SEPTEMBER 2011For Distributors of International Fund, Life and Banking Products                                        www...
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Intl Adviser September
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  1. 1. SEPTEMBER 2011For Distributors of International Fund, Life and Banking Products www.international-adviser.comNEWSAdvisers more optimisticabout local economies 3 FEIFA launches service Australia, NZ, Guernsey topDominion unveils QROPSfor US-bound workers 3Zero-10 regimes come for Europe-bound IFAs QROPS market: HMRC dataunder scrutiny 3 BY SIMON DANAHER rising prices in both ary impact on the econ- regions, particularly Asia, omy, food, non-alcoholic Around eight out of everyUK and Switzerland sign Rising numbers of advis- have hit the headlines. beverage and transport ten pensions transferred‘historic’ tax deal 5 ers relocating from Asia In January, internation- costs have risen at an out of the UK into QROPSBoal & Co launches and the Middle East to al property adviser Savills annual rate of almost 7%. have gone to Australia,spousal bypass trust 5 Europe have prompted the said that financial hub Meade, whose com- New Zealand or Guernsey, Federation of European Hong Kong had become pany has been sourc- according to never-before-Platform One unveils IFAs (FEIFA) to form a the most expensive city ing and placing advis- seen HMRC data obtainednew wrap offering 6 partnership with Sterling internationally in which to ers to and from Asia, the by the Concept Group andSkandia Ireland Associates, a firm which buy property, after proper- Middle East and Australia revealed exclusively bylaunches trust products 6 specialises in the global ties doubled in value in for more than ten years, International Adviser. placement of financial the previous five years. said: “Europe has never Until now, the pen-Skinner named CEO services workers. Asian economies have been more attractive.” sions industry has been inof Aegon Ireland 9 According to Joe Meade, also struggled with rising FEIFA’s partnership with total darkness about whichSFC aggressively the principle of Sterling prices more generally, and Sterling Associates allows countries were receivingpursues insider traders 9 Associates, the trend has China’s year-on-year infla- advisers using the service the bulk of UK pension gathered pace over the tion is running at more to advertise jobs to those transfers.Sanlam EB calls for past year and has been than 6%, according to based in Asia or the Middle This information,rethink on pensions 10 driven by increasing living data published last month. East, and who are looking obtained via a FreedomL&G enjoys growth and working costs in Meanwhile in Dubai, to come back to Europe, of Information Act request,in offshore bonds 10 Asia and the Middle East. while the property market while IFAs in those regions is therefore expected to During this period, has had a disinflation- can use it to find work. cause a sensation, even ifYorkshire BS to fold it largely confirms someGuernsey business 13 experts’ suspicions.Barclays Wealth ‘Next gen’ life settlement fund unveiled The figures Australia is the market showappoints Asia director 13 BY HELEN BURGGRAF FUND FACTS Selection, the new fund’s that has received the mostCastlestone ‘mirror’ adviser. transfers of any jurisdictionfunds come under fire 14 An established life settle- Min investment: $25,000 The fund has already since 2007, the first yearJulius Baer launches ments fund provider this Annual charge: 1.25% attracted $10m and is for which the HMRC pro- month is participating in (institutional share class) aiming to raise $50m to vided data.China A-share fund 14 the launch of a new fund $100m of investment by According to the data, Launch date: 1 Oct ’11Van Der Wielen replaces that it says will benefit August 2012, with a target- it has received 47% of theSepe at Friends Life 17 from the life settlement Manager: Ironshore Group ed annual return to inves- transfers, as measured by industry’s growing sophis- Target: yield of 12% pa tors of 12% a year, Walters number, more than twiceTaiwan ‘criminalises’ saleof offshore life policies 17 tication and skill, as well said. as many as its nearest rival, as from the currently soft investors, and has already It is expected to sell New Zealand, with 23%,Spain remains top market for second-hand received a number of particularly well among which in turn took morespot for UK retirees 56 life insurance policies. inquiries, according to investors in South America, than twice as many as the Life Fund is being pro- Andrew Walters, a director he added, where the appe- third-placed jurisdiction, Features – page 2 moted to international of the fund, who is also tite for life settlement prod- Guernsey (10%). private and institutional finance director of Policy ucts is strong. Continued on page 5MD profile 19-20 Intermediary profile 23-24 Country profile 27-28Steven Levin The Ipac Hong Kong- Cyprus After anewly appointed based Ipac offers volatile year ofCEO of Skandia its clients more power outagesInternational than dim sum with and protests, theexplains how its holistic brand island remains adetermination helps of lifestyle financial top destination forhim get results planning retiring expats
  2. 2. contents PROFILES TECHNICAL PORTFOLIO Intermediary profile: Briefing: US non-doms Fund selector: Global Ipac 23-24 in the UK 31-32 property shares 34-36 Hong Kong-based Ipac split with US citizens face draconian Property funds have grown its Australian parent of the same regulations related to their in numbers in recent years name in 2010. The company offshore finances and many UK and performance can vary has since found success with banks have washed their hands significantly depending on the its fee-based lifestyle planning of the sector. Solutions exist, strategy used. OBSR’s Alexander however, writes Tony McLoughlin Prineas analyses the sector and approach, and its advisers target of London & Capital picks out his funds to watch several groups, including female clients and parents who areManaging director concerned about the financial STATISTICSprofile: Steven Levin habits of their children The IA Quality Funds 19-20 Country profile: 39-44The recently-appointed chief Cyprus 27-28 A list of the blue chipsexecutive