International Adviser May 2012


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International Adviser May 2012

  1. 1. MAY 2012For Distributors of International Fund, Life and Banking Products launches risk-ratedfund portfolios 5 UAE finance firms set up Cuts in QROPS list could driveHSBC Saudi offersShariah-compliant fund 5Brazil regulator acquits cross-sector trade body providers out BY MARK BATTERSBYSwim Worldwide 5 BY SIMON DANAHER Management, Allfunds Bank, the National Bank of The removal by HM Rev-Pain hints at next job as A group of leading finan- Abu Dhabi, The National enue & Customs of hun-AILO adds members 7 cial institutions in the Investor, UBS AG and Invest dreds of schemes from itsBrazil almost doubles its United Arab Emirates have AD, as well as Deloitte official QROPS list on 7number of CFPs 7 formed a trade body, the and Clifford Chance. Legal April continues to elicit first cross-sector associa- and compliance specialist mixed reactions from keyGuernsey follows IoM and tion to be created for the Capital Advantage will act players, and it has started aJersey in zero-10 ruling 8 industry in the country. as company secretary. race among some providersOddo & Cie partners with The Financial Services Abdullah Al-Turifi, chief to find other jurisdictions inChinese firm 8 Association (UAE) has ini- executive of the Securities which to do business. tially been registered in the Foustok: ‘close coordination’ and Commodities Authority In Guernsey, where moreUK residents to pay higher Dubai International Finance (SCA), a leading UAE reg- than 300 schemes weretax on Swiss accounts 10 Centre and is undergoing Its board consists of ulatory body, said: “The removed from HMRC’s list,Israeli banks push for registration in Abu Dhabi. several local and inter- SCA welcomes the estab- Concept Group managingdeal with US on FATCA 10 Arwa Hamdieh, co- national financial compa- lishment of the Financial director Roger Berry said founder of the non-profit nies from Dubai and Abu Services Association (UAE) his company was “quiteForest to run Schroder organisation, said the asso- Dhabi, including Fidelity and supports the latter’s advanced” in relocating itsMulti-Asset Fund 10 ciation has so far attracted a Worldwide Investment, determined efforts in QROPS schemes: “We haveNikko first Asian company diverse group of companies Skandia International, boosting the performance been working on that forto join ICI Global 13 from across the divisions of Franklin Templeton Invest- and uplifting the markets. some months. It will be in financial services. ments, ING Investment Continued on page 5 multiple jurisdictions. ThereJersey Finance names are a number of jurisdic-Bestwick deputy CEO 13 Convoy’s purchase of IPP falls through tions that have not beenAllied Irish Bank closes in attacked by the Revenue.”IoM and Jersey 15 Berry added that existing BY HELEN BURGGRAF would acquire Singapore- Convoy chairman Wong scheme members wouldState Street granted based IPP Financial Services Lee Man added: “During not be disadvantaged andJersey deposit licence 15 A deal that would have for HK$162.24m ($21m, the acquisition process, “if anything it is a statusGibraltar reworks laws to expanded one of Asia’s £13m). IPP is a major Convoy has always sup- quo on benefits with aattract fund managers 16 largest advisory companies, force in the Asian advisory ported the work of regula- slight advantage because Hong Kong-based Convoy industry, with more than tors and is well-prepared there is no reporting.”Zurich launches Singapore Financial Services, has 400 employees working in for uncertainties.” In Jersey, plans to let non-insurance operation 19 fallen through because it Singapore and Hong Kong, In reply to requests for Jersey residents move their was not completed quickly according to its website. comments, a spokesman UK pensions to the islandSanlam debuts UK withdistinctive bond 19 enough. According to IPP, the for the Singaporean regula- remain on hold pending Convoy, which employs “proposed transaction... tor, the Monetary Authority clarification from HMRC,Neptune’s Lester hints more than 1,000 advisers lapsed unconditionally as of Singapore, said: “As especially regarding QROPsat start-ups ambitions 56 and which has been listed it did not meet the self- a matter of policy, MAS held outside the EU. on the Hong Kong Stock imposed deadline and con- does not comment on our In Europe, chairman of Features – page 4 Exchange since 2010, had ditions stipulated” in the dealings with individual the Malta Financial Services announced last July that it July 2011 sales agreement. parties.” Continued on page 7News analysis 20-22 Country profile 28-29 Intermediary profile 31-32Global regulation Malaysia Mondial DubaiRegulators around Having proved its Chief executivethe world are resilience surviving Sean Kelleherlooking for new multiple crises, the explains how hisways to protect region’s financial team-buildinginvestors from poor services industry skills have kept thefinancial advice has much to offer business profitable
  2. 2. The world’s first definitive study into the QROPS Market -Unlocking Expat Wealth and the Commercial Opportunity aGive yourself the competitive advantage in the fast-changing, dynamic QROPS market.Access the world’s most detailed and definitive analysis ever undertaken on the global QROPS market.Build your business, increase market share, improve your distribution, form alliances, drive salesand enhance your competitive position!Get the latest insight post 6th April 2012 including… u• Access detail information on over 50 top IFA groups selling • Have detailed growth expectations for 2012 to 2015 QROPS globally • Acquire the latest thinking on business models for QROPS• Get a fresh look at the expat & QROPS market, its size, and Life providers post 6th April 2012 & HMRC’s new stance business flows & opportunity• See how revenue is being made, where it’s going and the winning business formulas
