03 25,000 $ Permal Asset Management Luxembourg AAGAM Trading II $ Open 8.09 4.1 25,000 $ GAM Fund Management BVI AAData source: © 2012 Morningstar, Inc. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely.Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance is no guarantee of future results. Performances have been calculated on a bid-to-bid, $, gross income basis.Volatility is expressed as standard deviation of 36 monthly total returns (bid-to-bid). The Morningstar Rating is calculated based on a fund’s total returns, adjusted for risk and sales charges, relative to other funds in its Morningstar Category. The OverallMorningstar Rating published here is based on a weighted average of a fund’s three-, five- and ten-year ratings, depending on the length of its record. ADVISER INTERNATIONAL All the latest offshore news, updated daily online LifeBase - a comprehensive database of offshore life products Fund Research Centre - fund data and factsheets across the entire offshore universe48 INTERNATIONAL ADVISER [] APRIL 2012
  • 47. CPD COMPLIANTADVISER INTERNATIONALInternational Pensions Forum MARINA MANDARIN HOTEL, SINGAPORE - 19 APRIL 2012 REGISTRATION NOW OPEN Cross-border pensions such as QROPS and QNUPS are among the fastest-growing products in the international market. At this free-to-attend educational seminar, specifically designed for financial intermediaries servicing expat clients, you will learn exactly how these products work, their drawbacks and advantages and how they can best be integrated into portfolios Limited number of places available Attendance is through registration only Half-day, morning seminar, finishing with lunchTo reserve your complimentary place, please go to For further information please contact events manager Angela Yong at or by phone on +65 6222 1596
  • 48. BANKING DEPOSITS OFFSHORE ACCOUNTS RANKED BY INTEREST RATES No-notice £ accounts Provider Account Notice Deposit Gross Interest Telephone number/ or term % paid web address AIB International Savings Instant Saver None £5,000 2.5% Yly +44 (0)1624 698000 Alliance & Leicester International Select Bonus (Issue 1) None £5,000 2.45%* Yly +44 (0)1624 641888 Nationwide International Bonus Access Account None £25,000 2.4%* Yly +44 (0)1624 696000 Lloyds TSB International International Bonus Saver None £100,000 2.01%* Mly +44 (0)1624 641825 Britannia International Access Plus None £50,000 2% Yly +44 (0)1624 681100 No-notice $ accounts AIB International Savings Instant Saver None $5,000 1.8% Yly +44 (0)1624 698000 Nationwide International Bonus Access Account None $25,000 1.6%* Yly +44 (0)1624 696000 Lloyds TSB International International Bonus Saver None $100,000 1.51%* Mly +44 (0)1624 641825 Barclays Wealth Bonus Saver None $100,000 0.8%* Qly +44 (0)1624 684316 Barclays Wealth Wealth Saver None $100,000 0.55%* Qly +44 (0)1624 684316 No-notice accounts AIB International Savings Instant Saver None 5,000 2.5% Yly +44 (0)1624 698000 Nationwide International Bonus Access Account None 25,000 2.35%* Yly +44 (0)1624 696000 Lloyds TSB International International Bonus Saver None 100,000 2.27%* Mly +44 (0)1624 641825 Permanent Bank International Instant Access None 50,000 1.25% Yly +44 (0)1624 673373 Clydesdale Bank International Instant Savings None 10,000 1.1% Yly +44 (0)1481 711102 Notice accounts Skipton International International Select 180 180-day £100,000 2.75% Yly +44 (0)1481 727374 Nationwide International Bonus 95 Account 95-day £25,000 2.65%* Yly +44 (0)1624 696000 AIB International Savings 60 Day Saver 60-day £5,000 2.6% Yly +44 (0)1624 698000 AIB International Savings 32 Day Saver 32-day £5,000 2.55% Yly +44 (0)1624 698000 Nationwide International Bonus 1+ Account 95-day £25,000 2.55%* Yly +44 (0)1624 696000 Monthly interest Nationwide International Bonus 95 Account 95-day £25,000 2.58%* Mly +44 (0)1624 696000 Skipton International International Select 180 180-day £100,000 2.53% Mly +44 (0)1481 727374 Nationwide International Bonus 1+ Account 95-day £25,000 2.48%* Mly +44 (0)1624 696000 Alliance & Leicester International Select Bonus (Issue 1) None £5,000 2.45%* Mly +44 (0)1624 641888 Skipton International International Select 120 120-day £100,000 2.27% Mly +44 (0)1481 727374 Fixed rates 1-YEAR FIXED RATES AIB International Savings Privilege Fixed Interest 12-month £5,000 3.5% F