officer of Skandia After a turbulent few months of the offshore fund worldInternational discusses the which have seen the island hitchallenges facing the company with credit rating downgrades,and the cross-border life political protests and an Banking deposits 46industry. He explains why explosion at its main power The top-paying offshore accountsdogged determination is plant, Cyprus’s economy facessometimes needed to achieve an uncertain future. However, CLASSIFIEDShigh-quality results and why it remains a popular retirementsome companies fail in their destination and advisers based Life listings 48-50 Recruitment 52-55efforts to implement good there are looking to expand Find the job that suits you in IFAbusiness strategies their businesses Service listings 50 firms operating around the globeIA Intermediary Panel IA Tax Panel Graham Barnes Tony Shah Simon Liew Margaret Jago Rachael Griffin Director, Associate Investment International Head of product international director, Christ- strategist, In technical law and financial division, church Investment My Opinion, manager, planning, Skandia The Fry Group, UK Mgt, UK Singapore Aegon Ireland International Peter Sayers Tim Searle Sean Kelleher Gerry Brown Mark Green Director, financial Chairman, Chairman, Head of trusts Head of estate planning, Globaleye Financial Partners and taxation, and tax planning, Horizon Financial Group, Dubai Prudential Legal & General Services, Jersey International Nick Cann Gary Boal Robert Parker Brendan Harper Julie Hutchison Chief executive, Managing Chief executive, Technical Head of estate The Institute director, Holborn Assets, services planning, of Financial Boal & Co, Dubai manager, FPI Standard Life Int’l Planning, UK Isle of Man Mark Rawson David Bojan Mahmoud Brian Murphy Neil Chadwick Business director, Managing Nodjoumi Senior financial Technical The Henley Group, director, HFS Chairman and planning manager, Royal Hong Kong Asset Mgt, chief exec, Nexus manager, London 360º Hong Kong Group, Dubai Axa Sun Life Ernest Chan Sam Instone Michael Porter Paul Kennedy Sandra Hogg Chief commercial Director, AES Chief invest Business Senior tax officer, Convoy International, UK officer, Harvard development manager, Scottish Financial Services, House Investment director, Widows Hong Kong Mgt, South Africa FundsNetwork Bill Blevins Alan Binnington Jeremy Croysdill Chris Allatt Anthony Rothwell Managing Private client Head of tax Senior tax Technical director, Blevins director, services, consultant, consultant, Franks, RBC Wealth Kleinwort Benson, Sanlam UK Canada Life pan-Europe Mgt, Jersey UK International 2 INTERNATIONAL ADVISER [www.international-adviser.com] SEPTEMBER 2011
  3. 3. NEWS NEWSLife firms aretailoring their Advisers are more confident IN BRIEFproducts to in local economic recovery IA European Investor Forum this monthspecific areas BY WILL JACKSON Skandia International. International Adviser’s European InvestorBY SIMON DANAHER One-third of respondents Forum will take place Advisers are more optimistic said global contagion was on 22 Sept at theLife companies are increas- about the outlook for their the biggest threat to their Park Plaza Victoria,ingly launching products local economies than the local economy, while other London. The half-tailored to the needs of global economy as a whole, concerns included inflation day conference,consumers in specific according to Skandia Inter- (24%), unemployment (8%) which is being heldcountries or regions. national’s ‘Offshore Adviser and government spending in association with Companies such as Confidence Barometer’. cuts (7%). Some 37% said FEIFA, is sponsored bySkandia International, The survey of 300 advis- clients had become more Baker Tilly, CazenoveRoyal London 360°, Friends ers, conducted in July, Oxenham: ‘great opportunities’ risk averse over the previ- Capital Management,Provident International found respondents rated ous six months. Fidelity International,(FPI), Prudential and Zurich their confidence in their turmoil in world markets, Regarding investment, Henderson GlobalInternational Life have all local economy at an aver- there are areas of strong about a quarter of those Investors, HSBC Globalunveiled products tailored age of 6.2, on a scale of one economic activity, partic- polled said that emerg- Asset Management,to a specific audience. to ten (ten being the high- ularly in the developing ing market equities would Irish Life International, Examples include est). In comparison, they economies and Asia, which outperform other major Neptune and PrudentialZurich’s launch in May gave the global economy present some great opportu- asset classes over the next International. Moreof Aspire, an investment- an average of just 5.4. nities,” said Phil Oxenham, 12 months, followed by details at http://events.linked annuity product only “Despite the continuing marketing manager at gold (20%). lastwordmedia.com/available in Taiwan; RoyalLondon 360°’s Protected Royal London 360°Lifestyle Lebanon; Skandia’sSpanish Collective Invest- Dominion unveils QROPS for US-bound workers net sales jump 37%ment Bond; and FPI’s Optus BY HELEN BURGGRAF sions while posted in the News of the Dominion New businessGroup Protection policy for country by employers, and scheme comes as a number premiums increased byMiddle East investors. Dominion Fiduciary who may be moving on to of other pension fund 37% at Royal London Alongside the big play- Services has launched a another non-US country for administrators have begun 360° during the firsters, smaller life insurance new Qualifying Recognised work or to retire, accord- pulling the wraps off their half of 2011, resultsfirms are also targeting Overseas Pension Scheme ing to James Barber-Lomax, own ‘IRS-friendly’ schemes, released in Augustmore esoteric markets. (QROPS), domiciled in new business team adviser as reported in International showed. The Isle of Stephen Conway, sales Malta, which has been at Dominion. Adviser last month. Man-based life insurermanager at group life and structured specifically to Malta’s financial serv- The trend also comes in said new businessbenefits insurer Global accommodate US citizens, ices regulator is in the the wake of a double tax premiums totalledBenefits Europe, said his non-US citizens and Green final stages of