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Investors Trust Ad Investors Trust Ad Document Transcript

  • JULY 2011For Distributors of International Fund, Life and Banking Products www.international-adviser.comNEWSCenturion suspendsredemptions on life fund 3 UK orders shake-up of AES, Pershing and PræmiumDubai companies aretargeting NRIsFund managers are 3 residency and domicile go live with new platforms‘unprepared’ for FATCA 3 BY HELEN BURGGRAF make it much more attrac- tax incentives, including tive for non-doms to invest a reduction in inherit- The growing use of plat-HMRC approves IoM’s Two UK Treasury papers in the UK, by allowing ance tax when 10% or forms by financial advis-QROPS legislation 5 currently in consultation them to bring in income more of an estate is gifted ers and their internationalNew Zealand’s FMA with the industry prom- from foreign investments to charity. clients as a place to con-warns pension provider 5 ise to bring about a radi- without incurring tax, as The IHT consultation solidate their investments cal overhaul of both the long as they reinvest it will run until 31 Aug, while is reflected in the almostEquity Trust appeals residency system and the onshore. responses to the residency simultaneous coming toagainst HMRC ruling 6 tax treatment of non-doms It will also increase the and domicile consultations market this month of threeIsle of Man unveils living in the UK. annual remittance charge will be accepted until 9 new ones.marketing shake-up 6 The first looks at creat- levied on those non-doms Sept. So far the industry AES International, ing a statutory definition who have been in the UK response has been gener- Pershing and Præmium areIrish Life Int’l adds to of tax residency, ending for at least 12 of the last 14 ally positive. all in the process of goingfunds on Select List 8 the current, often-criticised tax years to £50,000 annu- For more on the live with new platforms,Kleinwort buyout of Close system in which tax experts ally, from £30,000. residency consultation, see which take advantage ofOffshore is completed 8 have to make what amount An earlier consultation, page 31-32 for an anal- advances in technology to to educated guesses based also unveiled last month, ysis by Gerry Brown, IA provide more features andAES Int’l removes EEA on looking at case law. involves a plan to boost tax panelist and head of services than most olderfund from its list 11 The second will shake R&D and charitable dona- trust and tax at Prudential platforms currently onUS adds to expat tax up the domicile rules to tions through the use of International. the market, according toreporting rules 11 spokesmen from all three Offshore bond sales leapt 38% in 2010 companies.Kaupthing IoM depositors All three firms alsoclaim Iceland victory 13 accommodate internationalLehman mini-bonds BY MARYROSE FISON UK offshore bonds rose to £6.4bn in 2010 from investors, although eachsaga draws to a close 13 £4.6bn the previous year, has its own approach and Sales of UK-distributed Year UK (total new according to new figures target market.Kremer is elected offshore bonds enjoyed a premiums £bn) released by the Association AES International haspresident of EFAMA 14 jump of 38% last year, as ’08 7.78 of British Insurers. had its platform up andFund manager undeterred the market rebounded from ’09 4.63 This represents around running – for use by theby Southern Cross 14 its 2009 low. half the size of the stocks company’s own IFA net- ’10 6.4 Several factors con- and shares Isa market, work – for two years,FPI aims to boost onshore tributed to the increase, ’11* 1.55 which was worth £12bn in according to Sam Instone,take-up of products 17 according to life industry Source: Association of British Insurers the tax year 2009-10. managing director at AES, * First quarter only experts, including the UK Life industry experts who said this has enabledRL360° rolls out splittrust option for UK 17 Government’s decision to tax authorities were con- say the rebound seen in it to fine-tune its workings. cap at £50,000 annually the sidering cracking down on 2010 is expected to con- “But now we are launch-Percentage of female and amount people may con- the products and closing tinue this year, and are ing it to IFAs outsideyoung HNWIs grows 56 tribute to their pensions loopholes. planning their businesses our network for the first without incurring tax. The Total new premiums for accordingly. time, beginning on 1 July,” Features – page 2 gain also occurred in spite all UK-distributed single- For more details go to www. he said. of concerns that the UK premium offshore business international-adviser.com Continued on page 5News Analysis 18-19 MD profile 21-22 Country profile 25-26Speaking ‘offshore’ Fabrice Sauvignon Dubai All but writtenA guide to some The new CEO off following theof the unusual of La Mondiale global downturn,words you might Europartner Dubai is regaininghear if you spend reveals his cross- its confidence astime in the offshore border business other Gulf centresfinancial centres philosophy erupt in turmoil
  • contents ANALYSIS PROFILES TECHNICAL PORTFOLIOOffshore terminology Country profile: Briefing: UK statutory Fund selector: Global 18-19 Dubai 25-26 residence test 31-32 high yield bonds 35-38In many places around the world, While much of the Middle Historically, the rules concerning The sector may seem to providelocals have invented words to East and North Africa has been residency in the UK for taxation an inexpensive way to generatedescribe the foreigners who live consumed by political upheaval purposes have caused confusion income, but one cost has always recently, Dubai has proven an and resulted in a number of been high volatility. OBSR’son their shores; these words, oasis of calm, thanks in no high-profile court cases. This is Anthony McDonald analyses thein turn, are often adopted by set to change with the proposed top-performing funds over threethe foreigners themselves. For small part to the emirate’s ruler, Sheikh Mohammed bin Rashid Al introduction of a statutory years, as newcomers and by AUMmany, moving to live and work definition of UK residency Maktoum, who has managed toin offshore centres can involve STATISTICSlearning to speak a new language Managing director create an environment in which profile: Fabrice people are encouraged to make– even where English is spoken money and live prosperously The IA Quality Funds Sauvignon 21-22 41-46 The newly appointed chief executive of Luxembourg-based Intermediary profile: A list of the blue chips FEIFA 28-29 of the offshore fund world La Mondiale Europartner talks about the ‘general account’, a As the trade association concept the firm has introduced celebrates its second anniversary, Banking deposits 49 to the UK that can be used to chief executive Paul Stanfield The top-paying offshore accounts offset volatility. He sees the Retail talks about the success it has Distribution Review as a good had in bringing together English- CLASSIFIEDS opportunity for cross-border life speaking advisers from across offices, allowing his company the continent, and in making it Life listings 50-51 Recruitment 53-55 to demonstrate its values to both easier for individual members Find the job that suits you in IFA advisers and end customers to cope with EU regulations Service listings 52 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 Eleanor Wan David Bojan Mahmoud Brian Murphy Neil Chadwick Chief executive Managing Nodjoumi Senior financial Technical officer, Institute of director, HFS Chairman and planning manager, Royal Financial Planners Asset Mgt, chief exec, Nexus manager, London 360º Hong Kong 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] JULY 2011
  • NEWS NEWSMalta FSA getsdragged into Centurion redemptions on IN BRIEFbattle over La traded life fund suspended EEA fund gets Singapore approvalVallette fund BY SIMON DANAHER It explained that a sig- its books, it would do so EEA’s Life Settlements Fund has beenBY HELEN BURGGRAF nificant shift in the expect- at a loss. registered for sale in Centurion Fund Managers ed discount rates on the To rectify this, Centurion Singapore. InvestorsThe Malta Financial Services has temporarily suspend- purchase of life policies in plans to move all existing there will be able toAuthority has been drawn ed redemptions from its the US, from an average assets into a newly created gain direct access tointo an increasingly fierce traded life policy Argent of between 10% and 16% “side pocket” until “market the absolute returnrow between hundreds Fund, and warned those at the time of purchase to conditions improve and fund for the first time.of investors in a poorly- investors who do wish more than 25% in the cur- death benefits occur”. The The fund manager isperforming property fund to redeem that they risk rent market, coupled with firm expects the market to expanding in Asia and– managed by a Bank of losing up to 50% of their a “lower than anticipated improve in between three opened its first regionalValletta (BoV) joint ven- original investment. level of policy maturities” and five years. office in Singaporeture with UK-based Insight In a letter sent to in the portfolio, had creat- But those who wish to earlier this year.Investment Management shareholders last month, ed a “liquidity imbalance” redeem now will not have(Global) – and the bank. Centurion said it decided in the Argent Fund. their shares moved to the Wheatley leaves The battle over the to take the action to pro- The increase in the side pocket, and are likely HK for London roleLa Valette Multi-Manager tect existing investors in discount rate effectively to lose a significant amount Martin Wheatley hasProperty Fund is being the fund after it received means that, should Centur- of their initial investment stepped down from hisseen by some as a test redemption requests from ion decide to sell any of when their assets are sold. role as chief executiveof the MFSA’s proficiency “several large investors”. the life policies it has on Continued on page 6 of Hong Kong’sas a regulator at a time Securities and Futureswhen Malta, which joinedthe EU in 2004, is seek-ing to establish itself as a Dubai companies show increasing interest in NRIs Commission. He is returning to the UK to head up the Financialworld-class financial serv- Advisory firms and life expatriate population. Conduct Authority,ices centre. companies based in Dubai Friends Provident Inter- which will replace the Events were continuing are increasingly targeting national (FPI) has also FSA, in September.to unfold as IA went to the non-resident Indian identified the NRI marketpress, because a settlement population as they seek to as a growing client base.offer announced in May diversify their client base Matthew Waterfield, IFIA planning to openby the BoV to buy back away from UK expats. general manager Middle five new officesshares in the beleaguered Firms such as Mondial East and Africa at FPI, said: The Irish Fundsfund from the investors, at Financial Partners and “There are key differences Industry Association isa price of €0.75 ($1.07) a Holborn Assets have been in the way the NRI market to open representativeshare, was due to expire actively recruiting advisers looks at financial planning offices in the US andon 30 June. from Indian and Pakistani Waterfield: ‘key differences’ compared to Westerners,” the UK in a joint Many investors were said backgrounds to target he said. “For example, venture with IDAto be reluctant to accept these areas of the market. Asian. Within this it is esti- extended family is impor- Ireland, the Irishwhat they regarded as an According to official mated that around half tant to Indians, so our pro- government’s inwardinadequate price for their estimates, around 85% of are from India and just tection and saving products investment agency.shares, particularly while the population of Dubai over 15% are Pakistani. In will be attractive to them.” The association willfull details of the findings of is made up of expats, of comparison, Westerners See Country Profile on have representativesan MFSA investigation into which around 70% are make up around 3% of the page 25-26 on the ground in Newthe BoV fund were only York, Boston, Chicago,just beginning to be made Atlanta and London.available, although only tocertain investors. This was Fund managers ‘unprepared’ for FATCA Vistra Jersey acquiresan about-face by the MFSA, Fund managers and invest- said, in unveiling its find- the Foreign Account Tax Herald fundswhich initially said it would ment managers are largely ings last month. Compliance Act (FATCA), Vistra Jersey hasonly publish the conclu- unprepared for the impact The new law is also while 45% of fixed income acquired funds undersions of its investigation. of new US legislation that going to cause some inves- funds and 42% of equity the administration of Following its inves- will oblige non-US finan- tors to sell out of their US funds refused to rule out Herald Fund Services,tigation, the MFSA said cial services firms to regis- holdings, the report finds, the possibility of leaving a member of thelast month that it was to ter with the US tax authori- although exactly how the US market as a result Herald Group infine the BoV and Valletta ties if they have US clients many or on what scale has of the legislation. Jersey. Existing clientsFund Management or assets, a report from yet to be seen. FATCA, which will and Herald’s fund€347,816 for regulatory KPMG has warned. Some 6% of the fund require details of US cli- administration staffbreaches in connection Only one-third, or 32%, promoters across 12 coun- ents with assets in excess will join Vistra in July.with the fund, which, of fund managers sur- tries who were interviewed of $50,000 to be passed tothough not significant by veyed, expect to be ready by KPMG’s researchers the US Internal Revenue For the current and allinternational standards, in time for the deadline, said they definitely would Service, comes into force previous editions, withwas said to be the largest “and a significant 42% have disinvest from both the US on 1 Jan, 2013. full news archive, go tofine ever imposed by the not yet assessed the time equity and fixed income The survey may be found at www.international-adviser.comMFSA in such a case. needed to comply”, KPMG markets as a result of www.kpmg.com.JULY 2011 [www.international-adviser.com] INTERNATIONAL ADVISER 3
  • Financial Strength Rating A M BEST B++ Good