OM +44 (0)1624 698000 Permanent Bank International 1 Year Bond 1-year bond £20,000 3.5% F OM +44 (0)1624 673373 Bank of Ireland (IoM) High Interest Return 1-year bond £25,000 3.5% F OM +44 (0)1624 644222 2-YEAR FIXED RATES Clydesdale Bank International Term Deposit 12-month £10,000 3.8% F Yly +44 (0)1481 711102 Alliance & Leicester International 2 Year Fixed Rate Bond 32 31 Mar ’14 £5,000 3.7% F Yly +44 (0)1624 641888 Permanent Bank International Ltd 2 Year Fixed Deposit 2-year bond £20,000 3.68% F OM +44 (0)1624 673373 3-YEAR FIXED RATES Clydesdale Bank International Term Deposit 36-month £10,000 4% F Yly +44 (0)1481 711102 Lloyds TSB International Fixed Term Deposit 3-year bond £10,000 4% F Yly +44 (0)1624 638000 Permanent Bank International Ltd 3 Year Bond 3-year bond £20,000 3.71% F OM +44 (0)1624 673373 Please note: rates correct on 15 March, 2012 All rates are shown gross. * Introductory rate for a minimum of 6 months. (P) Operated by post. (F) Fixed rate. (W) Operated by internet. (OM) On maturity. (S) Available to those aged 60 and over. All rates and terms subject to change without notice and should be checked before finalising any arrangement. No liability can be accepted for any direct or consequential loss arising from the use of, or reliance on, this information. Readers who are not financial professionals should seek expert advice. Source: INTERNATIONAL ADVISER [] APRIL 2012
  • 49. INTERNATIONAL LIFE & BANKING LISTINGS LIFE LISTINGSProfessionalservices Company name: AEGON Ireland plc Address: 2nd Floor, IFSC House, Custom House Quay, Dublin 1, Ireland Company name: La Mondiale Europartner Sa Address: Atrium Business Park, 23A, rue du puits romain, ZA Bourmicht L- 8070 Bertrange, LuxembourgHere are some of the biggest Tel: +353 (0)845 600 0173 Tel: +352 45 858744 • 0808 234 6607 (client services in UK) Fax: +353 (1)673 8940 Fax: + 352 45 8718players in the offshore professional Email: Email: advisers@lamondiale.luservices arena with a description Website: Website: www.ag2rlamondiale.luof their services and their contact We are part of the AEGON Group, which is one of the world’s La Mondiale Europartner is based in Luxembourg and hasdetails. If you are interested in largest listed insurance companies with assets under gained experience in wealth management solutions over administration of around 400bn. The Irish base offers benefits many years. They now operate in several EU countriesbeing included, please contact Ben for developing propositions suitable for the UK. We have a including France, Luxembourg, Italy, Portugal, Spain, motivated and highly skilled workforce of around 200 people Belgium and the UK.Wiseman on +44 (0)20 7065 7573 managing around 4bn of funds for approximately 18,000 Their focus is aimed at the cross-border aspects ofor email: ben.wiseman@ investors. We have a proven track record for delivering wealth management, enabling them to produce unit-linked, innovative financial solutions, including the manufacture and multi-currency, multi-manager, multi-lingual – production of unit-linked guarantee propositions for the UK, the and expatriate pension solutions. Netherlands and France, as well as managing our wealth Product offerings management offshore bond portfolio and European portability Bond 4 European Mobility is for UK-based independent option. financial advisers providing a cross-border-compliant, Product offerings tax-efficient, multi-currency wrapper with open architecture. A range of unit-linked guaranteed solutions including: AEGON Investment is allowed via collective investment schemes Secure Lifetime Income plan, AEGON Secure Capital and chosen by the client/IFA or may be managed by Income guarantee bonds, and AEGON Secure Trustee a discretionary manager. Investment bond – Best Product (UK) 2011 and Offshore The bond allows access to the La Mondiale’s main fund, bonds: Wealth Management Portfolio and Wealth Planning which provides guaranteed returns in £, and $. Locally Account. compliant investment solutions are also available to IFA’s advising UK expatriate clients residing in Spain and France.Company name: Axa Wealth International is the brand used for Company name: Friends Provident International Company name: Generali Internationalthe promotion of offshore investment products offered by Axa Address: Royal