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Intl Adviser September

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  • 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. 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. 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
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  • 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. 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. 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. 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. 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. 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. 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.
  • 12. If you’re looking for tax-efficient An offshore solutions for your clients’ finances, bond that has AEGON’s Wealth Management Portfolio is packed with an array of features all the answers to make the most of their money. in one place Guide your clients to the right destination for their money, with an offshore bond offering them tax efficiency, tax-planning solutions, investment solutions, a 5-star Defaqto rating... Plus, a new European portability option, developed based on advice from Deloitte PCS Ltd, allowing your clients to move to France, Italy or Spain (now or in the future) and maintain full income-tax efficiency. So, if your clients are looking for an offshore bond with so many features in one place, look no further Investments can go down as well as up and your clients than our Wealth Management Portfolio. Find out more may get back less than they invested. This information at www.aegon.ie/wmp is based on our understanding as at April 2011 of the tax legislation for the UK, Republic of Ireland, France, Italy and Spain, which may change. Your clients should always seek professional tax advice. For financial advisers only — not for private customers Pensions Investments ProtectionAEGON is a brand name of AEGON Ireland plc. AEGON Ireland plc, registered office: 2nd Floor IFSC House, Custom House Quay, Dublin 1, Ireland.Registered in Ireland (No. 346275). Authorised by the Central Bank of Ireland and subject to limited regulation by the Financial Services Authority.Details about the extent of our regulation by the Financial Services Authority are available from us on request. An AEGON company. www.aegon.ie
  • 13. BANK NEWSQatar grantslicence to Abu Yorkshire Building Society More job cuts announced byDhabi Islamic to fold Guernsey business internationalBank branch BY HELEN BURGGRAF pany until they are either banking giantsBY SIMON DANAHER returned to customers or More major international Yorkshire Building Society, transferred to an alterna- banks last month announ-Abu Dhabi Islamic Bank the UK’s second-largest tive deposit taker. ced plans to cut thousandshas been granted permis- building society, is to “wind Yorkshire Guernsey has of jobs, as global economicsion by the Qatar Financial down” its Yorkshire been present on the island problems continue to weighCentre Regulatory Auth- Guernsey subsidiary, fol- since June 1990, when it on their profits, and con-ority (QFCRA) to open an lowing a strategic review. became the first UK build- sumer and business confi-Islamic branch in the state. The operation is based ing society to open a dence remained low. The decision comes after in St Peter Port and employs Guernsey subsidiary. The news followed jobthe Qatar Central Bank 14 people, with around In a statement, Iain cutbacks unveiled by otherdeclared that conventional 6,000 customers and bal- Cornish: ‘support for staff’ Cornish, Yorkshire Building banks in July, which somebanks located in the coun- ances of approximately Society chief executive, observers said meant atry would have to get out of £800m ($1.3bn). The review society said. said the decision had been redundancy announce-the Islamic banking busi- was launched last year, fol- “Regrettably, after very taken “with much regret”, ment total for the summerness by year end. lowing changes to the UK’s careful consideration, it but noted that “recent of close to 60,000. In announcing the ban, regulatory regime. has been concluded that a changes to the treatment of Among the latest tothe Central Bank said it had “The review considered process to wind down the offshore deposit-taking unveil planned layoffs wasnoted that the “recent phe- a number of options, company’s activities should subsidiaries now means Swiss banking giant UBS,nomenon” of Islamic including a potential begin.” that it can no longer serve which on 22 Aug said itbranches of conventional change in [the Guernsey The building society its original role within the would eliminate 3,500 jobs,banks had led to a “co- operation’s] legal status, stressed that all deposits in Yorkshire Group”. or more than 5% of itsmingling of their assets and sale to a third party or an the Guernsey subsidiary “We will work closely to workforce, as its businessliabilities”, which, given the orderly wind-down of its would remain fully sup- support all affected staff,” difficulties were com-“overlapping nature of non- operations,” the building ported by the parent com- he added. pounded by the strength ofIslamic and Islamic activi- Switzerland’s currency. This Barclays Wealth appoints Asia directorties” at the conventional is a pain shared by Creditbanks, had made it difficult Suisse, which in Julyto manage the risks encoun- announced plans to let gotered by these banks. Barclays Wealth, the global comes as Barclays Wealth management operations of 2,000 people. There were also con- wealth management divi- continues to build its related to UHNW clients, as In a statement, UBScerns that conventional sion of Barclays, has UHNW wealth manage- well as private and invest- warned that it would “con-banks could have a com- named Anne Luke manag- ment operations in Asia. ment banking posts with tinue to be vigilant in man-petitive advantage over ing director and head of The strategy began around other banks. She was also a aging its cost base”, whichtheir Islamic counterparts. client solutions in Asia, as 18 months ago, and has partner in various law firms, suggested that additional The QFCRA confirmed it further expands its serv- seen the bank introduce covering banking and cuts could follow.the decision, saying: “Abu ices catering for the customised products in finance deals, in addition to Other major banks toDhabi Islamic Bank’s region’s ultra high net credit, derivatives, foreign corporate advisory work. announce cutbacks overauthorisation, as a PIIB worth (UNHW) market. exchange and trust structur- At Barclays Wealth, she the past two monthsPrudential Category Five Based in Singapore, ing that it says are designed will work closely with vari- include HSBC, BarclaysIslamic financial institution, Luke reports to Srinivas to “unlock the value” from ous units across the and Goldman Sachs. Bankpermits it to carry on regu- Siripurapu, head of south the often complex portfoli- Barclays Group to drive of America was reported tolated activities in relation Asia and southeast Asia at os of super-wealthy clients. the origination, structuring be planning to cut someto deposit taking, provid- Barclays Wealth, as well as Luke’s career of more and delivery of private 3,500 jobs, but did not con-ing and arranging financ- to Pakorn Boonya-kurkul, than 20 years has included investment banking servic- firm this ahead of Warrening facilities and managing head of north Asia. a stint at UBS, where she es to UHNW individuals, Buffett’s $5bn investmentinvestments.” Luke’s appointment was also involved in wealth Barclays Wealth said. in the company. Marking 30 Years in the Isle of Man Sterling only High Interest Anniversary Account Issue 1 Invest from £25,000 up to a maximum of £1,000,000 Interest is calculated from the date your account opens 3.50 1 Year % Gross#/ † 6 Months 2.75% Gross# /2.7689% AER† Fixed 3 Months 2.60% Gross# /2.6255% AER† Fixed to the end of the fixed term, and is paid on maturity To find out more contact: AER Fixed 01624 644222 info@boioffshore.com www.boioffshore.com# Gross rates are fixed. Interest will be paid without the deduction of income tax to all depositors (Exchange of Information will apply to all depositors resident in the EU). However, it is the responsibility of individuals to discharge any tax liability they may have. † AER stands for Annual EquivalentRate and illustrates what the interest rate would be if interest were paid and compounded each year. As every advert for a savings product that quotes an interest rate will contain an AER, you will be able to compare more easily what return you can expect from your savings over time.Bank of Ireland is a registered trading name of Bank of Ireland (I.O.M.) Limited, which is licensed by the Isle of Man Financial Supervision Commission. Incorporated in the Isle of Man No. 17696c. Registered Office: 4 Christian Road, Douglas, Isle of Man Bank of Ireland (I.O.M.) Limited is a wholly-owned subsidiary of The Governorand Company of Bank of Ireland, which is incorporated in Ireland with limited liability. Bank of Ireland is authorised by the Central Bank of Ireland. Bank of Ireland (I.O.M.) Limited places funds with other parts of the Bank of Ireland Group, thus its financial standing is linked to that of the group. Depositors may wish to form theirown view on the financial standing of Bank of Ireland (I.O.M.) Limited and the Bank of Ireland Group based on publicly available information. A copy of the most recent audited financial statements for Bank of Ireland (I.O.M.) Limited can be viewed at the registered office, are available at www.boioffshore.com, or can be suppliedupon request. Terms and conditions apply, copies are available on request. 5575110809SEPTEMBER 2011 [www.international-adviser.com] INTERNATIONAL ADVISER 13
  • 14. FUND NEWS Life offices defend decision Julius Baer launches China to ‘mirror’ Castlestone funds A-share fund Julius Baer has become the BY SIMON DANAHER Aliquot Commodity and A spokesperson con- first foreign private bank Castlestone Aliquot Agri- firmed that FPI would to launch a fund permitted Life insurers have defend- culture portfolios avail- close down the mirror to invest in the domestic ed their decision to offer able to investors within its funds for the two Dublin- equity and bond marketsStopford: team leader ‘mirror’ versions of funds Singapore Global Wealth domiciled portfolios and in China. from Castlestone Manage- Builder unit-linked savings switch investors’ money In December 2010, theInvestec adds ment, following the com- pany’s decision in July to plan. FPI – which also into a cash-only fund. Skandia said it was Swiss private bank became the first to receive a QFIIto Luxembourg close its Dublin-domiciled offers investors mirror awaiting further advice licence from the State range to new subscriptions funds of the British Virgin from Castlestone. In the Administration of Foreignfixed income and wind down that part Islands (BVI) domiciled meantime, it had suspend- Exchange in China, paving of its business. Castlestone Aliquot Gold ed new investments into the way for its fund launch.product range Friends Provident Inter- Bullion and Castlestone its commodity mirror fund Under the licence, Julius national (FPI), Skandia Aliquot Precious Metal and investments into the Baer was granted a $100mBY GARY CORCORAN International and Hansard funds – said they “offered agriculture fund through trading quota, which willAND BRUCE LOVE all offered mirror versions daily dealing and valuation its UK platform, Skandia be utilised with the launch of Castlestone funds. with independent admin- Investment Solutions. of the Julius Baer ChinaInvestec has expanded its In December 2010, FPI istrators, custodians and Castlestone’s BVI funds Fund.Luxembourg-domiciled made mirror funds of the auditors appointed”, so are understood not to be Kenneth Ho, head offixed income fund range Dublin-domiciled (and “fully meet our admissibil- winding down, and remain products Asia Pacific, said:with the launch of Africa now closed) Castlestone ity requirements”. open to new subscriptions. “We are in a unique posi-High Income and Global tion as a private bank toDefensive Bond Sicavs for provide our clients glo-John Stopford. Global Defensive Bond KMG Capital ‘all weather’ UK property offering bally with the opportunity to invest directly onshorewas unveiled on 26 July. KMG Capital has launched of 15% pa, net of fees. to nine months. in China, a market whichStopford and his team will a fund for foreign investors Three property adviso- Guy Rees, partner at is growing rapidly andshort-sell bonds and cur- seeking residential property ry firms – Cignet Capital Cignet, said: “This is an offers so many interestingrencies to generate returns. market exposure in London Management, Chesterton ‘all weather proposition’ in options for investors.”They aim to achieve lower and the UK’s southeast. Humberts and SpicerHaart that the managers will be Julius Baer said the fundvolatility than other global The London Actively – will present invest- buying properties at prices will be invested based onfixed income funds. Managed Property Fund, ment opportunities to the that are already below- the country’s macroeco- The fund’s asset allo- which will initially target manager. market rate.” nomic outlook, and incation at launch included investors based in east Asia, The fund, which can The fund’s initial offer themes and industries thatinvestment grade corporate has been structured as an be geared up to 50%, will period runs until the end will benefit from China’sbonds (25%) and emerg- open-ended Luxembourg focus on buying properties of October. It has a mini- 12th five-year plan, as welling market debt (19%), domiciled Sicav-SIF offer- from distressed or “moti- mum investment of £10,000 as bottom-up stock selec-with a further 15% each ing monthly dealing, with vated” vendors and selling ($16,300) and is designed tion based on quantitativein developed market infla- targeted returns in excess them for a return within six for high net worth investors. and qualitative analysis.tion-linked and high yieldcorporate bonds. The $30m fund is dol-lar-denominated and will Henderson closes down offshore China Opportunitiestarget the Libor dollar over- Henderson Global Inves- Originally, it was expec- Hend’son Gartmore China Opps vs index*night rate. tors will close its off- ted the remaining assets Africa High Income was shore Gartmore China would be amalgamat- 120 0 Henderson Gartmorelaunched on 16 Aug and Opportunities Fund after ed into Andrew Mattock China Opportunitiesis co-managed by Stopford a major shareholder gave and Caroline Maurer’s 90 0and Andre Roux. The fund, notice that it will pull its Henderson Horizon Chinawhich is based on a paper assets out. Fund, but instead the board 60 0portfolio previously run by The withdrawal from decided to close the fundthe two men, has an indic- the Luxembourg-domiciled with effect from 30 Sept. At % MSCI Zhong Huaative yield of 9.4%. version of the fund, man- that time, current subscrip- 30 0 As a multi-strategy fixed aged by Charlie Awdry, tions will be cancelled andincome fund, Investec will reduce it in size by investors will be able to 0says that it intends to offer half, tipping its assets switch to another fund ininvestors the “full spec- under management below the company’s Sicav range. -30trum” of fixed income €5m ($7.2m). “Recently a significant Feb ’09 Jun Oct Feb ’10 Jun Oct Feb ’11 Junmarkets available in Africa The onshore Henderson shareholder has given *Since launch. 1 Feb ’09 – 1 Aug ’11. Source: FE Analytics– from South African sov- China Opportunities Fund formal notification of theirereign bonds and credit, to currently holds over £700m intention to redeem their “As a result, the net assets board of directors of thethe “genuine frontier mar- ($1.14bn) in assets under holding,” the company said of the fund will fall below company are empoweredkets” of African currencies. management. in a statement to investors. €5m, the level at which the to liquidate the fund.”14 INTERNATIONAL ADVISER [www.international-adviser.com] SEPTEMBER 2011
  • 15. Financial Strength Rating A M BEST B++ Good
  • 16. LIFE NEWSManulife plansmajor drive in Van Der Wielen to replace Taiwan ruling ‘criminalises’Hong Kong’sMPF market Sepe as Friends Life MD... sale of offshore BY WILL JACKSON Life, and will become a life policiesBY HELEN BURGGRAF member of the firm’s group Taiwan’s legislature has John Van Der Wielen is executive committee. amended the country’sManulife, the Toronto- to succeed Rocco Sepe During his time at insurance regulations tobased insurance giant, says as managing director of ANZ, Van Der Wielen was attach criminal penaltiesit plans to recruit “thou- Friends Life’s international responsible for investment to the sale of unapprovedsands more agents” in business. lending, financial planning life insurance policies toHong Kong, as it looks to Sepe, who had been and the firm’s private bank. Taiwanese residents by off-grow its business there and with the company for more Prior to this, he held sev- shore companies.ramp up its share of the than six years, announced eral senior roles at HBOS. The amendment, whichmandatory provident fund his departure last month, “John is a high-calibre was described by Baker &(MPF) market. and will leave Friends Life Van Der Wielen: ‘high calibre’ executive with the skills McKenzie as “an important Michael Huddart, execu- at the end of September. and experience to drive development for those whotive vice-president and CEO He has not said what his tor, Van Der Wielen will the international business issue or market offshoreof Manulife Hong Kong, plans are. be responsible for all of forward,” said Briggs. policies to Taiwan resi-said the company would Van Der Wielen is the Friends Life’s interna- Sepe led the interna- dents”, increases the maxi-also promote yuan prod- former managing director tional businesses, includ- tional division at Friends mum punishment for viola-ucts, which are in demand of wealth at ANZ Banking ing Friends Provident Life for over six years, in tors to up to three yearsamong investors who Corporation in Sydney. He International, Financial which time new business imprisonment and a fineexpect them to benefit with is expected to take up the Partners Business, Lombard more than doubled. The of TN$20m (approximatelythe currency’s appreciation. London-based role before and AmLife. firm also established opera- $700,000). Huddart said the com- the end of 2011. He will report to Andy tions in Singapore, the UAE Previously, the maxi-pany plans to increase its As managing direc- Briggs, the CEO of Friends and Germany. mum punishment wouldagency force in Hong Kong have been an administra-by about 10% each year, to tive fine of up to TN$4.5m,7,000 people by 2015, upfrom 4,600 agents at the ...as Black joins White at FPI Singapore Baker & McKenzie said. The amendment wasend of June. BY SIMON DANAHER Both Black and Matthew market for Friends Life described by people famil- Manulife also intends to White will be the key and its FPI operation. Last iar with the matter as theboost its sales from non- Friends Provident Inter- points of contact for expa- month, in its results state- latest in a series of tweaksagency channels, including national (FPI) has appoint- triate business partners in ment for the six months by the Taiwanese regulatorindependent and bank dis- ed ex-Zurich business the region. ended 30 June, the compa- in the wake of the globaltribution, to 25% of total development manager Ian Prior to joining FPI, ny said the “strong growth” financial crisis, designed tosales by the end of 2015, Black as its regional sales Black held the position that its international busi- ensure that the problemsfrom its current level of manager for southeast Asia. of business development ness had posted during some people have encoun-13%, and to raise its share Black replaces David manager, having had a the period had largely tered with faulty financialof the MPF market to 20% Scammell, who will specific focus on invest- been driven by the strong products do not reoccur.from 17.6% by 2016. become a national account ments and trusts with performance in the Asian They said large insur- The mandatory provi- manager for FPI in the UK, Zurich Intermediary Group markets. ance companies baseddent fund system is Hong after working in Singapore in the UK. In July, FPI’s fifth elsewhere, such asKong’s compulsory retire- for the past three years. Before joining Zurich Investor Attitudes survey Prudential and MetLife,ment savings scheme. He will report to Chris he had also worked found confidence in typically will not be affect-Manulife is the second-big- Gill, general manager for for Berkeley Berry Singapore had risen in the ed by the new regulations,gest player in Hong Kong’s southeast Asia and also Birch, Prudential UK second quarter of 2011 to as their products are likelyMPF market, behind HSBC, principal officer of the Intermediaries and Scottish its highest level since the to already be designed forand has around 1.6 million Singapore branch in which Amicable. company began tracking the Taiwanese market andclients in Hong Kong. he will be based. Singapore is a key investor attitudes in 2010. approved for sale. Award Winning In a changing regulatory environment, where should you seek an independent and robust investment proposition for your clients? Investment ves Old Broad Street fund manager research and life companies and wealth Solutions from from Research (OBSR) is part of Morningstar, and is a leading investment consultancy. Our range of bespoke managers includes model portfolios, fund shortlists provider of independent solutions for international and sub-advised funds. For more information please visit: www.obsrglobalfundratings.comSEPTEMBER 2011 [www.international-adviser.com] INTERNATIONAL ADVISER 17
  • 17. MARKET-LEADING EXPERTISE. WITH AWORLDWIDE FOLLOWING.At Invesco, we have always looked for long-term growth potential, ratherthan short-term gains. Over the last 30 years, this approach has helpedus become a leading independent global investment manager, for bothindividuals and institutions.We have a distinctive investment process based on our own rigorousresearch – and a full range of investment products, spanning bothtraditional and alternative asset classes. We also combine local expertisewith truly international reach: with client support centres in 20 countries, 100*serving clients in over 100.Clients who, for many years, have trusted our experience as their guide. guide.Call +44 1491 417561 14 756Visit invescointernational.co.uk invescointernational.co. TAKE A LONGER VIEW VIor invesco.aeThis advertisement is only for Professional Clients in the UK,Jersey ,Guernsey ,the Isle of Man,Malta and Dubai and is not for consumer use. *Source: Invesco as at 31 March 2011. The value of investments and anyincome will fluctuate (this may partly be the result of exchange rate fluctuations) and investors may not get back the full amount invested. Where Invesco has expressed views and opinions, these may change. Telephone calls may berecorded. Isle of Man: Issued by Invesco Global Asset Management Limited, George’s Quay House, 43 Townsend Street, Dublin 2, Ireland, regulated in Ireland by the Central Bank of Ireland. Jersey and Guernsey: Issued by InvescoInternational Limited, 2nd Floor, Orviss House, 17a Queen Street, St Helier, Jersey, JE2 4WD, regulated by the Jersey Financial Services Commission. UK: Issued by Invesco Asset Management Limited, 30 Finsbury Square, LondonEC2A 1AG, authorised and regulated by the Financial Services Authority. Malta: Issued in Malta by Invesco Global Asset Management Limited, George’s Quay House, 43 Townsend Street, Dublin 2, Ireland. Regulated in Ireland by theCentral Bank of Ireland. Dubai: Issued by Invesco Asset Management Limited, PO Box 506599, Building 5, Level 6, The Gate Precinct, Dubai, United Arab Emirates, regulated by the Dubai Financial Services Authority. INTA.09.11
