International Adviser April 2012


Published on

  • Be the first to comment

  • Be the first to like this

No Downloads
Total views
On SlideShare
From Embeds
Number of Embeds
Embeds 0
No embeds

No notes for slide

International Adviser April 2012

  1. 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. 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. 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. 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. 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. 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. The commission of anyE E E 120 Moorgate, London EC2M 6UR, UK unauthorised act in relation to this publica-Helen Burggraf Contributing editor Stephen Brolan Production editor Keeley Parsons Circulation manager tion may result in civil or criminal actions. Last Word Media (Asia) Pte LtdT +44 (0)20 7065 7568 T +44 (0)20 7065 7589 T +44 (0)20 7065 7578 Nothing in this publication amounts to a Level 25, North Tower, One Raffles QuayE E E Singapore 048583 personal recommendation or endorsement. The material contained in this publication isWill Jackson Contributor Ben Wiseman Associate publisher Tom Porter Manager director (Asia) PRINTING intended for information only and does notT +44 (0)20 7382 4475 T +44 (0)20 7065 7573 T +65 9781 3401 Ian Allan Printing Ltd, Hersham, constitute the provision of advice. NeitherE E E Surrey KT12 4RG; Tel +44 (0)1932 266600 the writer nor the publisher accepts anySimon Danaher Online news editor Giles Whittingham Sales executive Jamie Hinchliffe Publishing director responsibility for any loss or damage causedT +44 (0)20 7065 7577 T +44 (0)20 7065 7579 T +44 (0)20 7065 7572 10,097 July ’10 – June ’11 by any use of or reliance on the opinions orE E E views expressed in the publication. 6 INTERNATIONAL ADVISER [] APRIL 2012
  7. 7. The new land of opportunity is the land of opportunity. We will not rest
  8. 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. 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. 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. 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