  • NEWS NEWS HMRC gives nod to Isle of IN BRIEF Man’s QROPS legislation UK and China sign double tax treaty BY HELEN BURGGRAF at this point had already effectively halted. A new double taxation received letters saying that At that point, just one treaty has been agreed HM Revenue & Customs they had been accepted, 50c scheme, Boal & Co’s by China and the has signed off on the Isle and giving them a QROPS Trinity Plan – which was UK. This replacesBatty: pensions unit relaunch of Man’s 50c QROPS legis- number. initially registered in the existing treaty lation, allowing companies Among these schemes October 2010, shortly after that was signed inJohn Batty is that had schemes awaiting the regulator’s acceptance is the Baker Tilly Isle of Man QROPS Sipp, and the 50c-enabling legislation was passed – had made it July 1984. One of the main changes isnamed head to begin to market them to clients. IoM-based pension pro- vider Sipp Specialists’ Sipp onto HMRC’s all-important list of QROP schemes. that withholding tax on dividends from a The formal notification Specialists 2010 Scheme. Pre-existing Isle of Man Chinese company isof pensions at that HMRC had completed The Isle of Man unveiled QROPS, which had been reduced to 5%, as long a review, announced in its new 50c QROPS legisla- set up before the legis- as the recipient is aBW Oakfield December, was received at tion last year, but after lation was approved that UK company owning at least 25% of the the end of last month. HMRC announced its made the 50c QROPS pos-Isle of Man-based BW However, a number review, the registration of sible, were not affected by shares. Previously theOakfield Group has of Isle of Man companies any new 50c schemes was the review. withholding tax rateappointed John Batty as was 10%.head of pensions, a newposition, as the company New Zealand’s FMA issues warning to pensions Global Benefitslooks to expand its pen- promotes Macdonaldsion operations. provider SuperLife Trustees over sales practices Angela Macdonald For the last two-and-a- is to head up saleshalf years, he has been BY SIMON DANAHER investors to be wary of need to make an informed in Africa for Globalbusiness development “unacceptable” sales prac- decision. Benefits Group,manager for the insurance The New Zealand Financial tices being used by unreg- The FMA said it is also the London-basedand pensions sector at Isle Markets Authority has told istered KiwiSaver sales rep- concerned about the dis- international group lifeof Man Finance, the island’s QROPS and pension pro- resentative Patrick Diack. tribution practices of and disability insurancefinancial services business vider SuperLife Trustees According to the FMA, the SuperLife KiwiSaver specialist. The positionpromotional office. to “overhaul” its sales Diack’s sales approaches Scheme, a registered is a new one and was Prior to this, he was practices for its KiwiSaver included soliciting mem- QROPS. created in responsetechnical manager at Axa products. bers of the public out- Hughes said: “From 1 to recent growth inIsle of Man, and before FMA chief executive side Work and Income July, FMA will monitor the company’s Africathat worked for HSBC Sean Hughes said he is (employment centre) offic- compliance by KiwiSaver business. She has beenInsurance in Dubai. seriously concerned about es, offering clients money providers with their working for Global Batty’s appointment a number of matters to join a KiwiSaver scheme obligations under the Benefits for the pastcomes a few months after regarding SuperLife’s sales and signing clients up to Financial Advisers Act. four years.BW Oakfield, a division practices, potential non- scheme membership with- We will not hesitate toof UK-based Kreston Inter- compliance with the law out providing them with take enforcement action ML Capital readiesnational, merged with EIS and “apparent poor moni- the investment statement against KiwiSaver provid-Advisors, an Isle of Man toring of the activities of its – the disclosure document ers who fail to ensure they Skyline Ucits Fundaccountancy firm. sales force”. that provides investors comply with their legal ML Capital is poised BW Oakfield is a corpo- The FMA also urged with the information they requirements.” to launch a Ucits fundrate services provider that that will feature onmanages and administers the Montlake Ucitsmore than 600 trusts andcorporate entities, with Three firms roll out platforms this month platform and begin trading on 1 Aug,underlying assets worth Continued from page 1 with its new, multi-currency Pershing Adviser Solutions, subject to regulatorymore than £2bn ($3.2bn). Instone described the plat- offshore platform, has been according to Paul Bayliss, approval. The Skyline At BW Oakfield, Batty form as an equity- and fund- approved. Once it is, it will the firm’s head of adviser Ucits Fund willwill head up the compa- focused, open-architecture be all systems go, accord- and retirement solutions. operate a global long/ny’s pensions unit, which facility that is intended for ing to John Martin, MD of Although the new plat- short mandate withis being relaunched under use by IFAs, wealth man- Præmium’s London-based form is UK adviser/wealth a particular focusthe Kreston International agers and execution-only UK operation. manager-focused, it accom- on emerging markets.brand. clients. The Præmium Discre- modates offshore funds, ML Capital expects the launch to be the BW Oakfield group As International Adv- tionary Platform Service is and has “already engaged largest to date onmanaging director Stewart iser was going to press, intended to be accessed with a number of clients in the Montlake UcitsDavies said Batty’s “signifi- Australia-based plat- by discretionary managers Ireland”, Bayliss said. platform.cant contacts worldwide” form provider Præmium looking to provide services He described Pershing’swould help the firm to was awaiting word from for adviser firms as well target audience as “growth- For the current and allincrease its international Jersey’s Financial Services as their own client base, oriented, advice-based previous editions, withtrust services business. Commission that its appli- according to Martin. firms [which look after] full news archive, go toSee Isle of Man marketing cation for an asset manage- Pershing is also poised clients with complex fin- www.international-adviser.comstory on page 6 ment licence, in connection to formally unveil its new ancial lives”.JULY 2011 [www.international-adviser.com] INTERNATIONAL ADVISER 5
  • NEWSCySec warnsinvestors about Equity Trust appeals against Redemptions suspended onunregulatedasset manager HMRC ruling on Singapore Centurion TLP Continued from page 3 BY SIMON DANAHER “window” of between 10 lated by the Singaporean Centurion has givenThe Cypriot investment reg- Nov, 2011 and 12 March, pension regulator, when in investors until betweenulator is warning investors Equity Trust last month 2012 in which to be heard. fact it could have been, also late June and early July tonot to use asset manage- filed an appeal against a Equity Trust’s Singapore- as required under QROPS decide whether or not theyment company Plaza Capital High Court ruling which based Recognised Overseas rules. Equity Trust has wish to redeem.as it is not authorised. decided in favour of HM Self Invested International consistently refuted these In addition to creat- The Cyprus Securities Revenue & Custom’s deci- Pension (ROSIIP) had its arguments. ing the side pocket, theand Exchange Commission sion to remove the QROPS QROPS status removed The ruling, if it stands, company is to change its(CySec), which licences status of one of its schemes. in 2008 after HMRC could pave the way for the pricing model from theCypriot investment firms, As International Adviser decided that it did not Revenue to tax the more mark-to-model, wherebyreleased a statement last was going to press, no satisfy the criteria set than 100 investors in that the fund’s value is dictatedmonth warning inves- hearing date had been out in the Finance Act 2006 scheme up to 55% of the by actuary assumptions ontors that the company is given. for QROPS. amount they had trans- life expectancy, to mark-not permitted to provide After Equity Trust filed On 20 May, a High ferred into ROSIIP. to-market, meaning the“investment and ancillary its appeal, both it and Court judge decided that Panthera managing price is dictated by theservices” in Cyprus. HMRC had 14 days in ROSIIP was not open to director Bethell Codrington rate it can be sold at on CySec said Plaza Capital which to submit a skel- Singaporean residents, as said he could not comment the market.has never been authorised eton case to the Court of required under QROPS on the case because it was Centurion said itin Cyprus as an investment Appeal. The case has a rules, and was not regu- ongoing. believes it is the first tradedcompany, bank or coop- life policy company to do Isle of Man marketing shake-up unveilederative to provide invest- this, and said it is able toment services. It added do so using the valuesthat it has not been con- given to it by investmenttacted by any other EU BY HELEN BURGGRAF the new strategy. banks on a monthly andmember state regulator to AND MARYROSE FISON The IoM expects to quarterly basis.confirm that Plaza Capital announce an appointment Director of the fundhas any form of investment The Isle of Man govern- on 21 July, the spokesman David Rawson-Mackenzieauthorisation. ment has unveiled a radi- said. said: “We are giving our According to its web- cal shake-up in the way it The creation of a new investors the opportunitysite – which offers trans- promotes its financial serv- strategic body, consist- to remain in the fund andlations from the original ices and related industries, ing of between 12 and 20 benefit from the continu-Greek into both Russian which will involve the industry representatives, is ing maturity of policies andand broken English – Plaza creation of a new “public also planned, to help drive an expected upturn in theCapital provides asset man- private sector promotion the strategy forward as it is life settlement market.agement and cash depos- model”. Spellman: market changes cited rolled out. “As a fund manager, Iit services to individuals This new promotional John Spellman, spe- did not want to make alland “trustees”, although its model will provide for the The new initiative will cial adviser to the Isle of of our investors pay for thedefinition of trustee is not sharing of resources and start with the island’s fund Man government, said the decision of some, which isgiven. funding between all par- management and admin- government was react- why we have decided to The website, which has ties, the IoM’s Department istration industry, with ing to changes in the create the side pocket tothe slogan “based on expe- of Economic Development other island industries set marketplace. protect the assets.”rience, racing the time”, said in a statement. to follow. Allan Bell, the island’s He added that a majorclaims that the company The total budget for Among the first actions Economic Development reason the market discountis a leading investment financial services promo- expected to be taken minister, said the IoM’s rate for policies has reachedbank and lists addresses in tion will be more than £2m include the recruitment new promotional strategy current levels is the forcedCyprus and Russia. and less than £5m, spread of direct marketing rep- seeks to employ what he selling of around $6bn In its warning letter, over two years, an Isle of resentation in London for has always regarded as worth of assets by BelgianCySec urged investors to Man spokesman said. He the funds sector, and the one of the Isle of Man’s bank KBC last year. Manyconsult companies’ web- added that this is a marked appointment of a head of strongest attributes, “the of the assets were of “dubi-sites to confirm whether a increase in the budget com- financial services develop- close working relationship ous origin”, which forcedbusiness is regulated prior pared to last year, but did ment, whose job it will be between the public and policy sellers into discount-to using its services. not provide details. to manage and coordinate private sector”. ing heavily in order to sell. Stephen Grasso Head of production Mark Jennings Head of online Keeley Parsons Circulation manager SUBSCRIPTIONS T +44 (0)20 7065 7571 T +44 (0)20 7065 7562 T +44 (0)20 7065 7578 subscriptions@lastwordmedia.com or go to www.international-adviser.com E stephen.grasso@lastwordmedia.com E mark.jennings@lastwordmedia.com E keeley.parsons@lastwordmedia.com PUBLISHERHelen Burggraf Acting editor Dean Andrews Production editor Emily Proctor Head of event operations Tom Porter Manager director (Asia) Last Word Media (UK) Ltd, 4th Floor,T +44 (0)20 7065 7568 T +44 (0)20 7065 7570 T +44 (0)20 7065 7561 T +65 9781 3401 120 Moorgate, London EC2M 6UR, UKE helen.burggraf@lastwordmedia.com E dean.andrews@lastwordmedia.com E emily.proctor@lastwordmedia.com E tom.porter@lastwordmedia.com Last Word Media (Asia) Pte LtdSimon Danaher Senior online reporter Ben Wiseman Associate publisher Victoria Parker Senior event coordinator Level 25, North Tower, One Raffles Quay Jamie Hinchliffe Publishing director Singapore 048583T +44 (0)20 7065 7577 T +44 (0)20 7065 7573 T +44 (0)20 7065 7564 T +44 (0)20 7065 7572E simon.danaher@lastwordmedia.com E ben.wiseman@lastwordmedia.com E vicky.parker@lastwordmedia.com E jamie.hinchliffe@lastwordmedia.com PRINTING Ian Allan Printing Ltd, Hersham,Dylan Emery Editorial director Giles Whittingham Sales executive Elspeth Campbell Events assistant Rod Boulogne Managing director Surrey KT12 4RG; Tel +44 (0)1932 266600T +44 (0)20 7065 7565 T +44 (0)20 7065 7579 T +44 (0)20 7065 7583 T +44 (0)20 7065 7560E dylan.emery@lastwordmedia.com E giles.whittingham@lastwordmedia.com E elspeth.campbell@lastwordmedia.com E emily.proctor@lastwordmedia.com 9,898 July ’09 – June ’10 6 INTERNATIONAL ADVISER [www.international-adviser.com] JULY 2011
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  • NEWSKleinwort completes its Irish Life Int’l boosts rangebuyout of Close OffshoreKleinwort Benson hascompleted its acquisition Sally Tennant, chief exec- utive of Kleinwort Benson, of funds on its Select Listof Close Offshore Group. said: “The acquisition of BY SIMON DANAHER Conor McCarthy, head The acquisition, which Close Offshore Group fol- of sales and marketing,was announced in March lows our strategy of devel- Irish Life International is said: “The development ofthis year, is for a cash oping our offshore capabili- increasing the number the new suite is in responseconsideration of £26.4m ty. This strategic acquisition of funds accessible via to market demand for a($42.3m), subject to post- adds scale to our banking its insurance products quality-focused range ofclosing adjustments, and and fiduciary businesses through a new fund range internal funds. The prod-comprises Close’s private and will enhance our client called Select List. ucts now offer the bestbanking, fund administra- offering with the addition The Dublin-based life of both guided and opention, fund management, of innovative products and insurance company said architecture.”trust and asset manage- new distribution channels. the new range, which In February, SEB Life,ment businesses across The combined business will is available through its McCarthy: ‘market demand’ a subsidiary of the SEBGuernsey, Jersey and the have strength and depth in Portfolio products, will Group, a large, publicly-Isle of Man. terms of its people, services “significantly” increase the Global Investors/Gartmore, traded Stockholm-based Kleinwort said the and systems.” number of funds available BlackRock, HSBC Global bank and financial servicesacquisition will increase the Kleinwort Benson is to clients. Asset Management, Mor- provider, announced it hadsize of its private wealth a wholly-owned subsidi- ILI said there will ini- gan Stanley Investment agreed a purchase of ILIassets under management ary of RHJ International, tially be 80 funds available Management, JPMorgan from its parent, Irish Lifeby £1.6bn ($2.5bn), and a Brussels-based holding on the new fund platform Asset Management and & Permanent Group hold-extends its offshore reach firm. It was sold to RHJ in from across all the main Schroders. ings, for €26m ($37.5m).into South Africa and 2009 by its previous owner, asset classes offering inves- ILI said Select List will The deal, which isthe Isle of Man. It is also Germany’s Commerzbank, tors geographical and man- be made available first in expected to complete thisexpected to strengthen the which gained it when it ager diversification. Belgium and Spain, with month, is currently await-firm’s banking proposition acquired Dresdner bank The range will include the new fund options ing regulatory approv-in terms of liquidity and in 2008 from German funds from asset manag- being rolled out to other al by the Central Bankcapital. insurer Allianz. ers including Henderson jurisdictions at a later date. of Ireland. QROPS from a provider you trust With an ever increasing number of QROPS providers in For further information, please contact: the market place, identifying bona fide schemes can be Clive Barton, Senior Partner a problem. With Moore Stephens, you can be assured that Tel: (0)1534 880088 our Guernsey based QROPS is a fully regulated and HMRC E-mail: info@moorestephensqrops.com recognised pension scheme. With over 600 offices located in 98 countries, Moore Stephens is well placed to offer a fully integrated service for all your clients’ needs, including the most commonly overlooked aspect, the tax treatment of the QROPS in the client’s country of residence. www.moorestephens-jersey.com PRECISE. PROVEN. PERFORMANCE. Moore Stephens is regulated by the Jersey Financial Services Commission in the conduct of Trust and Company Services Business and Fund Services Business.