  • 18. MD PROFILE STEVEN LEVIN profilesDedication gets resultsSteven Levin, the recently appointed CEO of Skandia International,explains how dogged determination and the skills to deliver on strategyhave helped him meet the challenges of today’s business environmentSteven Levin was named to What are the biggest chal-head Skandia International, lenges currently facingthe London and Southamp- Skandia International?ton-based offshore business As the business enters theof Old Mutual, in June. next phase of growth, weHere he discusses his plans need to focus on enhanc-for the company and the ing our customer andchallenges facing the cross- adviser experiences, andborder life industry. continue to improve the value we offer to both.You joined Skandia Inter- Outstanding onlinenational in June. What are functionality, automatedyour plans for developing the processes, a flexible prod-business and its offering? uct set and speed to marketMy focus will be on broad- are common challengesening our customer propo- faced by everyone in thissition, to ensure it delivers industry – and we arewhat customers and advis- already making headwinders want and need. on tackling these issues. I would like to see our The other great chal-offering stand out among lenge we are faced with isthe competition, while at responding to regulatorythe same time providing changes across all of ourquality and value for different markets in an effi-money. cient and timely manner. The businesses within Having the right infrastruc-Skandia International are ture to be able to react to “renowned for their pas- these changes quickly, andsion, spirit of innovation adapt the business to meet Formulatingand high level of technical the multiple regulatory positive difference to the ships with financial advis- a good businessexpertise – it is paramount requirements, are key chal- industry, and contributing ers, bank distributors andthat this culture continues lenges that I am also look- to a better offshore market. regulators in the markets strategy is theand is built upon. ing to address. where we operate. We are easy part. The How does Skandia Inter- part of a FTSE 100-listedWhat changes have you made Where do you see the busi- national set itself apart from financial services group, difficult part andso far? ness five years from now? its competitors? Old Mutual, which has aMy initial focus has been on I see us offering a deeper Our people are already rec- 160-year plus history of where manygetting a deeper under- and wider proposition to ognised as highly passion- investment products and companies fallstanding of the business, both expatriate and domes- ate, offering the best sup- services across all segmentsmeeting with new people tic clients within our exist- port and technical knowl- of the long-term savings down, is executingand asking a lot of ing markets. I also believe edge across offshore mar- market, across the globe. the strategy. I wouldquestions. we will have identified and kets. Our portfolio bond I think I have already successfully entered sever- products are innovative and What is your career advise people toraised the bar on account- al new markets. flexible, and we are a background? focus on delivery –ability and delivery. I have My hope is that we will leader in the QROPS space. I have been with Oldalso been advocating a be recognised by both We have an award-winning Mutual for the last 13 years. a good idea ismuch greater focus on advisers and customers as sales team, the members of Most of this time I have wasted with badbeing customer and advis- delivering innovative solu- which continuously work been involved with ourer centric.SEPTEMBER 2011 tions, making a real and [www.international-adviser.com] on forging strong relation- South African business. I execution INTERNATIONAL ADVISER 19 ”
  • 19. MD PROFILE STEVEN LEVIN“ Technology started out as an invest- single lesson. But general- immense. But having a focused and innovative ment analyst covering the ly, I have learned that global footprint, rather product providers.expectations of insurance sector, and later dogged determination is than being limited to a spe- The biggest issues I became a portfolio man- sometimes needed to cific market or territory, would say are around theadvisers and ager for specialist financial achieve quality results. has helped limit the expo- regulatory environments,customers will sector funds. Obstacles and conflicts will sure, as not all markets specifically the conflicting I then moved into the always be in the way – the have felt the same impact requirements that existcontinue to increase, product and proposition key is never to give up if of the global meltdown. across different markets.with the ease of use area, rising through the you feel strongly about Political and economic sta- ranks to lead the product something and to stay Where do you see the indus- bility are factors that canof products becoming function in our South focused on your end goal. try five years from now? also affect how and wherea critical success African business where we I expect to see increasing we choose to operate. are a waterfront player, You are new to the cross- convergence of regulationsfactor. Providers covering all the needs of border life business. What do globally, with offshore pro- Do you think the UK offshore retail and group customers you see as the key challenges viders in most markets bond market is saturated inare going to have to across income segments. facing the industry? being brought more into terms of providers?drive down costs In 2010 I was appointed Firstly, the financial services the core regulatory The UK offshore market is to a global role as product sector has got to work hard framework. significant and highly com-significantly to director for all of Old to win back trust and Technology expecta- petitive, but I think thereensure they can offer Mutual’s long-term savings improve the negative per- tions of advisers and cus- are still opportunities for businesses based in ception that some custom- tomers will continue to providers that are creativecustomers the value London. The focus here ers now have of the increase, with the ease of and innovative.for money that they was on driving synergies, industry. use of products becoming There have been several expanding our product The increasing regula- a critical success factor. new players entering orwill expect ” proposition, and promot- ing innovation and cus- tomer service across all our businesses. tion across all markets can lead to new costs and com- plexity. It is imperative to ensure that any changes, Providers are going to have to drive down costs significantly to ensure they can offer customers the aggressively expanding in the UK market in recent years, attracted by the market size and strong and the way the industry value for money that they market growth. Who has been the biggest deals with them, do not will expect. In the UK, the tax breaks influence on your career? adversely affect the offer- are clear and quantifiable. In my time as an invest- ing to the customer. How does the UK compare The RDR will shift the focus ment analyst, I had access Finally, we must collec- with international markets? from commission-based to the top leaders of the tively support advisers to The UK is a large and well product sales towards fee- financial services industry ensure that customers established market. It ben- based ongoing wealth pres- in South Africa and global- understand and value the efits from a single regula- ervation solutions, and we ly. I learned a huge amount advice channel. There is an tory framework, sophisti- believe that offshore pro- through being exposed to increased amount of infor- cated customer needs and viders with a proven exper- these business leaders, and mation and knowledge well qualified advisers. tise in taxation, trusts and being able to ask questions now available online. But Customers benefit from wealth solutions will serve and challenge them on in our market space, where taxation and wealth preser- this market well. both their strategy and products are highly sophis- vation strategies which execution. ticated and the customers’ enable them to invest in a How will you manage your needs so individual, it is tax efficient way, and off- key relationships to achieve What is the best piece of imperative clients seek shore products play a key success – for example with business advice you could investment advice from role in this. fund houses, parent compa- personally offer to someone? qualified professionals. The biggest issue cur- nies, regulators and BIOGRAPHY Formulating a good busi- rently facing the UK market advisers? ness strategy is the easy How do you think the offshore is the impact of regulation. I will ensure we formulate Steven Levin was born in part. The really difficult life industry has coped with The Retail Distribution and implement a clear and Cape Town, South Africa, and part, and where many the effects of the global eco- Review [RDR] has the well articulated strategy, attended the city’s university, companies fall down, is nomic meltdown? potential to improve setting out how we engage where he graduated with a bachelor of business science executing the strategy. I The industry was reasona- customer outcomes, but with all our partners. Our degree. He is a fellow of the would advise people to bly well insulated from the how it is implemented focus will be on the cus- Institute of Actuaries, focus on delivery – a good meltdown, with few off- remains key. tomer and how we can be a chartered financial analyst idea is wasted with bad shore providers suffering The primary benefits of the best in class. and a graduate of the general execution. major financial losses as a the offshore markets are Being open and trans- management programme at direct result. The impact their scale and diversity. parent always works in any Harvard Business School. What is the hardest business on the wider financial serv- The constantly changing relationship, and there is a He joined Old Mutual, South lesson you have learned? ices sector and the percep- demographics offer many willingness in our business Africa, in 1998. Nothing stands out as a tion of trust has been opportunities for customer- to evolve and improve.20 INTERNATIONAL ADVISER [www.international-adviser.com] SEPTEMBER 2011
  • 20. Get the of going global M&G Global Dividend Fund Stuart Rhodes, manager of the M&G Global Dividend Fund, believes that the best way to run a truly diversified equity income fund is to search the world for companies that show consistent dividend growth. He doesn’t simply chase yield like many of his peers, which means investors can benefit from both capital growth and income. This investment approach gives him a clear advantage – the fund is top decile since launch and is A rated by OBSR. Quartile ranking 1 2 Since year years launch M&G Global 1st 1st 1st Dividend Fund Top decile Top decile Visit www.mandg.comThis document is designed for investment professionals’ use only, not for onward distribution to any other person or entity. The fund referred to is authorised by the FSA in the UK andmay not be authorised nor otherwise approved by a financial regulator in any other jurisdiction. Source of performance: Morningstar, Inc., as at 29.07.11, Pan European database, price toprice with net income reinvested, Euro Class A Shares, Morningstar Global Large-Cap Value Equity sector. The fund was launched on the 18.07.08. Rating as at 30.06.11 and should not be takenas a recommendation. This financial promotion is issued by M&G International Investments Ltd. (Registered Office: Laurence Pountney Hill, London EC4R 0HH), authorised and regulated by theFinancial Services Authority. AUG 11 / 34238
  • 21. Select Discounted Gift Trust We have valuable information. 555 The new trust from Royal London 360° allows clients to more effectively reduce their Inheritance Tax on death while enjoying an income for life. Pass it on. We don’t like to gossip if it’s idle, only if it’s hardworking. And the new Select Discounted Gift Trust is just that. Targeted at medium to high net worth investors, it offers flexible ways to preserve wealth through inheritance tax planning. Being trust-based, it gives your client plenty of room to manoeuvre should circumstances change and it is one of few arrangements on the market allowing benefits to be paid out to family or friends before death. It also offers one of the longest periods over which your client can defer their income stream. And it remains the only product around (from an offshore life assurer) to have an additional ‘Access Fund’ that can be useful if clients are unsure of their future capital requirements. Only trouble is, now you’ve heard the whisper, there’ll be no going back. And of course, you and your clients can rely upon Royal London 360°’s distinctive service-led ethos, impressive financial strength and globe-spanning offshore experience. Visit our Select DGT microsite to register your interest at www.royallondon360.com/selectdgtFor Financial Advisers only. Not to be distributed to, nor relied on by, retail clients. Select Discounted Gift Trust is issued by Royal London 360 Insurance Company Limited. RegisteredOffice: Royal London House, Isle of Man Business Park, Cooil Road, Douglas, Isle of Man IM2 2SP, British Isles. Royal London 360 Insurance Company Limited is authorised by the Isle of ManGovernment Insurance and Pensions Authority. Registered in the Isle of Man Number 053002C. A Member of the Association of International Life Offices.
  • 22. INTERMEDIARY PROFILE IPACMore than financial dim sumAxa-owned, Hong Kong-based Ipac – decoupled earlier this year from an Australian entityof the same name, for which it used to be the Asian operation – has found success withits distinctive and holistic brand of ‘lifestyle financial planning’BY HELEN BURGGRAFIt is the second week inAugust, and stock marketsaround the world havebeen in freefall, more orless, for days. At this pointin the afternoon (HongKong time), most of themajor bourses are down byseveral percent from wherethey were yesterday or theday before; photographs ofmiserable-looking tradersstaring glumly at their com-puter screens fill the news-papers, and comparisonsare being made with the2008 global financial crisis. Not the best of times,you might have thought, toexpect the chief executive proactive at times like this, 24) – went on to become for A$250m ($260m) – isof a major financial advi- getting on the phone and a well-known Australian rooted in a “vision” of howsory firm to be willing to sit speaking to our clients, television presenter and wealth advice should beand answer the questions rather than waiting for them financial expert; another, given that the firm’s four FACT BOXof a journalist who, weeks to approach us, and send- Arun Abey, is an invest- founders shared (along Founded: 1983; fully separatebefore, had arranged the ing out market briefings, ment strategist and author with their phone line) back from its original Australianinterview. But China-born prepared by our head of of some note, whose books in the ’80s. parent since ’11Rainbow Pan, CEO since research, to make sure cli- have included How Much Since then, she adds,2009 of the Hong Kong ents are well informed.” Is Enough, on the relation- this vision has been taken Funds under admin: Around $800madvisory firm Ipac, gra- ship between wealth and on board and perfectedciously dismisses any apol- l Australian roots happiness. by everyone who subse- No. of clients: c. 2,000ogies for disturbing her “at A third of the founders, quently worked for Ipac. It No. of employees: 92such a busy time”. Pan’s unruffled and confi- Suvan de Soysa, stepped essentially involves giving “We are advocates of dent demeanour character- down last month as man- clients the best possible No. of advisers: 32lifestyle financial planning, ises an approach to finan- aging director of Axa- advice and most suitable Offices: Hong Kong, Singaporeand our clients have been cial advising that has stood owned UK wealth manager investment and insurance and Taiwanwell-educated upfront at Ipac in good stead since it Bluefin, a job he had been products for their particu-our advice meetings about was founded in 1983, by given in 2009 as part of a lar situation, rather than Regulated in Hong Kong by: The Securities & Futuresthe possibilities of market four men in their mid-20s major restructuring aimed allowing the sale of prod- Commission; Professionaldownturns,” she explains. in a single room in Sydney, at transforming the firm ucts to drive the advice Insurance Brokers Association;“So when the market is with just one phone line. into a fee-based, high-end process, as is often the Mandatory Provident Fundvolatile like this, we are One of the founders, business, not unlike Ipac. case at many commission- Authorityactually doing business as Paul Clitheroe, who is still based advisory firms in Regulated in Singapore by:usual.” active in the Australian arm l Shared vision Hong Kong and elsewhere. Monetary Authority of Singapore That said, she adds: of the company – which “We spend a lot of“Even though we do all separated from the Hong According to Pan, Ipac’s time with our clients to Regulated in Taiwan by:the upfront educational Kong operation earlier this success – which inspired understand their lifestyle Financial Supervisory Commissionwork, we are [also] quite year (see box on page Axa to buy it in 2002 goals, what their currentSEPTEMBER 2011 [www.international-adviser.com] INTERNATIONAL ADVISER 23
  • 23. INTERMEDIARY PROFILE IPAC situation is; we use mod- KEY POINTS elling tools to take them Axa-owned Ipac is marking through all the different its eighth year in Hong Kong scenarios, including the by embarking on its first year possible downsides and unaffiliated with its original disadvantages of each Australian parent. option, so they are fully Fee-for-advice-based ‘lifestyle aware of everything before financial planning’ is what they make any decisions. Ipac seeks to deliver, via And for all of this, we a combination of listening charge a fee.” to clients and educating them. The rates vary, but Highly visible in Asian media, depending on the com- thanks to TV advertising and plexity of the client’s plan proactive marketing, Ipac and the adviser’s seniority, Some of Ipac’s educational holds regular educational average between $250 and executives and employees ex xecutives materials for clients seminars, both in its offices $400 per hour, according also specialises in catering al lso p g and for other companies and organisations; these also help to Pan. for women clients. Since manner, are others. to promote the brand. 2008, Ipac has run what it New arrivals, mean- l Women-friendly calls its Women & Money have financial planners while, may be given a programme, which Pan who are also women,” she six-page “Guide to set- Another difference between says has been good for observes. “Especially, for tling in Hong Kong” that Ipac and most of its rivals, business as well as for the example, in such cases as covers such topics as Hong in Hong Kong and else- company’s visibility and [during] a divorce.” Kong’s tax system, finding where, is the proportion of public image. schools for one’s children, women who work for it. There is less of a ‘glass l Specialist areas and even the matter of This is something a recent ceiling’ for women in bringing one’s pets. visitor immediately sensed Hong Kong than in many Women are not the only Until now, the types of upon arriving at the com- other financial centres, specialist area Ipac caters people who could use a pany’s understatedly luxu- Pan believes, which also for: helping parents to instil six-page guide to living rious offices, on the 51st means there are more good financial habits at an in Hong Kong have been floor of an office tower in women executives there early age is another popu- among Ipac’s chief rai- the centre of Hong Kong’s with sizeable incomes who lar topic for Ipac’s advisers, sons d’être; it was, after“ We spend a lot of main business district. Less require specialist advice – particularly on the seminar all, founded by Australians. obviously, it has also won a fact she says is reflect- circuit. Planning for the But Pan says the firm istime with our clients the company a number of ed in Ipac’s female client education of one’s chil- looking to expand its pres-to understand their awards. numbers. dren, or for one’s return ence in the local market, Currently, the ratio is “These ladies like to to the UK in a tax-efficient and is currently recruitinglifestyle goals, what around 50:50, according to advisers for this purpose.their current situation Pan, who adds that this IPAC SPLIT BY AXA DEAL WITH AMP “I would say that more is the result of a “gender- than 70% of our clients areis; we use modelling neutral” approach to hiring Until last year, Ipac Australia was a wholly-owned subsidiary of Australia- and UK-centric, Axa Asia Pacific Holdings, which had acquired it in 2002 for A$250mtools to take them rather than an actively pro- ($260m), when it was just an Australian financial advisory business but I also think that once female strategy. with a good reputation and a TV investment show presenter on its we have the right staff onthrough all the Nevertheless, she board. Beginning in 2003, and flush with Axa’s resources behind board, this will change,”different scenarios, believes women “do have it, Ipac Asia commenced its operations in Hong Kong, Singapore she says, adding that in an advantage” in the advis- and Taiwan. Ipac’s Singapore office,including the possible ing business, and not only Then, in November last year, Axa and AMP one of Australia’s , locals already account for because the growing num- largest asset managers and an Axa rival in the marketplace, agreed around half its clients.downsides and bers of wealthy women a A$14bn acquisition/divestiture deal – completed in April – whereby There appears to be AMP would ultimately end up acquiring all of Axa Asia Pacificdisadvantages of often prefer to deal with an Holdings’s Australian and New Zealand businesses, including Ipac little appetite at Ipac to adviser of the same gender Australia, while Axa would get 100% of the merged entity’s Asian aggressively pursue clientseach option, so they as themselves. operations, consisting of the Ipac Asia businesses in Hong Kong, who do not fit the Australia,are fully aware of “Women tend to listen Singapore and Taiwan in addition to cash. UK and local market pro- more and often are highly According to Ipac CEO Rainbow Pan, although Ipac is owned file, although the firm doeseverything before committed, and relate to by Axa, its advisers are not allowed to promote Axa products more have Russians, Europeans clients particularly well,” than those of other life companies, because of its status as an and others on its books,they make any independent financial adviser and licenced insurance broker. she explains. according to Pan. ”decisions Instead, she says, Ipac advisers are obliged to “search the market It is perhaps not surpris- “We don’t want to for the best possible deals for our customers which suit theirRainbow Pan, CEO, Ipac ing that a firm with such a [particular] needs and circumstances”. spread ourselves too thin,” high proportion of women she explains.24 INTERNATIONAL ADVISER [www.international-adviser.com] SEPTEMBER 2011