approving agreement between the US £209m ($340m) overcompany has been tapping Card holders with UK pen- the new Dominion EU and Malta that took effect the six months tointo the African market. sions who are retiring to Retirement (US Qualifying) on 1 Jan, and after changes 30 June, compared “We now have opera- the US, or moving back Plan, as it is called, Barber- in UK tax regulations have with £153m for thetions in Zimbabwe, Angola there for good. Lomax said. A number of made some other financial equivalent periodand Mozambique, which It will also be able to be clients have committed to planning tools less attrac- last year.have been achieved used by US citizens who transferring pensions into it, tive in comparison with athrough joint ventures with may have built up UK pen- he added. well-constructed QROPS. Creechurch planslocal firms,” he said. UK, int’l expansion “We have taken thispath because we are not‘premier division’ players, Zero-10 regimes on agenda this month Isle of Man-based investment boutique Creechurch Capital isand so cannot really com- The zero-10 corporate tax a zero-10 scheme. It has corporation tax, while looking to expand itspete in markets like Hong regimes of Jersey and the already said it is willing to some industries, such as wealth managementKong and Singapore.” Isle of Man will again be replace its scheme, which banks, pay 10%, and a few offering internationally But according to Bryan the subject of scrutiny this is why it is not under the pay 20%. and into the UK, andLow, director at Isle of month, as the European microscope as well, but The Conduct Group has named a newMan-based cross-border Commission’s Code of its replacement is yet to reviewed Jersey and the head of businessfinancial consultancy com- Conduct Group formally be determined, according IoM’s tax regimes last development, Paulpany Acuity, one of the big- considers steps taken ear- to officials. year, as it believed the Gregson, to overseegest drivers of this change lier this year by both islands “Guernsey… cannot jurisdictions’ personal the expansion. He wasis increased regulation. to begin to remove the determine its preferred taxation laws, when com- previously at Close “In the past few elements of their tax codes direction of travel until the bined with the zero-10 tax Wealth Management.years there has been an deemed by the Conduct outcome of the Conduct regime, were in conflictincreased pace of regula- Group to be “harmful” from Group processes are with the Code of Conduct For the current and alltion which has required a tax perspective. known definitely,” the on Business Taxation, laid previous editions, withlife companies to launch Watching this activ- island’s Government said. down by Europe’s Council full news archive, go tospecific products for spe- ity with interest will be Under zero-10 schemes, of Economics and Finance www.international-adviser.comcific markets,” he said. Guernsey, which also has most businesses pay no (ECOFIN).SEPTEMBER 2011 [www.international-adviser.com] INTERNATIONAL ADVISER 3
  4. 4. Top decile dividends now made in Asia Newton Asian Income Fund Decile ranking for income distributions* Since launch 1 yr 3 yr 30/11/05 Fund Historic yield 1st 1st 1st Newton Asian Income 5.3% *Source: Lipper as at 30/06/11. IMA Sector: Asia Pacific Excl Japan. All yield figures are calculated on the basis of dividing the last 12 months’ dividends (to the latest available distribution date) by the current price. Current yields are not indicative of future yields. Income calculated net of UK tax and annual charges, but excluding initial charge. The impact of the initial charge, which may be up to 4%, can be material on the performance of your client’s investment. Performance figures including the initial charge are available upon request. Past performance is not a guide to future performance.Newton Asian Income Fund has grown its income payouts every year since launch,a solid achievement in challenging markets.The long-term outlook for equity income investments in Asia looks positive.Rising payout ratios across the region aligned with high growth economies offerthe prospect for sustained income and capital growth.Driven by Newton’s unique global thematic approach and a strict yield discipline,the Fund focuses on quality companies with good cash flows and strengths to competeon a global level.Link your clients’ returns to the future of the world’s most dynamic region.For full details, call 0500 66 00 00www.bnymellonam.co.uk/incomematters WINNER Best Fund Management Group (Large)This is a financial promotion and is not intended as investment advice. The information provided within is for use by professional investors and/or distributors and should not be relied upon by retail investors. All information relating to Newton Investment Management(Newton) and Newton Asian Income Fund has been prepared by Newton for presentation by BNY Mellon Asset Management International Limited (BNYMAMI). BNYMAMI and its affiliates are not responsible for any subsequent investment advice given based on theinformation supplied. The value of investments and the income from them is not guaranteed and can fall as well as rise due to stock market and currency movements. When you sell your investment you may get back less than you originally invested. Newton Asian Income Fundis a sub-fund of BNY Mellon Investment Funds, an investment company with variable capital (ICVC) incorporated in England and Wales under registered number IC27 and authorised by the Financial Services Authority. BNY Mellon Fund Managers Limited (BNY MFM) is theAuthorised Corporate Director. The Prospectus and/or Simplified Prospectus should be read before an investment is made. This document can be obtained from www.bnymellonam.co.uk. To help us continually improve our service and in the interest of security, we may monitorand/or record your telephone calls with us. Issued by BNYMAMI, BNY Mellon Centre, 160 Queen Victoria Street, London EC4V 4LA. Registered in England No. 1118580. Authorised and regulated by the Financial Services Authority. BNYMAMI and Newton are ultimately ownedby The Bank of New York Mellon Corporation. Newton is a member of the IMA. CP7071-22-07-2011(3m)