  • 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
  • HMRC QROPSQROPS has only one face Approved Offshore BondThe Close Guernsey Personal Retirement Plan links to major life companiesThe ideal offshore pension for UK expatsKey benefits for you the Advisor Advise on your clients’ pension assets, wherever they live Upfront commissions & ongoing quarterly remuneration A Blue Chip pension provider Competitively pricedKey benefits for your clients Pension income paid without the deduction of income tax (excluding Guernsey residents) No capital gains tax or income tax charged on the assets within the Plan Consolidation of UK pensions in an offshore structure No cap on value of transfer(s) or contribution(s) Multi-currency – £, e, US$ Tax, estate, domiciliary & succession planning Competitive pricing Diverse investment choice Experienced administrators Established since 2006 Well regulated jurisdictionContact us today for full product details andspecialised broker promotional support.Adrian Flambard – Managing Director, Business DevelopmentTel +44 (0)1481 726014. Email qrops@closeam.comwww.closeqrops.com/iaThis is a financial promotion and is not intended as investment advice.For Professional Advisors only and not for distribution to retail clients.Close Trustees Guernsey Limited is licensed under the Regulation of Fiduciaries, Administration Businesses andCompany Directors etc. (Bailiwick of Guernsey) Law, 2000 and regulated by the Guernsey Financial ServicesCommission. Its registered office is at Trafalgar Court, Admiral Park, St Peter Port, Guernsey, Channel Islands,GY1 2JA, registration number 5737. Close Trustees Guernsey Limited is a subsidiary of Kleinwort BensonChannel Islands Holdings Limited, the ultimate parent of which is RHJ International S.A. which is listed on theBrussels Stock Exchange. BW_5734_V4_13062011
  • NEWSBrewin Dolphin toacquire Tilman AM Adviser group removes EEAfor up to £31.5mBrewin Dolphin is to pur-chase Irish asset manager fund from its approved listTilman for as much £31.5m BY SIMON DANAHER because it aims for the list cerns on research conduct-($50.5m), as it looks to to be as risk-averse as pos- ed by WL Consulting.capitalise on investors’ dis- Adviser group AES sible and, pending a suffi- EEA marketing directorsatisfaction with banks and International has removed ciently reassuring explana- Peter Winders denied that Smith: ‘particular expertise’other institutions. the EEA Life Settlements tion from EEA, it felt it ViaSource – while serving Brewin will pay an initial£18.3m ($29.3m) upon Fund from its list of approved funds, after rais- prudent to remove the fund – something it said it does as the fund’s US-based spe- cialist investment adviser – Nigel Smith tocompletion of the deal,with a further £13.2m ing concerns with the fund’s manager, EEA Fund “all the time” with funds, along with adding them. valued the fund, and added that he was disappointed head deVere’s($21.1m) payable in Dec-ember 2014, dependent on Management. The fund’s managers Among its concerns, AES said, was the relation- the fund had been removed on the basis of a report he internationalthe performance of Tilmanto September 2014. said AES’s concerns were unfounded, and the infor- ship between ViaSource, the US-based company understands was commis- sioned by a competitor and technical team The entire consideration mation on which it made responsible for valuing the which he said was “factu- Nigel Smith has joined theis payable in Brewin its decision was based on assets of the traded life ally incorrect and arguably deVere Group as globalshares, with Tilman to be inaccurate research. policies fund and EEA, misleading and biased”. technical manager, a newrenamed Tilman Brewin AES said the fund was which it said left open the “We pride ourselves on position that the companyDolphin. primarily removed from its potential for a conflict of transparency and welcome said was created to support The rationale behind list of approved funds interest. AES based its con- calls,” he said. its international expansionthe deal centres on the plans while offering moreopportunity created by cli- services to its clients.ents “moving from banksand other institutions, US adds to expatriate tax reporting rules Until the end of last year, Smith, who is based inwhich were dominant in BY HELEN BURGGRAF pliance Act approaches. than $50,000 will have to Malta, had been head ofour field” as a result of For years, US citizens begin filing a new docu- wealth managementthe Irish financial crisis, The US Internal Revenue with offshore bank ment, known as “new (Middle East) for FriendsBrewin said. Service has added to the accounts have had to file a Form Number 8938”, Provident International “We are excited about information it requires from Foreign Financial Account according to David Treitel, (FPI), the Isle of Man-basedthe prospect of capitalising US citizens who have over- Reporting (FBAR) form, tax director at US Tax & international arm ofon what we perceive as a seas banking and invest- annually, whether they live Financial Services, a Resolution’s Friends Lifebig opportunity in Ireland,” ment accounts – including in the US or abroad. London-based company Group.said Jamie Matheson, exec- those living abroad – while Some individuals also which specialises in look- At FPI, Smith has beenutive chairman of Brewin bowing to pressure to have to inform the IRS ing after the tax matters of succeeded by Alan Loader,Dolphin, a London-based amend its latest tax amnesty about any investments they expatriate US citizens. whose title is technicalprivate client wealth man- programme, criticised for may have in so-called pas- The first of these to be manager, and who hadager with AUM of £25bn being particularly tough. sive foreign investment filed by US taxpayers will been technical and devel-($40bn). The latest measures companies (PFICs), foreign report on assets they have opment manager in Tilman had funds under come as the 1 Jan, 2013 companies, foreign part- held since 1 Jan, 2011 and individual and corporatemanagement of £807m start date for the imple- nerships and foreign trusts. the potential penalties savings at Zurich($1.2bn) as at 30 April, 70% mentation of the US’s However, beginning in for failing to file this new International Life.of which are managed on a increasingly controversial 2012, those with foreign form “are substantial”, Smith is a 25-year vet-discretionary basis. Foreign Account Tax Com- financial assets of more Treitel said. eran of the industry and has particular technical expertise in the areas ofBank deposits in Crown Dependencies flatline in Q1 taxation, trusts and finan- cial planning matters,The total value of deposits cation of light at the end of according to deVere. Crown Dependency bank deposits Q1 ’11held in the Crown Depen- the tunnel”. But he noted At deVere, he will bedencies’ banks collectively Crown Bank assets end ’10 Bank assets % increase/ that it would be wrong to involved in supportingrose a scant 1.4% in the dependency (% up or down from end March ’11 decrease in overstate the gain, coming financial advisers on the end ’09) first quarterfirst three months of 2011, as it did after three quarters technical issues involved inas savers looked beyond Jersey £161.6bn (-2.2%) £166.49bn +3% of contraction. developing wealth man-deposit accounts for better Guernsey £111.03bn (-5.4%) £112.9bn +1.7% Guernsey’s end-of- agement business withrates. IoM £50.23bn (-5%) £48.13bn -4.2% March total deposit figure high net-worth expatriates, Philip Marr, director of is 28% off the peak, deVere said. Total £322.86bn (-3.8%) £327.52bn +1.4%banking at the GFSC, noted reached at the end of 2008, Smith is an associate of Source: JFSC, GFSC, IOMFSCthat the first-quarter story of of £157bn ($251.7bn). the Chartered InsuranceGuernsey’s banking indus- “There were no clear cut Finance chief executive, Jersey’s data showed Institute and a member oftry was one “of an increase trends, with mixed move- added that Guernsey offi- that deposits from Middle the Personal Financialin the volume of deposits” ments in balance sheets, cials were hopeful that Eastern savers have grown Society and the Society ofthat was mostly reduced in including contractions and Guernsey’s 1.7% rise in as a percentage of the total Trust & Estate Practitioners.sterling terms by foreign expansions,” Marr said. quarterly deposits, the first to 12.1% from 10.4% at the He has won a number ofexchange effects. Peter Niven, Guernsey rise in a year, was “an indi- end of March 2010. industry-sponsored prizes.JULY 2011 [www.international-adviser.com] INTERNATIONAL ADVISER 11
  • IF OUR FIRST TEN YEARS ARE ANYTHING TO GO BY, YOU WON’T WANT TO MISS THE NEXT TEN. When VAM Funds started up ten years ago, little did we realise the challenges that would face us! But just as fine steel is forged in fire, so it is with a great company. VAM Funds hasn’t merely 10 YEARS DELIVERING OUTSTANDING RESULTS survived the most torrid financial crisis 13 funds fully regulated in Luxembourg - UCITS III since the Great Depression, we’ve From one small cap equity fund to a full range of US and global actually thrived! equity funds, bond funds and multi-asset funds. Adapting to a changing economic climate, all VAM’s funds It allowed us to test our mettle - to ensure are now invested in liquid strategies or asset classes that are our funds are the best administered, either daily or, at the most, weekly dealing, meaning our clients the most secure, the most efficient, always have access to their capital. and among the most rewarding funds VAM’s roots in the financial adviser industry give us a better available. If VAM Funds was able to insight into what IFAs need in terms of service and support. thrive during the tough times, imagine how well we will do when the boom times return. Visit www.vam-funds.com today. looking ahead For further information on VAM Funds please contact VAM Marketing on + 230 465 6860 or email us at info@vam-funds.com. Alternatively visit our website at www.vam-funds.comThis financial promotion is published by VAM Funds (26 Avenue de la Liberté L-1930 Luxembourg). For professional investors only. Authorised by the Financial Services Authority (UK). Thisis not an offer to purchase shares, which may only 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.
  • BANK NEWS Kaupthing IoM depositors Santander boss and family face claim Iceland court victory scrutiny over BY HELEN BURGGRAF Group. It was unclear at depositors’ group, the pro- outstanding tax the time of going to press posed UK and Isle of Man Santander chairman Emilio Depositors in the Isle of what effect the decision Government Sponsored Botín and 11 members of Man subsidiary of Iceland’s would have. Loan Trust would immedi- his family are under inves-Roiz: Latin America focus defunct Kaupthing Singer & In a statement, the ately recover the full bal- tigation by Spanish tax Friedlander bank have Kaupthing depositors’ ance of their savings, while authorities for allegedlyRoiz to develop claimed a victory in their battle to get all of their sav- group said it welcomed the decision, but went on to the two governments would get paid eventually failing to pay taxes, it was reported last month.HNW presence ings back, after winning an appeal in Iceland’s Supreme reiterate previous criticism of the “institutions and once their actual money was released by the KSF Ana Botín, Botín’s daughter and Emiliofor Barclays in Court. The court decided that a authorities” that it said had failed in their duty to pro- (IoM) liquidator, which estimates say is expected Santander UK’s new chief executive, is also amongLatin America parental guarantee on the IoM subsidiary, signed by tect depositors in the first place. It called for imple- before 2017. However, the Isle of those said to be included in the investigation. NoThomas Roiz has been the bank’s Icelandic chief mentation of a plan it pro- Man responded that the specific charges werenamed to a newly-created executive on behalf of the poses to reimburse deposi- proposal was “impractical brought, and a spokesmanrole at Barclays Wealth’s parent, Kaupthing, had tors immediately which on a number of levels and for the Botín family toldInternational Private Bank been “valid and binding on would be funded by the would result in very high journalists the family mem-Europe, Middle East and the bank”, according to the IoM and UK governments. costs and poor value for bers expected to be clearedAfrica (IPB EMEA) opera- KSFIOM Depositors Action As envisioned by the [IoM] taxpayers”. by the investigation.tion, which is expanding to The matter came to lightmeet the needs of the after Spain’s High Courtglobalmarket. high-net-worth Lehman mini-bond saga draws to close said in a statement that it was carrying out an inves- Roiz will be based in BY SIMON DANAHER The PwC announce- Since then, the Securities tigation based on informa-Geneva, and will hold the ment represented a final and Futures Commission tion it had received fromtitle of managing director Most of the 31,000 Hong step in a saga which began and Hong Kong Monetary French tax authorities,and market head for Latin Kong investors who held with the collapse of the US Authority have worked which in turn came fromAmerica of the IPB EMEA Lehman Brothers mini- investment bank in 2008, alongside the banks and material leaked by a formerdivision. He is joining the bonds when that company and which has led to the trustees to try to recoup HSBC employee, accordingbank this month, and collapsed in 2008 got most introduction of major the investors’ losses. to various reports. Thereports to Patrick Ramsey, of their money back last changes in the way Hong In its statement, PwC announcement was under-market manager for Latin month, Pricewaterhouse- Kong banks develop and noted that investors would stood to have been madeAmerica, IPB EMEA and Coopers, the receiver, said. distribute structured prod- now expect to receive 1.6% to meet a statute of limita-general manager of By the end of June, ucts and other investment more than was agreed by tions that would otherwiseBarclays Bank (Suisse). holders of series ten to 12, solutions. the banks in March – which have expired. He will have responsibil- 15 to 23, and 25 to 36 of the Thousands of Hong itself was a substantial The investigation wasity for building the Latin mini-bonds would have Kong investors had bought increase on the 60% initially reported to involve anAmerica strategy for IPB received back between the so-called Lehman mini- agreed by the banks in July account set up in the ’30sEMEA, focusing on each of 71.43% and 95.1% of their bonds from a total of 16 2009. The new deal will by Emilio Botín’s father,the Latin America regions, investments in the struc- distributing banks, on the mean the average eligible who died more than 15Barclays Wealth said. This tured notes, now that the premise that they repre- investor, depending on years ago. The Botín familyincludes client acquisition, underlying collateral has sented a low-risk invest- which series of mini-bond is reported to have volun-and the development of been distributed, in accord- ment; when the bank sub- they were invested in, may tarily paid €200m ($288.3m)products tailored to the ance with a settlement sequently imploded, all of expect to receive between to settle an outstanding taxneeds of high and ultra agreement with Lehman, these investors lost their 85% and 96.5% of their ini- bill over a more recenthigh net worth clients. PwC said in a statement. money. tial investment. Swiss bank account. ADVISER recruitment section INTERNATIONAL For the latest opportunities within the international intermediary space, please see pages 53-55 For more information on how to advertise your vacancies to our global readership, please contact Giles Whittingham on +44 (0)20 7065 7579 or email giles.whittingham@lastwordmedia.comJULY 2011 [www.international-adviser.com] INTERNATIONAL ADVISER 13
  • FUND NEWSFund managerundeterred by Claude Kremer is elected US commodity trader launchesSouthern CrossBY HELEN BURGGRAF president at EFAMA AGM... on DB platform US-based commodities BY MARYROSE FISON until last month had been trading adviser MillburnRichard August, the man- chairman of the Association has launched a Ucits IIIager of a recently-launched The European Fund of the Luxembourg Fund version of its Multi-Marketsfund that was set up to and Asset Management Industry (see below) for Trading Program Fundinvest in care homes and Association (EFAMA) last four years. He has also on the Deutsche Bankassisted living properties month elected Claude served as a non-execu- Platinum IV platform.primarily in the UK, admits Kremer president, suc- tive board member for a The dbX Millburn Multi-that he could have done ceeding Jean-Baptiste de number of Luxembourg Asset Index Fund, whichwithout the widely-publi- Franssu. funds and listed companies. offers weekly liquidity, iscised travails of care home The election took place Dargnat is chief execu- open to European retailgiant Southern Cross over during the association’s tive officer at BNP Paribas investors in a number ofthe past few weeks, but annual general meeting Kremer: incoming president Asset Management, and share classes and curren-says he has lost none of his in Lucerne. At the same Tosato is executive vice- cies including euro, ster-enthusiasm for the sector. time, representatives of engaging with the indus- chairman of Schroders. ling, dollar and yen. Southern Cross, the UK’s the European investment try and regulatory bodies. Based in Luxembourg, Millburn is a global assetlargest care home operator, management industry also All three officials will serve EFAMA represents the inter- manager with more thanhas been on the ropes chose two vice-presidents, two-year terms. ests of the European invest- £2.3bn ($3.6bn) in assetssince March. Its share price Christian Dargnat and Kremer, a found- ment management industry, under management, as atat the end of June was Massimo Tosato. ing partner and head of on behalf of 27 member 1 June.somewhere around 10p, It was the first time investment management associations and 56 corpo- The company’s maindown from 550p a share in EFAMA’s members elected at Luxembourg-based law rate members. Assets under expertise is in the develop-December 2007. two vice-presidents instead firm Arendt & Medernach, management of its compo- ment of systematic, quanti- August, who man- of one, which it said has already served as vice- nent members total around tative investment strategiesages the newly launched reflected its commitment to president of EFAMA, and €14trn ($20trn). to trade on liquid globalBlueSky Care Home Fund, commodities, futures andstresses that Southern foreign exchange markets.Cross’s problems are “com-pany specific rather than ...while Marc Saluzzi is named Kremer’s Millburn’s Multi-Markets trading programme, onsector specific”. As a result, the marketopportunities created by replacement as incoming ALFI chairman which the Ucits fund’s strategy is based, trades a set of more than 120 mar-the ageing of the Baby Members of the Association and became chairman kets and utilises strategiesBoom generation are as of the Luxembourg Fund of the ALFI Alternatives with holding periods rang-compelling as they were Industry (ALFI), which Committee in 2009. ing from short term (intra-six months or a year ago, represents the interests of Founded in 1988, ALFI day) to long term (severalhe argues. Luxembourg’s investment represents more than 1,000 weeks or months). “Southern Cross’s prob- fund industry, elected Luxembourg-domiciled According to the com-lems... are the result of Marc Saluzzi to succeed investment funds, asset pany, the Multi-Marketsrapid expansion over the Claude Kremer as chair- management firms and trading programme, whichlast decade and poor man- man. Saluzzi will serve for a wide range of service has a track record of moreagement,” August says. two years. providers, such as deposi- than six years, has gener- “The company grew to Saluzzi, a French tary banks, fund admin- ated an average compoundbecome the largest care national, has been a Saluzzi: replacing Kremer istrators, tax experts and annual net return of 12.4%home operator very quick- PricewaterhouseCoopers accountants. and has demonstratedly by acquiring smaller care partner since 1996, and Financial Services practice. Luxembourg claims to low correlation to stock,operators and becoming is currently responsible He has been on the be Europe’s largest fund bond and hedge fundover-leveraged as a result.” for the firm’s Luxembourg board of ALFI since 2001, domicile. indices.14 INTERNATIONAL ADVISER [www.international-adviser.com] JULY 2011
  • 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.