  • 24. Standing firm in stormy conditions 10.03% per annum Share Class Start Date NAV 1 Month 12 Months Since Launch GBP Institutional 31/07/2005 168.627 0.73% 10.03% 68.63%Source: Managing Partners Limited 1st August 2011 (All figures net of all charges)The GBP institutional share class is one of 22 share Traded Policies Fund GBP institutional shareclasses of the Traded Policies Fund, each of which class performance*invest in an asset class which has delivered smooth, 180 TPF – GBP institutionalpredictable investment returns independent of interest 160 rebased DAX 500rates, equities and commodities. 140 120 FTSE 100Not surprising then that interest in Traded Life Policy 100 S&P 500(“TLP”) funds has continued to grow despite recent 80market turbulence. 60For more information on standing firm on your 40 31/7/05 31/5/06 31/5/07 31/5/08 31/5/09 31/5/10 31/5/11investment call us on +44 (0)1243 785600, Source: Bloomberg 1st August 2011.email us at info@mpcfunds.com or visit *The GBP Institutional Share Class is one of 22 Share Classes. The attributes of eachwww.mpcfunds.com Share Class can be found in the schedules of the Fund’s offering document.Important Information This communication is issued by Managing Partners Capital Limited (“MPC”). It is directed only at persons who fall withinarticles 19 or 49 of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005, including professional advisers who are authorisedunder the Financial Services and Markets Act 2000, other persons who have professional experience in matters relating to investments andinstitutional investors. The Traded Policies Fund (the “Fund”) is not available for direct sale to members of the public and nothing in thiscommunication is directed at, nor should be relied upon by, retail investors. The Fund is a Cayman Islands-based unregulated collective investmentscheme which is not regulated, authorised or otherwise approved by the United Kingdom Financial Services Authority (“FSA”). The Fund is managedby Managing Partners Limited, which is registered as a company in the Cayman Islands and is registered with the Cayman Islands Monetary Authority(number 14505). This communication does not constitute an invitation or inducement to invest in the Fund. Nothing in this communicationconstitutes, or should be regarded as, investment advice. Prospective investors should note that investment in the Fund can involve significant risksand may result in the loss of all or part of the original investment. Past performance is not a reliable indicator of future results. Investment in theFund will only be allowed on the basis of the relevant offering documents. Prospective investors should read the relevant offering documentscarefully, including the risk factors, and take appropriate professional advice, including financial advice, before making any investment. Investmentin the Fund may not be suitable for all investors. Investment in the Fund is currently available through 22 separate share classes*, which are subjectto differing rules as stated in the Fund’s Offering Document, including in relation to minimum investment amounts, redemption rights and charges.The performance shown in this communication relates only to the GBP institutional share class, investment in which may not be suitable for, oravailable to, all investors. Other share classes may perform less favourably. (22nd August 2011) Making the right choice
  • 25. COUNTRY PROFILE CYPRUSCyprus has endured a turbulent year of power outages, protests andpolitical upheaval, yet it remains a popular retirement destination amongexpats and still holds the potential for future growthBY WILL JACKSON Iranian munitions being stored at a naval baseWhen an International exploded on 11 July, kill-Monetary Fund (IMF) team ing 13 people and render-visited Cyprus in February, ing the plant inoperative.its assessment of the island Despite plans announcedwas upbeat. A gradual eco- by the Electricity Authoritynomic recovery was under of Cyprus to implement away, the group reported, timetable for power cuts,with GDP growth likely to financial services workersreach a respectable 1.5% to on the island report that2% in 2011, and favourable the electricity supplyprospects for the following remains unpredictable.year. The team welcomedgovernment initiatives to l Power cutsreduce its fiscal deficit, andfound that conservative “It is highly inconvenient,practices had left the because I can be sittingCypriot banking system in typing a report at 3pm and“sound overall condition”. suddenly the electricity The report contained goes off – I’ve lost my com-the caveat that its assess- puter, my air conditioningment was “subject to unu- and my lights,” says Grahamsually high risks”, but few Donald, the managingpeople could have pre- director of FCP Insurancedicted how swiftly the Consultants in Limassol. think it could take up to a Bashar al-Assad in 2009, inisland’s economic outlook “And it might be off for year before we get some which he assured thewould deteriorate. seven hours, you just don’t semblance of normality Syrian president that the know.” Some companies back again.” confiscated munitionsl Turbulent times on the island, including the would be returned to Iran bank that owns FCP’s build- l Political protests or Damascus.Over the next six months, ing, are purchasing their The Vasilikos explosionthe strengthening of market own generators to minimise Anger over the incident also had a significantconcerns over Greek the disruption, he adds. sparked a political crisis, as impact on external percep-Government debt, ongoing Martin Treanor, the sales demonstrators took to the tions of the island’s eco-fears over Cyprus’s fiscal director at Fraser Mackinlay streets of Nicosia. Their nomic outlook, as Fitch,position and an explosion Financial Advisors, a firm protests prompted the res- Moody’s and Standard &at its main power station which has been in Cyprus ignation of the country’s Poor’s (S&P) all downgrad- KEY FACTSwould conspire to trigger for 16 years, lives some cabinet and the swearing ed their sovereign credit Population (’11): 1,120,489downgrades by the major 15km away from Vasilikos in of a new ministerial ratings for Cyprus betweencredit rating agencies, and and says he was “woken team last month. 27 July and 10 Aug. Fitch Labour force (’10): 407,700leave the country in sharply at 5.55am” by the At the time of writing, revised down its GDP fore- GDP (’10): $23.17bnturmoil. explosion. He is doubtful Demetris Christofias, the casts for both 2011 and The accident at the that a reliable service will country’s president, was 2012 by 1.5 percentage GDP composition: 2.3% agriculture, 17.1% industry,Vasilikos power plant be re-established soon. resisting calls for his resig- points, while Moody’s pre- 80.6% servicesposes the biggest problems “The island has lost the nation. But his position dicted zero economicfor the island’s economy in power plant that produced looked precarious, follow- growth this year – well Entry to EU: ’04the immediate term. A over 50% of its electricity ing reports of a discussion below the level anticipated Entry to eurozone: ’08cache of confiscated supply,” Treanor says. “I between Christofias and by the IMF in February.SEPTEMBER 2011 [www.international-adviser.com] INTERNATIONAL ADVISER 27
  • 26. COUNTRY PROFILE CYPRUS But while the accident Greek sovereign and bank going to be buying houses after Spain, Australia, the served as a catalyst for the debt, equate to 160% of in the current conditions.” US, France, Ireland, Canada downgrades, longer-stand- Cyprus’s GDP. Howarth, who moved and New Zealand. ing problems were also at If Greece suffers further to Cyprus in 2002, also Advisers on the island play. First were concerns macroeconomic stresses, highlights a problem affect- say business has proved over the country’s fiscal the implications for ing British expat pension- resilient, with some even imbalances. According to Cyprus’s banks and gov- ers who live on the island looking at growth opportu- S&P, Cyprus’s budgetary ernment could be grave. In and elsewhere in the euro- nities. Mark Nowell is the position moved from a sur- August, Stuart Thomson, zone – the strengthening of general manager of 3D plus of 1% of GDP in 2008 the chief economist at Ignis the euro against sterling. Global, an investment and to a deficit of 5.3% in 2010. Asset Management, fore- insurance company regu-“ Many IFAs that Government personnel cast that the island would l Expat destination lated under both the expenditure accounts for become the fourth patient Markets in Financial Instru-are not MiFID about a quarter of its total of the European Financial According to FE Analytics, ments Directive (MiFID)regulated, or will not spending, and although an Stability Fund within two the euro has risen by about and Insurance Mediation austerity package aimed at months, and would follow 30% against the pound Directive. He says the firmbe able to continue restraining public sector Greece into default during over the past four years, is investing heavily in IT, asafter the Retail wages was announced last the next year. Treanor says reducing the purchasing well as its middle and back month, there is scepticism Fraser Mackinlay has power of eurozone-resi- office systems.Distribution Review, that the programme can be advised its clients to hold dent pensioners with ster- successfully implemented. cash “off-island”, owing to ling retirement pots. l Growth prospectsmay be interested in uncertainty over how the “When it was €1.40 [toworking with 3D. We l Public sector reform European Union’s banking the pound] we could live 3D Global operates in 53 compensation scheme quite comfortably, but we countries and Nowell sayscan provide compliant A key potential stumbling would cope. have had to pull in our it is planning “significant”advice and portfolio block in the way of reform To add to the woes of its horns a little bit,” he adds. growth, in Europe and is the country’s powerful residents, property values “We do not go out as often beyond.management for trade union movement. on the island have plum- as we used to.” “We have expanded ourtheir clients at “Cyprus has an over- meted. Nigel Howarth, But for all its economic, MiFID licence to include generous pension system editor of the Cyprus political and infrastructure safe custody and adminis- ”reduced costs which is just not sustainable Property News website, difficulties, Cyprus remains tration,” Nowell explains.Mark Nowell, general manager, – it is acknowledged by reported house purchases a popular destination for “Many IFAs that are not3D Global everybody on Cyprus, apart fell, year-on-year, for a 13th Britons, particularly reti- MiFID regulated, or will from perhaps the trade consecutive month in July. rees, owing to its climate not be able to continue union body,” says Treanor. “The market collapsed in and English-speaking tradi- after the Retail Distribution “Politicians and media 2009 and in 2010 there was tion (although Greek is Review, may be interested commentators agree that a slight recovery,” Howarth increasingly becoming the in working with 3D. We the public sector is a huge explains. official language). can provide compliant drain on the island’s econ- “This year looks as if it is Last month Standard Life advice and portfolio man- omy. It needs to be radi- going to be worse than said that the island was the agement for their clients at cally overhauled to get 2009, and that is driven by eighth most popular retire- reduced costs.” KEY POINTS Cyprus back on track.” the whole economic situa- ment destination for its Fraser Mackinlay also With the Government tion. Unemployment is British clients, based on views MiFID as key to its Cyprus’s economy grew financially stretched, its high, so people are not where it sends annuities; future expansion, and the rapidly between 2000 and ability to support the bank- company is awaiting regu- 2008, fuelled by expansion in ing system is also in doubt. Economic growth of Cyprus latory approval under the its financial services industry. But the banking sector The rise of Cyprus’s finan- 6 directive. has increased the island’s cial services industry “We do not want to be exposure to Greek government helped fuel strong GDP restricted to insurance and personal debt, leaving growth between 2000 and 4 mediation,” says Treanor. it vulnerable to external 2008 (see graph). However, “We want to be able to step stresses. the expansion also tied the outside that box and, where Despite the economic island closer to the Greek %2 appropriate, recommend problems on the island, economy. Moody’s esti- pure platform investments, financial advisers say they mates that 40% of the loans Ucits investments and struc- are planning to expand their extended by the three larg- 0 tured products.” client bases. Fraser Mackinlay est domestic Cypriot banks The firm is likely to and 3D Global are among the were to customers based in target other markets where companies aiming to grow Greece, while S&P sug- -2 2 there are “large clusters of their advisory businesses gests that these loans, in ’00 ’01 ’02 ’03 ’04 ’05 ’06 ’07 ’08 ’09 ’10 retired British expats,” under the MiFID regulations. addition to holdings of Source: IMF he adds.28 INTERNATIONAL ADVISER [www.international-adviser.com] SEPTEMBER 2011
  • 27. Navigate a new route throughthe offshore marketplaceChoosing the right offshore provider for your UK Combine this with our ongoing commitment toclients is often a tricky business. It can be time delivering innovative and competitive products andconsuming and difficult to work out what’s best. services – as well as access to a range of platformsBut we can help. and our renowned technical team – and we can help you and your clients find the right solutions in thisWith Friends Provident International, not only do you marketplace.benefit from over 30 years of offshore experience,but you also have the strength and backing of the To find out more visit us atFriends Life group. www.fpinternational.com/uk or call us on 0845 611 1000 and we’ll set you off in the right direction.www.fpinternational.com/uk
  • 28. ADVERTORIAL OBSR Increased regulation in the investment industry means that distribution methods need to change, but what solutions are available? Meeting the challenge There is widespread recog- Better-quality advice at the assumption that ‘they a Morningstar company. nition among the invest- the point of sale should be OK’ are num- We believe we are ment industry’s business The offshore investment bered. Doing it properly is entering a phase where leaders and regulators and savings market is char- not a luxury now, but more offshore life companies are alike that the prevailing acterised by an over-sup- a necessity to meet tougher beginning to take the regu- fund and product distribu- ply of fund choices and, to requirements and raise the latory trends far more seri- tion mechanisms need to some extent, a lack of clar- standards of advice. ously, and to consider how change, so as to better ity and of appropriate peer they also adapt – and in serve the needs of the end- groups for comparison l Fund research some cases modernise – consumer as well as to purposes – absolute return their long-standing off- build their trust and gener- and multi-asset funds being A number of intermediaries shore investment proposi- ate a longer-term savings cases in point. and wealth managers are tions. Consequently, a culture. now looking at their busi- number of offshore life In many cases these l Suspect advice ness models and identify- companies have chosen to mechanisms have not ing where they can differ- partner with OBSR in order served the end-consumer The greater complexity of entiate themselves or add to enhance their invest- particularly well. Too often a fund’s investment man- value. For a lot of firms, ment proposition and meet investors have experienced date, that has come about that will not involve the changing business and poor outcomes and high because of Ucits 3, com- researching funds. While regulatory challenges. product churning, which pounds the issue and now determining asset alloca- has been partly a function makes the task of selecting tion based on client needs l Offshore solutions of misaligned commercial the appropriate fund, prod- is laborious and expensive, interests. uct or asset allocation more getting it wrong also OBSR has an award-win- difficult. increases the risk to a busi- ning team of 25 dedicated l Regulatory mountain Furthermore, in recent ness significantly. investment analysts, and is years, individual investors With greater strides widely respected for its One consequence of this is have raised concerns over being made by intermedi- independent views on“ The days of an impending avalanche of dubious financial advice aries to move away from fund managers and for- regulation that will require and unforeseen market past performance as the ward-looking fund recom-recommending single new strategic thinking on and fund correlations, as main basis for fund and mendations. In particular,fund solutions on the the part of the various well as fundamental ques- product selection, reliance OBSR has significant expe- stakeholders in the off- tions over the quality of on external research and rience in supporting its cli-assumption that shore investment and sav- the due diligence being asset allocation to identify ents with the creation of ings market, in addition to performed by their the most appropriate vehi- risk-based model portfoli-‘they should be OK’ those intermediaries and adviser. cle for their clients is now os, fund shortlists and risk-are numbered. wealth managers focused This is leading to the more commonplace. based funds, managed on the selling and provi- continued growth of spe- Access to forward look- with OBSR as sub-adviser.Doing it properly is sion of savings and invest- cialist financial advisers, ing investment research can In the offshore market,not a luxury now, but ment plans. which should in turn lead be an expensive item for we believe the develop- While this regulatory to better consumer choice intermediaries, yet there are ment of these solutions is amore a necessity avalanche is multi-faceted, and ‘survival of the fittest’, now various ways to lever- welcome and necessaryto meet tougher it encompasses four key which is clearly a good age this. In the UK, a step in the right direction. aims: thing. number of the leading life This will in turn go somerequirements and A sharper focus on the For many of the reasons companies, IFAs and plat- way to supporting interme- consumer outlined above, a number forms have adapted their diaries in their efforts toraise the standards More predictable of offshore advisers are not investment propositions to meet the regulatory driversof advice ” outcomes waiting for regulation to include fund shortlists, and help ensure the end- Greater regulation catch up with them. The model portfolios, risk-based investor is offered robustBenjamin Bird, international around distribution days of recommending funds and independent and well-researched invest-development director, OBSR mechanisms single fund solutions on asset allocation from OBSR, ment products.30 INTERNATIONAL ADVISER [www.international-adviser.com] SEPTEMBER 2011
  • 29. TECHNICAL BRIEFING US NON-DOMS IN THE UK technicalAn increase in draconian regulations targeting the offshore finances of US citizens hasled some UK banks to wash their hands of the sector. While this poses problems for highnet worth Americans with business interests in the UK, some solutions existAvoiding the cold shoulderSome 143,000 US citizens duced in 1970, the US Act (FATCA), which takes income and gains arise.live and work in the UK – Internal Revenue Service effect in 2013, imposes Coupled with the 2008down from 182,000 in (IRS) began enforcing it stringent new due diligence implementation of changes2008, according to the with more vigour in the and reporting requirements to the domiciliary rules inOffice for National aftermath of the World on all non-US financial the UK, this creates anStatistics. However, those Trade Center attack in institutions that happen to additional set of challengesUS citizens who live in 2001, and again a few hold accounts on behalf of for US citizens living andBritain but who are not years later, after the exist- US citizens and residents. working in Britain. US citi-domiciled there – US non- ence of some tens of thou- As the US Government zens also have to under-doms – are facing contin- sands of Swiss bank seeks to resolve its budget stand that investments willued draconian rules and accounts held by US citi- deficit, US citizens and res- need to be compliant forregulations pertaining to zens was revealed in 2007. idents – in addition to US both tax jurisdictions. Tony McLoughlin, member oftheir financial affairs. The The Secrecy Act states tax-filers (including Green The introduction of a the US family office group andresult has been that many that every US citizen or resi- Card holders with perma- ‘stay related’ threshold (res- director, London & Capital AssetUK financial institutions dent must file a report of nent US resident status) – ident for seven of nine tax Managementare simply withdrawing Foreign Bank and Financial can expect, at the very years) for automaticallyfrom the business of look- Accounts (FBAR), if he or least, significantly greater attracting UK income taxing after them. she has a financial interest scrutiny of their non-US residency is another major For US high net worth in, or signatory authority holdings. hurdle. The only way UScitizens whose business or over, foreign accounts or Key issues facing US citizens deemed domiciledpersonal interests keep investments worth $50,000 non-doms living in the UK for UK income tax purpos-them in the UK, this has or more, in aggregate, include: es in this way can avoidbecome a growing burden, during any one tax year. US worldwide income having to include theirand is forcing them to seek The heat on US expats, and gains tax – report- worldwide income/gains inout appropriate solutions to and UK-resident non- ing and filing; a UK tax return is by elect-mitigate the problems. doms, was turned up again offshore structures; ing to be treated on the in 2010, after President investment tax traps; remittance basis, and “l Tax repercussions Obama signed into law a information reporting paying a £30,000 annual As the US domestic jobs bill, known obligations. charge. This enables themLegislative activity in the as the HIRE Act, which to be taxed only on their Government seeksUS during 2010 had some contained a little-noticed l Multiple jurisdictions UK income. to resolve its budgetparticularly onerous conse- crackdown on offshore tax These rules are sched-quences for US citizens evasion that was seen by The first thing to under- uled to be amended in deficit, US citizensliving and/or working the Act’s sponsors as a stand is that the US, unlike 2012, when the threshold and residents – inabroad, in relation to their means of helping to fund virtually all other major changes to 12 out of 14 taxnon-US financial assets. US its job-creation initiatives. countries, taxes its citizens years, and the charge rises addition to US tax-resident Americans with This so-called Foreign on a worldwide basis, irre- to £50,000 per year. filers (includingoffshore holdings were Account Tax Compliance spective of where thealso affected. l Avoiding the traps Green Card holders America’s tax treatment BENEFITS OF DIRECT HOLDINGSof the non-US assets of its Confusingly, for the aver- with permanent UScitizens has always been Benefits to investing through direct holdings and tax-deferred age US citizen living in resident status) –strict, but the US authorities solutions, such as pensions and dual compliant insurance/annuity Britain, relatively simplehave been imposing ever- products: and popular British savings can expect, atgreater reporting require- Take advantage of UK tax relief and capital gains allowances schemes, such as ISA and the very least,ments and penalties for Self Invested Personal efficiently while being tax-neutral from a US perspective. significantly greaternon-disclosure. Access to PFIC investments. Pension (Sipp) invest- Much of the regulation Deferral of tax and reduced information reporting. ments, are, for them, actu- scrutiny of theircentres on the US Bank Estate tax or inheritance tax planning opportunities. ally potential tax traps.Secrecy Act. First intro-SEPTEMBER 2011 [www.international-adviser.com] Many US citizens have non-US holdings INTERNATIONAL ADVISER 31 ”