Court, Casteltown, IM9 1RA, Isle of Man Address: PO Box 613, Generali House, Hirzel St, St PeterIsle of Man Limited and Axa Life Europe Limited. Port, Guernsey, Channel Islands, GY1 4PA Tel: +44 (0)1624 821 212Axa Isle of Man Ltd website: Tel: +44 (0) 1481 714 108 Email: clientsupport@fpiom.comAxa Isle of Man Ltd tel: +44 (0) 1624 643333 Fax: +44 (0) 1481 712 424 UK address: UK House, Castle St. Salisbury, Email: enquiries@generali-guernsey.comAxa Life Europe Ltd website: Wiltshire SP1 3SHaxalifeeurope Tracing its roots back to 1977, Generali International is a UK phone number: +44 (0)1722 415088 specialist arm of the Generali Group, one of the largestAxa Life Europe Ltd tel: +353 1 471 1594 UK email: insurance groups in the world. It is a leading offshore providerCalls may be recorded offering sophisticated and powerful, life insurance-based, Website: wealth management solutions to a global audience, includingAxa Wealth International was established in 2010 to harnessthe strengths of both Axa Isle of Man and Axa Life Europe to Friends Provident International (FPI) is part of the Friends international expatriates and certain local resident populations.provide a new way of doing business offshore. Through the Life group. FPI was established in the Isle of Man in 1978, It has built up an enviable record for flexible and competitivetwo companies, we offer products from the established, and has been delivering innovative and sophisticated investment solutions supported through its network ofregulated environments of the Isle of Man and Ireland with tax propositions to a competitive market for more than 30 regional offices in Cyprus, Hong Kong and Ireland, and a localefficient planning, experience and expertise, innovation and years. FPI’s business continues to grow and today it has office in Singapore. The company is based in Guernsey, achoice being at the heart of our business. offices in the Isle of Man, Hong Kong, Singapore and Dubai. premier offshore location, is a Registered Insurer under the This enables the delivery of first class customer service to Insurance Business (Bailiwick of Guernsey) Law 2002 and isProduct offerings local markets in a language they understand. also an authorised insurer in Hong Kong.We have developed a flexible product portfolio to meet a variety Product offerings Product offeringsof financial needs including offshore single premium bonds, FPI offers a range of individual savings, protection and A range of flexible unit-linked regular and single premium-products combining bonds with a choice of trusts to provide a investment products, as well as group savings and tax based savings, retirement and investment plans, with accesspotential IHT mitigation solution, and, for Axa Isle of Man, our planning trusts. An extensive fund range, is complemented to over 120 funds selected from some of the worlds leadingregular premium product the Regular Investment Account. by FPI’s Dynamic Portfolio Planner international (DPPi) – fund houses. A variety of specifically packaged portfolio bondsPlease contact your usual Axa sales representative for details of an innovative portfolio-planning tool that enables advisers offering the widest choice of investment options through anproduct offerings from both providers or visit our websites at to build bespoke investment portfolios for their clients. open architecture platform.the addresses given above.APRIL 2012 [] INTERNATIONAL ADVISER 51
  • 50. INTERNATIONAL LIFE & BANKING LISTINGSCompany name: Investors Trust Assurance SPC Company name: IOMA Group Company name: Legal & General International (Ireland) LtdAddress: Suite 4210, 2nd Floor, Canella Court, Camana Bay, Address: IOMA House, Hope Street, Douglas, Isle of Man, Address: Beaux Lane House, Lower Mercer St, Dublin 2,PO Box 32203, Grand Cayman, KY1-1208, Cayman Islands IM1 1AP IrelandTel: +1 (305)603-1400 Tel: +44 (0) 1624 681200 Tel: +44 (0)845 674 0803Fax: +1 (786)363-1822 Fax: +44 (0) 1624 681390 Fax: +44 (0)845 674 0804Email: Email: Website: www.legalandgeneralinternational.comWebsite: Website: Email: lgiirequest@landg.comInvestors Trust Assurance SPC (“ITA”) is an international IOMA Life is part of IOMA Group, which offers a complete Legal & General International (Ireland) Limited was establishedinsurance company licensed and regulated by the Cayman wealth and