  3. 3. The study is a full analysis of the QROPS market and includes: The most up-to-date detailed insight into expatriates, their wealth, distribution and purchasing behaviours In-depth forecasting for future market growth, AUM and revenue projections for IFA’s, Banks, Life, investment management and QROPS providers A comprehensive review of the major QROPS jurisdictions including: Malta, Gibraltar, Guernsey, Isle of Man, New Zealand and introducing Jersey Detailed listings and specifications of the top providers and their products Explicit global mapping of IFA’s writing QROPS business, to assist with distribution PLUS analysis of potential and winning business strategies for Life offices and QROPS providers UOwn this report and benefit from… A competitive edge by having the information your competitors don’t Essential knowledge to create business cases, drive sales, develop product, form alliances, increase revenue or plan market entry Huge savings in terms of skills, cost and time as all this information is brought together in one concise reportWho should buy this report? Senior executives in the life, pension, bank, fund and asset management industries Sales, distribution, marketing and product development managers Expat focused IFA’s, banks & marketing bodies for international financial servicesThis definitive insight is a ‘must have critical tool’ for all professionals in the QROPS industry looking to gain competitiveadvantage and developing their business, whether you are an existing or potential participant in the QROPS market. Standard Early Bird Offer: Report Price: ORDER before 01/06/12 £4995.00 • SAVE £500... you pay £4495 • PLUS receive 50% off 2nd copy • AND FREE Fedex DeliveryGet a lead on your competition, ORDER your REPORT TODAYfrom or for more informatione-mail or call +44 1534 486510Limited Edition - Publication Date mid June 2012 – Order Now i d t n a n n r w newdawn CONSULTANCY AND
  4. 4. contents ANALYSIS PROFILES TECHNICAL PORTFOLIONews analysis: Global Country profile: Briefing: Fund selector:regulations 20-22 Malaysia 28-29 Probate costs 34-35 Global equities 37-39Following the global financial Having survived both the Asian When a client dies leaving an Global equity investors havecrisis, regulators around the currency crisis and the global offshore bond that is not held enjoyed the best start to the yearworld have been prompted to financial downturn, Malaysia in trust, probate will need to be this century, but this level oflook for new ways to protect has demonstrated its resilience obtained in the legal jurisdiction return is unlikely to be sustainedinvestors from poor and and ability to bounce back from where the investment is held. The going forward, says OBSRmisleading financial advice. adversity. With a booming expat process can be onerous, but with investment research analystSome at the front lines of this community and a burgeoning careful planning there are ways of Oliver Kettlewellprocess say the business of financial services industry, the avoiding the situationfinancial advice is on its way to region has much to recommend STATISTICSbecoming a full-blown profession it and offers many opportunities The IA Quality FundsLife trends: Generali Intermediary profile: 41-45International 25-26 Mondial Dubai 31-32 A list of the blue chips of the offshore fund worldGenerali International has been Sean Kelleher (left) could bevoted best online proposition described as a veteran of theby International Adviser for the international finance industry Banking deposits 46past two years. Head of sales who has seen many ups and The top-paying offshore accountsNick Griffin discusses the factors downs over the years. The chiefthat have contributed to its executive of Mondial Dubai CLASSIFIEDSsuccess throughout the year, explains how an establishedand describes how the spirit of multicultural team has been Life listings 47-49 Recruitment 50-51cooperation within the major essential to keeping his business Find the job that suits you in IFAregions is essential profitable in turbulent times Service listings 49 firms operating around the globeIA Intermediary Panel IA Tax Panel Aidan Bailey 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 4 INTERNATIONAL ADVISER [] MAY 2012
  5. 5. NEWS NEWSBrazil regulatoracquits Swim FPI and Morningstar launch IN BRIEFWorldwide of five risk-rated fund portfolios Rogers reappears in Kuala Lumpurlicence breach BY SIMON DANAHER ware provider Distribution Technology. OBSR select- Richard Rogers, formerly of SkandiaSouth America-based Swim Friends Provident Inter- ed the portfolios from FPI’s International, hasWorldwide Financial has national and Morningstar global mirror fund range. joined The Synergybeen cleared of breaking OBSR have launched five Jim Henning, funds Partnership, a promoterthe terms of its licence, risk-rated model fund marketing and research of alternative fundseight months after the portfolios. The new Asset manager at FPI said: “The based in Kuala Lumpur.Brazilian regulator put a Builder Portfolios are combination of DPPi’s Rogers, who takes“block” on it conducting available through FPI’s sophisticated asset alloca- up his role as non-certain