  • 30. TECHNICAL BRIEFING US NON-DOMS IN THE UK KEY POINTS been advised to take CONSIDERATIONS FOR NON-DOMS from a UK and US tax advantage of the ISA tax perspective. US citizens living and/or shelter to invest in unit FROM A US PERSPECTIVE: working abroad are under Are any investments PFICs for US purposes? trusts and Oeics, blissfully l Wrapper options growing scrutiny in relation to Ordinary income tax rates plus compounding interest penalty their non-US financial assets. unaware that this is just applies. about the only investment Tax treatment of UK property disposals subject to tax on the gains US-compliant insurance Popular British savings that will cause them to fall wrappers, for example, are in excess of $250,000 – no benefit of UK tax-free gains on sale of schemes such as the ISA foul of the IRS Passive one possible solution. personal residence. can be tax traps for US Foreign Investment Inequitable tax treatment of property for income/estate purposes Such policies enable citizens and fall under the Company (PFIC) rules. where married couples are not both US citizens. individual US non-doms to IRS PFIC rules. They will be taxed aggres- benefit from tax deferral, as Advisers with US non-dom sively on all gains, and FROM A UK PERSPECTIVE: compliant US insurance clients should have a clear Are any investments subject to the UK accrued income or offshore may be subject to penalties income gain rules? Potentially taxed up to 50% on realised gains. wrappers are not subject to understanding of the UK/ US tax treatments of the equal to 100% of value – Are any of the investments hybrid entities that could cause dual tax on the annual growth in investment solutions they use. where such fall under the taxation if remitted to the UK – for example, US funds structured value. unreported income as limited liability companies rather than partnerships? In addition to their tax penalties. Does any ‘clean capital’ exist, and is it being preserved to allow efficiency, a major attrac- There are just as many for tax-free remittances into the UK? tion of these wrappers, of problems with Sipps, which course, is that the invest- the IRS classifies as a for- The primary reason for this do not make the remit- ment portfolio they contain eign trust – growth within a relates to the US tax treat- tance election. Specifically, has access to a wide range Sipp being fully taxable. ment of the UK tax relief while domestic US mutual of investments, including Many US citizens living applicable to pension con- funds realised gains are international funds. in the UK have also been tributions. In brief, the US taxed at 15%, the UK What is more, under the advised to move their pen- treats the tax relief as would tax these gains current rules such policies sion pots out of their com- taxable. under the offshore income would not be subject to pany scheme – yet another However, if the US non- gains rules. new FBAR ‘look-through’ bad idea. This is because dom has accumulated suf- rules, applicable to invest- investments that were once ficient excess Foreign Tax l FATCA pariahs ment or brokerage accounts sheltered from the IRS in a Credits, these can be used requiring detailed annual company scheme become to soak-up any potential US US citizens may not have reporting by the US fully taxable as a result. tax on the tax relief. been every UK wealth non-dom. The bottom line is that Another point to bear in manager’s dream before Of course, there are a US citizens living in the UK mind is that US citizens FATCA came along, but number of considerations have never needed special- need to consider the UK this act has ensured that to bear in mind. Whichever ist tax and investment tax treatment of non-UK they are now the pariahs investment is selected, it advice more. based investments if they of the international invest- needs to be risk managed, become deemed ordinarily ment community. liquid and tax compliant l Recognising Sipps resident for UK tax pur- Nevertheless, an educat- for the non-dom. poses – once the ‘seven of ed adviser may still find Experienced investment It is generally accepted nine’ tax years threshold is ways of organising invest- advisers with such non- that, while Sipps are not passed – and are required ment portfolios for UK resi- dom clients should investi- specifically referenced in to report worldwide dent non-dom US citizens gate whether all tax plan- the US-UK tax treaty, the income and gains if they that are compliant, both ning opportunities have language used should been explored. In addition allow a US citizen to make FBAR filings by calendar year to insurance vehicles, these a treaty claim or election include deferred variable , 600,000“ on his or her tax filing to annuities, college plans Another point to have the Sipp recognised and pension plans. , 500,000bear in mind is that as a qualifying retirement Most importantly, invest- plan for US tax purposes. ment solutions should notUS citizens need to This will avoid the annual , 400,000 be looked at in isolation.consider the UK tax change in value or invest- , 300,000 From a tax compliance per- ment growth of the Sipp spective, the investmenttreatment of non-UK being subject to US income 200,000 , adviser should have a clearbased investments if tax. understanding of the UK/ Furthermore, as the elec- 100,000 , US tax treatment of eachthey become deemed tion is made on an annual option, as well as its ability basis, the US citizen can opt 0 to produce the necessaryordinarily resident for in or opt out, in deciding ’05 ’06 ’07 ’08 ’09 ’10 UK/US tax information ”UK tax purposes on making the election. Source: FinCEN where required.32 INTERNATIONAL ADVISER [www.international-adviser.com] SEPTEMBER 2011
  • 31. Prestige Equity OptionsGlobal / Equity Market NeutralFundamental market based experience ismore important than ever....So is protecting the downside when markets fall. F U N D S Institutional Marketing & Administration Services Prestige Asset Management Limited 33 St. James’s Square, London, SW1Y 4JS, United Kingdom T: +44 (0) 203 178 4055 F: +44 (0) 203 004 9690 E: info@prestigefunds.com www.prestigefunds.com Authorised and regulated by the Financial Services Authority (FSA) Member of the Alternative Investment Management Association (AIMA) Member of the Chartered Institute for Securities & Investment (CISI)
  • 32. FUND SELECTOR GLOBAL PROPERTY SHARESGlobal property sharesWe analyse the best, the newest and the biggest global property shares funds.Commentary from Alexander Prineas, senior investment research analyst at OBSRTop ranked funds Three-year performance crunch, with the collapseTop 10 property shares funds by 3-year performance of several high profile 3-year 3-year 3-year 3-year 3-year 3-year M’star Fund Dom listed property companies. % chg Alpha Beta R² Sharpe volatility Ratings size ($m) A decade ago, the EII Global Property A 11.7 0.58 1.02 0.98 0.00 9.1 N/S Ireland global listed property market was largely focused iShares FTSE EPRA/NAREIT Dev Prpt Yld 11.44 0.58 1.04 0.96 0.00 9.37 1,250.83 Ireland on established markets, EII Property World Invest (ex US) Inc 11.32 0.58 0.95 0.9 0.01 8.82 148.41 Ireland such as the US and Perennial Global Property Secs B 10.86 0.56 0.94 0.89 0.00 8.82 100.51 Ireland Australia, and was concen- Sarasin Sustnbl Eqty – Rel Est Glb B 8.23 0.54 0.93 0.86 0.00 8.8 50.55 Lux trated among a few large Henderson Horizon Glbl Prpty Eqs A2 8.02 0.58 1.05 0.95 0.00 9.53 867.95 Lux companies. In recent years, howev- MS INVF Global Property A 8.02 0.56 1.05 0.97 0.00 9.4 493.1 Lux er, continental Europe and Robeco Property Equities D 7.37 0.47 0.98 0.95 -0.01 8.84 578.37 Lux the UK have seen growth Manulife GF Global Property AA 7.25 0.49 1 0.96 -0.01 8.99 21.05 Lux in the number of Real Delta Lloyd L Global Property B 7.01 0.48 1.03 0.97 -0.01 9.22 422.08 Lux Estate Investment Trusts 28 Jul ’08 – 28 Jul ’11. Bid to bid, $, gross income, no cap. Source: Morningstar (REITs) and listed property companies, as many coun-Top funds – risk and return Top 3-year performers vs index tries introduced or modi- fied their REITs legislation. 15 EII Property World EII Global Property A € 20 Many trophy property EII Property World Invest Invest (Ex-US) Inc iShares FTSE EPRA/ assets in the UK and Perennial Global NAREIT Dev PrptYld 10 Property Secs B EII Global Property A € Europe were historically Henderson 0 Sarasin Sustnbl held privately, but REIT HorizonReturn (%) Eqty - Rel Est Glb B Glbl Prpty legislation provided an 5 MS INVF Global Eqs A2 incentive for some of these Robeco Property % -20 0 Property A GIF OS Property - to become publicly listed. Equities D € Delta Lloyd L Indirect Global To achieve REIT status, 0 Global Property B property companies typi- Manulife GF Global Property AA -40 0 MSCI ACWI/Real Estate $ cally have to commit to Sector average iShares FTSE EPRA/ paying out a minimum -5 8 8.5 9 9.5 10 -60 0 NAREIT Dev PrptYld portion of their earnings Standard deviation (%) Aug ’08 Feb ’09 Aug Feb ’10 Aug Feb ’11 Aug (rent) as a dividend, and in To 28 Jul ’11. Bid to bid, gross inc, no cap. Source: Morningstar Source: Morningstar return they receive tax or operational concessions The benefits of investing listed property companies from the government. in property via a listed that are highly leveraged – Much of the progress in structure include: liquidity; this became evident to REIT legislation across constant market prices, investors during the credit Europe was achieved just“ To achieve REIT instead of the usual month-status, property ly market estimates associ- FUNDS TO WATCH ated with direct propertycompanies typically funds; transparency from FIRST STATE GLOBAL PROPERTY SECURITIES stockmarket regulations; The fund is managed by experienced portfolio manager Andrewhave to commit to and professional manage- Nicholas. He joined First State in 2006, having previously been withpaying out a ment teams who operate in UBS. Several other UBS staff moved to First State around the same FUND SELECTOR’S a highly competitive envi- time, so the core of this team has worked together for many years.minimum portion of COMMENT ALEXANDER ronment, and are therefore The team has undertaken further hiring since and has offices in London, New York, Hong Kong, Singapore and Sydney, providing thetheir earnings (rent) PRINEAS, SENIOR incentivised to work the ability to thoroughly cover the global property markets. The team is INVESTMENT RESEARCH assets as hard as possible able to source research from other investment teams at First State,as a dividend, and in ANALYST, OBSR for the benefit of investors. as well as global property research group Colliers.return they receive The downsides to the Although the fund does not yet have a five-year track record, three-year performance is ahead of the UBS and EPRA/NAREIT The universe of listed listed structure includetax or operational property companies has price volatility and, in indices and ahead of the Morningstar Indirect Property category average. While it may hold some development risk, it is benchmarkedconcessions from the seen significant growth some cases, development against the UBS Global Real Estate Investors Index, which focuses on and increasing diversifica- and leverage risk. The risks ” property ownership. The fund holds an OBSR A rating.government tion in recent years. are particularly notable for34 INTERNATIONAL ADVISER [www.international-adviser.com] SEPTEMBER 2011
  • 33. FUND SELECTOR GLOBAL PROPERTY SHARESTop ranked funds Newcomers Top newcomers vs index Top newcomers – 1-year risk and return 30 30 Marriott IF Catalyst Global Real Estate E&G FONDS International 5 25 Global REITs RealEstate Acc Catalyst Global Real Estate 25 Professional Dis 0 20 GIF OS Property - GW Fidelity Global Property Acc Indirect Global Return (%) STANLIB OUT T. Rowe Price 5 15 20 Global Property Glbl Rel Est Sec A Carneige% Global 0 10 Property A Eurobank EFG GW Fidelity Global MSCI ACWI/ 15 5 (LF) FoF-Real Estate Property Acc Real Estate $ Russell OW Sector average ALNUA Global Real Glb Opp Prop A 0 Estate Fund ($) B 10 Marriott IF International RealEstate Acc -5 5 1.5 1.75 2 2.25 2.5 Aug ’10 Nov Feb ’11 May Aug Standard deviation (%) Source: Morningstar To 28 Jul ’11. Bid to bid, gross inc, no cap. Source: Morningstar “prior to the onset of the However it is increasingly FUNDS TO WATCH The US andcredit crunch in 2008. The recognised that in the longensuing market conditions run listed property assets HENDERSON HORIZON GLOBAL PROPERTY EQUITIES Australian marketssaw property assets fall in should broadly track prop- Patrick Sumner is the fund manager here, and he heads Henderson’s have had REITvalue, but property assets erty prices, but with the global property team, which has offices in London and Singapore.held in publicly listed form additional advantages asso- The team relies on an external company, Transwestern Securities legislation and large,were punished even more ciated with the listed Management, for the analysis and management of the Northharshly. structure. American property market and the US part of the portfolio. well-established While some listed prop- The US and Australian Asset allocation is determined by the portfolio manager listed propertyerty companies had prob- markets have had REIT in conjunction with the regional heads. The team also useslems with excessive lever- legislation and large, well- macroeconomic and property market research from Henderson’s markets for many economics/strategy team and its direct property team. The approachage, arguably it was the established listed property within each region is tailored to suit local conditions, based on the years. Neverthelessliquidity available in the markets for many years. belief that market characteristics can vary widely around the world.listed assets that contribut- Nevertheless we continue While macroeconomic and top-down research is an important we continue toed to their underperform- to see increasing diversifi- input, the team expects to generate most of its alpha from stock see increasingance rather than any prob- cation within those mar- selection by identifying undervalued securities. It therefore avoidslem with the REIT or listed kets, in the form of new taking unduly large sector positions relative to the EPRA/NAREIT diversification within benchmark. The fund holds an OBSR A rating, and is the only Sicavstructure. and varied types of listed Following the global property assets being property fund rated by OBSR. those markets, in therecovery, listed property available. form of new andassets around the world Traditional sectors such vides computer data centre Both companies havehave generally recovered as offices, hotels, retail and facilities and infrastructure, been working in recent varied types of listedstrongly, contributing to an industrial property have and earns its revenue by years towards achieving property assets beingimprovement in sentiment been accessible for many renting out these highly REIT conversion status.towards the sector. The crisis highlightedthat listed property assetsmay be more volatile years. But investors have new sectors available, allowing diversification of income streams and more specialised facilities. Crown American Castle Tower US-listed property compa- and are Public Storage rents out storage space and also pro- vides ancillary services such as removal trucks. available ”owing to their highly liquid specialised bets within the nies which own telecom- Asia has also seenand tradable structure, and sector. munications towers and growth in REIT and listedin some cases leverage. Digital Realty Trust pro- property. property assets. While Top 10 property shares funds with less than a 3-year but at least a 1-year record 1-year 1-year 1-year 1-year 1-year 1-year Launch Fund Dom % chg Alpha Beta R² Sharpe volatility date size ($m) Catalyst Global Real Estate 25.04 0.76 1.3 0.86 0.22 1.93 25 Sep ’08 111.52 Guernsey GW Fidelity Global Property Acc 22.93 -0.2 1.45 0.92 0.16 1.95 2 Jul ’10 N/S Guernsey Marriott IF International Real Estate Acc 21.74 0.57 1.31 0.79 0.21 1.88 1 Oct ’08 23.05 Ireland T. Rowe Price Glbl Rel Est Sec A 20.42 0.42 1.35 0.93 0.2 1.87 27 Oct ’08 5.53 Lux E&G FONDS Global REITs Professional Dis 20.15 0.54 1.44 0.85 0.2 1.76 24 Jun ’09 74.64 Lux Carneige Global Property A 19.04 -0.18 1.58 0.75 0.14 2.2 21 Jun ’10 20.66 Lux Eurobank EFG (LF) FoF-Real Estate 18.01 0.35 1.2 0.87 0.16 2.01 22 Jun ’10 N/S Lux Russell OW Glb Opp Prop A 16.79 0 1.4 0.91 0.16 1.8 29 Jul ’09 47.01 Ireland ALNUA Global Real Estate Fund ($) B 16.38 N/A N/A N/A 0.12 1.7 1 Apr ’10 N/S L’stein STANLIB OUT Global Property 15.22 0.25 1.03 0.79 0.17 1.6 4 Jan ’10 0.92 Jersey 28 Jul ’10 – 28 Jul ’11. Bid to bid, $, gross income, no cap. Source: MorningstarSEPTEMBER 2011 [www.international-adviser.com] INTERNATIONAL ADVISER 35
  • 34. FUND SELECTOR GLOBAL PROPERTY SHARESTop ranked funds Assets under management Top 10 property shares funds by assets under management 3-year 3-year 3-year 3-year 3-year 3-year M’star Fund Dom % chg Alpha Beta R² Sharpe volatility Ratings size ($m) iShares FTSE EPRA/NAREIT Dev Prpt Yld 11.44 0.58 1.04 0.96 0 9.37 1,250.83 Ireland Henderson Horizon Glbl Prpty Eqs A2 8.02 0.58 1.05 0.95 0 9.53 867.95 Lux Robeco Property Equities D 7.37 0.47 0.98 0.95 -0.01 8.84 578.37 Lux Schroder ISF Glbl Prop Sec A 5.83 0.43 1 0.97 -0.01 8.91 541.65 Lux MSMM Glb Real Est Sec A -0.31 0.24 1.01 0.98 -0.03 9.03 495.62 Ireland MS INVF Global Property A 8.02 0.56 1.05 0.97 0 9.4 493.1 Lux Delta Lloyd L Global Property B 7.01 0.48 1.03 0.97 -0.01 9.22 422.08 Lux Cohen & Steers Glbl Real Estate Sec I 6.66 0.41 1 0.97 -0.01 8.94 347.86 Lux FF - Global Property A $ 3.08 0.37 1.03 0.97 -0.02 9.23 219.69 Lux ING (L) Invest Glbl Real Estate P 2.86 0.3 0.95 0.97 -0.02 8.47 190.32 Lux 28 Jul ’08 – 28 Jul ’11. Bid to bid, $, gross income, no cap. Source: Morningstar Japan has had a well estab- Among retail property lished market for many funds, a wide variety of FUNDS TO WATCH years (known as J-REITs), approaches are available to SCHRODER GLOBAL PROPERTY SECURITIES there are many investable investors. One of the key Schroders contributes some macroeconomic research to this effort, companies in Hong Kong, differences is the invest- but has appointed European Investors (EII) to manage the fund. Jim Singapore, China and other ment universe defined by Rehlaender, EII’s head of global property securities, has over two countries throughout the the fund manager. This can decades of experience in the property industry and is supported by region. have a significant impact a team of regional portfolio managers and analysts. This underlines The increasing recogni- on returns. the global nature of the team, whose size enables it to cover a large tion of property as a sepa- Some global property portion of the universe of global property stocks. rate asset class, and the funds allow investment The investment approach combines top-down and bottom-up increasing number of listed into companies that are not analysis, incorporating qualitative and quantitative factors. The team at EII looks for companies that trade at a discount to the underlying property companies has, in REITs and are not strictly real estate value, but also emphasises the quality and execution of turn, prompted the launch property companies.“ management as a key consideration before investing. It will take both The increasing of a range of global prop- An example would be a strategic and tactical bets, with strategic holdings typically beingrecognition of erty funds in recent years. fund that invests in compa- higher quality property portfolios that are well-managed, while tactical The property market is nies such as Sainsbury’s or positions involve more severe mispricing of securities.property as a increasingly global, but Tesco, which own signifi- The team is willing to take on development risk but will apply an local markets retain peculi- cant property assets and additional risk premium to companies with a significant developmentseparate asset class, arities, meaning that large land banks (supermarkets) exposure. The Schroders fund holds an OBSR A rating.and the increasing players with established that should be reflected in global investment teams their value, but which are ‘op-co prop-co’ situation. ered in 2009. This is a per-number of listed have an advantage. in the business of retail The Fidelity Global fectly valid approach asproperty companies In fact many of the larg- rather than property Property Fund historically long as investors are aware est and best known funds rentals. had a more equity-like of these style differences.has, in turn, prompted are from well established In many cases these approach than many of its At the other end of thethe launch of a range property players who have investments are made on peers. This may have been spectrum are funds such as had global teams in place the basis that, say Tesco, a factor in the fund’s First State Global Propertyof global property for many years – the likes could sell its supermarkets underperformance during Securities, which typicallyfunds in recent of Schroders, Morgan and rent the premises from the credit crunch, and its avoids companies that are Stanley, Fidelity, ING and the new owner – known as subsequent strong rebound not directly associated withyears ” Top funds – 3-year risk and return 12 Cohen & Steers Henderson. iShares FTSE EPRA/ a sale and lease-back or Top funds by AUM vs index 20 as equity markets recov- property. In the middle ground sits the Schroders Global Property Securities Fund. It Glbl Real Estate Sec I NAREIT Dev PrptYld Henderson Horizon too prefers to avoid non- 10 MS INVF Global Property A Glbl Prpty Eqs property related equities 8 Henderson 0 and minimises its develop- Robeco Property Horizon Glbl GIF OS Property - ment exposure. However it Equities D €Return (%) 6 Prpty Eqs A2 Indirect Global is benchmarked against the Schroder ISF FF - Global Property A $ FTSE EPRA/NAREIT Global 4 Glbl Prop Sec A 20 % -20 Delta Lloyd L MSCI ACWI/ Property Index, which has MSMM Glb Global Property B Real Estate $ 2 Real Est Sec A a broader definition than Sector average 40 -40 Robeco Property the UBS index. 0 ING (L) Invest Glbl Real Estate P Equities D € The focus remains on -2 iShares FTSE EPRA/ property ownership but 8 8.5 9 9.5 10 -60 60 NAREIT Dev PrptYld the index allows a greater Standard deviation (%) Aug ’08 Feb ’09 Aug Feb ’10 Aug Feb ’11 Aug exposure to property To 28 Jul ’11. Bid to bid, gross inc, no cap. Source: Morningstar Source: Morningstar development activities.36 INTERNATIONAL ADVISER [www.international-adviser.com] SEPTEMBER 2011
  • 35. FORGET THE FLAVOUR OF THE MONTH. WE HAVE THE FLAVOUR OF THE DECADE! The VAM Global Government Bond Fund Some people think of investments the way they think of ice cream; they are seduced by the attractive new flavours that promise so much. At VAM Funds, however, we know that most often it is the classics that really endure. The VAM Global Government Bond Fund is such a classic: an ideal conservative investment. Other investments come and go, but government bonds deliver good, safe, solid returns decade after decade. In the hands of a VAM Funds investment manager, you can be sure your investment will enjoy all the attention and expertise required, and the performance you can count on. If this is to your taste, call us on +230 465 6860. Visit www.vam-funds.com today. For further information on VAM Funds please contact VAM Marketing on + 230 465 6860 or email us at info@vam-funds.comThis financial promotion is published by VAM Funds (26 Avenue de la Liberté L-1930 Luxembourg). For professional investors only. The funds are authorised by the Financial Services Authority (UK). This is not an offer to purchase shares, which mayonly be bought under the terms of the prospectus. The value of shares may go down as well as up. Changes in the rate of currency exchange may cause the value of the investment to go down or up. Past performance is no guarantee of future results.