  5. 5. NEWS NEWSBoal unveilsnew spousal UK and Switzerland agree IN BRIEFbypass trust ‘historic’ deal on taxation Frankland named for MetLife Jersey roleto mitigate IHT BY HELEN BURGGRAF ten days after a similar accord was struck between held by UK taxpayers in Switzerland will be subject MetLife, the New York-based insuranceBY WILL JACKSON A deal whereby Switzerland Switzerland and Germany, to what the Treasury says giant, is to start will tax, on behalf of the and will take effect in 2013. will be “a significant” one- selling its range ofBoal & Co has launched a UK, undeclared accounts Some accounting indus- off deduction of between UK pension and lifespousal bypass trust, which held in its banks by UK try sources said the agree- 19% and 34% to settle past products in Jersey,aims to improve the inher- citizens – while keeping ment, which the Treasury tax liabilities, leaving those and has appointeditance tax (IHT) efficiency their identities a secret – called “historic”, was short who have already paid Paul Frankland toof Trinity and its other has been agreed. on the detail as to how their taxes unaffected. head the initiative. TheQualifying Recognised Sources said the agree- the process would work in In addition, the banks first product will beOverseas Pension Schemes ment could mean as much practice, which they sug- will make an up-front pay- unveiled this month(QROPS). as £6bn more annually in gested might have been ment to the UK of CHF500m and is expected to be QROPS assets are revenue coming in to HM intentional, ahead of its ($629.1m), which the a guaranteed bond.exempt from IHT on a Revenue & Customs. formal ratification. Treasury described as “ascheme member’s death. The deal was unveiled Under the terms of the gesture of good faith” on FPI strengthens itsHowever, when death ben- on 24 Aug, fewer than agreement, existing funds their part. Global Term productefits are paid to a member’s Friends Providentspouse, they can createadditional IHT liabilityon the eventual death of Convoy rebuffs accusations over its IPP takeover International has strengthened Global Term, an insurancethe spouse, if their assets Convoy Financial Services reported in July, Hong accusations and that all product it offersexceed the combined IHT last month sought to reas- Kong-based Convoy’s necessary legal and regula- exclusively inthreshold. sure investors that its pro- acquisition of IPP is tory approvals had been Singapore. The product By using a spousal posed takeover of IPP expected to create one of obtained. now offers protectionbypass trust, a member can Financial Services does not the largest financial advi- It added: “Entering into for family, mortgages,ensure QROPS death bene- contravene Singaporean sory firms in Asia. of the sale and purchase loans and businessesfits are paid to the trust and law. Convoy has over 1,000 agreement by the purchas- from the consequenceskept outside the spouse’s The firm published a IFAs, while IPP, founded er did not violate Singapore of death, terminalestate. Boal’s Trinity scheme clarification statement in 1983, has more than 400 laws, and the company illness, critical illnessis able to pay members a on the news website of employees. has made and would or disability.retirement lump sum above Hong Kong Exchanges and According to the state- make disclosure(s) andthe 30% level to which Clearing, in response to ment, allegations concern- announcement(s) in rela-other QROPS are restrict- accusations reported by ing the deal were made tion to the transaction(s) Clarificationed, and the same spousal the Apple Daily newspaper. in “anonymous letters”. in compliance with the list- The lead storybypass trust can also be As International Adviser Convoy said it denied the ing rules.” on the front pageused for this benefit. of last month’s “The result can be highly International Advisertax-efficient in many cases,as it reduces future income Top destinations for transfers into QROPS – ‘Overseas pensions face compensationtax liability on pension Continued from page 1 jeopardy’ – containedpayments,” said Boal sales A look at the transfers Transfers out of the UK into QROPS an inaccuracy. Thedirector Paul Forman. that were made in the first article stated that the Jurisdiction % total transfers* % total transfers* Guernsey depositor “For any Trinity clients part of this year, however, ’07 to 31 Jun ’11 first part of ’11 compensation schemeconcerned about their shows a different picture, Australia 47% 20% does not coverfuture IHT situation, the use with Guernsey in the lead New Zealand 23% 28% deposits on behalf ofof the spousal bypass trust with 32% of the total, fol- Guernsey 10% 32% trusts or retirementallows them to pay not just lowed by New Zealand schemes. This wastheir death benefits but also (28%), Australia (20%) and Isle of Man 2% 5% incorrect – Guernseysome or all of their retire- Isle of Man (5%). Hong Kong 1% <1% QROPS are coveredment lump sum benefit into Importantly, Guernsey Malta <1% <1% by the Guernseythe bypass trust, so keeping differs from Australia, and Banking Deposit Others combined 17% 15%it outside of the IHT net as in part from New Zealand, Compensation Scheme. * By numbers transferred. Percentages add up to slightly more than 100% due to rounding.well,” he added. in that it is primarily a Source: HMRC, via FOI Act request by Concept Group. But the maximum Boal launched Trinity, a “third-country” QROPS compensation payableQROPS approved under the destination, meaning that son, “Australia’s QROPS data showed that “prudent is £50,000 ($81,473)Isle of Man’s 50c legislation, most of the QROPS trans- market is [comprised] jurisdictions are the win- per scheme, not perlast November. According ferred there are for people almost totally of people ning business model and individual schemeto the firm, it is a trustee or who have left the UK to going to Australia to live, should continue to thrive”. member.administrator to more than live elsewhere, such as in while New Zealand is more For more on the£400m ($652m) of offshore Europe or Asia. of a mixture of both” third- Concept Group data, and For the current and allpension scheme assets. Roger Berry, managing country QROPS and those Berry’s analysis, see page 8 previous editions, with Further details of the director of Guernsey-based of people moving there of the QROPS supplement full news archive, go tospousal bypass trust are QROPS specialist Concept permanently from the UK. contained in this issue of www.international-adviser.comavailable at www.trinity.im. Group, said by compari- Berry added that the International Adviser.SEPTEMBER 2011 [www.international-adviser.com] INTERNATIONAL ADVISER 5