  • LIFE NEWSAegon targets‘at retirement’ FPI aims to boost onshore Skandia Int’l adds 36 fundsmarket withoffshore bonds take-up of offshore products to its Spanish bond offering BY HELEN BURGGRAF top executive, in the formBY MARYROSE FISON of Irvine Baxter [UK sales Skandia International has Friends Provident Inter- director since January], and added more than 30 fundsLife insurance and pen- national (FPI), which for we think we can make a to its Spanish Collectivesions provider Aegon has the last two years has gen- difference,” he said. Investment Bond, includ-launched three unit-linked erated more than half of “We are not saying we ing from five investmentguarantee products as part its UK parent’s total new will take over the UK cross- groups not previously avail-of its strategy of focusing business – something it border retail life insurance able through the product.more on the ‘at retirement’ had not done before 2009 market, which we currently The existing rangemarket. – is looking to boost take- only have a small share of, of assets available via The new products, which up in the UK of its offshore overnight, but we think we Skandia’s Spanish CIB noweach require a minimum products, citing a surge Sepe: ‘under-represented in UK’ can do a lot more here than has access to a further 36investment of £15,000, are in onshore interest in off- we are doing now.” funds, bringing the totalthe Aegon Secure Capital, shore bonds in particular. Friends overseas empire The UK’s offshore sin- number of funds in theAegon Secure Income That does not mean it this month as he becomes gle-premium market is said range to 525. Investors willand Aegon Secure Trustee intends to let up on the off- familiar with the business to be the world’s largest, be able to access prod-Investment bonds. shore side of things, how- he now heads in place of worth around £6bn a year ucts from five additional The Aegon Secure ever, according to manag- Trevor Matthews, who left in premiums. investment companies –Capital bond offers inves- ing director Rocco Sepe. for Aviva in early June. FPI has been involved JO Hambro, Julius Baer,tors a guaranteed future Indeed, Andy Briggs, “But the UK has been a in it for more than 30 years, Distinction, Brown Advisorycapital value over a pre- the new chief executive market in which we have often testing products here and the Danish investmentselected term – the length of FPI’s parent company, been under-represented before launching them into firm, Jyske Invest.of which ranges between Friends Life, will be touring until now,” Sepe added. overseas markets, accord- The existing range ofeight and 20 years. This the various outposts of the “We have recruited a ing to Seppe. Spanish regulatory, author-means that providing no ity-friendly assets availableadditional withdrawals are via the Spanish Collectivemade, the bond guaran-tees that the fund value L&G issues new product in six-year growth series Investment Bond has now been expanded to provideat the end of the chosen BY PHIL HALLIDAY into an offshore bond. rity (2.13% AER) with the access to a further 36 funds,term will be a minimum of Legal & General’s head potential of 100% of any bringing the total number100% of the original invest- Legal & General Portfolio of business development, capital growth in the FTSE of funds in the range toment – and possibly more, Management Services, the James Harrington, said the 100 Index (subject to aver- 525, Skandia said.if the underlying invest- London-based life opera- deposit bond series is prov- aging), up to a maximum of The extended fundments have increased in tion of UK insurance giant ing popular with investors 50% of the original invest- range further diversifies thevalue (gains are locked in Legal & General, has who are struggling to keep ment, whichever is greater. investment opportunitiesevery year). launched the eighth plan pace with inflation, and It aims to return the available across Europe, There is also an option- in its ongoing series of with the Consumer Prices investors’ original capital at the emerging markets andal death benefit guarantee, Six Year Growth structured Index “likely to remain at the end of the six-year fixed the other major regions,which means that if the deposit bonds. or above its current level term on 31 Aug, 2017. It is while also giving investorsclient dies before the term Although the L&G Six for some time yet”. described as unsuitable for the option of accessingis up, the client’s benefici- Year Growth Deposit The latest L&G deposit customers who need access such new asset classes asaries would receive at least Bond Eight is a UK prod- bond offers a minimum to their money before the Swedish and Danish bonds100% of the original invest- uct, it may be wrapped return of 13.5% at matu- six-year term is up. and Danish equities.ment (or highest locked in The Spanish CIB wasvalue) at that point, even launched in July 2010 andif the underlying value ofthe investment had fallen RL360° rolls out split trust option for UK was designed to be tax- efficient for investors resi-below that amount at the Royal London 360°, the does not fall into their tax- If the life assured does dent in Spain. Skandia saystime the client died. Isle of Man-based off- able estate for UK inherit- not survive the diagnosis it was designed to offer The Aegon Secure shore arm of the UK-based ance tax purposes. by 30 days, the critical ill- IFAs and their clients theIncome product also offers Royal London Group, has Upon the diagnosis of ness benefit is not paid, flexibility to create tailor-an income guarantee, an launched a split trust for a critical illness, and sub- and remains in trust and made portfolios from aoptional death benefit use with its LifePlan whole ject to the patient surviving outside of the UK IHT wide range of tax-compli-guarantee and a guarantee of life international protec- the diagnosis by 30 days, assessable estate, accord- ant funds.benefit payable at the end tion product. the trustees will advance ing to RL360°. An additional feature isof the guaranteed income The LifePlan Split Trust the critical illness cover to LifePlan aims to pay a that it remains tax compli-period. The income guar- allows a UK domiciled the life assured for them cash sum on the death of ant even if the client returnsantee is equal to 5% of the LifePlan policyholder, who to use as they see fit. the life assured, or upon to the UK.original investment for 20 has selected both critical The life cover element of diagnosis of a terminal The product is offeredyears, or less for longer, illness and life cover, to LifePlan will remain in trust illness. Its core benefit through Skandia Lifeuntil 100% of the original have access to his or her and will not be taken into is primary life cover, which Ireland, the Dublin-basedinvestment has been taken critical illness benefit while account for UK IHT valua- is available up to the operation of Skandiaas income. ensuring that the life cover tion purposes on death. value of $7.5m. International.JULY 2011 [www.international-adviser.com] INTERNATIONAL ADVISER 17
  • NEWS ANALYSIS OFFSHORE TERMINOLOGYLearning to speak ‘offshore’Living and working in the world’s various offshore financial centres often involveslearning a new language – even in some English-speaking countries. InternationalAdviser listens in on the cross-border conversation BY HELEN BURGGRAF This phenomenon is anyone who has lived in who passes the old family neither new, nor a prob- the Isle of Man for less homestead, Ballaquaggan When are you a ‘comeo- lem; indeed, most expa- than ten years is a mere (home of the Quaggans) ver’, a ‘stayover’ or a ‘stop- triates who live in such ‘comeover’; and those who every time he travels to the over’ in the Isle of Man? Is financial centres as Hong have been resident for airport from Douglas. Gwailo still considered a Kong, Dubai, the Isle of between ten and 30 years Quaggan’s name sug- derogatory term for a for- Man, Jersey and Guernsey are ‘stopovers’. You only gests it is Manx, because it eigner in Hong Kong? Why seem to take particular get to be a full-fledged begins with a Q; you will has China’s renminbi been delight in learning the local ‘stayover’ when you have also find a lot of island- nick-named the hongbi expat patois and slang been there for 30 years. ers named Craine, Quayle, (‘redback’)? expressions. Kennaugh and Crellin. And what is a half-pat This is the case even l Manx as the hills Another Manx word typ- anyway? when the local expressions ically heard and sometimes Moving overseas, wheth- are seemingly insulting, as To be truly Manx, accord- embraced by comeovers, er for work or in search of in the case of the time- ing to this line of thought, stopovers and stayovers a more agreeable lifestyle, honoured and, most would you have to have been is traa dy liooar, meaning has always meant learning agree, out-of-date acronym born on the island; and ‘time enough’, a sort of new ways of doing things. FILTH – ‘failed in London a further level of purity IoM version of mañana. Depending on where one try Hongkong’. is awarded to those who There is also Manannán’s ends up, language has Anyone who might have can attest to both sets Cloak, a reference to the usually been a significant thought that expression still of grandparents having heavy fog that was once element of this adjustment had a ring of truth about come into the world on thought to have been sent process, particularly if the it would have had a dif- the island. This is a rarity to the island to protect newbie expat’s knowledge ficult time explaining why these days, with around it from invaders, but now“ of the local language is Fidelity superstar Anthony 54% of the population esti- mainly inconveniences Though there is not good. Bolton moved to Hong mated to have been born those seeking to arrive orsome disagreement Britons, Americans and Kong from London in 2010. elsewhere, although Gary depart by plane accord- other native English speak- Quaggan, head of retail ing to a fixed schedule.in Manx circles, most ers enjoy an advantage service and operations for Manannán is a mythical Isle l Local vocabularyagree that anyone over most other nation- Anglo Irish Bank’s opera- of Man (and Celtic) figure, alities, of course, in that Perhaps the place with tions in Douglas is one who according to legend,who has lived in the English is, for now at least, the richest expat/offshore such Manxman. was the IoM’s first ruler. the main language of inter- vocabulary is the tiny but (As in Jersey andIsle of Man for less national business, whatever feisty Isle of Man. Its his- Guernsey, having both sets l Boat in the morningthan ten years is a else may be spoken in the torically small and, until of grandparents born on streets and shops outside recently, not particularly the island is a formally The land mass manymere ‘comeover’; of the office towers and affluent population has acknowledged state by the Britons might assume Manxthose who have been five-star hotels. cultivated an expressive set European Union, which residents would refer to as But as any expat who of words to describe the does not permit such pure- the mainland – England,resident for between has spent time in the off- outsiders who have been bred islanders the freedom Scotland and Wales – someten and 30 years shore world would tell you, frequenting its shores in of movement enjoyed by islanders like to call ‘the expats living and working large numbers ever since others who have at least adjacent isle’, as if to keepare ‘stopovers’. You in the various major finan- Victorians from Liverpool one EU-born grandparent it in its place. cial centres – along with and Manchester began or parent.) Perhaps one of theonly get to be a full- those locals who interface taking summer holidays “I am as Manx as the most important expres-fledged ‘stayover’ with them on a regular there. hills,” admits Quaggan, sions in regular use, and basis – have evolved a lexi- Though there is some whose island ances- reserved for those whowhen you have been con of words and expres- disagreement in Manx try has been traced back would dare, as Royalthere for 30 years ” sions all their own. circles, most agree that to the 12th century, and London 360º communi-18 INTERNATIONAL ADVISER [www.international-adviser.com] JULY 2011
  • analysiscations executive Merita ers are known as ang would imply that he is a bonds are currently beingTaylor (an IoM comeover mo, which literally means real shark.” offered to Western buyers.of nearly five years) puts ‘Westerners’, according to a Perhaps not surpris- A specific term said toit, “to diss the IoM”, is British expatriate who cur- ingly, the offshore lexi- exist only in Shanghai –the following put-down: rently lives there. con in Asia is not limited for now, anyway, sources“There’s always a boat in “It is a neutral expres- to nicknames for people. say – is ‘half pat’, whichthe morning”. (Jersey and sion, and I don’t think Honkers, for example, an refers to an expatriate whoGuernsey locals say this is anyone would take Australian term for Hong is hired on a local contractin common use in those offense,” he adds. “Some- Kong, is one such word, rather than on an expatri-islands as well). times the kids use it when though not one of the ate one. they are trying to be cool, newest ones. And quite a India, meanwhile –l Western ghost men but it just makes us laugh. number of new financial which during the time of You would use it like this: terms seem to have crept the British Raj gave theThe Isle of Man’s terms ‘the ang mo’s are taking all into the expatriate vocabu- world several particu-for resident foreigners – the good jobs’.” lary only recently. larly colourful and usefulits comeover, stopover and A currently trendy words, including Blighty,stayover definitions – are l Fistful of redbacks expression is hongbi, bungalow, doolally andechoed in Hong Kong’s which refers to the Chinese jodhpur – continues to be KEY POINTSgwailo and Japan’s gaijin, Other words used by renminbi and which, in a source of fresh materialboth of which came into expatriates but mined Chinese, literally means for expatriate wordsmiths. In many places around thefrequent use when England from the Chinese spoken ‘redback’ – leaving the A Financial Times jour- world, locals have invented words to describe thewas a major, and not always by many Singapore resi- listener in no doubt as nalist earlier this year made foreigners who live on theirpopular, presence in Asia. dents include hong bao – a to China’s aspirations for reference to a babu, which, shores; these words, in turn,Some say these terms have reference to a traditional its currency, vis-à-vis the the writer explained, is “an are often adopted by thenow lost their original pejo- red envelope filled with American greenback. Indian stereotype for a cer- foreigners themselves.rative connotations, others money that is given over tain type of officious gov- The phenomenon of foreignerssay they never will. the Chinese New Year, and l Expat or half-pat ernment clerk… he drinks picking up and inventing words Gaijin, which, spelled which under certain cir- lots of chai (sweet tea) is neither new nor a problem;Gai-Jin, was the title cumstances might be con- Another renminbi term is and is generally a pain in indeed, most expatriates seemof a 1993 James Clavell sidered a bribe; and ah the ‘dim sum market’, a the rear”. to take particular delight innovel, means foreigner beng, a Singapore gang- reference to the market for Editor’s note: To see a learning the expatriate patois.(from gaikokujin, mean- ster stereotype. The female Chinese-currency denomi- complete list of offshore Those inclined to disrespecting ‘people outside of the equivalent is an ah lian. nated bonds, which have words we have discovered, the Isle of Man may be told,country’), while gwailo is Explains the Singapore lately burst on to world or to suggest words that “there’s always a boat ina Cantonese word said to expat: “This is the sort of markets. we may have overlooked the morning” – which ismean ‘ghost man’ – a refer- chap who wears a leather Dim sum, of course, is a in this article, go to www. sometimes useful for othersence to the foreigners’ rela- jacket, bright jewelry and Cantonese speciality asso- international-adviser.com, as well, given the frequencytively light complexions. is a bit notorious. To call ciated with Hong Kong, and find the online version with which Manannán’s Cloak closes the airport. In Singapore, foreign- someone that in business which is where these of this story.JULY 2011 [www.international-adviser.com] INTERNATIONAL ADVISER 19
  • European CPD COMPLIANT PARK PLAZAIn association with VICTORIA, LONDON 22 SEPTEMBER 2011 Are you an EU-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 Conference is free to attend for financial advisers For further information or to register your interest please contact Victoria Parker at vicky.parker@lastwordmedia.com or by phone on +44 (0)20 7065 7564 l There are a limited number of places – attendance is through registration only l This half-day forum will take place in the morning and finish with lunch