  • 36. CPD COMPLIANT Offshore Bonds are set to become an even more important part of the financial planning market in the post-RDR world. International Adviser has gathered together some of the UKs leading providers of these flexible tax and investment products to demonstrate their many uses for both UK and expat clients.Offshore Bond Workshop Manchester Tuesday 11th October 2011, Midland Hotel 2011 In association with Each seminar will focus on a specific area or areas of financial planning using offshore bonds. Among the broad subjects that will be covered on the day will be retirement planning, the role of offshore bonds in wealth and investment management and cross-border tax planning.To register your complimentary place, please go to http://events.lastwordmedia.com/For further information please contact vicky.parker@lastwordmedia.comor by phone on +44 (0)20 7065 7564 l There are a limited number of places – attendance is through registration only l The workshop will take place in the morning ending with lunch Lunch sponsored by
  • 37. QUALITY FUNDSData and ratings supplied by The IA Quality Fundsincluding ratings by The IA Quality Funds is a Standard & Poor’s or OBSR ous Morningstar GIF sec- list of UK registered for list of the blue-chip funds Research qualify. Funds in tors, so the funds listed are sale funds. of the offshore universe: it each category are ranked firstly a reflection of which contains only well-estab- according to their Morning- styles have done well, sec- Offshore bond platforms lished, high-performance star Rating, which is calcu- ondly of which managers Many of the Quality Funds funds in the most popular lated based on a fund’s have been successful. that appear in the follow- categories. total returns, adjusted for ing pages will be availble risk and sales charges, rel- Three-year vol This meas- on life company offshore Methodology Starting from ative to other funds in its urement is an annualised bond platforms, as mirror the Morningstar offshore Morningstar category. volatility of the fund over funds or direct fund links. database of 8,600 funds, three years. Where they are not, it only those with a qualita- Sectors The 13 bespoke will be possible to request tive rating from independ- category divisions are the UK reg The ‘UK reg’ flag they are added to product ent rating agencies result of combining vari- is based on Morningstar’s fund ranges.Data source: © 2011 Morningstar, Inc. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. NeitherMorningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance is no guarantee of future results. Performances have been calculated on a bid-to-bid, $, gross income basis. Volatility isexpressed as standard deviation of 36 monthly total returns (bid-to-bid). The Morningstar Rating is calculated based on a fund’s total returns, adjusted for risk and sales charges, relative to other funds in its Morningstar Category. The Overall Morningstar Ratingpublished here is based on a weighted average of a fund’s three-, five- and ten-year ratings, depending on the length of its record. Pan-European markets equity Offshore/int’l funds 3-year 3-year Min init Curr Manager name Domicile Morningstar S&P Fd OBSR Morningstar UK % chg volatility inv ($) Rating Rating Rating Qual Rating reg? Standard Life Sicav Euro Smaller Co’s D 32.24 31.1 1.4m Standard Life Investments Luxembourg AA Y Allianz RCM Europe Eq Growth AT 31.38 28.86 7,094 Allianz Global Investors Lux Luxembourg Standard Y MainFirst Top European Ideas A 26.12 32.59 3,547 MainFirst Sicav Luxembourg Luxembourg A Superior Y BL-Equities Europe B 16.35 25.05 3,547 Banque de Luxembourg Luxembourg Superior Invesco Pan European Structured Eq A 13.3 24.39 2,128 Invesco Global Asset Mgt Luxembourg AA Superior Y Jupiter JGF European Growth L 12.53 29.3 1,419 Jupiter Asset Management Luxembourg AA Y BGF European Focus A2 11.4 30.22 N/S Blackrock (Luxembourg) Luxembourg AAA AA Superior Y Uni-Global Min Variance Europe B1 9.85 21.36 1.00 Unigestion Luxembourg Superior MFS Meridian Europ Value A1 9.76 25.22 5,675 MFS Meridian Funds Luxembourg AA Y Robeco European Conservative Eqs B 2.32 24.69 0 Robeco Luxembourg Luxembourg A Standard Y Jupiter JGF European Opportunities L 1.5 27.36 1,419 Jupiter Asset Management Luxembourg AA Superior Y MFS Meridian Europ Equity A1 -0.46 27.96 5,675 MFS Meridian Funds Luxembourg A AA Y Henderson Horizon Pan Eurp Eq A2 -0.67 26 3,547 Henderson Management Luxembourg AA AA Y JOHCM European Select Val 39.05 27.81 1,419 JO Hambro Capital Mgt Ireland A Y Franklin European Growth A Acc 22.33 24.61 7,094 Franklin Templeton Invest Fds Luxembourg A A Y Threadneedle (Lux) Pan European Eqs AE 18.94 24.64 3,547 Threadneedle Investment Svcs Luxembourg A Y Comgest Europe 17.15 20.4 26,297 CHF Comgest Luxembourg Elite Y Comgest Growth Europe Acc 15.78 20.42 14,188 Comgest Asset Mgt Int’l Ireland AA Elite Y BSF European Opps Ext Strategies A2 14.6 29.38 N/S Blackrock (Luxembourg) Luxembourg AA Y Danske Invest Europe Small Cap A 14.27 35.22 0 Danske Invest Luxembourg AA Nordea-1 European Value BP 12.52 27.27 71 Nordea Investment Funds Luxembourg AA A Y Allianz RCM Europe Small Cap Eq AT 12.33 32.01 1.00 Allianz Global Investors Lux Luxembourg Elite Allianz RCM Small Cap Europa A 12.29 32.2 1.00 Allianz Global Investors Lux Luxembourg Elite Montanaro European Smaller Comp £ 11.93 29.18 1,631 £ Montanaro Asset Mgt Ireland AAA AA Superior Y Franklin European Sm-Md Cap Gr A Acc 11.53 26.62 7,094 Franklin Templeton Inv Fds Luxembourg A A Superior Y EDM Intl Strategy 9.36 22.89 0 EDM Fund Management Luxembourg Standard Skandia European Best Ideas A1 9.11 31.22 1,419 Skandia Fund Mgt (Ireland) Ireland A Y BGF European Growth A2 8.02 27.95 N/S Blackrock (Luxembourg) Luxembourg AA A Superior Y BNPP L1 Equity Europe Growth C C 4.36 27.1 N/S BNP Paribas Inv Partners Lux Luxembourg Superior Y Invesco Pan European Equity A Acc 4.29 29.7 2,128 Invesco Global Asset Mgt Luxembourg AA Y Danske Invest Europe Focus A 3.45 31.44 1.00 Danske Invest Luxembourg AA Schroder ISF European Special Sit A 3.44 27.59 1,419 Schroder Invest Mgmt Lux Luxembourg AA Superior Y BGF European A2 3.21 29.37 N/S Blackrock (Luxembourg) Luxembourg AA AA Superior Y Alken European Opportunities R 2.1 30.69 0 Alken Asset Management Luxembourg Superior YSEPTEMBER 2011 [www.international-adviser.com] INTERNATIONAL ADVISER 39
  • 38. QUALITY FUNDSPan-European markets equity (cont)Offshore/int’l funds 3-year 3-year Min init Curr Manager name Domicile Morningstar S&P Fd OBSR Morningstar UK % chg volatility inv ($) Rating Rating Rating Qual Rating reg?BNPP L1 Equity Best Sel Europe C C 1.54 26.8 1.00 BNP Paribas Invest Prtnrs Lux Luxembourg AA Superior YInvesco European Growth Equity A 1.47 26.85 N/S Invesco Global Asset Mgt Luxembourg AA YDigital Stars Europe 1.22 30.18 N/S Digital Funds Luxembourg Standard YIgnis Intl Argo Pan Eur Alpha I Acc -1.03 26.27 4.2m Ignis Asset Management Ireland A A YCapitalAtWork European Eq at Work C -1.55 28.9 0 Capital At Work Luxembourg AAPioneer Fds Core European Eq E ND -2.21 26.06 1,419 Pioneer Asset Management Luxembourg StandardMS INVF European Equity Alpha A -2.33 26.88 0 Morgan Stanley Invest Funds Luxembourg Superior YDNCA Invest Centifolia Europe B -3.18 25.54 0 DNCA Finance Luxembourg Luxembourg StandardDanske Invest Europe High Dividend A -4.66 29.52 1.00 Danske Invest Luxembourg AACazenove Pan Europe B Euro -5.36 26.52 N/S Cazenove International Fund Ireland AAA A Superior YOyster European Opportunities -6.04 28.63 0 Oyster Asset Management Luxembourg Standard YFranklin Mutual European A Acc -6.54 24.9 7,094 Franklin Templeton Invest Fds Luxembourg AA A Elite YFF – European Growth A Euro -9.23 28.11 1.00 Fidelity (FIL (Luxembourg)) Luxembourg AA Superior YCarnegie European Equity 1A -9.42 27.24 1,419 Carnegie Fund Mgt Company Luxembourg AAGAM Star European Equity Acc -9.77 26.33 14,188 GAM Fund Management Ireland A YAshburton European Equity PC -11.56 32.01 14,188 Ashburton (Jersey) Jersey A A YEurope ex UK equityOffshore/int’l funds 3-year 3-year Min init Curr Manager name Domicile Morningstar S&P Fd OBSR Morningstar UK % chg volatility inv ($) Rating Rating Rating Qual Rating reg?Allianz RCM Euroland Eq Growth W 27.34 30.6 14m Allianz Global Investors Lux Luxembourg Superior YBGF Continental European Flexible A2 25.03 31.78 N/S Blackrock (Luxembourg) Luxembourg AAA AA Superior YMainFirst Classic Stock Fund A 20.92 32.87 3,547 MainFirst Sicav Luxembourg Luxembourg A Superior YEdinburgh Partners Europe Opp I 14.49 29.06 141,884 Edinburgh Partners Ireland AA Superior YMFS Meridian Continental Europ Eq A1 £ 13.37 27.8 4,078 £ MFS Meridian Funds Luxembourg A YLuxTopic – Aktien Europa A -3.97 28.53 0 DJE Investment Luxembourg StandardFonditalia Euro Defensive -11.6 26.63 7,094 Fideuram Gestions Luxembourg StandardHenderson Horizon Eurp Gr R 4.34 29.43 3,547 Henderson Management Luxembourg AAA AAA YFonditalia Euro Cyclicals 3.59 35.28 7,094 Fideuram Gestions Luxembourg StandardGAM Star Cont European Equity £ Acc -0.4 26.71 9,787 £ GAM Fund Management Ireland A YJOHCM Continental European £ -0.71 30.41 1,631 £ JO Hambro Capital Mgt Ireland A AA Superior YHenderson Gartmore Fd Cont European A -3.73 28.5 3,547 Henderson Management Luxembourg AA A Superior YPioneer Fds Euroland Equity E ND -5.96 30.91 1,419 Pioneer Asset Management Luxembourg AA SuperiorBGF Euro-Markets A2 -5.99 32.32 7,094 Blackrock (Luxembourg) Luxembourg AA AA Superior YCazenove European Eq ex UK B -6.27 27.13 N/S Cazenove International Fund Ireland AAA AA Superior YCapitalAtWork Contr Euro Eq at Work C -7.27 30.11 0 Capital at Work Luxembourg AABNPP L1 Equity Best Sel Euro C C -7.39 30.31 1.00 BNP Paribas Inv Partners Lux Luxembourg AA Superior YING (L) Invest Euro Income P Acc -11.74 27.22 0 ING Investment Mgt Lux Luxembourg StandardING (L) Invest Euro Hi Dividend P Acc -11.91 30.71 0 ING Investment Mgt Lux Luxembourg AA Superior YFF – Euro Blue Chip A Euro -14.5 31.08 N/S Fidelity (FIL (Luxembourg)) Luxembourg A Superior YSchroder ISF Euro Equity A Acc -15.37 32.95 1,419 Schroder Invest Mgt Lux Luxembourg A YUK equityOffshore/int’l funds 3-year 3-year Min init Curr Manager name Domicile Morningstar S&P Fd OBSR Morningstar UK % chg volatility inv ($) Rating Rating Rating Qual Rating reg?Cazenove UK Equity B £ 19.29 25.26 8,156 £ Cazenove Int’l Fund Ireland A YOld Mutual Dublin UK Sel Sml Companies 26.15 29.68 1,631 £ Old Mutual Asset Mgrs UK Ireland AAA YUS equityOffshore/int’l funds 3-year 3-year Min init Curr Manager name Domicile Morningstar S&P Fd OBSR Morningstar UK % chg volatility inv ($) Rating Rating Rating Qual Rating reg?Findlay Park American Smlr Coms $ 21.73 19.2 100,000 $ Findlay Park Investment Mgt Ireland AAA YBNPP L1 Equity USA Growth Acc 18.73 20.35 N/S $ BNP Paribas Invest Ptnrs Lux Luxembourg A YRobeco US Premium Equities D $ 15.55 20.29 N/S $ Robeco Luxembourg Luxembourg Superior YBL-Equities America B 3.53 19.23 N/S $ Banque de Luxembourg Luxembourg SuperiorLM CB US Appreciation A Inc (A) $ 3.53 17.37 1,000 $ Legg Mason Gbl Funds (Dub) Ireland A Y40 INTERNATIONAL ADVISER [www.international-adviser.com] SEPTEMBER 2011
  • 39. QUALITY FUNDSUS equity (cont)Offshore/int’l funds 3-year 3-year Min init Curr Manager name Domicile Morningstar S&P Fd OBSR Morningstar UK % chg volatility inv ($) Rating Rating Rating Qual Rating reg?Calamos US Growth A Acc 26.69 27.91 28,377 Calamos Global Funds Ireland AA Superior YMS INVF US Growth A $ 22.36 25.38 0 $ Morgan Stanley Invest Funds Luxembourg A YW.P Stewart Holdings . 14.7 22.74 1.00 $ W.P Stewart Asset Mgt (Eur) . Luxembourg AA SuperiorING (L) Invest US Growth P $ 12.07 19.54 0 $ ING Investment Mgt Lux Luxembourg StandardFF – America A $ 11.78 22.57 2,500 $ Fidelity (FIL (Luxembourg)) Luxembourg A Standard YCap Int US Growth and Income B 11.57 20.03 1,419 Capital International Luxembourg Elite YRobeco US Large Cap Equities D 10.53 21.03 0 Robeco Luxembourg Luxembourg AA SuperiorPioneer Fds US Research E ND 10.44 19.28 1,419 Pioneer Asset Management Luxembourg StandardSchroder ISF US Sm & MdCp Eq A $ 9.62 21.48 1,000 $ Schroder Investment Mgt Lux Luxembourg AA AAA Elite YING (L) Invest US High Dividend P Acc 9.15 19.03 0 $ ING Investment Mgt Lux Luxembourg A Standard YPerkins US Strategic Value A $ Acc 8.74 20.15 2,500 $ Janus Capital Funds Ireland Superior YFranklin US Equity A Acc $ 7.83 19.56 5,000 $ Franklin Templeton Invest Fds Luxembourg A YAllianz RCM US Equity C2 $ 6.12 22.35 1,000 $ Allianz Global Invest Ireland Ireland A Superior YNeuberger Berman US Large Cap Gr $ Adv 5.89 19.5 10,000 $ Neuberger Berman Ireland AA YAberdeen Global American Equity A2 3.98 21.01 1,500 $ Aberdeen Asset Mngrs (Lux) Luxembourg A YBNPP L1 Opportunities USA Acc 2.23 24.03 1.00 $ BNP Paribas Inv Partners Lux Luxembourg AA Superior YMFS Meridian US Value A1 $ 0.14 20.5 5,000 $ MFS Meridian Funds Luxembourg AA A YPioneer Fds North Amer Bas Val E ND -0.15 19.04 1,419 Pioneer Asset Management Luxembourg AAGlobal emerging markets equityOffshore/int’l funds 3-year 3-year Min init Curr Manager name Domicile Morningstar S&P Fd OBSR Morningstar UK % chg volatility inv ($) Rating Rating Rating Qual Rating reg?First State Glbl Emerg Mkts Leader I 40.9 24.33 1,500 $ First State Invest (Hong Kong) Ireland AAA YAberdeen Global Emerging Markets Eq A2 40.76 27.72 1,500 $ Aberdeen Asset Mngrs (Lux) Luxembourg AA AAA Elite YClariden Leu (Lux) Emerging Mkts Eq B 34.42 34.19 10 $ Clariden Leu Luxembourg AAVontobel Emerging Markets Eq B 32.03 24.51 N/S $ Vontobel Management Luxembourg AASchroder ISF Glbl Emerg Mkt Opp A $ 23.89 27.92 1,000 $ Schroder Investment Mgt Lux Luxembourg Superior YComgest Growth Emerging Markets Acc 9.3 26.67 10,000 $ Comgest Asset Mgt Int’l Ireland AAA Elite YRobeco Active Quant Emerging Eq D 29.38 32.91 0 Robeco Luxembourg Luxembourg ALazard Emerging Markets Equity $ 17.15 30.89 2m $ Lazard Fund Mgrs (Ireland) Ireland A Superior YBNY Mellon Global Em Mkts Eq Value A $ 15.72 29.33 5,000 $ BNY Mellon Asset Mgt Ireland A YRobeco Emerging Markets Eq D 12.33 33.08 0 Robeco Luxembourg Luxembourg Superior YJPM Emerging Markets Eq A (dist)-$ 11.32 30.59 2,000 $ JPMorgan Asset Mgt (Europe) Luxembourg Superior YJapan equityOffshore/int’l funds 3-year 3-year Min init Curr Manager name Domicile Morningstar S&P Fd OBSR Morningstar UK % chg volatility inv ($) Rating Rating Rating Qual Rating reg?FF – Japan Advantage A ¥ 29.83 21.72 N/S ¥ Fidelity (FIL (Luxembourg)) Luxembourg A YPolar Capital Plc Japan $ 26.73 21.2 0 $ Polar Capital Partners Ireland AA AA Superior YOrbis Sicav Japan Equity (Yen) 20.35 24.99 N/S ¥ Orbis Investment Management Luxembourg AAA AAInvesco Japanese Equity Advantage A 15.3 19.88 N/S ¥ Invesco Global Asset Mgt Luxembourg AA A ¥ValueInvest LUX Japan A Cap 7.32 14.99 0 ValueInvest Asset Management Luxembourg StandardMelchior ST Japan Advantage B3 ¥ 2 20.16 N/S ¥ Dalton Strategic Partnership Luxembourg A YLindsell Train Japanese Equity A Acc -1.7 19.28 2,575 ¥ Close Asset Mgt (UK) Ireland A YParvest Equity Japan Small Cap C 20.88 23.59 1.00 ¥ BNP Paribas Luxembourg A YGS Japan Small Cap Base Inc 17.42 21.08 6,437 ¥ Goldman Sachs Asset Mgt Int’l Luxembourg A YPineBridge Japan Small Cap Equity Y 12.1 21.88 1m $ PineBridge Investments Ireland Ireland AA YOyster Japan Opportunities JPY 9.47 17.89 0 ¥ Oyster Asset Management Luxembourg A YInvesco Japanese Equity Core A 8.74 22.43 1,500 $ Invesco Global Asset Mgt Ireland AA A Superior ¥JOHCM Japan Yen 6.49 20.44 N/S ¥ JO Hambro Capital Mgt Ireland AA A Superior YHenderson Horizon Japanese Eq A2 -0.66 21.17 2,500 $ Henderson Management Luxembourg A YNippon Growth -1.14 26.81 N/S ¥ E.I. Sturdza Strategic Mgt Guernsey AFidelity AS Japan A Acc ¥ -3.05 23.36 N/S ¥ Fidelity (FIL (Luxembourg)) Luxembourg A YGS Japan Portfolio Base Inc -5.59 20.85 6,437 ¥ Goldman Sachs Asset Mgt Int’l Luxembourg AA A Superior YIFDC Japan Dynamic A ¥ -7.93 21.2 1.00 ¥ IFDC Luxembourg AAA AASEPTEMBER 2011 [www.international-adviser.com] INTERNATIONAL ADVISER 41