  6. 6. NEWS Wraps come off new wrap AAM receives dressing down offering from Platform One from Singapore BY HELEN BURGGRAF ers saw as a neglected area regulatory body in the fledgling, but rapidly The Monetary Authority of Platform One, a wrap plat- growing, platform market. Singapore (MAS) has “rep-Leggate: building expert team form aimed at advisers Like most new markets rimanded” AAM Advisory with high net worth clients he says, it has been char- and one of its executives and multiple family offices, acterised by a “land-grab” for giving financial adviceRussell brings was unveiled last month. approach, as most entrants – in a monthly bulletin An international ver- rush to take advantage of to clients – without theLeggate on sion of the platform for being so-called first-movers. required licences. expatriates makes use of As is customary in the In a ruling that couldboard Middle the administration facilities and services of Moventum, platform world, Platform One charges its clients Fordham: ‘land-grab approach’ have implications for other advisory firms which pro-East operation a Luxembourg offshore fund platform provider based on a percentage of the total value of assets manual trades. International duce investment materials for clients, the MAS foundBY SIMON DANAHER owned by US-based LPL held, and also when they fees are slightly different, that AAM and one of its Financial. Its custodian is buy or sell assets – typi- starting at 0.45% of assets executives, Andrew GordonRussell Investments will Banque de Luxembourg, cally shares and collective and again, declining as McKay, contravened “sec-expand its operations in according to Michael Ford- investment funds. more assets are added. tion 6(1)...[and] the then-the Middle East and has ham, managing director of In the UK, the percent- Transaction fees for col- section 7(1) of the FAAappointed Jim Leggate Platform One. age starts at 0.3% of assets lective investments range [Financial Advisers Act]” into build and lead a team Fordham says Platform and declines to 0.03% on from €5 ($7.20) to €25 if a monthly newsletter thatbased there. One’s high-end approach assets of £5m ($8.2m) or they are done electronically the firm said was designed Leggate, who has been was taken in response to more; transaction fees are and €25 to €50 if manual, to help its clients to becomeappointed to the newly- what the company’s found- £15 if automatic and £25 for according to the company. more knowledgeable oncreated role of managing investment matters.director, Middle East, joins The FAA sections statefrom MSCI, where he heldthe position of executive Skandia Ireland unveils trust products that no person “shall act as a financial adviser indirector and head of EMEA Skandia Ireland has launc- discounted against the gift, Singapore” unless author-asset owners and invest- hed a discounted gift trust which has the effect of ised to do so, nor “actment consulting. (DGT) and loan trust, in reducing the amount of as or hold himself out to He reports to Pascal response to demand from IHT that might eventually be a representative of aDuval, president of EMEA financial advisers. have to be paid. licensed financial advis-at Russell Investments, and The company, which is The loan trust, mean- er” without the necessarywill be based in Dubai. the Dublin-based hub of while, offers an individu- licence, the regulator said Russell said Leggate’s Skandia International, part al the ability to make an in a statement.arrival in the region will of Old Mutual, said a poll it interest-free loan repayable Nick Anderson, one ofsignal the start of “an conducted of 330 advisers on demand, the proceeds AAM’s directors, said theadditional expansion in globally, indicated that the of which are placed in a “advice” in question wasthe number of people on most important element Griffin: ‘powerful financial tools’ single premium investment contained in a newsletterthe ground to support the of trust arrangements was bond written in trust for called Global View, whichRussell businesses”. the mitigation of poten- have witnessed a growing the chosen beneficiaries. was written by McKay, an He added that one of tial inheritance tax (IHT) demand for IHT solutions Any growth in the Australia-based fund man-Leggate’s first responsibili- liabilities for clients. over the recent years.” value of the loan would ager and AAM shareholder,ties will be to build a team. Rachael Griffin, head The DGT arrangement fall immediately outside and which did not involve The company has had of product law and finan- provides UK-domiciled the individual’s estate, so specific advice to any indi-operations in the Middle cial planning at Skandia individuals with the ability would not become liable vidual clients.East for more than 30 International, said: “Trusts to make a gift into a trust to IHT. The newsletter was dis-years and, at the end of are very powerful financial but retain a life-long right Unlimited and limited continued towards the endMarch this year, it had planning tools. The feed- to draw an income stream liability loan trust options of last year, when the MASassets under management back received from advis- from that gift. The value are being made available first revealed its concerns,of about $161bn. ers is not surprising, as we of this income stream is by Skandia. he added. Dylan Emery Editorial director Giles Whittingham Sales executive Keeley Parsons Circulation manager SUBSCRIPTIONS T +44 (0)20 7065 7565 T +44 (0)20 7065 7579 T +44 (0)20 7065 7578 subscriptions@lastwordmedia.com or go to www.international-adviser.com E dylan.emery@lastwordmedia.com E giles.whittingham@lastwordmedia.com E keeley.parsons@lastwordmedia.com PUBLISHERWill Jackson Editor Stephen Grasso Head of production Mark Jennings Head of online Tom Porter Manager director (Asia) Last Word Media (UK) Ltd, 4th Floor,T +44 (0)20 7065 7567 T +44 (0)20 7065 7571 T +44 (0)20 7065 7562 T +65 9781 3401 120 Moorgate, London EC2M 6UR, UKE will.jackson@lastwordmedia.com E stephen.grasso@lastwordmedia.com E