  • MD PROFILE FABRICE SAUVIGNON profilesGrowth across borders “ A strategy is nothing if the execution is not runFabrice Sauvignon, the newly appointed chief executive of cross-border with care and energy. I have even seen poorprovider La Mondiale Europartner, explains his business strategy and business strategieshow the firm’s ‘general account’ concept can be used to offset volatility that ultimately provedIn March, Fabrice Sauvignon movement, and there is a to be successful,was appointed chief execu- constant need for addi-tive of Luxembourg-based tional investment. simply becauseLa Mondiale Europartner. Likes: This industry isThough only 39, he is a very much in line with my their owners wereveteran of the international personal taste for interna- determined not ”wealth management indus- tional business, and a mul-try, having held senior roles ticultural environment. to give upat Axa as well as at AGR2La Mondiale, La Mondiale What is your business strate-Europartner’s parent com- gy, and why?pany. Here, he talks about To offer UK nationals andhis approach to business. non-domiciled clients access to investment solu-What are your career high- tions that enable them tolights/ business background? move freely across EU bor-I have spent most of my ders while retaining theworking life in the cross- benefits of a compliant lifeborder insurance industry. assurance solution.Most recently I was high- This strategy builds onnet-worth technical and and utilises the expertisefinancial director for La developed in dealing withMondiale Europartner’s French nationals acrossparent company, AGR2 La Europe, and also on theMondiale, where I devel- European leadership of theoped new products such AG2R La Mondiale groupas a new variable annuities in the HNWI life insuranceproduct, but also new segment.structured insurance funds. Prior to coming to AGR2 world class strategic vision – as well as a vested inter- How is business?La Mondiale in 2006, I held for Apple decades ago, but est in my career! Very good at the moment.a number of roles at Axa, he has been able to suc- In a stable French HNWI BIOGRAPHYincluding a stint as a cessfully manage it through What is the best piece of market, AG2R La Mondiale’s Born in Paris, FabriceSingapore-based vice pres- all the subsequent techno- business advice you could sales grew by 8% in 2010, Sauvignon was appointedident, where I was involved logical revolutions, while personally offer to someone? with total premium income chief executive of La Mondialein actuarial and investment making sure that service to A strategy is nothing if the rising by €3.9bn to bring its Europartner in March.operations. the company’s clients execution is not run with HNWI AUM to €31bn. The Previously he was high net I was born in Paris in remained a top priority. care and energy. I have first half of 2011 should worth technical and financial1972, and studied mathe- even seen poor business confirm this strong growth director for La Mondiale Europartner’s parent company,matics and actuarial sci- Who has been the biggest strategies that ultimately trend. AGR2 La Mondiale, and beforeence at Lyon University influence on your career to proved to be successful, La Mondiale Europartner that, he held a number ofbefore I decided to qualify date? simply because their by itself expanded even executive positions at Axa.as an actuary. Without doubt, my wife, owners were determined faster, and last year saw His career in the cross- Marie. We met in Kuala not to give up. premium income total border insurance industryWho are your business Lumpur 14 years ago, and €825m. We expect our means he now speaks threeheroes? we share the same taste for What are your personal likes growth this year to surpass of Europe’s main languagesI would not say he is a international environments. and/or dislikes about the off- that. of business – French, English and Spanish – as well, hehero, exactly, but I am She knows me better than shore life industry? This success is the result says, as “a bit of Malayimpressed by Steve Jobs. anyone, and she has an Dislikes: The offshore life of our offering a wide (siki siki)”.Not only did he establish a excellent business acumen industry is in perpetual range of investment solu-JULY 2011 [www.international-adviser.com] INTERNATIONAL ADVISER 21
  • MD PROFILE FABRICE SAUVIGNON“ The Retail tions, combined with our in Asia Pacific in September driving costs down, and specialist providers like La reputation for servicing our 2001, which was a time of there is likely to be more Mondiale Europartner cov-Distribution Review clients well. low interest rates and high consolidation, with some ering the niche markets.is a significant Of course, for UK resi- volatility. At that time, I deciding to focus outside dents, the current strength learned that patience and the UK. We see growing What are your immediateopportunity for cross- of the euro relative to ster- perseverance pay off, as expat markets in places plans to grow/develop La ling, combined with a sof- this business finally took off like Hong Kong and Mondiale Europartner and itsborder life insurance tening in UK residential after two years of hard Singapore, for example. offering?companies like us, house prices, is making work. The Retail Distribution people think twice before How do you think the offshore Review is a significantsince it is forcing UK moving to Europe. How does La Mondiale life industry has coped with opportunity for cross-bor-private banks, asset However, we are seeing Europartner set itself apart the effects of the global eco- der life insurance compa- new opportunities emerg- from its competitors? nomic meltdown? nies like us, since it is forc-managers and IFAs to ing as a result of the Retail La Mondiale Europartner I believe that cross-border ing UK private banks, assetre-evaluate how they Distribution Review, with has introduced to the UK life insurance is still at an managers and IFAs to re- private banks, asset man- the concept of the ‘general early stage of development, evaluate how they do busi-do business there ” agers and IFAs reviewing their business models, and looking for new solutions. account’, which offers a range of guaranteed funds in several currencies. In the current context of money as the EU is gradually estab- lishing a framework for set- ting the conditions for a unique European market. ness there. Fortunately for Mondiale Europartner, the behaviours driven by this La What are the biggest issues market funds performing Luxembourg, being at reform are very much in facing La Mondiale poorly, investors appreciate the heart of Europe, has line with our way of work- Europartner currently? these funds, which com- benefitted from this devel- ing, and enable us to dem- La Mondiale Europartner bine a higher and predicta- opment. With a total pre- onstrate these values to has grown rapidly over the ble performance with full mium income of more than both intermediaries and past few years. The chal- liquidity. They also like that €20bn in 2010, the country end customers. lenge we set ourselves was they are able to hold multi- has emerged as the to improve the quality of currencies within the same preferred choice within How do you need to manage our services, while expand- policy and move across the EU. your key industry relation- ing the size of business borders while remaining ships to achieve success in quickly. So far, we have locally compliant. When do you predict that we the current economic been successful in achiev- We also believe that by will see some kind of stabili- climate? ing this goal. offering a bespoke service ty/significant recovery? As a niche provider, we We also put a clear and solutions tailored to the The markets are likely to look to form close allianc- focus on being able to specific requirements of our remain volatile over the es with our partners. This adapt and develop new partners – advisory firms, next few years. As a result, means identifying compat- investment solutions quick- intermediaries and wealth the industry will have to ible firms to work with and ly, as opportunities arise in managers, for example – La provide solutions designed developing a strategy the countries and markets Mondiale Europartner pro- to help its clients, and their together. There are many we are targeting. vides a solid framework for clients, to cope with this challenges in the cross- these businesses to design volatility. border market and we do Where do you see the busi- the best solutions for their That is why we put a not have all the answers, ness five years from now? clients. great deal of emphasis on therefore working in part- In line with our position in For example, we have our ‘general account’. nership is the key to France and Italy, we aim to observed that there is a As for the UK market, success. rank among the UK’s top trend in the UK market for specific issues include soft five providers of cross-bor- asset managers to work in residential house prices If you could make one busi- der compliant and tailored closer partnership with after a period of rapid rise, ness wish come true, what investment solutions. IFAs. This favours Luxem- as well as household debt, would you wish for, and why? bourg life assurance struc- and it is likely to be three My foremost business What is the hardest business tures such as dedicated -to-five years before these wish, of course, would be lesson you have learned? funds, which happens to be stabilise or improve. for La Mondiale Europartner Having only just started at an area that La Mondiale to be the UK’s leading La Mondiale Europartner Europartner specialises in. Do you think the UK offshore cross-border compliant four months ago, it is a little bond market is saturated in bond provider within the too soon to answer this Where do you see the indus- terms of providers? next three years. This question with respect to my try in five years? Yes, there are a number of market is at the forefront of current role. However, I Providers in the UK will providers, and it is difficult the global finance industry, think the hardest time for continue to refine and to differentiate your prod- and such an achievement me was when I started up a develop their offshore uct. Therefore, more con- would set the pace for our variable annuities business solutions. Competition is solidation is likely, with entire development.22 INTERNATIONAL ADVISER [www.international-adviser.com] JULY 2011
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  • COUNTRY PROFILE DUBAIDubai has proven immune to theunrest that has beset much of therest of the Middle East and NorthAfrica, while appearing to haveregained its economic confidencefollowing the global downturnBY SIMON DANAHER bin Rashid Al Maktoum, edly creating the phenom- tangible. Both literally and DUBAI FACTS who has managed to create enon in the desert that is figuratively, Dubai hadThe past few months have an environment in which modern Dubai. stopped building; the infa- Population (’10): 1,905,476been nothing if not extraor- people are encouraged to This is not to say that mous Dubai traffic jams Male: 1,485,046 (78%) Female:dinary for much of the make money and live Dubai has managed to were less infuriating, and 420,430 (22%)Middle East and North prosperously. remain completely isolated progress seemed to be at a Currency: UAE dirhamAfrica. The Arab Spring has Emiratis native to Dubai, from external events. In plateau.claimed the governments of they say, have also been 2009, for example, it fell But even then it was not Latest GDP (’08): AED342.9m ($93.3m)Egypt and Tunisia; caused less inclined to join the into recession, although it all doom and gloom, and,the deaths of possibly thou- protests because they are was one of the last of the fast-forwarding to the Financial services contributionsands of lives; sent Libya arguably treated much world’s economic centres present day, it is almost to GDP: 11.5% (’09) vs 10.1%into civil war; brought tanks better than in neighbour- to succumb. hard to believe anything (’08)onto the streets of Bahrain; ing countries. Having largely ridden was ever wrong. The Direct imports: -28% (’09) vsand sparked protests If anything, Dubai is out the first phase of the Dubai Mall, described as 48% (’08)throughout much of the seen as likely to benefit economic downturn, the the world’s largest in termsArab world. Scarcely any from the regional turmoil, emirate became caught up of square footage, has nocountry in the region has as individuals and compa- in it after Dubai World – empty shops; opposite, thebeen spared. nies seek to relocate assets the state-owned invest- recently completed Burj Dubai, though, is one and businesses from what ment company that owns Khalifa, the world’s tallest “such place. Despite the are now seen as either such assets as the DP building, soars into the If anything, Dubaipolitical turmoil going on unstable or potentially World ports operator and heavens, while all around is seen as likely toaround it, the emirate, one unstable countries, while at Palm Islands development it cranes fill the skyline.of seven that comprise the the same time keeping – announced it was to benefit from theUnited Arab Emirates, has them in the Gulf rather restructure some $25bn- l Property woes regional turmoil,remained stable, continu- than moving them to worth of debt. The firm’sing its business of making Europe or Asia. announcement came out This is not to say that noth- as individuals andand spending money as of the blue, and sent the ing has changed, however.though nothing were going Dubai Financial Market – The property market, for companies seek to l Visionary sheikhon around it. the state’s stock exchange example, has suffered, and relocate assets and The state’s apparent iso- Sheikh Mohammed, who – plummeting, while inves- continues to languish. Atlation from the rest of the has now ruled Dubai for tors fled. The effects of the its height it was not uncom- businesses fromArab world can be attrib- more than 15 years as part debt restructure were soon mon for Dubai real estate what are now seenuted to many factors. But of the Al Maktoum family felt around the world. to be worth several timesaccording to some of those dynasty – which came to When International its purchase price only a as either unstable orwho live there, much credit power in the 1830s – is Adviser last profiled Dubai matter of months later; potentially unstableis due to the emirate’s regarded as a reformer, in March 2010, the sense of now, some of those whoruler, Sheikh MohammedJULY 2011 and for almost single-hand- [www.international-adviser.com] lost confidence was still bought into the market at countries INTERNATIONAL ADVISER 25 ”