  • 40. QUALITY FUNDSAsia Pacific equityOffshore/int’l funds 3-year 3-year Min init Curr Manager name Domicile Morningstar S&P Fd OBSR Morningstar UK % chg volatility inv ($) Rating Rating Rating Qual Rating reg?Macquarie Asia New Stars Fund A1 98.01 36.6 3,000 $ Macquarie Funds Mgt HK Caymans StandardTempleton Asian Growth A YDis $ 61.05 31.35 5,000 $ Franklin Templeton Invest Fds Luxembourg AAA A YInvestec GSF Asian Eq A Inc Grs $ 32.07 28.58 3,000 $ Investec Asset Mgt Lux Luxembourg AA Superior YFF – South East Asia A $ 44.31 28.9 2,500 $ Fidelity (FIL (Luxembourg)) Luxembourg AA AA Superior YFF – Asian Special Situations A $ 38.73 27.22 2,500 $ Fidelity (FIL (Luxembourg)) Luxembourg AA Elite YSchroder ISF Emerg Asia A 32.8 28.82 1,000 $ Schroder Investment Mgt Lux Luxembourg AA Superior YInvesco Asian Equity A 27.67 29.52 1,500 $ Invesco Global Asset Mgt Ireland AA A YInvesco Pacific Equity A 22.36 25.52 1,500 $ Invesco Global Asset Mgt Ireland A YRobeco Asia Pacific Equities D 21.65 24.93 0 Robeco Luxembourg Luxembourg A Superior YGlobal bondsOffshore/int’l funds 3-year 3-year Min init Curr Manager name Domicile Morningstar S&P Fd OBSR Morningstar UK % chg volatility inv ($) Rating Rating Rating Qual Rating reg?Pimco GIS Global Bond Ins CHF Hdg Acc 63.32 18.9 N/S CHF Pimco Global Advsrs (Ireland) Ireland AA YTempleton Glbl Total Return A MDis $ 57.75 12.14 5,000 $ Franklin Templeton Invest Fds Luxembourg AA/V4 A YTempleton Global Bond A MDis $ 45.57 8.95 5,000 $ Franklin Templeton Invest Fds Luxembourg AAA/V4 AA Superior YTempleton Glbl Total Return A Acc -H1 43.4 24.1 7,094 Franklin Templeton Invest Fds Luxembourg AA/V4 A YTempleton Global Bond A Acc -H1 34.17 21.16 7,094 Franklin Templeton Invest Fds Luxembourg AAA/V4 AA YLGT Bond Global ( ) B 33.92 10.21 1.00 LGT Capital Management Liechtenstein A/V5Thames River Sterling Glbl Bond $ 33.68 10.8 7,500 $ Thames River Capital Ireland AA/V4 YAegon Strategic Global Bond A 33.06 20.19 N/S Aegon Fund Mgt (UK) Ireland A YTempleton Glbl Total Return A MDis £-H1 29.12 20.57 8,156 £ Franklin Templeton Invest Fds Luxembourg AA/V4 A YSchroder ISF Global Bond I Hdgd 25.36 3.1 5m $ Schroder Investment Mgt Lux Luxembourg Standard YThames River Sterling Glbl Bond 23.74 16.89 10,641 Thames River Capital Ireland AA/V4 YTempleton Global Bond A MDis £-H1 22.87 16.99 8,156 £ Franklin Templeton Invest Fds Luxembourg AAA/V4 AA Superior YThames River Euro Glbl Bond Acc 22.42 11.17 10,641 Thames River Capital Ireland AA/V5 YPimco GIS Global Bond Ins Hdg Acc 16.61 19.19 N/S Pimco Global Advsrs (Ireland) Ireland AA YInvestec GSF Glbl Bd A Inc Grs $ 27.67 10.3 3,000 $ Investec Asset Mgt Lux Luxembourg A YLoomis Sayles Glob Opp Bd Fd I/D $ 27.62 10.71 100,000 $ Natixis Global Associates Ireland Superior YPimco GIS Global Bond Inv $ Unhdg 26.99 11.04 5m $ Pimco Global Advsrs (Ireland) Ireland AA YPimco GIS Global Bond Ins Acc 24.82 6.82 10m $ Pimco Global Advsrs (Ireland) Ireland AA YACPI Global Fixed Income Ucits $ A 21.74 N/A 500,000 $ ACP Prtnrs Inv Mgr (Ireland) Ireland A/V3 YTriAlpha International Bond 21.2 7.2 5,000 $ TriAlpha Fund Mngrs (Jersey) Jersey A/V3Dexia Bonds World Government Plus C Acc 19.78 8.74 1.00 Dexia Asset Management Luxembourg StandardThames River Sterling Glbl Bond £ Inc 13.71 7.49 8,156 £ Thames River Capital Ireland AA/V4 YRobeco Lux-o-rente D 8.05 16.67 1.00 Robeco Luxembourg Luxembourg AA/V3 Superior YPimco GIS Global Bond Ins £ Hdg Inc 4.66 16.41 N/S £ Pimco Global Advsrs (Ireland) Ireland AA YGlobal equityOffshore/int’l funds 3-year 3-year Min init Curr Manager name Domicile Morningstar S&P Fd OBSR Morningstar UK % chg volatility inv ($) Rating Rating Rating Qual Rating reg?Nuveen Tradewinds Global All-Cap I $ 47.5 23 N/S $ Nuveen Ireland AACalamos Global Equity A Acc 38.41 27.37 28,377 Calamos Global Funds Ireland AA YVeritas Glbl Focus A £ 30.11 19.07 48,936 £ Veritas Asset Management UK Ireland AA Superior YVeritas Global Eq Income A £ 19.43 20.53 48,936 £ Veritas Asset Management UK Ireland AA Superior YOrbis Global Equity 16.06 23.85 50,000 $ Orbis Investment Management Bermuda AAAAmundi International Sicav AU-C 16.04 14.43 1.00 $ Amundi Luxembourg Luxembourg StandardTweedy Browne Intl Value Fd ( ) B 15.13 25.36 35,471 Tweedy Browne Co Luxembourg SuperiorOrbis Sicav Global Equity Inv 14.29 23.89 N/S Orbis Investment Management Luxembourg AAFranklin Mutual Global Disc A Acc $ 14.2 14.94 5,000 $ Franklin Templeton Invest Fds Luxembourg A Superior YMercLin Sicav Global Equity F 13.82 21.71 1.00 Mercier Vanderlinden Ass Mgt Luxembourg SuperiorValueInvest LUX Global A Cap 12.77 19.63 0 ValueInvest Asset Management Luxembourg SuperiorMFS Meridian Glbl Equity A1 $ Acc 10.91 22.51 5,000 $ MFS Meridian Funds Luxembourg A YSchroder ISF QEP Global Quality A 10.69 21.56 1,000 $ Schroder Invest Mgt Lux Luxembourg A42 INTERNATIONAL ADVISER [www.international-adviser.com] SEPTEMBER 2011
  • 41. QUALITY FUNDSGlobal equity (cont)Offshore/int’l funds 3-year 3-year Min init Curr Manager name Domicile Morningstar S&P Fd OBSR Morningstar UK % chg volatility inv ($) Rating Rating Rating Qual Rating reg?Planetarium – Riverfield Eqs 8.93 21.87 7,094 Planetarium Fund Luxembourg AVontobel Global Value Equity B 8.32 18.29 N/S $ Vontobel Management Luxembourg AABNY Mellon Lg-Trm Global Equity A 8.24 19.07 7,094 BNY Mellon Asset Mgt Ireland AA A YBL-Global Equities B 6.85 20.69 3,547 Banque de Luxembourg Luxembourg SuperiorBGF Global Dynamic Equity $ A2 5.37 19.5 5,000 $ Blackrock (Luxembourg) Luxembourg AAA AA Superior YPEH Strategie Flexibel P 4.08 15.69 3,547 Axxion Luxembourg AGamax Funds Junior A 14.07 23.24 354,710 GAMAX Management AG Luxembourg AAberdeen Global World Equity A2 7.58 24.76 1,500 $ Aberdeen Asset Mgrs (Lux) Luxembourg AA A Superior YGAM Global Diversified $ 7.2 N/A 5,000 $ GAM Fund Management BVI AAFF – Global Opportunities A $ 6.54 24.33 2,500 $ Fidelity (FIL (Luxembourg)) Luxembourg TR YHarris Associates Glob Value Fd R/A $ 5.88 26.64 0 $ Natixis Global Associates Luxembourg AA YFF – Global Focus A $ 4.41 24.33 2,500 $ Fidelity (FIL (Luxembourg)) Luxembourg TR YSchroder ISF QEP Global Core C Acc 4.08 23.73 500,000 $ Schroder Investment Mgt Lux Luxembourg A YDJE Dividende & Substanz P 3.5 24.02 0 DJE Investment Luxembourg SuperiorTweedy Browne Glbl Hi Div Val ( ) D 3.2 N/A 35,471 Tweedy Browne Co Luxembourg SuperiorOasis Global Equity 2.58 23 5,000 $ Oasis Global Mgmt Co (Ireland) Ireland AABGF Global Opportunities A2 $ 2.44 24.65 5,000 $ Blackrock (Luxembourg) Luxembourg AA A Superior YBNPP L1 Opportunities World Acc 1.88 25.18 2,128 BNP Paribas Inv Partners Lux Luxembourg AA YInvestec GSF Glbl Eq A Inc Grs $ 0.45 23.57 3,000 $ Investec Asset Mgt Lux Luxembourg A Superior YGAM Star Worldwide Equity $ Inc 0.44 23.67 10,000 $ GAM Fund Management Ireland AAA YBPI GIF – Opportunities R -0.17 26.42 21,283 BPI Global Invest Fund Mgt Co Luxembourg SuperiorDWS Invest Top Dividend LC -0.24 22.89 1.00 DWS Investment Luxembourg Superior YMFS Meridian Research Intl A1 $ -2.29 26.44 5,000 $ MFS Meridian Funds Luxembourg A YD&R Multi Asset Strategy - Growth P -3.51 21.2 1.00 HANSAINVEST LUX Luxembourg AInvestec GSF Glbl Str Eq A Inc Grs $ -4.02 24.52 3,000 $ Investec Asset Mgt Lux Luxembourg AA Superior YACPI Global Equity Ucits A $ -6.96 N/A 500,000 $ ACP Partners Inv Mngr (Ireland) Ireland A YDWS Global Value -7.15 24.42 709 DWS Investment Luxembourg SuperiorING (L) Invest Glbl Hi Div P Acc -7.23 22.64 0 ING Investment Mgt Lux Luxembourg A StandardDWS Invest Global Value LC -7.38 24.07 0 DWS Investment Luxembourg SuperiorSarasin EquiSar - Global A -7.73 23.57 1,419 Sarasin Investmentfonds Sicav Luxembourg A YCarnegie Worldwide 1A -10.68 22.03 1,000 $ Carnegie Fund Mgt Company Luxembourg AAACorporate and high-yield bondsOffshore/int’l funds 3-year 3-year Min init Curr Manager name Domicile Morningstar S&P Fd OBSR Morningstar UK % chg volatility inv ($) Rating Rating Rating Qual Rating reg?Neuberger Berman HY Bd Adv Acc 36.69 24.55 14,188 Neuberger Berman Ireland AAA/V5 AA YCap Int Global High Income Opp A 35.09 13.97 7m Capital International Luxembourg AA/V5 YBlueBay High Yield Bond Acc B 30.85 24.37 141,884 BlueBay Asset Management Luxembourg AAA/V5 YPimco GIS Gl Inv Grd Crdt Ins Hg Acc 23.17 19.97 N/S Pimco Global Advsrs (Ireland) Ireland AA YInvesco Euro Corporate Bond A Acc 22.05 19.34 N/S Invesco Global Asset Mgt Luxembourg AA/V4 AA Superior YBlueBay Investment Grade Bd Acc B 18.31 16.8 141,884 BlueBay Asset Management Luxembourg AAA/V3 A YSchroder ISF Glbl High Yld I £ Hdg Acc 13.41 23.12 N/S £ Schroder Investment Mgt Lux Luxembourg A/V5 YAllianz Euro High Yield Bond A 41.06 26.23 1.00 Allianz Global Investors Lux Luxembourg Standard YFF – US High Yield A $ 36.87 15.32 2,500 $ Fidelity (FIL (Luxembourg)) Luxembourg AAA/V5 A YAB Global High Yield A $ 36.38 19.01 2,000 $ AllianceBernstein (Lux) Luxembourg A/V6Invesco Global High Income A 35.18 16.38 1,500 $ Invesco Global Asset Mgt Ireland A/V6 YMuzinich Europeyield H/Y Acc 33.92 24.62 141,884 Muzinich & Co. Ireland AA/V6 YFF – Euro High Yield A Euro 29.41 26.67 N/S Fidelity (FIL (Luxembourg)) Luxembourg AA/V6 Superior YSchroder ISF Glbl Corp Bond A Acc 28.43 5.55 1,000 $ Schroder Investment Mgt Lux Luxembourg AA/V3 YHSBC GIF Euro High Yield Bond A Acc 28.08 26.42 N/S HSBC Investment Funds (Lux) Luxembourg AA/V6 Superior YBlueBay Invmt Grade Bd Acc B $ (Perf) 27.66 4.29 100,000 $ BlueBay Asset Management Luxembourg AAA/V3 ARobeco High Yield Bonds DH 26.29 25.46 0 Robeco Luxembourg Luxembourg A/V5 Superior YGS Glbl High Yield Base Hdg 22.81 27.58 7,094 Goldman Sachs Asset Mgt Int’l Luxembourg AA/V6 A YInvesco Global High Income A Hdg 22.27 27.66 2,128 Invesco Global Asset Mgt Ireland A/V6 YSEPTEMBER 2011 [www.international-adviser.com] INTERNATIONAL ADVISER 43
  • 42. QUALITY FUNDS Corporate and high-yield bonds (cont) Offshore/int’l funds 3-year 3-year Min init Curr Manager name Domicile Morningstar S&P Fd OBSR Morningstar UK % chg volatility inv ($) Rating Rating Rating Qual Rating reg? Schroder ISF Glbl High Yld A Hdg Acc 21.16 24.41 1,419 Schroder Investment Mgt Lux Luxembourg A/V5 Y Schroder ISF Glbl Corp Bd A Hdg Acc 18.6 18.42 1,419 Schroder Investment Mgt Lux Luxembourg AA/V3 Y Aegon Investment Grade Global Bd A 18.12 21.35 141,884 Aegon Fund Mgt (UK) Ireland A Y Schroder ISF Euro Corporate Bond A Acc 16.19 16.99 1,419 Schroder Invest Mgt Lux Luxembourg AA/V3 Standard Y Standard Life Sicav Eurp Corp Bd D 14.43 17.74 1.4m Standard Life Investments Luxembourg AA/V4 Y Axa WF Euro Credit Plus AC 14.11 17.47 0 Axa Invest Managers Paris Luxembourg Superior Funds of hedge funds Offshore/int’l funds 3-year 3-year Min init Curr Manager name Domicile Morningstar S&P Fd OBSR Morningstar UK % chg volatility inv ($) Rating Rating Rating Qual Rating reg? GAM Multi-Emerging Markets $ Open Cl 8.15 9.86 15,000 $ GAM Fund Management BVI AA GAM Trading II – $ Open Class 9.9 4.53 25,000 $ GAM Fund Management BVI AA GAM Trading II – Open Class 1.79 17.14 35,471 GAM Fund Management BVI AA Global emerging market bonds Offshore/int’l funds 3-year 3-year Min init Curr Manager name Domicile Morningstar S&P Fd OBSR Morningstar UK % chg volatility inv ($) Rating Rating Rating Qual Rating reg? MFS Meridian Emerg Mkts Dbt A2 $ 36.25 13.71 5,000 $ MFS Meridian Funds Luxembourg AAA/V5 A Y BNY Mellon EM Debt Local Ccy X $ 29.9 16.26 0 $ BNY Mellon Asset Management Ireland AA/V6 Y Pictet-Global Emerging Debt-HP 26.63 24.75 0 Pictet Funds (Europe) Luxembourg Standard Y Templeton Emerging Mkts Bd A QDis $ 39.83 16.98 5,000 $ Franklin Templeton Invest Fds Luxembourg AA/V5 AA Superior Y ING (L) Flex Emerg Mkts Debt $ P Acc 39.79 17.02 N/S $ ING Investment Mgt Lux Luxembourg AA/V6 AB Emerging Markets Debt A $ 38.76 17.33 2,000 $ AllianceBernstein (Lux) Luxembourg AA/V5 Pictet-Global Emerging Debt-P $ 38.49 11.95 0 $ Pictet Funds (Europe) Luxembourg Standard Y LO Funds Emerging Market Bond P A 36.14 12.92 N/S $ Lombard Odier Funds (Europe) Luxembourg Standard BNY Mellon Emerg Mkts Dbt A $ 34.56 14.11 5,000 $ BNY Mellon Asset Mgt Ireland AA/V5 Y Pimco GIS Emerg Local Bond Instl $ Acc 32.83 16.3 10m $ PIMCO Global Advsrs (Ireland) Ireland Superior Y BNPP L1 Bond World Emerg Local C C 28.51 16.39 N/S $ BNP Paribas Invest Prtnrs Lux Luxembourg AA/V5 Y Allianz Emerg Markets Bond A 17.02 26.12 1.00 Allianz Global Invstrs Ireland Ireland AA/V5 Y Fixed income Europe Offshore/int’l funds 3-year 3-year Min init Curr Manager name Domicile Morningstar S&P Fd OBSR Morningstar UK % chg volatility inv ($) Rating Rating Rating Qual Rating reg? BNY Mellon Euroland Bond C 16.83 16.51 7m BNY Mellon Asset Management Ireland AAA/V3 Y Schroder ISF US Dollar Bd A Hdg 14.83 17.35 1,419 Schroder Investment Mgt Lux Luxembourg AA/V2 Y Pioneer Fds Euro Aggt Bd A ND 12.91 15.9 1,419 Pioneer Asset Management Luxembourg Superior Pimco GIS Glbl Real Ret Ins Hdg Acc 12.06 21.61 N/S Pimco Global Advsrs (Ireland) Ireland AA Y LGT Bond Global Inflation Linked B 8.33 18.91 1.00 LGT Capital Management Liechtenstein A/V4 Pioneer Fds Euro Strat Bd E ND 39.16 29.4 1,419 Pioneer Asset Management Luxembourg AAA Schroder ISF Euro Bond A Acc 16.26 14.75 1,419 Schroder Investment Mgt Lux Luxembourg TR Y LM WA GMS A Acc (H ) 15.69 25.42 1,419 Legg Mason Global Fds (Dub) Ireland A/V4 Y AB European Income A2 14.54 23.11 2,838 AllianceBernstein (Lux) Luxembourg A/V5 Schroder ISF Strategic Bd A Hdg 12.47 17.41 1,419 Schroder Investment Mgt Lux Luxembourg TR Y HSBC GIF Euro Bond A Acc 11.49 16 N/S HSBC Investment Funds (Lux) Luxembourg AA/V3 Superior Y FF – Glbl Inflatn Lkd Bd A Hdg Acc 8.77 20.07 N/S Fidelity (FIL (Luxembourg)) Luxembourg A/V4 A Parvest Bond Euro C 7.95 15.61 1,000 BNP Paribas Luxembourg AA/V3 Superior Y Pimco GIS Euro Bond Ins Acc 7.32 16.99 N/S Pimco Global Advsrs (Ireland) Ireland AA Y BGF Euro Short Duration Bond A2 7.13 15.16 N/S Blackrock (Luxembourg) Luxembourg AA/V2 Superior Y Triodos Sustainable Bond R 6.5 15.32 0 Triodos Investment Mgt Luxembourg Standard Swisscanto (LU) Bd Invest A 6.34 15.09 1.00 Swisscanto Holding AG Luxembourg A Axa WF Euro Inflation Bonds IC 3.02 19.45 141,884 Axa Investment Mngrs Paris Luxembourg SuperiorData source: © 2011 Morningstar, Inc. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. NeitherMorningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance is no guarantee of future results. Performances have been calculated on a bid-to-bid, $, gross income basis. Volatility isexpressed as standard deviation of 36 monthly total returns (bid-to-bid). The Morningstar Rating is calculated based on a fund’s total returns, adjusted for risk and sales charges, relative to other funds in its Morningstar Category. The Overall Morningstar Ratingpublished here is based on a weighted average of a fund’s three-, five- and ten-year ratings, depending on the length of its record.44 INTERNATIONAL ADVISER [www.international-adviser.com] SEPTEMBER 2011
  • 43. FLY THE NEST WITH QROPS Our ethos reflects the free-spirited Shearwater and our Qualifying Recognised Overseas Pension Scheme (QROPS) has been designed to suit the lifestyles of those clients who wish to embark on new adventures with a flexible, secure and rewarding pension plan that they can take with them. The Shearwater Pension Plan offers a bespoke retirement solution to non UK residents and individuals who are about to leave the UK. The transfer of accrued pension benefits from UK pension schemes to our QROPS provides individuals with a greater flexibility in their retirement options, with tax efficiency, a choice of investment management and peace of mind that all remaining funds within the Plan upon death are paid to their nominated beneficiaries. KEY BENEFITS OF THE SHEARWATER PENSION PLAN • Choice of investment management • Tax efficiency: no tax on the pension assets within the Plan; pension income paid gross (excluding Guernsey residents) • Increased flexibility when taking pension income on retirement • Freedom to make additional contributions with no lifetime limit • No requirement to purchase an annuity • All remaining funds within the Plan, following death, can be distributed to chosen beneficiaries • Open to all nationalities FOR MORE INFORMATION VISIT WWW.SHEARWATERPENSIONS.COM OR CALL +44 (0)1481 713100MARLBOROUGH PENSION TRUSTEES LIMITEDPO BOX 19 ALBERT HOUSE SOUTH ESPLANADE ST. PETER PORTGUERNSEY CHANNEL ISLANDS GY1 3AJTEL: +44 (0)1481 713100 FAX: +44 (0)1481 713200Registered No. 48383Licensed by the Guernsey Financial Services Commission underThe Regulation of Fiduciaries, Administration Businesses andCompany Directors, etc (Bailiwick of Guernsey) Law, 2000 as amended