mark.jennings@lastwordmedia.com E tom.porter@lastwordmedia.com Last Word Media (Asia) Pte LtdHelen Burggraf Deputy editor Emily Proctor Head of event operations Level 25, North Tower, One Raffles Quay Dean Andrews Production editor Jamie Hinchliffe Publishing director Singapore 048583T +44 (0)20 7065 7568 T +44 (0)20 7065 7570 T +44 (0)20 7065 7561 T +44 (0)20 7065 7572E helen.burggraf@lastwordmedia.com E dean.andrews@lastwordmedia.com E emily.proctor@lastwordmedia.com E jamie.hinchliffe@lastwordmedia.com PRINTING Ian Allan Printing Ltd, Hersham,Simon Danaher Online news editor Ben Wiseman Associate publisher Victoria Parker Senior event coordinator Rod Boulogne Managing director Surrey KT12 4RG; Tel +44 (0)1932 266600T +44 (0)20 7065 7577 T +44 (0)20 7065 7573 T +44 (0)20 7065 7564 T +44 (0)20 7065 7560E simon.danaher@lastwordmedia.com E ben.wiseman@lastwordmedia.com E vicky.parker@lastwordmedia.com E rod.boulogne@lastwordmedia.com 10,097 July ’10 – June ’11 6 INTERNATIONAL ADVISER [www.international-adviser.com] SEPTEMBER 2011
  7. 7. T R U S T E D H E R I TA G E A D VA N C E D T H I N K I N G Tuned into local knowledge The faster the pace of change, the more important it is to keep an ear to the ground at the local level. With a team of 36 emerging market investment specialists based in 8 countries1, spanning the world from São Paolo to Shanghai, Schroders has the global reach and local perspective to uncover the most exciting opportunities in emerging markets, wherever they are. If you’re looking to capture the full diversity and potential of the world’s most dynamic economies, Schroder ISF* Global Emerging Market Opportunities is the ideal fund. Schroder ISF Global Emerging Market Opportunities www.schroders.com1 Source: Schroders, as at July 2011. *Schroder International Selection Fund is referred to as Schroder ISF. Morningstar rating as at 31 July 2011, rating is for A accumulation share class.For Professional Investors or Advisers Only. Past performance is not a reliable indicator of future results, prices of shares and the income from them may fall as well as rise. Issued in August 2011by Schroder Investment Management Limited, 31 Gresham Street, London EC2V 7QA. Registered number 2015527 England. Authorised and regulated by the Financial Services Authority. w40269
  8. 8. For professional advisers only Henderson Horizon Fund The Henderson Horizon China Fund, managed by Andrew Cumulative performance Fund MSCI Golden Mattock and Caroline Maurer provides investors with access to a Dragon Index focused portfolio of Chinese companies that is constantly adjusted Year to date +5.1% -0.2% with the aim of delivering attractive performance through the economic cycle. Supported by the significant research capabilities 6 months +4.9% -1.3% of the wider Henderson team, the fund also employs sophisticated 1 year +21.0% +15.5% short selling techniques that potentially allow it to deliver positive Since inception* +45.4% +7.8% performance in challenging market conditions. Source: Morningstar, bid-bid, gross income reinvested, net of fees, based in USD, at 29 July 2011. The Henderson Horizon China Fund is available through a number *Inception 25 January 2008. †Standard & Poor’s, July 2011. of international distribution partners and life companies. The fund may also be available via open architecture links through other international distributors, please contact your preferred distributor for more information. † +44 (0)20 7818 4411 support@henderson.com www.henderson.comThe Henderson Horizon Fund (the “Fund”) is a Luxembourg SICAV incorporated on 30 May 1985. This document is intended solely for the use of professionals and is not for general public distribution. Any investment application will be made solely on the basis of the information contained in the Fund’s full prospectus (including all relevant covering documents),which will contain investment restrictions. This document is intended as a summary only and potential investors must read the Fund’s full prospectus before investing. A copy of the Fund’s full and simplified prospectuses can be obtained from Henderson Global Investors Limited in its capacity as Investment Manager and Distributor.Issued in the UK by HendersonGlobal Investors. Henderson Global Investors is the name under which Henderson Global Investors Limited (reg. no. 906355) (incorporated and registered in England and Wales with registered office at 201 Bishopsgate, London EC2M 3AE and authorised and regulated by the Financial Services Authority) provide investment products and services. Telephone callsmay be recorded and monitored.Past performance is not a guide to future performance. The performance data does not take into account the commissions and costs incurred on the issue and redemption of units. The value of an investment and the income from it can fall as well as rise and may increase or decrease as a result of changes in exchange rates betweencurrencies. Investors may not get back the amount originally invested. Tax assumptions and reliefs depend upon an investor’s particular circumstances and may change if those circumstances or the law change. If you invest through a third party provider you are advised to consult them directly as charges, performance and terms and conditions may differ materially.The securities included in this document are not registered in the Foreign Securities Registry of the Superintendencia de Valores y Seguros for public offering and, therefore, the use of this document is only for general information purposes. Nothing in this document is intended to or should be construed as advice. This document is not a recommendation to sell orpurchase any investment. It does not form part of any contract for the sale or purchase of any investment. The Fund is a recognised collective investment scheme for the purpose of promotion into the United Kingdom. Potential investors in the United Kingdom are advised that all, or most, of the protections afforded by the United Kingdom regulatory system will notapply to an investment in the Fund and that compensation will not be available under the United Kingdom Financial Services Compensation Scheme. A copy of the Fund’s full and simplified prospectuses, articles of incorporation, annual and semi-annual reports can be obtained free of cost from the Fund’s: Austrian Paying Agent Raiffeisen Zentralbank ÖsterreichAG, Am Stadtpark 9, A-1030 Vienna; French Paying Agent BNP Paribas Securities Services, 3, rue d’Antin, F-75002 Paris; German Information Agent Marcard, Stein & Co, Ballindamm 36, 20095 Hamburg; Belgian Financial Service Provider Dresdner Van Moer Courtens S.A./N.V. Société de bourse, Drève du Prieuré 19, 1160 Bruxelles; Spanish RepresentativeAllfunds Bank S.A. Estafeta, 6 Complejo Plaza de la Fuente, La Moraleja, Alcobendas 28109 Madrid; or Swiss Representative BNP Paribas Securities Services, Paris, succursale de Zurich, Selnaustrasse 16, 8002 Zurich who are also the Swiss Paying Agent. HGI41877/0811