risk management service from its base in the Isle in July 2007. It currently offers international investment andIslands Monetary Authority. ITA has gained a leadership of Man, one of the world’s best regulated and most successful tax planning solutions to investors resident in the UK, Channelposition in the international insurance markets by specializing financial centres. We administer or manage over $8 billion of Islands or Isle of Man. The company is a subsidiary of thein the provision of investment–linked insurance products and funds for global clients, and have a proven track record in Legal & General Group Plc, which was established in 1836class leading customer service. With service offices innovative solutions that deliver good results and mitigate risk. and is one of the UK’s leading financial services companies.established to support policyholders around the world, ITA The IOMA Group is small enough to offer a highly personal As at 30 June 2011, Legal & General Group was responsibleseeks to provide opportunity to its policyholders through service, but sufficiently large to provide in-depth, specialist for investing £370 billion worldwide on behalf of investors,access to the global financial markets. ITA is constantly expertise. The business is comprised of eight divisions. Each policyholders and shareholders. It also had over seveninnovating, and investing in technology to allow clients online is a specialist in its own area, but all share the same desire to million customers in the UK for our life assurance, pensions,multi-language (English, Spanish, Portuguese, Chinese and grow our business by delivering effective results. Some clients investments and general insurance plans.Japanese) access to manage their investment-linked products. only use one service, others mix and match between businesses to suit their needs at the time. The divisions are: Product offeringsProduct offerings Solutions, Life, Investment Management, Fund Management, Provides a tax-efficient wrapper with a choice of chargingITA works with some of the world’s top asset managers under Pensions, Fiduciary, Captives and Insurance. structures and investment in a wide range of assets. Theits convenient open architecture platform. It provides clients International Portfolio Bond also offers access to a number ofwith greater investment choices and the ability to plan for a Product offerings UK Platforms.happy and comfortable retirement and to provide for their IOMA Life offers a wide range of inheritance tax mitigation and The value of investments in the International Portfolio Bond ischildren. Specialising in medium to long term investment-linked estate planning products. It provides traditional single premium not guaranteed and customers may not get their full moneyproducts tailored to meet the needs of investors around the UK products via an offshore portfolio bond and a wide range of, ITA offers a range of flexible, tax-efficient products specialist unit linked life products. IOMA Life is also a soughtincluding regular and single premium annuities, designed to suit after provider of offshore bonds for investment platforms.various income levels and financial planning needs.Company name: Royal London 360° Company name: Swiss Life Company name: SEB Life International Assurance CompanyAddress: Royal London House, Cooil Rd, Limited Private Placement Life InsuranceDouglas, Isle of Man, IM2 2SP Address: Bloodstone Building, Sir John Rogerson’s Quay,Tel: +44 (0)1624 681893 Address: General-Guisan-Quai 40, 8022 Zurich, Dublin 2, IrelandFax: +44 (0)1624 677336 SwitzerlandEmail: Tel: +353 (1) 487 0700 • Fax: +353 (1) 487 0704Website: Tel: +41 (0)43 284 7413 • Fax: +41 (0)43 284 6311 Email: sales@seb.ieToday’s offshore investor demands a combination of Email: ppli@swisslife Website: www.seb.ieinvestment choice, security and quality service. Royal London Website:°’s attractive range of products provide flexible solutions SEB Life International Assurance Company Limited, trading asand are supported by experienced servicing teams, effective The Swiss Life Group is one of Europe’s leading providers of SEB Life International, is a life insurance company incorporatedmarketing support and strong technical back up, which allow life insurance and pension solutions. In Switzerland, France and regulated in