investment activity. Dynamic Portfolio Planner tion guidance with the new executive director on In August last year, the International (DPPi) tool, fund-blending expertise 1 May, left SkandiaBrazilian securities regu- which was launched in Henning: ‘compelling concept’ from Morningstar OBSR last summer. He hadlator, the Comissão de 2008 to provide advisers means that FPI’s online been a director in itsValores Mobiliários (CVM), with risk profiling, finan- allocation targets for identi- portfolio construction international sales team,released a statement via cial planning and target fied client risk profiles”. A service really is a most where he had workedits own publication, Diario asset allocation models. stochastic model provides compelling proposition for since 1998.Oficial, which said Swim FPI said the application probability assessments professional advisers. WeWW was not authorised uses historical and forward- in meeting client specific are offering the right tool Ireland in talks withto “exercise any activities looking analysis of core financial goals. Both these set for advisers to navi- US on adopting FATCAin the securities market of asset classes to develop tools have been devel- gate their client portfolios Irish tax authoritiesBrazil” and did not “meet “efficiently balanced asset oped by UK-based soft- through uncertain times.” are discussing withthe requirements of CVM their US counterpartsregulation”. However, the announce-ment was contested at the HSBC Saudi offers Shariah-compliant fund the possibility of entering into a “model agreement”time by Swim WW man- HSBC Saudi Arabia has tries, although there are no Shariah-compliant equiva- for implementing theaging director Paul Scott, launched its first sukuk geographical constraints. lent of bonds” and “repre- US’s Foreign Accountwho said the company had fund, a Shariah-compliant HSBC said the fund would sent the credit obligation Tax Compliance Actnever dealt directly in secu- fixed-income product, for aim to have an average of the underlying issuer”. (FATCA). A statementrities and was not in breach the country’s retail market. duration of five years or The Shariah nature of issued by the Irishof its licence. Described as having less, with an average risk the product places cer- Funds Industry Assoc- Scott has now informed a “medium to high” risk rating of A-. tain limitations on the fund iation said the IrishInternational Adviser that profile, the HSBC Amanah The portfolio will be manager. These restric- Revenue Commissionersthe CVM gave its “final res- Sukuk Fund, which drawn from an invest- tions include bans on had “confirmed theyolution” on the case on 11 launched last month, is ment universe of sukuks “conventional” leveraging are in contact with theJan this year and decided the first open-ended sukuk approved by the Shariah or hedging, short-selling, US Treasury”.in favour of Swim WW. The fund to be offered by Supervisory Committee of securities lending and theintermediary firm is now HSBC Group. HSBC Saudi Arabia, money use of investment deriva- TMF hires for launchawaiting a final letter from Managed by the asset market funds approved tives such as CDS.the CVM confirming the management division of by Saudi Arabia’s Capital The fund has a mini- of int’l pension plansclosure of the matter and HSBC Saudi Arabia, the Markets Authority and mum initial investment TMF Internationaldetailing a fine imposed on fund will invest in a concen- Islamic Certificates of $25,000 (£15,000, Pensions has appointedSwim WW, which Scott said trated portfolio of between approved by the Shariah AED92,000) and charges an international employeewas “for the pleasure of 15 to 20 sukuks primarily Supervisory Committee. annual management fee of benefit expertbeing investigated”. At the issued from within Gulf HSBC said a sukuk 0.75%, which is reinvested Grant Armstrong,time of going to press, the Cooperation Council coun- “can be classified as the into the fund. as it prepares toletter had not arrived. launch a range of Scott added that CVM offshore pensionwill also publicly announce,in the Diario Oficial, that UAE finance firms set up cross-sector trade body products. Armstrong joins from March &the company has been Continued from page 1 affect the financial services ments to the UAE and bring McLennan’s Europeancleared of any wrongdoing “We see the activity of this sector. The association said the market “closer to inter- pensions and benefitsin relation to the matter. association as a significant it has one “active” policy national best practice”. consultancy, where he As a result of the inves- initiative that will further working group which is “The association will was responsible for enrich the country’s finan- engaged with the SCA. coordinate closely with developing a globaltigation, Swim WW moved pension and employeeits head office from Brazil cial sector. It also reflects Speaking on behalf of other associations in the benefits strategy forto Montevideo in Uruguay. the development achieved the board, Farah Foustok, market,” added Foustok. “It EMEA, working withScott said the firm has by UAE financial institutions chairwoman of the asso- represents the opinions of many major insurers.opened a further Uruguay locally and internationally.” ciation, said it will open its member firms and there-office in Punta Del Este, One of the main aims of a dialogue between regu- fore participation by finan- For the current and alland plans to open offic- the association will be to lators and member firms cial services companies is previous editions, withes in Santiago, Lima and engage with regulators and to advance the regulato- encouraged, to ensure rep- full news archive, go toMiami this year. It is already law makers in the UAE on ry framework needed to resentation of all critical for these offices. issues and policies that will attract long-term invest- aspects of the industry.”MAY 2012 [] INTERNATIONAL ADVISER 5