  9. 9. NEWSHong Kong fundsales rocket in Skinner fills Aegon Ireland Standard Life (Asia) rebrandsfirst half of ’11 CEO vacancy left by Healy as it plans HKBY SIMON DANAHER BY WILL JACKSON Aegon UK, noted that the sales expansionNet sales of funds in Hong Aegon Ireland operation BY HELEN BURGGRAFKong hit a record high in Aegon Ireland has appoint- now headed by Skinnerthe first half of this year, up ed Simon Skinner as its was “well positioned to Standard Life (Asia), theby 188% compared with chief executive officer. capitalise on the substantial Hong Kong arm ofthe second half of 2010, He replaces David growth opportunities for Edinburgh-based Standardaccording to the HK Healy, who left the compa- variable annuities, both in Life, has repositioned itsInvestment Funds Assoc- ny last month after 14 years the UK and across Europe”. brand, following “exten-iation (HKIFA). as managing director. Variable annuities were sive customer research”. It said the robust sales Skinner previously one of the strengths of The firm also revealedfor the fund industry, which served as the chief operat- Aegon Ireland that Healy that it is targeting a 30%included net sales of $5.1bn ing officer of life and pen- cited in an interview earlier Skinner: moving from Aegon UK increase in sales of invest-over the six-month period, sions at Aegon UK. Since this year with International ment-linked insurancereflected investors’ desire to joining Aegon as customer Adviser, which appeared in Healy joined Scottish products in Hong Kongput their money to work in services director in 2009, he the April issue. Equitable International this year.the “extremely low interest has been responsible for Its range of variable (later rebranded Aegon Details of a newrate environment and the the firm’s UK customer annuity products, Healy Ireland) in 1995, and Standard Life product forthreat of inflation”. services strategy and cost told IA, were an important became its managing direc- the Hong Kong market, Monthly gross inflows reduction programme. factor in helping to differ- tor two years later. He which had been expectedwere between $2.5bn and Before this, he held senior entiate the company from previously worked with J to be unveiled at the same$3.9bn, with all months positions with Scottish its rivals, and he noted that Rothschild, when it was time as the rebranding,registering positive fund Widows, Equitable Life and enhancing and expanding the first cross-border life were not revealed, and areflows. But the HKIFA said the Automobile Association. this range was among company to set up in understood to be stillnet sales dropped gradual- In a statement, Adrian Aegon Ireland’s current Dublin’s International under wraps, pending reg-ly after a strong start in Grace, chief executive of projects. Financial Centre. ulatory approval.January and only started to But an expansion ofpick up again in May. Standard Life’s online facili-Despite this, gross and netsales in Q2 were still higher SFC aggressively chases insider traders ties for both financial advis- ers and their clients wasthan in Q1, reaching The Hong Kong regulator, Securities (Asia Pacific), CITIC Pacific, of selling presented alongside news$11.2bn and $3.1bn respec- the Securities and Futures and another party engaged 81,000 shares in September of the rebranding.tively, up 14% and 52%. Commission (SFC), last in insider dealing with 2008, while in possession Among other things, cli- But Desmond Ng, chair- month concluded one respect to China Overseas of “confidential, price sensi- ents and advisers mayman of the HKIFA, was insider trading action and Land and Investment tive information” about the now peruse and tweakcautious about his outlook opened another. shares. firm’s foreign exchange their Standard Life invest-for the remainder of 2011. According to the SFC, it As a result, Luk’s licence losses – avoiding a notional ment portfolios from their “The markets have been has concluded proceedings was revoked in 2006 loss of HK$1.36m. iPhones and iPads as wellplagued by a lot of uncer- against Steve Luk Ka and the SFC imposed a Chui appeared in the as online, thanks totainties: the eurozone sov- Cheung, a former vice- ten-year industry ban in Eastern Magistracy last new apps.ereign crisis; the worsening president and fund manag- April 2010. month, where he pleaded The rebranding ofUS fiscal position; the er at JF Asset Management. The new case relates to not guilty to two counts of Standard Life’s Asian sub-anaemic global economic The Market Misconduct alleged insider trading in insider dealing. David sidiary followed a decisiongrowth; and the inflation- Tribunal, an independent CITIC Pacific shares. Dufton, the acting princi- by its parent to change itsary pressure in the emerg- government body, found The SFC has accused pal magistrate, fixed a pre- “visual identity” to reflecting markets all served to that Luk, along with David Chui Wing Nin, a former trial review for 20 Oct and “the investment beingdampen investment senti- Tsien, a former equity assistant director of the Chui was released on made in the business nowment,” he said. salesman at JPMorgan finance department at HK$50,000 ($6,400) bail. and in the future”. Macro Economics Conference E Expert speakers providing latest views on: • World Markets - Opportunity for Liquidity • The Eurozone and the sovereign debt problem Mansion House, London • Megatrends & Infrastructure EARN 29th September 2011 5 CPD • Corporate Living Wills POIN www.cisx.com/summit • Remembering How to Grow TSSEPTEMBER 2011 [www.international-adviser.com] INTERNATIONAL ADVISER 9