Ireland which engages in the cross borderinvestors to plan for the future with confidence and security. and Germany, the Group offers individuals and corporations distribution of insurance based investment products under the Headquartered in the Isle of Man, one of the world’s comprehensive advice and a broad range of products through EU Third Life Directive on a freedom of services basis. SEBleading offshore financial jurisdictions, Royal London 360° its own sales force as well as brokers and banks. Life International (formerly known as Irish Life Internationalwas established through the merger of Scottish Life Swiss Life provides international corporations with Limited, founded in 1994 in Dublin, Ireland) was establishedInternational Insurance Company Limited and Scottish employee benefits solutions from a single source, and is one with the specific intention of servicing the differing needs andProvident International Life Assurance Limited. The company of the global leaders in structured life and pension products for ambitions of international investors. In September 2011, thehas combined industry experience of over 30 years, and international high net worth individuals. Company was acquired by SEB Trygg Liv Holding AB, whichassets under administration in excess of £2bn*. Private Placement Life Insurance (PPLI) solutions combine is part of the SEB Group (, one of the Royal London 360° is the international division of the an investment portfolio with high-end life insurance for global, largest Banking and Life Assurance Groups in northern Europe.Royal London Group. Royal London is the largest mutual high net worth clients. The presence in major financial cities Product offeringslife and pensions company in the UK with group funds under enables the delivery of local knowledge with global expertise. SEB Life International transacts business almost exclusivelymanagement of £44.2bn. Group businesses serve around The clients benefit from leading solutions of asset and within EU markets and has a suite of locally tailored products4 million customers and employ 2,950 people*. investor protection, privacy, investment flexibility, estate on offer. Our range of more than 100 internal unit-linked funds 360° represents a number of significant advantages: planning and tax optimisation, which are distributed in is also available through many of our Portfolio products. Forthe international nature of its business, the way its employees cooperation with business partners; private banks, family details please go to and take personal responsibility, and the company’s offices, law firms, asset managers and brokers.adaptable approach to meeting tailored requirements. SEB Life International Assurance Company Limited, trading* Source: Royal London. All figures as at 30 Sept, 2011 as SEB Life International is regulated by the Central Bank of Ireland.52 INTERNATIONAL ADVISER [] APRIL 2012
  • 51. INTERNATIONAL LIFE & BANKING LISTINGS BANK LISTINGSCompany name: Prudential International Assurance Company name: Clydesdale Bank InternationalAddress: Montague House, Adelaide Rd, Dublin 2, Ireland Address: Clydesdale Bank International, Regency Court,Advisers tel: +44 (0)808 234 2200 Glategny Esplanade, St Peter Port, Guernsey, GY1 3ZUNon-UK advisers fax: +44 (0)808 234 0000 Tel: +44 (0)1481 754910 Company name: Alliance & Leicester International LimitedWebsite: Email: Address: PO Box 226 ,19/21 Prospect Hill, Douglas,Prudential International is part of the Prudential Group, Website: Isle of Man, IM99 1RYone of the UK’s largest and best-known financial servicesorganisations. As a group, Prudential has been managing Tel: + 44 (0)1624 641 888 • Fax: + 44 (0)1624 663577 Clydesdale Bank International is a branch of Clydesdalemoney for over 160 years. It has in excess of £309bn of Bank, part of the National Australia Bank Group – one of Website: the world’s largest banking groups by market capitalisation.funds under management (at 30 June, 2010). The Alliance & Leicester Group has offered offshore savings We offer savings accounts suitable for individuals,Product offerings companies and trusts and our savings accounts are suitable from the Isle of Man since 1990. Alliance & LeicesterPortfolio Account is an open architecture bond with access for inclusion within offshore bonds. Clydesdale Bank International