  6. 6. 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 GGo up a gear with Asian bonds There are powerful reasons to invest in Asian bonds: – Exposure to diverse investments across fast growing, fiscally strong economies – A better risk/return ratio over ten years than many other major asset classes* – 10 year annualised returns of 8.4% p.a. with lower volatility than emerging market equities and emerging market debt*. There are equally powerful reasons to select Schroders for this compelling opportunity. Schroder ISF Asian Bond Absolute Return and Schroder ISF Asian Local Currency Bond are managed by Singapore-based Head of Asian Fixed Income, Rajeev De Mello. A 25 year veteran of Asian bond markets, he is supported by local on-the-ground specialists integrated within a global team of over 100 fixed income professionals.** Now’s the time to put your foot down on the pedal. Schroders’ Asian Bonds www.schroders.comFor professional investors or advisers only. Schroder International Selection Fund is referred to as ‘Schroder ISF’. *Source: Bloomberg, Schroders, as at 30 March 2012. Asset classesare represented by the following indices: Asian Local Bonds – HSBC Asian Local Bond Index, Asian USD Bonds – JPMorgan Asia Credit Index (chain-linked from 01/08/2006 to old JACIindex), US Treasuries – Citigroup Treasury/Agency Index, Emerging Market Debt – JPMorgan Emerging Market Debt Index, Global Government Bonds – Citigroup World GovernmentBond Index, Emerging Market Equities – MSCI Emerging Market Index, Asia ex Japan Equities – MSCI AC Asia ex Japan Index, Global Equities – MSCI World Index, European Equities– MSCI AC Europe Index. Asian Local Bonds have delivered 10 year annualised returns of 8.4% p.a. **Source: Schroders, as at March 2012. Past performance is not a reliable indicatorof future 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 April 2012 by SchroderInvestment Management Limited, 31 Gresham Street, London EC2V 7QA. Registered number 1893220 England. Authorised and regulated by the Financial Services Authority. w41480
  7. 7. NEWS NEWSOffshore bonds‘still attractive’ Pain hints at his next job as IN BRIEFdespite Budget AILO broadens membership deVere to open two new offices in UKclampdown BY MARK BATTERSBY said: “I am confident I will have a new position before The deVere Group plans to open twoBY HELEN BURGGRAF The Association of Inter- my official leaving date more offices in the UK national Life Offices is with Friends so I hope to and recruit an extra 50Offshore bonds remain recruiting associate mem- continue as deputy chair.” UK-based IFAs. Mikea tax-efficient investment bers for the first time in an AILO is conducting a Coady, group director,strategy, life insurance effort to strengthen the mix member satisfaction survey said the company willproduct providers say, within the organisation. and engaging with exist- relocate its Londondespite the Government’s Associate members ing and potential mem- office and open aremoval of some favoured could be management con- bers through a series of second base in thetax-avoidance options in sultants, reinsurers, actuar- evening presentations. The north of England in athe latest Budget. ial consultants, investment Pain: Spearheading the initiative first of these took place in few months, followed The Budget effectively platforms or third-party Luxembourg on 18 April by a third in early 2013.put paid to certain offshore administrators. Pain, who left Friends and the next one is inbond products offered by AILO deputy chairman Provident International Dublin on 31 May. May decision on VATAegon UK and Canada Life Bob Pain and chairman when it shifted its focus to Full membership is only charges for DFMsInternational (CLI). It also Alan Morgan-Moodie will Asia, is required to leave available to international The European Courtended a practice whereby spearhead the initiative his position as deputy life offices; associate mem- of Justice is expectedsome non-UK tax residents to widen the membership chairman once he ceases bers cannot sit on AILO’s to rule this month onaccrued deemed gains from its 45-strong interna- to work for an interna- management committee or whether discretionarywhich they could later tional life office base. tional life office, but he have voting rights. management servicesoffset against actual gains supplied by EUas a UK taxpayer once theyreturned to the UK. Despite this, “offshore Brazil almost doubles its number of CFPs providers should be exempt from VAT. The ruling is expectedbonds remain very attrac- The Financial Planning year, despite its growth growth reflected a grow- on 8 May – less thantive for expats, and retain Standards Board says the rate slowing to around ing understanding on the three months after HMtheir gross roll-up [feature] number of individuals who 2.7% in the 12 months part of financial planners Revenue & Customsfor income tax purpos- have achieved its Certified to the end of December. of the “value in aligning issued RDR guidancees, as well as the abil- Financial Planner designa- Unlike countries that are with a global certification calling for DFMs to startity to be placed in trust tion in Brazil increased by net importers of