  • COUNTRY PROFILE DUBAI or near the top find they sought after asset, so is good example of this has ness requirements – both in KEY POINTS are holding assets worth property and other ‘tangi- been in the UK and respect of market oversight After a much-publicised half the price they paid. ble’ assets.” Europe, where there has and consumer protection – downturn that followed the This step-change may Another key difference, been an inexorable rise in for licensed firms, with the global economic crisis, Dubai not have been an entirely says Kelleher, is that the number hedge fund UAE Central Bank left to is regaining its economic bad thing, though (except Indians are likely to be houses launching Ucits- focus on systemic stability confidence. for those individual loss- much more “stock market compliant products to and prudential oversight. Dubai’s financial services nursing investors perhaps). aware”. widen their client base to ESCA also plans to businesses, banks and A more sober approach is “India is a booming include retail investors. change the registration of infrastructure are expected arguably just what Dubai economy and our NRI cli- investment funds, with the to benefit from the unrest needed, many commenta- ents want to be part of intention being that foreign elsewhere in the Middle East l Regulations on rise tors have said. that. It is expected that by funds must be approved by as assets are relocated. 2015 India’s growth rate Another knock-on effect of the Central Bank and ESCA Advisory firms are adapting to will overtake that of China the crisis has been the prior to their distribution. change in the evolving Dubai l Market evolution and our clients are very introduction of tighter regu- The proposals are still market. Meanwhile, Dubai contin- much aware of this, and lation. In the UAE, and in draft form and it is not ues to evolve and mature are keen to participate in Dubai specifically, this has clear how the new regime as a market. One notable this growth.” meant a toughening up of will work in practice but, recent change has been the In view of this, Kelleher regulations within Dubai’s according to many Dubai- way many of the financial has been developing new financial free zone, the based asset management advisory firms that in the technology, in conjunction Dubai International firms, the changes will past largely targeted UK with Indian financial serv- Financial Centre, through cause upheaval. and other European expa- triates are now increasingly UAE stock market performance l Ending dodgy selling going after other groups, 20 such as non-resident There are also signs that the Indians (NRI), who make free-wheeling days of little 0 up a large percentage of regulation of financial Dubai’s expat population. Abu Dhabi advisers in the UAE may be -20 Securities Sean Kelleher, chairman about to end. Earlier this % Exchange of Dubai-based advisory year, for example, the UAE firm Mondial Financial -40 Central Bank unexpectedly Partners, has been recruit- declared that institutions it ing Pakistani and Indian -60 Dubai regulated would be banned advisers and targeting the Financial from cold-calling customers NRI market since 2009. He Market to market loans and invest- -80 believes that to effectively ment products. access the market, it is Jan ’08 Jun Jan ’09 Jun Jan ’10 Jun Jan ’11 Sarah Lord, wealth plan- Source: Bloomberg, DIFC Economics important to understand its ning director at the Dubai needs and that, to do so, it ices firm Padmakshi, to its regulator, the Dubai office of Killik & Co, who is fundamental to under- support NRI clients wish- Financial Services Authority. has long been an advocate“ It is noticeable stand how investments are ing to trade on the Indian This has included strength- for qualifications and viewed in the culture, and stock markets. ening laws on the promo- “cleaning up” the offshorethat the type of asset what these clients’ invest- Another large Dubai- tion and sale of products. investment world, says ment goals are. based advisory firm, Hol- In addition, the Emirates more needs to be done toour NRI clients will “Family is a much bigger born Assets, has also begun Securities and Commodities protect consumers.wish to invest in consideration when putting to look more concertedly Authority (ESCA), the body “I often have clients together a financial plan at the NRI market as part of that governs the investment who come to me withdiffers from [that of] for an Indian client,” he its plans to become the industry in the UAE, has products that are whollyour Western clients. says. “The client will want “first choice for financial published a proposal to unsuitable for them, which to make sure they are pro- advice in Dubai”. It has overhaul the regulatory they have been sold afterGold, for example, is viding for their dependents begun hiring advisers to regime in Dubai. In the only a couple of high-a very highly sought both while they are alive target this growing market proposal, which was first pressure meetings. It is just and after, so protection is and, according to director published for industry con- unacceptable,” she says.after asset, so is an important area for us. Simon Parker, ones of a sultation in January this In view of this, Lord says “It is also noticeable that very high calibre. year, ESCA announced its she hopes to establish anproperty and other the type of asset our NRI The decision to diversify intention to restructure the accredited body similar to‘tangible’ assetsSean Kelleher, chairman, ”Mondial Financial Partners clients will wish to invest in differs from [that of] our Western clients. Gold, for example, is a very highly one’s client base has been seen across the global financial services industry since the financial crisis. A oversight of investment funds. The intention is for ESCA to take on responsi- bility for conduct of busi- the Institute of Financial Planning or the Association of Independent Financial Advisers in the UK.26 INTERNATIONAL ADVISER [www.international-adviser.com] JULY 2011
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  • INTERMEDIARY PROFILE FEIFAStrength in numbersPaul Stanfield, chief executive of the Federation of European Independent FinancialAdvisers, discusses the trade association’s success in bringing together English-speakingadvisers operating on the Continent, and challenges its critics and naysayers BY MARYROSE FISON “There was a general to take them in a different EU-compliant PII cover. feeling that there was a direction for their own ben- “In any EU company, Next month, the European need for an entity to draw efit, rather than for what a professional indemnity trade association for together what decent, regu- trade body should be. insurance is a requirement English-speaking inde- lated IFAs do in Europe, “So I was pleasantly sur- for financial advisers, [but] pendent financial advisers and act as a conduit prised by the end of that it is not always that easy to (FEIFA) will celebrate its between them and [invest- day when I did not feel obtain in certain countries,” two-year anniversary. The ment product] providers,” that. I felt that all those Stanfield notes. date will represent a mile- Stanfield says. people sitting around the “Sometimes there is little stone in the organisation’s “We wanted to be able table had got together for or no competition, and development, from an all- to act as a single voice, the right reasons, and they therefore premiums can be but-unheard-of handful so that product consistency were the sort of people I inappropriately high, so we of internationally-focused could be created and prod- could work alongside to wanted to bring a more advisers, to an increasingly uct development enhanced, potentially build something relevant and appropriate visible association com- which would benefit the like this.” facility to our clients. In my prised of 25 member busi- end consumer.” experience, a similar level nesses, operating across Four months later, l Membership growth of cover for an apparently four continents. Stanfield booked a Gatwick similar risk can be two or Today, the Federation Airport conference room Six months later the asso- three times more expensive of European Independent and invited interested advis- ciation was officially in one European country Financial Advisers – as it ers to attend. The venue launched, and over the last against another,” he adds. is formally known – has of the meeting was key 24 months, has added an Stanfield’s pan-Europe- member companies with to facilitating international average of a new member an vision reflects a profes- a presence in Europe, the travel for advisers based in organisation each month. sional life spent on both Far East, Africa and/or other countries, according In May, it launched its sides of the Channel. South America. The major- to Stanfield, who is himself first professional indemnity After gaining Chartered ity, though, work through- based in Northamptonshire cover facility for members, Insurance Institute creden- out mainland Europe, with in England’s East Midlands. which is provided by ACE tials, he started out in finan- the highest concentration “As the individuals con- Europe and which gives cial services as a broker in Spain. cerned lived in various FEIFA members standard consultant for GA Life in parts of Europe, we decid- London and southeast l Shared vision ed that meeting in the UK England in the early ’90s, FACT BOX made most sense. Thus, but subsequently moved to The idea to set up a trade in early February 2009, we Founded: August ’09 Europe in 1995, where he“ I felt that all association emerged out of booked a conference room eventually became manag- No. of member organisations: a dinner meeting with co- at a hotel in Gatwick, and ing director of Javea, Spain-those people sitting director (and Spectrum IFA the rest of the attendees 25 based Churchill Personalaround the table had Group principal) Michael flew in while I took a train No. of FEIFA-affiliated Investments. He remained Lodhi in the winter of 2008, down.” advisers: More than 300 in that role for a decade,got together for the Paul Stanfield, founding Despite initial concerns, Total territory covered by until Churchill mergedright reasons, and director and chief execu- Stanfield says he was members: 25 European with Jersey-based Pegasus tive, recalls. The two advis- impressed by the input and countries, as well as parts of Financial Services in 2007.they were the sort ers discovered they shared views of advisers around the Middle East, Africa and Some 18 months later South Americaof people I could a vision of a single, uni- the table. he returned to the UK fied trade body that would “I was a little sceptical Chief executive: Paul Stanfield to strike out on his ownwork alongside to represent English-speaking beforehand, because I have with a consultancy busi- Total assets under advice of advisers doing business seen similar ideas get side- ness, Professional Wealthpotentially build outside the UK. Further tracked by hidden agendas members: In excess of 2bn Services, which he still ($2.9bn) (estimated) ”something like this discussions followed. and individuals who wish runs but is zealous in28 INTERNATIONAL ADVISER [www.international-adviser.com] JULY 2011
  • INTERMEDIARY PROFILE FEIFA “ increasing and expanded experience to be working Whatever you European regulation is on in that field,” he says. its way,” he says. “It is do, there are part of our role to keep l Fee structure always going to our members informed of the changes as early as FEIFA is registered as a not- be some people possible. for-profit organisation and “In keeping with UK 100% of membership fees who are critical. IFAs, Europe-based advis- go towards member servic- Often criticism is ers will also need to work es, Stanfield says. However, towards more sustainable he earns an income from unfounded, in my business models, and create offering additional, consult- opinion, or simply greater tangible value in ing services to members at their businesses. an extra cost. factually incorrect. “We have negotiated a Members pay two fees Sometimes it comes number of arrangements when they join – a one- that provide more appropri- off establishment fee and from a lack of ate ongoing remuneration an annual fee. The estab- to our members to help lishment fee costs €250 understanding of slowly reduce the over-reli- (£220/$360) per company what we are trying ” ance on initial commissions regardless of size, and the – and we will continue to annual payment is propor- to achieve develop these aspects.” tionate to the number of While membership advisers in each firm, with growth is key to FEIFA’s larger firms paying more strategy, Stanfield says he than smaller firms. is not willing to compro- Annual fees for firms mise on quality in his quest with up to five advisers for quantity. The company are €250. Firms with sixkeeping separate from his 40,000 page hits a month has what he describes as a to ten advisers pay €825,FEIFA activities. and acts as a financial “rigorous vetting and due firms with 11 to 25 advisers information forum for its diligence process”. pay €1,000, and firms withl Future prospects users, aims to connect more than 25 advisers pay consumers with financial l Application criteria €1,500.This year, Stanfield wants advisers. Having operated over-to maintain the momentum “Members of the public Prospective members need seas for almost two dec-in growth that the group and professionals interest- to be evaluated on a case- ades, Stanfield says he ishas seen over the past two ed in advisers in mainland by-case basis, according all too aware of the exist-years, bringing on board at Europe, or financial infor- to Stanfield, because min- ence of so-called ‘cowboy’least another 12 member mation relating to other imum legal qualification advisers that give regulated,firms. European countries, will be requirements vary from qualified overseas inde- “We want to carry on directed towards FEIFA and one jurisdiction to another. pendent financial advisers aincreasing our membership our members,” he says. As a bare minimum bad name. He is also awarebecause we think that is “We are looking to though, prospective com- that FEIFA has come in forimportant. We have got 25 help advisers generate panies need to be licensed some criticism, and he is KEY POINTScompanies as members at both potential client leads, to do business in the coun- keen to dispel what he says The Federation of Europeanthe moment. My person- potential joint ventures and try in which they operate, are misguided beliefs. Independent Financialal view is that we would business relationships with and are asked to show “Whatever you do, there Advisers is marking its secondhopefully add another com- other professionals.” a professional indemnity are always going to be year in existence.pany each month for the A number of FEIFA’s schedule, a copy of a client some people who are criti- Paul Stanfield, CEO of FEIFA,rest of this year.” members comply with questionnaire, sample cal,” he says. says it gives member firms the He is keen to boost job MiFID, the European report or recommenda- “Often criticism is advantages that come fromopportunities for mem- Union’s Market in Financial tion, a valuations statement unfounded, in my opinion, being part of a group, whilebers and in April, final- Instruments Directive, and a company’s terms of or simply factually incor- also providing a forum forised an arrangement with and Stanfield says further business. rect. Sometimes it comes sharing information and ideas.Total Investor.co.uk, a changes to the regulatory “We judge each applica- from a lack of understand- Helping FEIFA members towebsite that publishes con- framework within Europe tion on its own merit. We ing of what we are trying stay abreast of, and copetact details of more than will impact all advisers who expect to see that an indi- to achieve. with, the growing number of5,000 independent financial operate on the continent. vidual, or more than one “[Changing minds] is not EU regulations is seen by the organisation as among its keyadvisers. “The three recent EU individual at a company, something that can be done functions. The site, which receives consultations showed that has relevant expertise and overnight.”JULY 2011 [www.international-adviser.com] INTERNATIONAL ADVISER 29
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  • TECHNICAL BRIEFING UK STATUTORY RESIDENCE TEST technicalFor decades, Britons and foreigners alike have tussled with UK tax authorities overwhat conditions precisely constituted UK residency, which have never been formallydefined in law. At least, not until now...Tax clarity at last?Last month, HM Treasury June, they were the subject and shooting rights in residency, as he was heldreleased two major consul- of an avalanche of com- Scotland for the whole of a to be UK resident.tation documents, one of ment and opinion from tax term of three years, later More recently, the socialwhich involves establish- experts, accounts, lawyers extended to six years. He and business life ofing, for the first time, a and others. travelled over with his Seychelles-based Robertstatutory definition of UK valet, had food and serv- Gaines-Cooper has beenresidence for tax purposes. l The SRT ants provided by a London memorably chronicled in aThe intention is to put an caterer, and hosted resi- series of cases (who canend, once and for all, to a The proposed introduction dent guests while he stayed forget the yellow Mini?)case-law-based system that of a statutory residence test in the property. The house that might reach a conclu-has long been criticised for (SRT) into the UK is bad was kept available for his sion this year in the UKbeing vague, antiquated news for those who enjoy use at all times, and he Supreme Court.and potentially subjective. reading tax cases. At last, it spent two months continu- With its proposed SRT, The other consultation seems a veritable library of ously each year there. though, the Treasury mayinvolves a proposed reform cases, from Cooper v Cad- Decades on, Cadwala- at last reduce years of judi-of the UK’s non-dom tax walader in 1904 to Gaines- der’s story for tax practi- cial wisdom and case lawstructure. Cooper in 2010, will finally tioners was not just an to a simple, box-ticking Both consultations, for begin to gather dust, as tax insight into everyday life at process.which the Treasury hopes practitioners no longer the turn of the 20th centuryto receive responses by 9 need to refer to them. for a certain type of HNW l Keeping it simpleSept, have very significant Cadwalader was a US individual but, more impor- Gerry Brown, head of trusts andinternational aspects for citizen who resided in New tantly, was an early refer- The SRT is intended to taxation, Prudential Internationaladvisers. And by the end of York. He rented a house ence point for defining UK provide a simple process,JULY 2011 [www.international-adviser.com] INTERNATIONAL ADVISER 31