Limited (ALIL) was incorporated in Novemberto over 2,500 funds. Its key features include a choice of four International is a participant in the Guernsey Banking Deposit 1996 and offers a range of offshore savings solutions toflexible charging options, annual management charge (AMC) Compensation Scheme* (details are available from our personal customers. From its office in Douglas, ALIL servesrebates and discounted fund terms. AMC rebates are not office on request). account holders in well over 100 countries worldwide.guaranteed and are subject to change. Alliance & Leicester International Limited is a wholly Product offeringsInternational Prudence Bond provides a range of risk-graded owned subsidiary of Santander UK plc. We offer a range of savings accounts and fixed termunit-linked funds, from Prudential and other leading fundmanagers. These include the PAC with-profits funds and the Product offerings deposits with competitive rates, from instant savingsPruFund range of funds, each available in sterling, euro and Competitive interest rates on a wide range of offshore accounts to five-year fixed term deposits for £. In addition,US dollar. accounts, including all major currencies. we offer $, C$, €, A$ and NZ$ instant savings accounts. WeFlexible Protection Bond and Flexible Life Plan are Prudential’s offer current accounts with internet banking and debit cardssingle and regular premium whole of life protection plans. Both in £, $, €, A$ and NZ$.offer a selection of investment funds and a single or joint life * Deposits with Clydesdale Bank International are not covered by the Financialbasis. Services Compensation Scheme established in the UK under the Financial Services and Markets Act 2000All the funds available for the company’s products grow largelytax-free.It also offers a range of trusts for inheritance tax planning.Company name: Standard Life International Company Name: Skipton International Company name: Standard Bank OffshoreAddress: 90 St Stephen’s Green, Dublin 2, Ireland Address: PO Box 509, Fairbairn House, Rohais, St Peter Port, Address: Standard Bank House, One Circular Road,Tel: +44 (0)845 300 4273 • Fax: +353 (1) 475 4025 Guernsey, GY1 6DS Douglas, Isle of ManEmail: Tel: +44 (0)1481 727374 Tel: +44 (0)1624 643668Website: Email: Email: john.hall@standardbank.comStandard Life International is an Irish life assurance company Website: Website: owned by Standard Life Assurance Limited, which has Skipton International is a Guernsey-based offshore savings and Contact: John Hall, director intermediary distributionbeen set up to sell insurance business from its base in Irelandinto the UK, Channel Islands and the Isle of Man. The Standard mortgage specialist. The company offers deposit products for At Standard Bank, we understand that people withLife group of companies has been looking after its customers both individual savers and businesses. Skipton International international lifestyles have individual requirements and thatfor over 185 years and currently has over 6 million people is part of Skipton Building Society group, the fourth largest no two expatriates’ needs are the same. Standard Bankworldwide relying on them for their financial needs. society in the UK with over £14bn assets. Offshore is ideally placed to help you make the most of yourOur impressive parent means that we attach a great deal of Product offerings changing circumstances. Our products and services areimportance to excellent customer service and quality products. Skipton International offers a range of easy access, notice and specifically designed to make your financial arrangementsStandard Life International was awarded Best Adviser Support simpler and also to assist you in taking advantage of anyand Customer Services from International Adviser for their fixed-term products. Accounts have been designed with the needs of business benefits that your new status may present.International Bond in 2010. Our International Bond has beenrated 5 Star by Defaqto for the past 2 years. in mind and are accessible to a wide range of trust companies, Product offerings businesses and intermediaries wanting to place cash deposits. We have specifically designed a flexible range of bankProduct offerings Annual and monthly interest options are available and Skipton accounts to hold your cash in any