commodi- programme”. adding VAT to theirfor inheritance tax,” said 47% in 2011. ties it has benefited from The FPSB is one of sev- fees. The decision isDavid Russell, chief execu- A spokesman for the high food and oil prices. eral organisations that have likely to set a precedenttive of Guardian Wealth FPSB, which is based in The FPSB said other been trying to set a global for the rest of the EU.Management Qatar. Denver and has member countries, including India, standard for financial plan- Spokesmen for Aegon organisations in 24 coun- China and Indonesia, had ners. The organisation’s Mashreq Bank headand CLI, meanwhile, said tries and jurisdictions also experienced “double- executives have recentlythey were dealing with around the world, said the digit growth” last year been involved with the to chair DIFC boardthe effects of the removal number of CFP profession- in their numbers of CFP Madrid-based International The Dubai Internationalof the tax advantages of als in Brazil may reach professionals. Overall, Organisation of Securities Finance Centre hasthe Aegon Ireland Wealth 1,000 this year, up from the annual growth rate in Commissions, in develop- appointed Aziz AlPlanning Account (WPA) 714 in 2011 and 485 the CFP certifications last year ing a new standard of Ghurair, head ofand CLI Accelerated Access previous year. measured 4.5% globally, principles relating to the Mashreq Bank, asAccount (AAA) in the only Brazil officially over- the organisation said. distribution by intermedi- chairman of the DIFCway they could – by noti- took the UK as the world’s FPSB chief execu- aries of “complex financial board of directors.fying clients as the situa- sixth largest economy this tive Noel Maye said the products”. The appointmenttion unfolds and helping was made bythem to find alternative Sheikh Maktoum binproducts. At CLI, where the AA QROPS cuts could trigger exodus among providers Mohammed bin Rashid Al Maktoum, deputyAccount has been closed Continued from page 1 schemes, according to tors and a “wait-and-see” ruler of Dubai andto new business, manag- Authority Joe Bannister, Bannister. “We are wait- approach had put the island president of the director Sean Christian expressed surprise at ing to finalise rules for our in a good position. Al Ghurair also holdsnoted that the product rep- the number of Guernsey personal and occupational In Qatar a moratorium positions in his family’s schemes struck off the list. on QROPs remains in force. business empire and isresented “less than 2% of schemes. Hopefully, these deputy chairman of theour sales” in 2011, which On a possible surge in will be in place soon.” A spokesman for the Qatar board of directors of“was a record year for us”. Malta’s QROPS business, On the Isle of Man, Financial Centre Regulatory the DIFC, a position he A spokesman at Aegon Bannister said: “It is early schemes transferred to the Authority said: “The author- assumed last August.said the company had writ- days, but Malta has been island under its new 50C ity has quite rightly contin-ten to intermediaries and processing schemes from regime were struck off ued to assess the QROPS For the current and allthe 245 WPA policyhold- various administrators for HMRC’s list. But the island’s landscape by taking into previous editions, withers themselves, “explaining quite some time.” pension association said account the significant full news archive, go tothe impact of the proposed Malta’s future pension close cooperation between changes that have been”. legislation will mirror UK its public and private sec- occurring in the sector.”MAY 2012 [] INTERNATIONAL ADVISER 7
  8. 8. NEWSBNY Mellonnames Leow Guernsey follows IoM and Oddo & Cie partners withas Singapore Jersey in ruling on zero-10 Chinese firmbranch head BY SIMON DANAHER Council said: “While accept- assessment and the sub- European asset manage- ing the operation and stance of the Code Group’s ment firm Oddo & Cie hasBNY Mellon has named Guernsey’s zero-10 corpo- timing of Guernsey’s discussion, Ministers will be partnered with ChineseChong Jin Leow as the new rate tax regime has been deemed distribution regime able to meet to discuss company Guosen Securitiesgeneral manager of its deemed “harmful” by the differed to that of Jersey what actions are in a tie up which will seeSingapore branch. European Union’s Code of and the Isle of Man, the appropriate.” the two assist each other in Leow succeeds Jai Arya Conduct Group on Business European Union’s Code of Under Guernsey’s zero- their asset managementwho BNY Mellon said will Taxation. Conduct Group on Business 10 regime, all companies and investment banking“focus on supporting the According to a statement Taxation this week deter- are taxed at 0%, except for activities.future needs and growth released by Guernsey mined that its de facto the profits of specified Guosen is one of theplans” of sovereign wealth Finance, despite Guernsey effect was the same – and banking activities, which leading financial compa-funds, sovereign pension arguing the offending ele- thus harmful. are taxed at 10% (and local nies in China and, accord-plans, central banks/mon- ment is different to that of “We expect to be for- utilities at 20%). But ing to a joint statementetary authorities and sover- Jersey and the Isle of Man, mally notified of this con- Guernsey resident share- issued by the pair, haseign-owned entities in his which both had their clusion shortly and provid- holders are taxed at 20% of dominated the world rank-capacity as head of BNY respective tax regimes ed a detailed explanation of profits from either