  • 44. BANKING DEPOSITS OFFSHORE ACCOUNTS RANKED BY INTEREST RATES No-notice £ accounts Award Provider Account or term Notice Deposit % Gross paid Interest Telephone number/ web address winning Anglo Irish Bank Corporation (Int’l) Privilege Demand None £5,000 2.7% Yly +44 (0)1624 698000 Anglo Irish Bank Corporation (Int’l) Privilege Access ll None £5,000 2.47% 6-mly +44 (0)1624 698000 range of Nationwide International Base Rate Tracker Prem None £25,000 2.4%* Yly +44 (0)1624 696000 Irish Nationwide (IoM) Instant Quarterly None £25,000 2.35% Yly +44 (0)1624 673373 deposit Lloyds TSB International International Bonus Saver None £100,000 2.01%* Mly +44 (0)1624 641825 accounts No-notice $ accounts with Anglo Irish Bank Corporation (Int’l) Anglo Irish Bank Corporation (Int’l) Privilege Demand Privilege Access None None $5,000 $5,000 2.3% 1.51% Yly 6-mly +44 (0)1624 698000 +44 (0)1624 698000 great Lloyds TSB International Barclays Wealth International Bonus Saver Bonus Saver None None $100,000 $100,000 1.51%* 0.8%* Mly Mly +44 (0)1624 641825 +44 (0)1624 684316 rates. Nationwide International Base Rate Tracker Prem None $50,000 0.5%* Yly +44 (0)1624 696000 No-notice accounts Call Anglo Irish Bank Corporation (Int’l) Privilege Demand None 5,000 2.7% Yly +44 (0)1624 698000 Notice Lloyds TSB International International Bonus Saver None 100,000 2.27%* Mly +44 (0)1624 641825 Anglo Irish Bank Corporation (Int’l) Privilege Access None 5,000 2.26% 6-mly +44 (0)1624 698000 Time deposits Irish Nationwide (IoM) Instant Quarterly None 25,000 1.75% Yly +44 (0)1624 673373 Nationwide International Euro Tracker Premium None 50,000 1.75%* Yly +44 (0)1624 696000 Fixed rate bonds £ / US$ / euro Notice accounts Online or postal Yorkshire (Guernsey) Global 90 90-day £100,000 2.6% Yly +44 (0)1481 710510 Alliance & Leicester International eSaver Offshore Notice 120 120-day (W) £5,000 2.25% Yly www.alil.co.im Alliance & Leicester International Select Offshore Notice 120 120-day £5,000 2.25% Yly +44 (0)1624 641888 Britannia International 60 Day Notice 60-day £50,000 2.25% Yly +44 (0)1624 681100 +44 (0) 1624 Skipton International International Premium 90 90-day £100,000 2.25% Yly +44 (0)1481 727374 641 888 alil.co.im Monthly interest Yorkshire (Guernsey) Global 90 90-day £100,000 2.6% Mly +44 (0)1481 710510 Alliance & Leicester International Select Offshore Notice 120 120-day £5,000 2.25% Mly +44 (0)1624 641888 Alliance & Leicester International eSaver Offshore Income120 120-day (W) £5,000 2.25% Mly www.alil.co.im Nationwide International Base Rate Tracker Prem None £25,000 2.22%* Mly +44 (0)1624 696000 Skipton International Ltd International Premium 90 90-day £100,000 2.02% Mly +44 (0)1481 727374 Fixed rates 1-YEAR FIXED RATES Bank of Ireland (IoM) High Int Anniversary A/c 1-year bond £25,000 3.5% F OM +44 (0)1624 644222 The Co-operative Bank Fixed Term Deposit 1-year bond £5,000 3.4% F OM +44 (0)1481 710527Recent awards include Moneyfacts Irish Nationwide (IoM) Fixed Rate Bond 1-year bond £50,000 3.35% F OM +44 (0)1624 673373Best Offshore Account Provider for2010 & 2011. Alliance & Leicester 2-YEAR FIXED RATESInternational (ALIL) is a wholly The Co-operative Bank Fixed Term Deposit 2-year bond £5,000 3.75% F OM +44 (0)1481 710527owned subsidiary of Santander UKplc. Santander UK plc is regulated by Alliance & Leicester International 2 Year Fixed Rate Bond 25 30 Aug ’13 £5,000 3.5% F Yly +44 (0)1624 641888the UK Financial Services Authority.Santander is part of Banco Santander, Clydesdale Bank International Term Deposit 24 Month £10,000 3.25% F Yly +44 (0)1481 711102S.A. of Spain which is regulated by 3-YEAR FIXED RATESthe Bank of Spain. ALIL places fundswith Santander UK plc and thus its The Co-operative Bank Fixed Term Deposit 3-year bond £5,000 4% F OM +44 (0)1481 710527financial standing is linked to that ofSantander UK plc. Further information, Clydesdale Bank International Term Deposit 36 Month £10,000 3.75% F Yly +44 (0)1481 711102including report & accounts, is availableat alil.co.im or on request. Santander, Alliance & Leicester International 3 Year Fixed Rate Bond Iss 7 29 Aug’ 14 £5,000 3.7% F Yly +44 (0)1624 641888Alliance & Leicester and the flame logoare registered trademarks. Telephone Please note: rates correct on 25 Aug, 2011calls may be recorded. 19/21 Prospect All rates are shown gross. * Introductory rate for a minimum of 6 months. (P) Operated by post. (F) Fixed rate. (W) Operated by internet. (OM) On maturity. (S) Available to those aged 60 and over. All ratesHill, Douglas, Isle of Man IM99 1RY, and terms subject to change without notice and should be checked before finalising any arrangement. No liability can be accepted for any direct or consequential loss arising from the use of, or reliance on,British Isles. Incorporated in the Isle of this information. Readers who are not financial professionals should seek expert advice.Man (No. 81918C). Licensed by theIsle of Man Financial Supervision Source: www.moneyfacts.co.ukCommission to take deposits.46 INTERNATIONAL ADVISER [www.international-adviser.com] SEPTEMBER 2011
  • 45. ADVISER European INTERNATIONAL CPD COMPLIANTInvestor ForumIn association with PARK PLAZA VICTORIA, LONDON 22 SEPTEMBER 2011Expand your horizons Are you an European-based IFA with expat clients? If so, this half-day interactive seminar is for you l Meet and talk with fund managers, life companies and pension experts l Find out what you need to know about retirement options l The conference is free to attend for financial advisers To register your place go to http://events.lastwordmedia.com For further information contact Victoria Parker at vicky.parker@lastwordmedia.com or +44 (0)20 7065 7564
  • 46. INTERNATIONAL LIFE & BANKING LISTINGS LIFE LISTINGSProfessionalservices Company name: Aegon Ireland plc Address: 2nd Floor, IFSC House, Custom House Quay, Dublin 1, Ireland Company name: La Mondiale Europartner Sa Address: Atrium Business Park, 23A, rue du puits romain, ZA Bourmicht L- 8070 Bertrange, LuxembourgHere are some of the biggest Tel: +353 (0)845 600 0173 Tel: +352 45 858744 • 0808 234 6607 (client services in UK) Fax: +353 (1)673 8940 Fax: + 352 45 8718players in the offshore professional Email: client.relations@aegon.ie Email: advisers@lamondiale.luservices arena with a description Website: www.aegonsei.ie Website: www.ag2rlamondiale.luof their services and their contact Aegon (a brand name of Aegon Ireland plc) provides La Mondiale Europartner is based in Luxembourg and hasdetails. If you are interested in attractive investment solutions, particularly to UK investors. gained experience in wealth management solutions over With a heritage in the offshore market dating back to 1995, many years. They now operate in several EU countriesbeing included, please contact Ben Aegon is a leading provider in its chosen market. including France, Luxembourg, Italy, Portugal, Spain, We are part of the Aegon Group, which is one of the Belgium and the UK.Wiseman on +44 (0)20 7065 7573 world’s largest listed insurance companies with assets Their focus is aimed at the cross-border aspects ofor email: ben.wiseman@ under administration of around £348bn. wealth management, enabling them to produce unit-linked, Based in Dublin, one of the world’s most dynamic financial multi-currency, multi-manager, multi-lingual – investmentlastwordmedia.com centres, we also benefit from an enviable infrastructure. The and expatriate pension solutions. client service team in Dublin draws on the talents of a large, Product offerings young, motivated and highly skilled workforce. Bond 4 European Mobility is for UK-based independent Our service ensures that quality assurance is embedded financial advisers providing a cross-border-compliant, in all we do to meet the requirements of our customers. tax-efficient, multi-currency wrapper with open architecture. Product offerings Investment is allowed via collective investment schemes A portfolio bond, a packaged inheritance tax plan chosen by the client/IFA or may be managed by (a discounted gift trust plan), a regular savings plan a discretionary manager. and a guaranteed income plan. The bond allows access to the La Mondiale’s main fund, which provides guaranteed returns in £, and $. Locally compliant investment solutions are also available to IFA’s advising UK expatriate clients residing in Spain and France.Company name: Investors Trust Assurance SPC Company name: IOMA Group Company name: Irish Life International LimitedAddress: Suite 4210, 2nd Floor, Canella Court, Camana Bay, Address: IOMA House, Hope Street, Douglas, Isle of Man, Address: Irish Life Centre, Lower Abbey St, Dublin 1, IrelandPO Box 32203, Grand Cayman, KY1-1208, Cayman Islands IM1 1AP Tel: +353 (1) 704 1500 • Fax: +353 (1) 704 1580Tel: +1 (305)603-1400 Tel: +44 (0) 1624 681200 Email: sales.ili@irishlife.ieFax: +1 (786)363-1822 Fax: +44 (0) 1624 681390Email: advisers@investors-trust.com Email: info@iomagroup.co.im Website: www.irishlifeinternational.comWebsite: www.investors-trust.com Website: www.iomagroup.co.im Established in 1994, Irish Life International is a life insurance company incorporated and regulated in Ireland. The companyInvestors Trust Assurance SPC (“ITA”) is an international IOMA Life is part of IOMA Group, which offers a complete is the international insurance arm of the Irish Life & Permanentinsurance company licensed and regulated by the Cayman wealth and risk management service from its base in the Isle Group, the largest life assurance company in Ireland and theIslands Monetary Authority. ITA has gained a leadership of Man, one of the world’s best regulated and most successful market leader in the provision of life, pension and investmentposition in the international insurance markets by specializing financial centres. We administer or manage over $8 billion of products.in the provision of investment–linked insurance products and funds for global clients, and have a proven track record in The group has funds under management of 27bn, hasclass leading customer service. With service offices innovative solutions that deliver good results and mitigate risk. over 65 years of investment expertise and is quoted on theestablished to support policyholders around the world, ITA The IOMA Group is small enough to offer a highly personal Dublin and London Stock Exchanges.seeks to provide opportunity to its policyholders through service, but sufficiently large to provide in-depth, specialistaccess to the global financial markets. ITA is constantly expertise. The business is comprised of eight divisions. Each Product offeringsinnovating, and investing in technology to allow clients online is a specialist in its own area, but all share the same desire to Irish Life International engages in the cross-border distributionmulti-language (English, Spanish, Portuguese, Chinese and grow our business by delivering effective results. Some clients of insurance-based investment products under the EU ThirdJapanese) access to manage their investment-linked products. only use one service, others mix and match between Life Directive on a freedom-of-services basis. It provides aProduct offerings businesses to suit their needs at the time. The divisions are: range of unit-linked whole-of-life insurance products that offerITA works with some of the world’s top asset managers under Solutions, Life, Investment Management, Fund Management, an extensive choice of investment options and funds. It offers aits convenient open architecture platform. It provides clients Pensions, Fiduciary, Captives and Insurance. wide range of territory compliant products for residents of UK,with greater investment choices and the ability to plan for a Product offerings Isle of Man and Channel Islands, Spain, Italy, the Netherlands,happy and comfortable retirement and to provide for their IOMA Life offers a wide range of inheritance tax mitigation and Belgium, France, Sweden, Finland and Cyprus.children. Specialising in medium to long term investment-linked estate planning products. It provides traditional single premium A range of 32 multi-manager internal funds is available.products tailored to meet the needs of investors around the UK products via an offshore portfolio bond and a wide range ofworld, ITA offers a range of flexible, tax-efficient products specialist unit linked life products. IOMA Life is also a soughtincluding regular and single premium annuities, designed to suit after provider of offshore bonds for investment platforms.various income levels and financial planning needs.48 INTERNATIONAL ADVISER [www.international-adviser.com] SEPTEMBER 2011
  • 47. INTERNATIONAL LIFE & BANKING LISTINGSCompany name: AXA Isle of Man Limited Company name: Friends Provident International Company name: Generali InternationalAddress: Royalty House, Walpole Avenue, Douglas, Address: Royal Court, Casteltown, IM9 1RA, Isle of Man Address: PO Box 613, Generali House, Hirzel St, St PeterIsle of Man, IM1 2SL, British Isles Port, Guernsey, Channel Islands, GY1 4PA Tel: +44 (0)1624 821 212Tel: +44 (0)1624 643333. Calls may be recorded Tel: +44 (0) 1481 714 108 Email: clientsupport@fpiom.com Fax: +44 (0) 1481 712 424Fax: +44 (0)1624 643444 UK address: UK House, Castle St. Salisbury, Email: enquiries@generali-guernsey.comEmail: helponline@axa-iom.co.im Wiltshire SP1 3SH Tracing its roots back to 1977, Generali International is aWebsite: www.axa-iom.com UK phone number: +44 (0)1722 415088 specialist arm of the Generali Group, one of the largestEstablished in July 1992, AXA Isle of Man Limited operates UK email: fp.int@friendsprovident.co.uk insurance groups in the world. It is a leading offshore providerfrom the secure and tax-efficient environment of the Isle of offering sophisticated and powerful, life insurance-based, Website: www.fpinternational.com wealth management solutions to a global audience, includingMan. A member of the global AXA Group, one of the world’slargest insurance groups, AXA Isle of Man manages in excess Friends Provident International (FPI) is part of the Friends international expatriates and certain local resident populations.of £6.3bn for over 30,000 customers (as at 31 December Life group. FPI was established in the Isle of Man in 1978, It has built up an enviable record for flexible and competitive2009). AXA Isle of Man has 18 years’ experience of providing and has been delivering innovative and sophisticated investment solutions supported through its network ofaward-winning flexible, cost-effective products for the propositions to a competitive market for more than 30 regional offices in Cyprus, Hong Kong and Ireland, and a localcustomers of financial advisers. A member of the Manx years. FPI’s business continues to grow and today it has office in Singapore. The company is based in Guernsey, aInsurance Association (MIA) and the Association of offices in the Isle of Man, Hong Kong, Singapore and Dubai. premier offshore location, is a Registered Insurer under theInternational Life Offices (AILO), the company works within the This enables the delivery of first class customer service to Insurance Business (Bailiwick of Guernsey) Law 2002 and isoffshore industry to help educate the market in key areas such local markets in a language they understand. also an authorised insurer in Hong Kong.as the uses and tax treatment of offshore bonds. Product offerings Product offerings FPI offers a range of individual savings, protection and A range of flexible unit-linked regular and single premium-Product offerings investment products, as well as group savings and tax based savings, retirement and investment plans, with accessThe Estate Planning Bond is an offshore investment solution planning trusts. An extensive fund range, is complemented to over 120 funds selected from some of the worlds leadingthat may be suitable for clients seeking to mitigate the effects of by FPI’s Dynamic Portfolio Planner international (DPPi) – fund houses. A variety of specifically packaged portfolio bondsinheritance tax on their estates. Evolution is an offshore portfolio an innovative portfolio-planning tool that enables advisers offering the widest choice of investment options through anbond that offers a range of investment options for individual, to build bespoke investment portfolios for their clients. open architecture platform.corporate and trustee investors. The Regular InvestmentAccount is a flexible offshore bond that accepts regular as wellas single premiums.Company name: Legal & General International (Ireland) Ltd Company name: Prudential International Assurance Company name: Royal London 360° Address: Royal London House, Cooil Rd,Address: Beaux Lane House, Lower Mercer St, Dublin 2, Address: Montague House, Adelaide Rd, Dublin 2, Ireland Douglas, Isle of Man, IM2 2SPIreland Advisers tel: +44 (0)808 234 2200 Tel: +44 (0)1624 681893Tel: +44 (0)845 674 0803 Fax: +44 (0)1624 677336 Non-UK advisers fax: +44 (0)808 234 0000Fax: +44 (0)845 674 0804 Email: supportiom@royallondon360.com Website: www.pruadviser.co.uk/international Website: www.royallondon360.comWebsite: www.legalandgeneralinternational.com Prudential International is part of the Prudential Group, Today’s offshore investor demands a combination ofEmail: lgiirequest@landg.com one of the UK’s largest and best-known financial services investment choice, security and quality service. Royal LondonLegal & General International (Ireland) Limited was established organisations. As a group, Prudential has been managing 360°’s attractive range of products provide flexible solutionsin July 2007. It currently offers international investment and money for over 160 years. It has in excess of £309bn of and are supported by experienced servicing teams, effectivetax planning solutions to investors who are resident in the UK, funds under management (at 30 June, 2010). marketing support and strong technical back up, which allowChannel Islands or Isle of Man. The company is a subsidiary investors to plan for the future with confidence and security. Product offeringsof the Legal & General Group Plc, which was established Headquartered in the Isle of Man, one of the world’s Portfolio Account is an open architecture bond with accessin 1836 and is one of the UK’s leading financial services leading offshore financial jurisdictions, Royal London 360° was to over 2,500 funds. Its key features include a choice of fourcompanies. As at 31 Dec, 2010, Legal & General Group was established through the merger of Scottish Life International flexible charging options, annual management charge (AMC)responsible for investing £365bn worldwide on behalf of Insurance Company Limited and Scottish Provident rebates and discounted fund terms. AMC rebates are notinvestors, policyholders and shareholders. It also had over International Life Assurance Limited. The company has guaranteed and are subject to change.7 million customers in the UK for life assurance, pensions, combined industry experience of over 30 years, and assets International Prudence Bond provides a range of risk-gradedinvestments and general insurance plans. under administration of £1.88bn*. unit-linked funds, from Prudential and other leading fundProduct offerings managers. These include the PAC with-profits funds and the Royal London 360° is the international division of theInternational Portfolio Bond: Provides a tax-efficient wrapper PruFund range of funds, each available in sterling, euro and Royal London Group. Royal London is the largest mutual lifewith a choice of charging structures and investment in a US dollar. and pensions company in the UK with Group funds underwide range of assets. The International Portfolio Bond also Flexible Protection Bond and Flexible Life Plan are Prudential’s management of £41bn. Group businesses serve aroundoffers access to the UK’s largest independent fund platform, single and regular premium whole of life protection plans. Both 3.4 million customers and employ 2,830 people*.Cofunds. The value of investments in these products is not offer a selection of investment funds and a single or joint life 360° represents a number of significant advantages; theguaranteed and customers may not get their full money back. basis. international nature of its business; the way its employees All the funds available for the company’s products grow largely think and take personal responsibility; and the Company’s tax-free. adaptable approach to meeting tailored requirements. It also offers a range of trusts for inheritance tax planning. * Source: Royal London. All figures as at 30 Sept, 2010SEPTEMBER 2011 [www.international-adviser.com] INTERNATIONAL ADVISER 49