  • TECHNICAL BRIEFING UK STATUTORY RESIDENCE TEST and a clear outcome for KEY POINTS the vast majority of people l Part A Day factor matrix: arrivers Two UK Treasury consultation whose circumstances are An individual is definitely Days spent in UK Impact of connection factors papers may bring about some straightforward. non-resident for a tax of the biggest changes in rules For those with more year if he or she meets any Fewer than 45 days Always non-resident on residency and domicile in complicated affairs, the one of the following 45-89 days Resident if four factors apply a century. new SRT will take into conditions: 90-119 days Resident if three factors apply The new rules will mean that account both the amount Non-UK resident in all of 120-182 days Resident if two factors apply areas of potential dispute will of time the individual the three previous tax be greatly reduced, although spends in the UK, as well years, and present in 183 days or more Always resident they are unlikely to be as other connections he or the UK for fewer than completely eliminated. she has with the UK. 45 days in the current A and Part B apply, then factor is largely irrelevant The SRT will allow individuals The SRT will distinguish tax year; Part A takes precedence, and is ignored. The day- to plan, in advance, to fix their between: UK-resident in one or and the individual will def- factor matrix is demon- UK-resident status. Arrivers: individuals not more of three previous initely be non-UK resident strated in the ‘arrivers’ box UK-resident in all of the tax years, and present in in that year. out above. previous three tax years; the UK for fewer than So far so good. For leavers, meanwhile, and ten days in the current all five factors are relevant. Leavers: individuals resi- tax year; and l Part C The day-factor matrix for dent in any one or more Leaves the UK to carry them is highlighted in the of the previous three out full-time work Part C deals with difficult ‘Leavers’ box out below. tax years abroad, providing he/ cases, where neither Part A Piece of cake, really. The idea is that leavers, she is present in the UK nor Part B apply. For those advisers and who have lived in the UK for fewer than than Part C involves a com- individuals who have not for three years or more, 90 days in the tax year, parison between number fully grasped the above, will have to work harder and no more than 20 of days spent in the UK there is a simple solution. to show they are not resi- days are spent working versus a small number of HMRC has provided an dent than arrivers, who in the UK during the clearly defined ‘connection online tool, www.hm- have not lived in the UK tax year. factors’. These connection treasury.gov.ukconsult_ recently. factors are then combined statutory_residence_test. Like ancient Gaul, the l Part B with days spent in the UK htm. This tells you if some-“ It is hard to resist test has three parts: into a ‘scale’. one is ‘resident’ or ‘non-the conclusion that Part A: contains conclu- If Part A does not apply, It is proposed to have resident’, as appropriate. sive non-residence fac- then the individual is defi- separate scales for arriversHMRC has designed tors that would be suffi- nitely resident if he or she and leavers, to reflect the l The bottom line cient to make an indi- meets any one of the fol- ‘principle’ that it shouldthese tests to give it vidual non-resident; lowing conditions: be harder for leavers to It is hard to resist the con-the results it wants. Part B: contains conclu- Present in the UK for relinquish residence than it clusion that HM Revenue & sive residence factors 183 days or more in a is for new arrivers to Customs has designedThat said, the process that would be sufficient tax year; acquire it. these tests simply to givewill give definite to make an individual Has only one home, and What are the connec- it the results it wants. resident; and that is in the UK (or has tion factors? That said, the process willresults. The areas of Part C: other connection two or more homes, and (1) Family: spouse, or give definite results. Thepotential dispute will factors and day-counting all of these are in “common law equiva- areas of potential dispute rules that only need to the UK); lent”, or minor children will be greatly reduced,be greatly reduced, considered by those Carries out full-time who are UK-resident; even if not completelyeven if not completely whose status is not work in the UK. (2) Accommodation: acces- eliminated. determined by Part A or On the rare occasions sible accommodation The benefit of the SRTeliminated ” Part B. Day factor matrix: leavers Days spent in UK that conditions in both Part Impact of connection factors in the UK; (3) Substantive work in the UK: where substantive UK (but not full time) is that individuals will be able to plan, in advance, to fix their UK-resident status by acting to fall within (or work is involved; without) the UK connec- Fewer than 10 days Always non-resident (4) UK presence in previ- tion factors and/or the 10-44 days Resident if four factors apply ous years: 90 days or days spent in the UK. more in either of previ- The Government is to 45-89 days Resident if three factors apply be congratulated for its ous two tax years; 90-119 days Resident if two factors apply (5) More time is spent in efforts to cut the Gordian 120-182 days Resident if one factor applies the UK than in any knot of current law and other single country practice relating to tax 183 days or more Always resident For arrivers, this last residence.32 INTERNATIONAL ADVISER [www.international-adviser.com] JULY 2011
  • Standing firm in stormy conditions 10.08% per annum Share Class Start Date NAV 1 Month 12 Months Since Launch GBP Institutional 31/07/2005 166.062 0.81% 10.08% 66.06%Source: Managing Partners Limited 1st June 2011 (All figures net of all charges)The GBP institutional share class is one of 18 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 S&P 500 100(“TLP”) funds has continued to grow despite recent 80market turbulence. 60For more information on standing firm on your 40investment call us on +44 (0)1243 785600, 31/7/05 31/5/06 31/5/07 31/5/08 31/5/09 31/5/10 31/5/11email us at info@mpcfunds.com or visit Source: Bloomberg 1st June 2011www.mpcfunds.comImportant Information This communication is issued by Managing Partners Capital Limited (“MPC”). It is directed only at persons who fall within articles19 or 49 of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005, including professional advisers who are authorised under theFinancial Services and Markets Act 2000, other persons who have professional experience in matters relating to investments and institutional investors.The Traded Policies Fund (the “Fund”) is not available for direct sale to members of the public and nothing in this communication is directed at, norshould be relied upon by, retail investors. The Fund is a Cayman Islands-based unregulated collective investment scheme which is not regulated,authorised or otherwise approved by the United Kingdom Financial Services Authority (“FSA”). The Fund is managed by Managing Partners Limited,which is registered as a company in the Cayman Islands and is registered with the Cayman Islands Monetary Authority (number 14505). Thiscommunication does not constitute an invitation or inducement to invest in the Fund. Nothing in this communication constitutes, or should be regardedas, investment advice. Prospective investors should note that investment in the Fund can involve significant risks and may result in the loss of all or partof the original investment. Past performance is not a reliable indicator of future results. Investment in the Fund will only be allowed on the basis of therelevant offering documents. Prospective investors should read the relevant offering documents carefully, including the risk factors, and take appropriateprofessional advice, including financial advice, before making any investment. Investment in the Fund may not be suitable for all investors. Investmentin the Fund is currently available through 18 separate share classes*, which are subject to 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 theGBP institutional share class, investment in which may not be suitable for, or available to, all investors. Other share classes may perform less favourably. (11th May 2011) Making the right choice
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  • FUND SELECTOR GLOBAL HIGH YIELD BONDS portfolioA calculated riskOn the surface, global high yield bonds may seeman inexpensive way of generating income, but thereturns they offer are not without volatilityBY MARYROSE FISON two things was going to market used to be approxi- happen from that point: mately ten times the size ofGlobal high yield bonds either a vast majority of the European market, it ishave come under the spot- high yield corporates were now closer to eight timeslight in recent years for going to default, or inves- its size.their potential to generate tors had a very unique This is in part down tostriking returns in spite of opportunity to enrich them- the smaller base of Europe’sbeing relatively cheap. The selves by investing in high yield bond market.downside, though, is that the market. Comeaux says the USthey can be volatile. “Given that the long- market is still growing in The latest figures from term recovery on a high absolute terms, but as far asMorningstar, for example, yield bond is 35 cents in a a percentage of the under-show that over the past dollar, if you were at 60 lying size of the marketthree years, the top ten cents, it was one of those goes, the European markets mediation trend has beenglobal high yield bonds rare opportunities on high are growing more quickly. slower to occur, becausegenerated returns worth yield where you actually the high yield markets arebetween 29% and 37%. had less downside than you l Systematic risk newer there. Hence the dif-These results, though, do had upside,” he adds. ference in the size of thenot tell the full story. Today the picture has “The reason for this is that market.” For if we look at the changed. “The high yield historically, the US market As eurozone ministers12-month period between market today is trading at has dis-intermediated to an postpone making a deci-June 2008 and June 2009, above par, as opposed to institutional market,” sion on further loans toall ten of the Morningstar trading at 60 cents on the Comeaux explains. “The Greece, following last year’sbonds contracted by dollar in the trough. The majority of corporate lend- €110bn ($158.7bn) aidbetween 3% and 12%. A high yield market today is ing happens at least on an package, analysts are nowyear later they recouped largely about capturing the unsecured basis as an insti- speculating on the possiblethe losses, growing between coupon of the market.” tutional function. Pension impact of that country’s16% and 19%, and last year Across the globe, the funds, insurance companies financial problems on thethe bonds increased by 15% high yield market has and retail investors are find- rest of Europe.and 18%. grown more quickly in ing these corporates, as Comeaux says its effect “ Given that the Europe than in the US, due opposed to banks being the on global high yield bondsl Unique conditions partly to its smaller base. primary funding source. is unlikely to be pro- While the US high yield In Europe, the dis-inter- nounced, given that very long-term recovery onClinton Comeaux, fund few high yield corporatesmanager at institutional Global high yield sector avg vs index actually have direct expo- a high yield bond isasset manager Muzinich, 40 0 sure to Greece’s relatively 35 cents in a dollar, ifsays global high yield Aegon High Yield small economy.bonds are unlikely to gen- Global Bond A $ “What the Greek sover- you were at 60 cents,erate similar levels of 0 20 eign situation presents to it was one of thosereturns in the next few the high yield market is ayears, because the condi- systematic risk, to the extent rare opportunities ontions that created such % 0 that if you have a Greece high yield where youhigh three-year returns are GIF OS Global default that would lead tounlikely to be repeated High Yield Bond problems within the finan- actually had lessso quickly. 0 -20 cial systems in Europe, downside than you “At the end of 2008, the banks’ willingness to lend,average price of a highyield bond was a little over61 cents on the dollar,”explains Comeaux. “One of -40 0 Jun ’08 Dec Source: Morningstar Jun ’09 Dec Jun ’10 Dec Jun ’11 contraction of lending and investors become cautious and selling risky assets,” he says. had upside ” Clinton Comeaux, fund manager, MuzinichJULY 2011 [www.international-adviser.com] INTERNATIONAL ADVISER 35
  • FUND SELECTOR GLOBAL HIGH YIELD BONDSTop ranked funds Three-year performance demonstrably moderatedTop 10 global high yield bond funds by 3-year performance the aggressiveness of their 3-year 3-year 3-year 3-year 3-year 3-year M’star Fund Dom overweight credit posi- % chg Alpha Beta R² Sharpe volatility Ratings size ($m) tions, on the view that Aegon High Yield Global Bond A $ 36.77 0.49 0.84 0.86 0.15 4.63 N/S Ireland fuller valuations do justify Parvest Bond World High Yield C 33.46 0.5 0.75 0.79 0.16 4.3 48.16 Lux the previous level of risk. Meanwhile, others are Baring High Yield Bond A $ Inc 33.1 0.48 0.72 0.91 0.17 3.84 559.63 Ireland comfortable maintaining Cap Int Global High Income Opp A 32.25 0.44 0.74 0.87 0.15 4.09 1,083.58 Lux much more of a pro-risk AB Global High Yield A $ 31.79 0.36 1.02 0.89 0.12 5.56 19,561.86 Lux stance in line with their LGT Multi Manager Bd High Yield $ B 31.51 0.45 0.81 0.82 0.14 4.55 327.44 L’stein positive 12-month outlook Invesco Global High Income A 31.46 0.37 0.87 0.87 0.13 4.79 757.13 Ireland for high yield bonds. This is a divergence that we are T. Rowe Price Glbl High Yld Bd A 30.47 0.42 0.72 0.85 0.15 4.01 1,711.76 Lux monitoring carefully. Putnam Global High Yield Bond A 30.33 0.42 0.8 0.84 0.14 4.46 623.88 Ireland In this context, the Schroder ISF Glbl High Yld A $ Acc 28.96 0.42 0.69 0.79 0.14 3.96 3,482.68 Lux Aegon High Yield Global 10 Jun ’08 – 10 Jun ’11. Bid to bid, $, gross income, no cap. Source: Morningstar Bond Fund, which holds an OBSR A rating, has“ Most fund rebounded particularly CCC-rated bonds in the been the best performer in strongly during the recov- first part of the rally was a the sector over the pastmanagers remain ery phase for capital mar- headwind for many funds, three years.constructive on the kets and the global econo- as mainstream managers’ The fund benefited from my, supported initially by typical emphasis on rigor- a higher weighting in euro-outlook for the next 12 the repricing of lower- ous credit analysis often denominated issues during quality, CCC-rated issuers leads to a preference for the recovery phase, as thismonths, believing that that had previously been higher quality BB and B- part of the market ralliedmodest further spread shunned by investors fear- rated issues. strongly. A disciplined ing that they were close to For the analyst team at approach to relative valua-tightening is possible bankruptcy. OBSR and Morningstar, the tions also helped the fundand will lead to a FUND SELECTOR’S The pace of this rally – first half of 2011 has been participate well in rising COMMENT ANTHONY from December 2008 – has an interesting time to markets without underper-return a little higher MCDONALD, INVESTMENT surpassed that of other research high yield funds. forming significantly whenthan the yield RESEARCH ANALYST, mainstream asset classes, Whereas many were conditions became more OBSR such as equities and invest- broadly positioned for challenging. ”available ment grade bonds, fuelled strength from the asset class Elsewhere, we would It has been a topsy-turvy by unprecedented inflows over much of 2009-10, stress that the sector incor- ride for high yield inves- as investors seek an attrac- there has been a greater porates a reasonably tors over recent years. The tive yield in a world of divergence in positioning diverse range of mandates. asset class was hit hard by near zero interest rates. over recent months. Most This is highlighted by the the 2007-08 financial crisis, At the same time, high fund managers remain con- fact that some offerings in suffering particularly from yield has shown relative structive on the outlook for the sector have a notably the economic uncertainty resilience during more the next 12 months, believ- broader investment uni- and illiquidity that marred challenging periods. ing that modest further verse that incorporates the second half of 2008, However, this recovery spread tightening is possi- emerging market debt after the collapse of period has at times been a ble and will lead to a return alongside traditional high Lehman Brothers. challenging environment a little higher than the yield yield bonds in search of a This downturn was for active fund managers to available. high income. sharply reversed in 2009- generate outperformance; However, some inves- It is notable that two 10, as high yield bonds the strong returns from tors have gradually but such offerings, Alliance- Bernstein High Yield BondTop 3-year performers vs index Top funds – risk and return and Invesco Global High 0 40 40 Income appear on the list Aegon High Yield Cap Int Global Global Bond A $ Aegon High Yield of best performers despite High Income Opp A Baring High Global Bond A $ the underperformance of Yield Bond A $ Inc traditional, dollar-denomi- 0 20 AB Global Parvest Bond 35 LGT Multi Manager High Yield A $ nated emerging market Return (%) World High Yield C Bd High Yield $ B bonds relative to high yield% 0 T. Rowe Price over the three-year period. Glbl High Yld Bd A GIF OS Global 30 Invesco Global Both funds were recovering High Yield Bond Schroder ISF Glbl High Income A from more difficult total 0 -20 High Yld A $ Acc Putnam Global High Yield Bond A returns in 2008, as their off- Baring High Yield benchmark exposures to Bond A $ Inc 25 Parvest Bond World High Yield C Sector avg local currency-denominat- -40 0 3 4 5 6 ed emerging market bonds Jun ’08 Dec Jun ’09 Dec Jun ’10 Dec Jun ’11 Standard deviation (%) rebounded from earlier Source: Morningstar To 10 Jun ’11. Bid to bid, gross inc, no cap. Source: Morningstar weakness.36 INTERNATIONAL ADVISER [www.international-adviser.com] JULY 2011