actual or ings for initial public offer-Mellon’s Global Sovereign deemed harmful last year, the European Commission’s deemed distributions, ings in volume terms.Institutions Group. and is in fact compliant, the technical assessment of the including dividends, dis- The statement added Meanwhile, Leow will Code of Conduct Group deemed distribution regime posal of shares, migrations, that, traditionally, bothcontinue to report to Tim ruled against the regime. in due course. Once we liquidations and invest- companies have a closeKeaney, chief executive of Guernsey’s Policy have received detail of the ment income. working relationship withBNY Mellon Asset Servicing entrepreneurs, and theand head of Asia Pacific for announced agreementBNY Mellon’s asset servic-ing business. Paul Stanfield video interview now online “stems from a common goal to strengthen the ties He will also report to FEIFA chief executive Paul between Chinese andSteve Lackey, chairman of Stanfield features in French companies”.Asia Pacific, in his new International Adviser’s Initially, Guosen will beadditional role as country latest video interview, in advising Oddo AM on aexecutive for Singapore. which he explains how it renminbi fixed income “Singapore is strategi- took many months to get investment strategy to becally a very important FEIFA’s new code of con- managed and distributed bymarket for BNY Mellon,” duct up and running after Oddo AM in Europe, whilesaid Lackey. much strategic discussion Oddo AM will be advising “Viewed as one of the and feedback from Guosen Securities for a the-safest jurisdictions in the members. matic “luxury and lifestyle”world, it is home to some Speaking to editor Mark global equity strategy to beof the largest and most Battersby, Stanfield analy- Mark Battersby (l) and Paul Stanfield (r): code will raise standards managed and distributed bysophisticated investors ses why this initiative has Guosen Securities in main-in Asia. the potential to raise stand- underlines by pointing out European countries, land China. “This makes Singapore ards, and how new mem- that the federation is a non- because they may lack the Meanwhile, in the invest-a highly compelling draw bers coming on board will profit organisation. requisite knowledge to ment banking domain,for BNY Mellon as there is have to agree to abide by In more combative understand different tax Guosen Securities andstrong local demand for FEIFA’s code. One of the mode, he argues that UK regimes and regulations. Oddo Corporate Financeour investment manage- most difficult areas for advisers are getting it To watch the full inter- will advise French compa-ment and investment FEIFA as it grows is that of wrong when it comes to view, visit www.interna- nies targeting an IPO inservices.” resources, which Stanfield advising expat clients in China or Hong-Kong. 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. 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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. 8 INTERNATIONAL ADVISER [] MAY 2012
  9. 9. The new land of opportunity is the land of opportunity. We will not rest
  10. 10. NEWSForest to runnew Schroder UK residents to pay higher Syz & Co unveils US equity SicavMulti-AssetIncome Fund tax rate on Swiss accounts for Europe and Asian territories BY HELEN BURGGRAF ment,” he pointed out.BY GARY CORCORAN According to Cassidy, Syz & Co is to launch a US A recently agreed tax deal the mechanism for raising equity proposition run bySchroders has added to its between UK and Swiss tax the rate is already in place, Missouri-based specialistLuxembourg-based multi- authorities to collect tax in the form of “a new pro- fund manager Scoutasset range with a new anonymously from the tocol to amend the Investments as part of itsGlobal Multi-Asset Income Swiss accounts of UK-based UK-Swiss deal” that was Oyster fund range.Fund that will sit alongside individuals is about to get included in the Budget day The Luxembourg-basedits European Allocation more expensive, an expert material released last Oyster US Selection Sicav,and Global Tactical Asset from one of the major month. which will mix top-downAllocation propositions. UK accountancy firms spe- “This included a clause and bottom-up approaches It will be run by Aymeric cialising in looking after Cassidy: ‘mechanism in place’ that allows the UK to ask “to anticipate changes inForest, senior multi-asset international clients is for higher withholding tax economic cycles”, is await-fund manager, who will warning. John Cassidy, tax investi- rates if Germany and ing registration acrossaim to generate a distribu- The UK authorities have gation and dispute resolu- Switzerland agree higher Europe and Asia. It will betion of 5% per annum in negotiated a rise in the tion partner at London- rates before the end of Ucits compliant.equal quarterly or monthly withholding tax rates to based PKF (UK), said he April 2012,” Cassidy said. The fund will be man-instalments with an expect- between 21% and 41% for was not surprised that the “Higher withholding tax aged by Patrick Dunkerley,ed 7% total return pa over UK residents. UK tax authorities increased rates have been on the who will run it on behalf ofa full market cycle. The previous agreement their withholding tax rates agenda for some time, and institutional investors with a Forest is co-manager envisaged that a withhold- to match the recently rene- the Treasury was bound to minimum investment ofwith Johanna Kyrklund of ing tax of between 19% gotiated German levels. demand that these rates £100,000, $100,000 orthe $140m Global Tactical and 34% – depending on The German authorities are applied to Swiss €100,000.Asset Allocation Fund that the how long the account have an almost identical accounts held by UK Scout Investments willinvests across countries, has been held – will be agreement with the Swiss residents.” run the fund in line with itscurrencies and asset class- deducted from the cash Government. For those with unde- existing US strategy, aiminges that can include syn- balances held in Swiss “The Government wants clared assets in Swiss insti- for superior long-term, risk-thetic long and short accounts on 31, May 2013, to claw back as much tax tutions, Cassidy said, the adjusted returns by invest-positions. to compensate the UK for as it can from this deal, in Liechtenstein disclosure ing in attractively valued, The Schroder ISF Global revenue lost as a result of the current political facility “is almost always quality stocks expected toMulti-Asset Income Fund previous tax evasion. and economic environ- the cheaper option”. benefit from company-spe-will be actively managed cific or macroeconomicacross asset classes, regions catalysts.and sectors. Its bondinvesting will concentrate Worried Israeli banks push for deal The firm identifies market cycles and invest- with US over pending FATCA ruleson high-quality global ment themes, as well asfixed income; equity risks attached to sectors andinvestment will be in industries, to determine anyglobal equity securities Israel is to seek a deal with citizens are estimated to lems in some countries. allocation. Its bottom-upwith positive cash flows the US over the pending live in Israel, which has As the view includes a company’sand strong balance sheets. FATCA (Foreign Account strong ties with the US. report suggests, other ability to generate consist-There will be a strong Tax Compliance Act) regu- The report countries are considering ent free cash flow, a ten-focus on risk management lations that are causing comes little more than two similar arrangements as the year record of strong orat the security and portfo- growing concern to Israeli months after the US FATCA deadlines for imple- improving operatinglio level. banks, many of which Treasury Department issued mentation approach, and margin, long-term earnings Forest said: “We are have a large number of US a joint statement on tax the US has said that it power, a strong manage-seeing interesting opportu- clients, an Israeli media compliance with the gov- would welcome them. ment and the absence ofnities in equities in health- organisation reported. ernments of France, Awareness of FATCA is litigation in the UK and Japan, According to Haaretz. Germany, Italy, Spain and growing in Israel, the The combination ofconsumer staples in the US com, the online website of the UK. The statement sets report notes. these two approaches willand Asia, and telecoms in the Tel Aviv-based daily out a framework for an Last month, for example, end up with DunkerleyChina and South Africa. We Haaretz, the governor of “intergovernmental Tel Aviv-based Bank Leumi holding between 60 and 80are also finding attractive Israel’s Central Bank, approach” to international announced that all of its stocks in the fund.yields in some US munici- Stanley Fisher, “is consider- tax compliance in general, US clients “must declare by “We believe that the USpal bonds and high yield ing asking the cabinet to and to the implemention of the end of April that they economy is in recoverydebt, and in local currency reach a tax agreement with FATCA in particular. have reported their bank phase and is also less vola-emerging markets with the US to calm Israeli As a result of this agree- accounts to the US tax tile than other markets.loose monetary policies. banks” over the reporting ment, banks in those coun- authorities”. “The US market offers “We are cautiously posi- requirements contained in tries do not have to reach Any clients that fail to opportunities to find under-tioned within our exposure the FATCA regulations, separate agreements with do so will have their Israeli valued companies withto financials and prefer which will begin to take the IRS, which some accounts frozen at the positive dynamics”, saidbonds issued by US and effect next year. experts have said could beginning of May, the Xavier Guillon, chief execu-UK insurers.” More than 100,000 US cause confidentiality prob- report added. tive officer at Oyster Funds.10 INTERNATIONAL ADVISER [] MAY 2012
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  12. 12. NEWSTMF’s MalteseMelita QROPS Nikko first Asian investmentavailable viaPlatform One company to join ICI Global BY SIMON DANAHER interests between groups Monroe said: “This is anPlatform One, a relatively and “promote public important step for us, givennew UK-based investment Investment giant Nikko understanding of global our recent repositioningplatform aimed at advisers Asset Management has investment funds, their from our traditional Bestwick: expanded rolewith high net worth clients, become the first represent- managers and investors”. Japanese heritage to a morehas agreed a deal with ative from the Asian invest- Members of ICI and their broadly Asia-based assetTMF Group, whereby itsclients may access TMF’s ment industry to join the newly formed global trade affiliates manage globally at least $16.38trn of Ucits and management company. Given what is happening Jersey Finance’sMelita QROPS offering,administered out of Malta. organisation, ICI Global. The new initiative was mutual funds, or 62% of the $26.6trn in global mutual with