major currency. OurOur core product is the International Bond. This is an offshore International business accounts offer tiered rates of interest,portfolio bond that provides a tax-efficient wrapper with a accounts will meet your needs, whether you wish to access so larger deposits will earn higher rates of return on the whole money on a regular basis, or are saving for the longertransparent charging structure payment flexibility (includingrecurrent single premiums) and flexible commission options. balance. term. We also have a range of structured products, fundYour clients can choose from a wide choice of investments Specialised business account support staff offer a investments and lending services.including Insured funds, Mutual funds, whole-of-market funds, dedicated contact point to ensure smooth and fast accountdeposit accounts and have access to a panel of Discretionary opening, with customers guided through a straightforwardInvestment Managers. A comprehensive range of trust options new account process. Once opened, dedicated contacts areis also available, which can be adapted to help meet your available to ensure the smooth running of accounts.client’s estate planning needs.APRIL 2012 [] INTERNATIONAL ADVISER 53
  • 52. RECRUITMENTRecruitment listingsTo have access to over 10,000 potential candidates globally,book your recruitment advertisement by calling Ben Wiseman on+44 (0)20 7065 7573 or email ben.wiseman@lastwordmedia.comRates: Full page £6,500 Half page £4,500 “Delivering bespoke financial advice on location” Strip £3,500 Quarter page £3,000 Unique opportunity in emerging markets Current Vacancies: Regional Manager - West Africa Country Manager - Ghana and Nigeria Experienced International IFAs - West Africa Package: Achievable OTE £80,000-£130,000 Lead generation On-going support and training Recruitment Career progression and management opportunities Relocation expenses and accommodation (negotiable) just got better For more information contact – Tel: +44(0)20 887 82060 Call us now Email: Aston Wealth Management is a trading style of AWM Global GmbH +44 (0)1785 814141 and is registered by the Swiss Regulatory Authority VQF. www.wmrecruit.com54 INTERNATIONAL ADVISER [] APRIL 2012
  • 53. RECRUITMENT Scottsdale Overseas INDEPENDENT FINANCIAL ADVISERS Are you an experienced Financial Adviser with attitude? If you are then Scottsdale Overseas has an exciting and challenging role for you as we continue to expand in Europe. Successful applicants must possess the following attitudes: Honest and ethical attitude Hardworking and ‘can do’ attitude Accountable and responsible attitude Adaptable and flexible attitude As well as these attitudes full Certificate of Financial Planning or International Financial Planning Qualification, are required to work in our busy, pressurised and good-humoured company. Scottsdale is geared towards training and focuses on teaching new skills that bring out the best in our people. If you have the potential to achieve OTE of 70,000 Euros plus per annum, then support will be given to achieve this and more. If you are an exceptional person who aims to give the highest standards of advice to your clients then Scottsdale has the: Technology Training and development Management support Administration Networking to help you maximise your potential and your earnings. Apply today by sending your CV to or phone +44 1908 226400 The financial advisers trading under Scottsdale Overseas are members of Nexus Global (IFA Network). Nexus Global is a division of Blacktower Financial Management (International) Limited (BFMI). All approved individual members of Nexus Global are Appointed Representatives of BFMI. BFMI is licenced and regulated by the Gibraltar Financial Services Commission (FSC) and bound by the rules under licence number FSC00805BAPRIL 2012 [] INTERNATIONAL ADVISER 55