  • 48. INTERNATIONAL LIFE & BANKING LISTINGSLIFE LISTINGS BANK LISTINGSCompany name: CMI Insurance Company LimitedAddress: Clerical Medical House, Victoria Rd, DouglasIM99 1LT, Isle of Man Company name: Clydesdale Bank InternationalTel: +44 (0)1624 638888 • Fax: +44 (0)1624 625900 Address: Clydesdale Bank International, Regency Court, Glategny Esplanade, St Peter Port, Guernsey, GY1 3ZUWebsite: www.scottishwidows.co.uk/ifa Tel: +44 (0)1481 754910Clerical Medical and Scottish Widows have combined forces Company name: Alliance & Leicester International Limitedoperating under the Scottish Widows brand. CMI Insurance Email: james.blower@eu.nabgroup.comCompany Limited (CMI) is Scottish Widows’ specialist Address: PO Box 226 ,19/21 Prospect Hill, Douglas, Isle of Man, IM99 1RY Website: www.clydesdalebankinternational.comoffshore insurance company. Set up in 1987, it has over20 years of offshore expertise into the UK market. Tel: + 44 (0)1624 641 888 • Fax: + 44 (0)1624 663577 Clydesdale Bank International is a branch of Clydesdale Bank, part of the National Australia Bank Group – one ofFinancial strength Website: www.alil.co.im the world’s largest banking groups by market capitalisation.Scottish Widows is one of the longest established providers in We offer savings accounts suitable for individuals, The Alliance & Leicester Group has offered offshore savingsthe country. It is part of the Lloyds Banking Group, one of the companies and trusts and our savings accounts are suitable from the Isle of Man since 1990. Alliance & Leicesterbiggest financial service providers in the UK – providing for inclusion within offshore bonds. Clydesdale Bank International Limited (ALIL) was incorporated in Novemberstrength and security. The Group has over 30 million International is 1996 and offers a range of offshore savings solutions tocustomers and is the UK’s leading provider of current a participant in the Guernsey Banking Deposit Compensation personal customers. From its office in Douglas, ALIL servesaccounts, savings, personal loans, credit cards and Scheme* (details are available from our office on request). account holders in well over 100 countries worldwide.mortgages. Scottish Widows and Clerical Medical have Alliance & Leicester International Limited is a wholly Product offerings£4.3bn free capital, as at the end of 2008, well in excess owned subsidiary of Santander UK plc. We offer a range of savings accounts and fixed termof regulatory solvency requirements. Product offerings deposits with competitive rates, from instant savingsProduct offerings (UK, Channel Islands and Isle accounts to five-year fixed term deposits for £. In addition, Competitive interest rates on a wide range of offshoreof Man) we offer $, C$, €, A$ and NZ$ instant savings accounts. We accounts, including all major currencies.CMI Global Investor – a flexible tax-efficient offshore, single offer current accounts with internet banking and debit cardspremium portfolio bond offering almost unlimited fund choice. in £, $, €, A$ and NZ$.CMI Corporate Investor – an offshore, single premium bond * Deposits with Clydesdale Bank International are not covered by the Financialintended specifically for UK corporate investors. Services Compensation Scheme established in the UK under the FinancialA comprehensive range of trust plans including Gift Trust, Services and Markets Act 2000Loan Trust, Discounted Gift and Income Trust, ExcludedProperty Trust and Probate Trust. Company name: Standard Bank OffshoreCompany name: Standard Life International Address: Standard Bank House, One Circular Road, Douglas,Address: 90 St Stephen’s Green, Dublin 2, Ireland Isle of Man Company name: William Russell LtdTel: +44 (0)845 300 4273 • Fax: +353 (1) 475 4025 Tel: +44 (0)1624 643668 Address: William Russell House, The Square, Lightwater Surrey, GU18 5SS, UKEmail: service@slinternational.ie Email: john.hall@standardbank.com Tel: +44 (0)1276 486455Website: www.slinternational.ie Website: www.standardbank.com/offshore Fax: +44 (0)1276 486466Standard Life International is an Irish life assurance company Contact: John Hall, director intermediary distributionwholly owned by Standard Life Assurance Limited, which has Email: sales@william-russell.combeen set up to sell insurance business from its base in Ireland At Standard Bank, we understand that people with internationalinto the UK, Channel Islands and the Isle of Man. The Standard lifestyles have individual requirements and that no two Website: www.william-russell.comLife group of companies has been looking after its customers expatriates’ needs are the same. Standard Bank Offshore is Contact: James Cooper, sales directorfor over 185 years and currently has over 6 million people ideally placed to help you make the most of your changingworldwide relying on them for their financial needs. circumstances. Our products and services are specifically William Russell are specialists in international life, incomeOur impressive parent means that we attach a great deal of designed to make your financial arrangements simpler and protection and health insurance for expatriate individualsimportance to excellent customer service and quality products. also to assist you in taking advantage of any benefits that your and groups. Our commitment as a global partner supportsStandard Life International was awarded Best Adviser Support new status may present. both our customers and advisers. We offer award-and Customer Services from International Adviser for their winning international insurance plans for expatriates ofInternational Bond in 2010. Our International Bond has been Product offerings all nationalities, and exceptional support for IFAS and ourrated 5 Star by Defaqto for the past 2 years. We have specifically designed a flexible range of bank customers.Product offerings accounts to hold your cash in any major currency. Our accounts will meet your needs, whether you wish to access Product offeringsOur core product is the International Bond. This is an offshoreportfolio bond that provides a tax-efficient wrapper with a money on a regular basis, or are saving for the longer term. Insurance plans providing a level of flexibility and worldwidetransparent charging structure payment flexibility (including We also have a range of structured products, fund investments cover expatriates need to protect their standard of livingrecurrent single premiums) and flexible commission options. and lending services. and their well-being, including Global Life Insurance, GlobalYour clients can choose from a wide choice of investments Income Protection and Global Health insurance.including Insured funds, Mutual funds, whole-of-market funds,deposit accounts and have access to a panel of DiscretionaryInvestment Managers. A comprehensive range of trust optionsis also available, which can be adapted to help meet yourclient’s estate planning needs.50 INTERNATIONAL ADVISER [www.international-adviser.com] SEPTEMBER 2011
  • 49. QROPS Forum South Africa ONE & ONLY HOTEL, CAPE TOWN 20 OCTOBER 2011 settle for more If you are based in South Africa and have clients with UK pensions, then you need to keep up to date with QROPS. The International Adviser QROPS Forum in Cape Town will bring together a group of experts so you can get the latest information on how best to use these highly flexible international pension products.l Complimentary for advisersl Limited number of places availablel Attendance is through registration onlyl Morning event ending with a lunch To register for your complimentary place please go to http://events.lastwordmedia.com For further information please contact vicky.parker@lastwordmedia.com or by phone on +44 (0)20 7065 7564
  • 50. RECRUITMENTRecruitment listingsTo have access to over 10,000 potential candidates globally,book your recruitment advertisement by calling Ben Wiseman on Interested in selling your insurance broker practice… Or at least+44 (0)20 7065 7573 or email ben.wiseman@lastwordmedia.com interested to partner with a larger organisation who can help you with your exit strategy… Regardless of where your business is located?Rates: Full page £6,500 Half page £4,500 Elite Capital Solutions, a growing international wealth management force with Strip £3,500 offices in Dubai, Hong Kong, Singapore and Malaysia, are rapidly expanding their Quarter page £3,000 insurance broker, investment advisory/asset management model and looking to acquire or otherwise partner with established insurance broker businesses. Using leading, cutting-edge technology with some of the biggest names globally, Elite’s business model is everything that you would expect from a high-end broker, investment advisory business. The Elite group are in a unique position to offer an established business owner the opportunity to either sell their business or consolidate with a larger partner, with a very specific plan on how Progressive international to maximise value over a period of time in order for them to retire and achieve a recruitment database level of financial outcome that they might currently think is unachievable. Opening discussions with Elite may give you additional opportunities you Confidentiality with otherwise may not have been able to consider. With the support of a listed UK industry knowledge investment bank plus other international institutions the Elite group is worth assured talking to. Reputation built on results Send your business details to Phil@elitecapitalsolutions.com or phone our chief executive officer, Mr. Phil Neilson, at (852) 90331964 for a strictly confidential and +44 (0)1785 814141 private discussion. recruitment@wmrecruit.com Elite Capital Solutions HK Ltd, 15F Printing House, 6 Duddell Street, Central, Hong Kong. Website: elitecapitalsolutions.com www.wmrecruit.com52 INTERNATIONAL ADVISER [www.international-adviser.com] SEPTEMBER 2011
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  • 54. www.international-adviser.comSpain remains top spot for Tony Shah, associate director, international division, at Christ-UK retirees: Standard Life church Investment Management, sharesBY HELEN BURGGRAF looked at where its cus- Switzerland, Greece, tomers were asking their Jamaica, Netherlands, his strategy for advisingSpain remained the top annuity payments to be Sweden, Barbados and the during times of volatilityretirement destination for sent. Philippines.Britons last year, despite Compared with last Standard Life head OPINIONits debt woes, youth unem- year’s list, France dropped of pension policy Johnployment, falling residen-tial property prices and abacklog of unsold newly- to fourth place from second, the US stayed in third place, Ireland Lawson emphasised that making the dream of retir- ing abroad come true Keeping your head when allbuilt homes, data minedfrom Standard Life’s cus- remained in fifth place, and Canada dropped out requires careful planning and advice. about you are losing theirstomer base reveals. of the top five. “Many people think While average investors At Christchurch, we Australia, which was not In order, the top 20 living abroad is cheaper are only too happy to have had to adapt our busi-in Standard Life’s top five countries to which Standard than living in the UK, but invest in the world’s major ness to these changing con-retirement destinations last Life sends annuity payments this is not always the case,” foreign markets, they are ditions, and now structureyear, is now the second are: Spain, Australia, the US, he added. not always comfortable client portfolios on an assetmost popular place for France, Ireland, Canada, Just over 3,000 cus- with the greater volatil- allocation basis, wherebyBritons who have retired New Zealand, Cyprus, tomers were included in ity and uncertainty such capital is spread betweenabroad, according to the South Africa, Germany, the data, a Standard Life investments typically incur. all the major asset groups.life insurance giant, which Italy, Portugal, Thailand, spokesman said. Over the past decade The idea is that since we have seen a number of these asset classes are major market fluctuations not correlated, one sectorBritons still getting into trouble overseas over short periods, such as during the dotcom crash in should be rising, or at least holding its value, as anoth-The number of Britons problem for UK citizens in 2000-01, the banking crisis er one tumbles.arrested overseas fell by FO incidents some countries, particularly in 2008 (which ultimately The percentage in eachmore than 10% in the Rank Country Cases in parts of South America led to a major global reces- asset class is dictated by12 months to the end of and the Caribbean, where sion), and most recently, the client’s risk profile 1 Spain 4,971March, as overseas jour- a high proportion of total an international stock and investment objectives.neys fell, but the UK’s 2 US 1,673 arrests are drug related, the market collapse rooted in Fund selection is also a keyForeign Office said its staff 3 France 1,283 annual ‘British Behaviour concerns over the level of requirement, and our proc-still handled 5,700 arrest 4 Thailand 967 Abroad’ report showed. debt held by such coun- ess is to select the top quar-cases abroad last year. 5 Greece 797 Although fewer Britons tries as Greece, Italy, Spain, tile funds within each asset The Philippines was the travelled outside the UK Cyprus and even the US. allocation class, and regu- Source: Foreign & Commonwealth Officecountry in which Britons during the past year, the For advisers, the ques- larly monitor the chosenwere most likely to require topped the list for Britons number of those hospital- tion is how you manage funds’ performances.assistance, when visitor and in trouble, with 4,971 cases ised abroad grew by 1.7% client portfolios during Last but not least, weresident numbers are taken requiring consular assist- to 3,752 cases, the Foreign volatile times – particular- strive never to forget thatinto account, followed, ance – down 5.9% from the Office noted. A total of ly when your clients are we are in the people busi-in order, by Thailand, previous year. 5,972 died abroad, up from expecting you to deliver ness, and managing clients’Pakistan, Cyprus, India and Although down by 20% 5,930 the previous year. realistic growth, no matter expectations is ultimately asSpain. In terms of absolute overall, drug arrests con- Lost and stolen passports what is happening on Wall important as the construc-numbers, though, Spain tinue to be a significant fell slightly, to 25,969. or Threadneedle streets. tion of their portfolios. Winner: Best QROPS Provider 2011 +44 (0)20 8209 9251 info@overseaspension.com www.overseaspension.com The Overseas Pension Scheme, Fairbairn House, PO Box 192, Rohais, St Peter Port, Guernsey. GY1 3LT56 INTERNATIONAL ADVISER [www.international-adviser.com] SEPTEMBER 2011