  10. 10. NEWS Sanlam EB urges rethink on PCP planning major global pension needs of consumers sales strategy BY SIMON DANAHER Dawie de Villiers, chief sibility for their own retire- BY HELEN BURGGRAF executive officer of Sanlam ment savings – and many South African pension pro- Structured Solutions, a divi- members are not actually PCP International Market- vider Sanlam Employee sion of SEB, said: “While aware they carry the risk.” ing, a Cyprus-based compa-Crist: promoted to Asia CEO Benefits (SEB) is calling we do not challenge the The research indicates ny, is investing more than for a “sea change” in how rationale behind the move that, of the one in five €1m ($1.4m) to expand aCrist to head the pension industry meets consumer needs. away from the defined ben- efits system, the research respondents who resigned or switched jobs over the sales presence into Asia, Europe, the Middle EastAgeas Asia as SEB made the call fol- lowing the completion of shows that members are still not accepting respon- past year, more than 70% cashed in their retirement and Latin America, as it seeks to reach institutionalZiengs moves its 2011 Benchmark survey. This year the compa- funds, and only 18% pre- served their funds. and retail investors with products offered by PCP-into new role ny surveyed over 1,300 retirement fund trustees, Other findings were that 53% of respondents say related entities. The company, whichInternational life insurer principal officers, retire- they are on track for retire- was formed in 1996 byAgeas has promoted Gary ment fund members and ment, yet nearly one-third Kevin Mudd, said sales inCrist to CEO in Asia. He pensioners. One of the key do not know how their each region will be headedreplaces Dennis Ziengs, findings was that a shift retirement savings have by a regional director, whowho has been appointed away from defined benefits been invested, and 29% of will be a full shareholderexecutive adviser to the to defined contributions respondents do not know in a joint business with,company’s group CEO, in the ’90s has left many that they have a choice in and financed by, PCP.Bart de Smet, and to Crist employees worse off. de Villiers: ‘responsibility’ how they are invested. “The objective is forin Asia. each regional partner to The appointments took build their own distribu-effect on 1 Aug. Crist joined Belgium- European asset managers turning to private banks tion business, through their own efforts and bybased Ageas, which con- European asset manag- their use of private banks in “The rise in private bank recruiting their own team,”centrates its business in ers expect to place great- the next 12 months (up by distribution channels sug- said Mudd, who is also aEurope and Asia, in 2002 er emphasis on private 14% from 2010), and 34.3% gests some asset managers principal of KMG Capitaland has been responsible banks and direct sales for expected to focus more on are increasingly targeting Markets Luxembourg, afor overseeing its entry into fund distribution, accord- direct sales. high net worth individuals Luxembourg-based fundsnew markets in Asia. In ing to research by KNEIP, “Implementation of new as the recovery from the company he founded2006 he became managing an independent service regulation, such as Ucits financial crisis stabilises.” in 2007.director, commercial devel- provider. IV, is pushing asset man- Some 94% of respond- He said the firm wasopment and support. A survey of 47 European agers to forge closer rela- ents expected Ucits IV to aiming for annual sales in Ziengs also joined the asset managers, admini- tionships with investors, as have the greatest impact each region of $60m withincompany in 2002. In his strators and promoters indicated by the increased on fund management in three years, for a company-new role, he will advise on revealed that 42.9% of resp- focus on direct sales,” said the next 12 months, up wide turnover of $240mspecific projects and will ondents planned to increase CEO Bob Kneip. from 83% in 2010. to $300m.work to raise the profile ofAgeas in the Asian insur-ance industry. Ageas is ranked among Legal & General Int’l enjoys growth in offshore bondsthe top 20 insurance com- BY WILL JACKSON Offshore bond sales at L&G International pensions, offshore bondspanies in Europe and has are increasingly seen as aannual inflows of nearly Legal & General Inter- 300 useful vehicle for both tax€13bn ($19bn). It operates national (LGI) saw a 65% mitigation and retirementpartnerships in Belgium, increase in its offshore 250 planning,” said Legal &China, Italy, India, Luxem- bond sales in the first half General executive directorbourg, Malaysia, Portugal, of 2011, compared with 200 of savings Mark Gregory.Thailand and the UK, and the same period last year. “Our international busi- £m 150has subsidiaries in France, The firm revealed the ness is seeing an increaseGermany, Hong Kong and rise in August, as its parent 100 in the use of offshorethe UK. company announced its investment plans as sup- Ageas last month half-year results to the 50 plementary asset accumu-reported a group net loss London Stock Exchange. lation vehicles for retire-of €59m for the first half of Offshore bond sales hit 0 ment by higher net worth2011. The firm’s net profits £280m ($460m) in the first H1 ’10 H2 ’10 H1 ’11 clients.”of €111m for its insurance six months of this year – Source: Legal & General International The Legal & Generaloperations were offset by up from £170m in 2010. group announced a 4%an impairment charge of The increase continued the full-year offshore bond “For UK investors faced rise in total global sales,€150m related to Greek strong growth seen last sales of £450m, compared with limitations on tax- to £920m, in the first halfsovereign exposure. year, when LGI recorded with £80m in 2009. advantaged savings via of 2011.10 INTERNATIONAL ADVISER [www.international-adviser.com] SEPTEMBER 2011
  11. 11. FOR ADVISER USE ONLY – NOT APPROVED FOR USE WITH CLIENTS. OFFSHORE INVESTMENTS WITH GUARANTEES TO FIT YOUR CLIENT’S TIMETABLE. Not ours The International Prudence Bond now comes with a choice of 6, 7, 8, 9 or 10 year spot guarantee. Find out more at www.pruadviser.co.uk/ipbThe registered office of Prudential International is in Ireland at Montague House, Adelaide Road, Dublin 2.

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