  • 54. of accountants admit Glenn Turner, Hong Kong chairman of thelimited knowledge of LDF Independent Financial Advisors Association, says consumers willBY SIMON DANAHER These poor results come According to CCW, the despite 81% of account- low awareness of the LDF is benefit, but also pay forA worryingly high number ants surveyed saying they largely due to a lack of pro- new insurers’ schemeof accountants have admit- know what the LDF is and motion which has been leftted they have a limited are aware of the principles “largely to the press” and OPINIONknowledge of the UK gov- behind it. professional organisations.ernment’s tax amnesty, theLiechtenstein DisclosureFacility (LDF), with some The survey also found, while general awareness is high, detailed knowledge of According to the survey, only 16% of accountants said they had read about HK insurance protectionconceding they have noknowledge about it at all. the tax amnesty is lacking. This is highlighted by the the LDF most in literature from HMRC, while 33% and fund lost in sea of change In an online survey con- fact that more than two 9% had learned about it Hong Kong’s government income basis and notducted by audit, tax and in ten accountants do not through professional and is planning to implement a liability/asset advisory firm know what a client would national press respectively. a Policyholders’ Protection The plan is for the insol-Crowe Clark Whitehall need to do in order to qual- CCW said “the UK tax Fund that would operate vent company’s policy(CCW), 38% of account- ify, while the same number authorities have done well, like a bank deposit insur- portfolio to be bought byants said they had “lim- again were not aware that but could do better in areas ance scheme. The target a company that is operat-ited knowledge” of the LDF, the LDF is not just open such as advertising and starting date is 2013. ing soundly. It is unclear,with a further 13% admitting to individuals with a bank media coverage to maximise As proposed, the scheme though, whether thisthey had “no knowledge”. account in Liechtenstein. the yield to the Exchequer.” would reimburse consum- second company has to ers in the event their insur- absorb the entire book or er were to fail for the first can be selective. If it is onDBS Bank expands Asia HNWI operation HK$100,000 ($12,900) of any claim, plus 80% of the a selective basis, then the fund will need to operateBY HELEN BURGGRAF DBS next month from Bank vate banking in Singapore balance up to HK$1m. as an insurer itself for the of China (Suisse) SA, where and Malaysia for Citigroup. As usual with a scheme unwanted policies.The private banking arm of he most recently has been Other members of the like this, the devil is in Small- and medium-Singapore-based DBS Bank deputy chief executive and new team include Yann the detail. The fundamental sized companies with 49is creating a new inter- head of international pri- Mocellin, who is coming to problem is that there is so or fewer employees will benational private banking vate banking, as part of the new DBS private bank- much change in the Hong covered. This, in our view,“team” to tap what it said what is said to be the first ing team from multi-family Kong insurance indus- is a very arbitrary cut-offis a “rising demand from international private bank- office Swiss-Asia Financial try at present – for exam- high net worth ing office of a Chinese bank Services, where he was ple, the new Independent Once the Independentindividuals keen to invest outside Asia. managing partner and head Insurance Authority is Insurance Authority isin Asia’s growth”. Prior to joining Bank of of wealth management, and set to go live in 2013/14, established, how Hong The bank has named China (Suisse), Triggs spent James Tan, who is joining that any positive benefits Kong’s insurance industry isPeter Triggs to head up 19 years with Citigroup from Credit Suisse, where this scheme undoubtedly regulated will change, andthe new team as managing Private Bank, working out he was senior vice presi- would bring are certain to it will begin to be fundeddirector, head of interna- of Jersey, Zurich, Geneva, dent of investment consult- be drowned out. by the industry itself. Sometional and wealth structur- London and Asia, including ing. Additional senior rela- As proposed revenues to of these costs will unavoid-ing. Triggs, who will be three years during which he tionship managers are due support the fund are to be ably be passed on to thebased in Singapore, joins was Citigroup’s head of pri- to come on board in May. calculated on a premium insured public. Winner: Best QROPS Provider 2011 +44 (0)20 8209 9251 The Overseas Pension Scheme, Fairbairn House, PO Box 192, Rohais, St Peter Port, Guernsey. GY1 3LT5656 INTERNATIONAL ADVISER [] APRIL 2012