investors and regula- tors in many markets, we Bestwick named Although based in theUK, Platform One offers formed by the Investment Company Institute and fund and ETF assets. As part of Nikko’s mem- believe it is a crucial time to be contributing to the as deputy CEOadvisers both UK and inter- aims to be the global bership, the company’s debate, to ensure managers BY HELEN BURGGRAFnational platform capabili- “voice of the fund indus- chief legal officer, David and their investors have allties. The Melita scheme is try”. Its stated purpose is to Monroe, will join the ICI the facts and can gain a Jersey Finance has given itsprovided to Platform One advance the common Global Steering Committee. long-term perspective.” technical director, Heatherthrough TMF’s Malta-based Bestwick, the additionalCustom House Global title and duties of deputyFund Services operation. chief executive, a new role The announcement of at the organisation.the deal comes as advisers Bestwick continues asare reported to be piling technical director but willinto Maltese QROPS in the take responsibility for sev-wake of the publication by eral operational functions,HMRC of a revised list of We’re not here including human resources,approved qualifying recog- finance and IT, as thenised overseas pension to make waves. organisation expands.schemes, which saw hun- Geoff Cook, CEO ofdreds of schemes dropped We’re here to Jersey Finance, said theas changes to the rulesgoverning how pensions navigate you appointment “reflects the growing remit of Jerseymay be transferred abroad safely through them. Finance and, in particular,– unveiled by HM Revenue our strategy to support the& Customs in December – industry in expanding intotook effect on 6 April. high-growth emerging Asset management for institutions The Melita QROPS economies, such as China, and private clients. tminvestment.comaccessed via Platform One India and the Gulf region,gives clients, through their while maintaining ouradvisers, a choice of more strong position and marketthan 3,000 UK and interna- share closer to home”.tional funds, equities and An English solicitor andETFs, as well as offshore former managing partnerbonds, international pen- of the Jersey office of inter-sion schemes and Section national law firm Walkers,615s, Platform One said. Sir Robin Knox-Johnston. Bestwick joined Jersey Its managing director, The first man to sail single-handedly around the globe, non-stop. Finance in 2010, when sheMichael Fordham, said the Thomas Miller Investment Ltd is authorised and regulated by the Financial Services Authority No 189829. succeeded Robert Kirkby,availability of the Melita Calls may be recorded. Clients are advised that the value of investments can go down as well as up. who left to join KPMG asQROPS on the company’s director of advisory servic-international service would es in its Jersey office.give advisers “the benefitsof a compliant QROPS GAM launches its first in-house GEM fund She qualified as a solici- tor with Norton Rose insolution, an English lan- GAM has launched its first of 100 to 150 stocks, chosen bottom-up stock analysis. London in 1993 and joinedguage international plat- in-house global emerging through a valuation-driven The manager of the Irish Walkers in the Caymanform to manage the under- market equity fund, availa- approach. The fund will listed fund is Matt Linsey at Islands in 1999, where shelying assets and the ability ble in ten currencies. initially be authorised for North of South Capital. worked in corporate andto manage their clients’ The Ucits-compliant sale in Ireland, Luxembourg The GAM Star Emerging international finance, even-other investments”. GAM Star Emerging Equity and the UK. Equity Fund is an Irish- tually becoming a Cayman Platform One was Fund is a daily dealing, GAM runs the $81.3m domiciled Ucits with a base Islands attorney and Notarylaunched last August, in long-only fund. Tim Love GAM Star North of South currency in dollars and an Public. She moved toresponse to a neglected and Joaquim Nogueira, EM Equity Fund, which also annual management charge Jersey when Walkersarea in the rapidly growing who will actively manage it, combines top-down macr- of 0.9% (institutional) or opened an office in St.platform market. will invest across a portfolio oeconomic themes with 1.5% (ordinary share class). Helier in 2007.MAY 2012 [] INTERNATIONAL ADVISER 13
  13. 13. A challenging journeyneeds an expert guide.Our Multi Asset Funds are managedby specialists who know the territory.Like sherpas, our investment managers know how to survive andflourish in an adverse climate, finding shelter when it’s needed andmaking the most of any opportunities that present themselves.Multi Asset Funds. Welcome to our territory. Scan the code to find out more or email tom.zambon@ashburton.comAshburton’s Multi Asset Investment Style 2008 1400 4 2005 Lehmans Lehmans Brosa 30 year track record Global C Collapse Credit 1200 2% Growth Bubble 200 001 1000 0 9/11 1 2007 Global 1994 Liquidity uid 800 Bond Crunch Crisis 2010 1987 1999 99 EU debt 600 1990 t Black Recession crisis Monday Bubble 400 1997 199 China becomes 19 1992 Asian Asi No.2 Economy UK leaves Crisis 200 ERM 081 11 83 85 87 89 91 93 95 97 99 01 03 05 07 09*The Replica Sterling Asset Management Fund was launched in February 1992. The Fund’s investment policyand portfolio content replicated the existing Ashburton Sterling Asset Management Personal Portfolio. Theabove 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 to end February 2012. A 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.