  • FUND SELECTOR GLOBAL HIGH YIELD BONDSTop ranked funds Newcomers “FUND SELECTOR’S mic economic growth. Top newcomers vs index The healthyCOMMENT ANTHONY The surge of moneyMCDONALD, INVESTMENT into high yield over recent 30 corporate environ- Standard Life SicavRESEARCH ANALYST, years has encouraged both GIF OS Global Global High Yld Bd D ment in the US is alsoOBSR new fund launches and 5 25 greater availability of exist- High Yield Bond viewed to be positive 0 20Over the recovery period ing strategies. for sub-investmentin the asset class, high One such new offeringinvestor demand was able was the Standard Life Sicav 5 % 15 grade issuers, withto absorb a robust supply Global High Yield Bond many investors 0 10pipeline as companies Fund, launched in April Nordea-1 Globaltook the opportunity to 2010. 5 High Yield Bond BP anticipating ongoingrefinance existing bonds. Erlend Lochen, who JPM Global High As a result of this refi- previously spearheaded Yield Bd A $ Acc improvements in 0nancing period, the high the group’s European high Jun ’10 Aug Oct Dec Feb ’11 Apr Jun credit quality as wellyield universe has an unu- yield effort and managed Source: Morningstarsually long average matu- the UK-domiciled Standard as further spreadrity, ensuring technical Life Higher Income Fund, Top newcomers – 1-year risk and return tightening, supportingsupport for a part of the relocated to Boston in 2009market that also continues to build an experienced 25 Standard Life Sicav Global High Yld Bd D their forecasts ofto benefit from improving team that could support a attractive returnscredit metrics at the com- new global high yieldpany level. product. 20 Tower Fund Global Sector avg over the full year Return (%) High Yield Bond ($) ” The corporate environ- The five-strong invest-ment is expected by many ment team has ensured a of 2011fund managers to remain solid first year for the fund. 15healthy, therefore support- The approach, which Nordea-1 Global Investment World Fd High Yield Bond BPing sub-investment grade focuses on traditional high Cpt Glbl High Incomeissuers and allowing fur- yield companies and there- JPM Global High Yield Bd A $ Accther spread tightening that fore follows an ex-finan- 10should, in their view, allow cials benchmark, leverages 0.3 0.4 0.5 0.6 0.7 0.8the asset class to deliver the group’s continued Standard deviation (%)attractive performance in capability in European To 10 Jun ’11. Bid to bid, gross inc, no cap. Source: Morningstarexcess of its average yield high yield but is biasedover the full year of 2011. towards US issuers in line Managed by the group’s research is the primary The combination of with the global market. high yield team, with lead- input to the investmentexceptional investor Elsewhere, the estab- ership from Wesley Sparks, process, with the analystdemand and a positive lished Schroder ISF Global head of US credit, this is a team responsible for ratinghigh yield outlook has High Yield Bond Fund, robust offering. issuers according to theencouraged many asset which also appears as one The manager’s pragmat- group’s proprietary ratingsmanagers to launch dedi- of the largest and best- ic approach combines top- methodology.cated high yield products performing funds in the down and bottom-up This combines funda-over recent years, espe- sector, has been made inputs to construct a high mental credit analysis withcially given the likelihood available to broader audi- yield bond portfolio with the relative value assess-of ongoing support for the ences and the strategy con- the aim of outperforming ment of each company’sasset class from income- sequently appears in differ- the benchmark in most bonds within its sector andseeking investors in a ent guises on the list of market conditions. across the different issuesworld of positive but anae- new funds. Detailed bottom-up available. Top 10 global high yield bond 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) Standard Life Sicav Global High Yld Bd D 21.01 0.07 0.61 0.87 0.46 0.69 6 Apr ’10 260.85 Lux Nordea-1 Global High Yield Bond BP 18.48 0.28 0.48 0.77 0.38 0.72 10 Feb ’10 33.67 Lux JPM Global High Yield Bd A $ Acc 16.67 0.09 0.52 0.93 0.36 0.67 2 Sept ’08 1,789.81 Lux Tower Fund Global High Yield Bond ($) 13.8 0.23 0.32 0.88 0.58 0.33 6 Oct ’08 77.96 Lux Investment World Fd Cpt Glbl High Income 13.36 -0.34 0.5 0.81 0.31 0.6 29 Jan ’10 137.55 Lux RS USD Schroder ISF Gbl High Yield N/A N/A N/A N/A N/A N/A 25 Feb ’11 N/S IoM Janus Global High Yield A $ Acc N/A N/A N/A N/A N/A N/A 29 Oct ’10 22.2 Ireland Clariden Leu (Lux) I Glbl High Yld Bd B N/A N/A N/A N/A N/A N/A 29 Apr ’11 267.79 Lux FF - Global High Yield Bond A Acc $ N/A N/A N/A N/A N/A N/A 30 Jun ’10 0.93 Lux SK IRL $ Schroder ISF Gbl High Yield N/A N/A N/A N/A N/A N/A 25 Feb ’11 N/S Ireland 10 Jun ’10 – 10 Jun ’11. Bid to bid, $, gross income, no cap. Source: MorningstarJULY 2011 [www.international-adviser.com] INTERNATIONAL ADVISER 37
  • FUND SELECTOR GLOBAL HIGH YIELD BONDSTop ranked funds Assets under managementTop 10 global high yield bond funds by assets under management the key driver of returns in high yield, however, and 3-year 3-year 3-year 3-year 3-year 3-year M’star Fund Dom the new manager has con- % chg Alpha Beta R² Sharpe volatility Ratings size ($m) sequently bolstered the AB Global High Yield A $ 31.79 0.36 1.02 0.89 0.12 5.56 19,561.86 Lux 30-plus credit analyst team GS Glbl High Yield Base Inc 27.13 0.33 0.87 0.81 0.11 4.96 6,214.37 Lux since he arrived to enhance Pioneer Fds Glbl High Yield E ND 19.45 0.11 0.97 0.82 0.07 5.45 3,689.11 Lux coverage of smaller B-rated credits. Schroder ISF Glbl High Yld A $ Acc 28.96 0.42 0.69 0.79 0.14 3.96 3,482.68 Lux We believe the fund is a PIMCO GIS Global Hi Yld Bd E Acc 27.18 0.39 0.68 0.83 0.14 3.83 3,440.83 Ireland strong offering in the GS Glbl High Yield Port.- II N/A N/A N/A N/A N/A N/A 1,831.9 Ireland sector, with a conservative JPM Global High Yield Bd A $ Acc N/A N/A N/A N/A N/A N/A – 1,789.81 Lux flavour that makes it a T. Rowe Price Glbl High Yld Bd A 30.47 0.42 0.72 0.85 0.15 4.01 1,711.76 Lux compelling proposition for investors who are keen to BGF Global High Yield Bond A2 $ 22.32 0.24 0.85 0.78 0.09 4.93 1,523.91 Lux invest in high yield but in a Cap Int Global High Income Opp A 32.25 0.44 0.74 0.87 0.15 4.09 1,083.58 Lux more conservative format. 10 Jun ’08 – 10 Jun ’11. Bid to bid, $, gross income, no cap. Source: Morningstar The fund previously co- managed by Jessop, the“ A corollary of the FUND SELECTOR’S A corollary of the strong est funds, whose size often Goldman Sachs Global COMMENT ANTHONY demand for high yield constrains the level of out- High Yield Fund, is alsostrong demand for MCDONALD, INVESTMENT bonds over recent years has performance that they are one of the larger vehicles inhigh yield bonds over RESEARCH ANALYST, been a sharp increase in able to deliver. the sector. However, the OBSR assets under management One of the larger offer- team has continued torecent years has by most highly-regarded ings in the universe is the suffer turnover sincebeen a sharp Over the recovery period high yield bond teams, sev- Pimco GIS Global High Jessop’s departure and the in the asset class, high eral of whom now run tens Yield Bond Fund. It is man- investment approach is inincrease in assets investor demand was of billions of dollars. aged by Andrew Jessop, an the process of evolution enough to absorb a robust This is an area that experienced investor who following the appointmentunder management supply pipeline, as compa- investors and consultants helped build a strong high of Kent Wosepka andby most highly- nies took the opportunity should monitor carefully in yield business at Goldman Michael Goldstein to senior to refinance existing bonds. an asset class that is prone Sachs AM before joining credit roles. Their processregarded high yield Most high yield fund to bouts of severe illiquid- Pimco in 2009. incorporates more top-bond teams, several managers anticipate attrac- ity, during which weak or We have a high opinion down input to supplement tive returns from the asset deteriorating credits can be of his investment ability, the team’s fundamentalof whom now run class over 2011, expecting difficult to sell. and note that his arrival has credit research.tens of billions of it to be supported by fur- Indeed, the much not had a significant impact Alongside the aforemen- ther demand from income- increased level of assets in on the fund’s deliberately tioned AllianceBernstein ”dollars seeking investors in a high yield bond funds, conservative flavour within offering, another fund that world of positive but anae- combined with significant the high yield universe, as incorporates structural mic economic growth. investment from crossover reflected by its choice of exposure to emerging The healthy corporate investors whose primary benchmark, which excludes market debt alongside sub- environment in the US is focus is elsewhere, is a issues rated below B. The investment grade corporate also viewed to be positive growing long-term liquidi- investment process lever- bonds is the Capital for sub-investment grade ty concern. ages Pimco’s macroeco- International Global High issuers, with many inves- Unfortunately, it is inher- nomic analysis, which sets Income Fund. Managed tors anticipating ongoing ent in the nature of the a framework that informs according to Capital improvements in credit asset management industry the positioning of the International’s established quality as well as further that in many cases, the best group’s funds. internal multi-manager spread tightening. investors manage the larg- Stockpicking is seen as process, the portfolio is pri- marily constructed by theTop funds – 3-year risk and return Top funds by AUM vs index investment team of Ellen 40 35 Cap Int Global High Income Opp A AB Global Carr, a high yield specialist; GS Glbl High High Yield A $ Robert Neithart, an emerg- T. Rowe Price Glbl GS Glbl High Yield Base Inc High Yld Bd A Yield Base Inc ing market debt specialist; 20 30 and Laurentius Harrier, who covers both asset classes Return (%) AB Global High and whose input is there- Yield A $ 25% 0 Sector avg fore the primary determi- Pimco GIS Global Pioneer Fds Glbl Hi Yld Bd E Acc High Yield E € ND nant between them. 20 This approach combines -20 GIF OS Global Schroder ISF Glbl the team’s significant credit High Yield Bond High Yld A $ Acc BGF Global High research with a top-down Pioneer Fds Glbl Yield Bond A2 $ High Yield E € 15 input that guides the overall -40 3 4 5 6 portfolio exposure; it has Jun ’08 Dec Jun ’09 Dec Jun ’10 Dec Jun ’11 Standard deviation (%) delivered attractive returns Source: Morningstar To 10 Jun ’11. Bid to bid, gross inc, no cap. Source: Morningstar over the longer term.38 INTERNATIONAL ADVISER [www.international-adviser.com] JULY 2011
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  • 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? Allianz RCM Europe Eq Growth W 28.03 29.35 14.6m Allianz Global Investors Lux Luxembourg A Standard Y Standard Life Sicav Euro Smaller Co’s D 26.3 31.35 1.4m Standard Life Investments Luxembourg AA Y MainFirst Top European Ideas A 10.91 33.47 3,671 MainFirst Sicav Luxembourg Luxembourg A Superior Y Jupiter JGF European Growth L 8.4 29.51 1,468 Jupiter Asset Management Luxembourg AA Y Invesco Pan European Structured Eq A 7.98 24.77 2,202 Invesco Global Asset Mgt Luxembourg AA Superior Y BL-Equities Europe B 6.66 25.73 3,670 Banque de Luxembourg Luxembourg Superior BGF European Focus A2 6.64 30.45 N/S Blackrock (Luxembourg) Luxembourg AAA AA Superior Y Uni-Global Min Variance Europe B1 1.7 21.9 1.00 Unigestion Luxembourg Superior MFS Meridian Europ Value A1 0.41 25.75 5,873 MFS Meridian Funds Luxembourg AA Y Robeco European Conservative Eqs B -2.61 24.99 0 Robeco Luxembourg Luxembourg A Standard Y Henderson Horizon Pan Eurp Eq A2 -3.93 26.2 3,671 Henderson Management Luxembourg AA AA Y Jupiter JGF European Opportunities L -4.48 27.72 1,468 Jupiter Asset Management Luxembourg AA Superior Y DNCA Invest Centifolia Europe B -6.6 25.81 0 DNCA Finance Luxembourg Luxembourg Standard MFS Meridian Europ Equity A1 -7.89 28.5 5,873 MFS Meridian Funds Luxembourg A AA Y JOHCM European Select Val 21.93 29 1,468 J O Hambro Capital Management Ireland A Y Franklin European Growth A Acc 14.95 25.04 7,341 Franklin Templeton Invest Funds Luxembourg A A Y Threadneedle(Lux) Pan European Eqs AE 9.92 25.12 3,671 Threadneedle Investment Svcs Luxembourg A Y Franklin European Sm-Md Cap Gr A Acc 8.56 26.81 7,341 Franklin Templeton Invest Funds Luxembourg A A Superior Y BSF European Opps Ext Strategies A2 8.05 29.67 N/S Blackrock (Luxembourg) Luxembourg AA Y Comgest Europe 7.95 20.89 23,862 CHF Comgest Luxembourg Elite Y Danske Invest Europe Small Cap A 7.4 35.63 0 Danske Invest Luxembourg AA Comgest Growth Europe Acc 7.29 20.93 14,683 Comgest Asset Management Int’l Ireland AA Elite Y EDM Intl Strategy 6.59 23.19 0 EDM Fund Management Luxembourg Standard BGF European Growth A2 4.4 28.11 N/S Blackrock (Luxembourg) Luxembourg AA A Superior Y Allianz RCM Europe Small Cap Eq AT 3.35 32.48 1.00 Allianz Global Investors Lux Luxembourg Elite Allianz RCM Small Cap Europa A 2.8 32.68 1.00 Allianz Global Investors Lux Luxembourg AA Elite Nordea-1 European Value BP 2.01 28.12 73 Nordea Investment Funds Luxembourg AA A Y Montanaro European Smaller Comp £ 1.89 29.7 1,645 £ Montanaro Asset Management Ireland AAA AA Superior Y Kempen (Lux) European Small Cap A 1.53 32.78 1,468 Kempen Capital Management Luxembourg Superior Metzler European Focus 1.13 31.21 734,125 Metzler Ireland Ireland AA Superior BGF European A2 -0.88 29.6 N/S Blackrock (Luxembourg) Luxembourg AA AA Superior Y Metropole Best of Europe R (PEA) -1.79 30.72 1.00 Métropole Gestion Luxembourg Standard BNPP L1 Equity Europe Growth Acc -2.41 27.5 N/S BNP Paribas Invest Partners Lux Luxembourg Superior Y Reyl (Lux) GF European Equities F -2.7 29.18 1.00 Reyl & Cie Luxembourg A Y Digital Stars Europe -2.89 30.37 N/S Digital Funds Luxembourg Standard Y Schroder ISF European Special Sit A -3.16 28.04 1,468 Schroder Investment Mgt Luxembourg AA Superior Y Invesco Pan European Equity A Acc -4.27 30.36 2,202 Invesco Global Asset Mgt Luxembourg AA YJULY 2011 [www.international-adviser.com] INTERNATIONAL ADVISER 41
  • 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?Danske Invest Europe Focus A -5.14 31.85 1.00 Danske Invest Luxembourg AABNPP L1 Equity Best Sel Europe C Acc -5.65 27.25 1.00 BNP Paribas Invest Partners Lux Luxembourg AA Superior YInvesco European Growth Equity A -6.1 27.49 N/S Invesco Global Asset Mgt Luxembourg AA YAlken European Opportunities R -7.01 31.44 0 Alken Asset Management Luxembourg Superior YPioneer Fds Top European Plyrs E ND -8.17 27.06 50 Pioneer Asset Management Luxembourg AMS INVF European Equity Alpha A -8.41 27.31 0 Morgan Stanley Invest Funds Luxembourg Superior YUBS (Lux) EF European Opp P -8.95 27.77 1.00 UBS Global Asset Mgt (Lux) Luxembourg Standard YCazenove Pan Europe B Euro -9.5 26.8 N/S Cazenove International Fund Ireland AAA A Superior YCapitalAtWork European Eq at Work C -10.36 29.46 1.00 Capital at Work Luxembourg AAOyster European Opportunities -11.11 28.93 0 Oyster Asset Management Luxembourg Standard YDanske Invest Europe High Dividend A -11.82 30.05 1.00 Danske Invest Luxembourg AALazard Pan European Eq -12.41 29.82 2,937 Lazard Fund Managers (Ireland) Ireland Superior YFranklin Mutual European A Acc -13.01 25.41 7,341 Franklin Templeton Invest Funds Luxembourg AA A Elite YIgnis Intl Argo Pan Eur Alpha I Acc -13.02 27.05 4.4m Ignis Asset Management Limited Ireland A A YGAM Star European Equity Acc -13.63 26.65 14,683 GAM Fund Management Limited Ireland A YGS Europe CORE Equity Base Inc -16.36 29.53 7,341 Goldman Sachs Asset Mgt Int’l Luxembourg AA Superior YFF - European Growth A Euro -17.14 28.51 1.00 Fidelity (FIL (Luxembourg)) Luxembourg AA Superior YCarnegie European Equity 1A -17.25 27.75 1,468 Carnegie Fund Mgt Company Luxembourg AAJPM Europe Dynamic A (dist)- -18.35 29.42 N/S JPMorgan Asset Mgt (Eur) Luxembourg A Superior YCarmignac Portf Grande Europe A -19.54 25.9 1.00 Carmignac Gestion Luxembourg SuperiorEurope 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?BGF Continental European Flexible A2 20.33 31.98 N/S Blackrock (Luxembourg) Luxembourg AAA AA Superior YAllianz RCM Euroland Eq Growth W 18.4 31.24 14.6m Allianz Global Investors Lux Luxembourg A Superior YMainFirst Classic Stock Fund A 14.72 33.21 3,671 MainFirst Sicav Luxembourg Luxembourg A Superior YEdinburgh Partners Europe Opp I 6.72 29.67 146,825 Edinburgh Partners Ireland AA Superior YMFS Meridian Continental Europ Eq A1 £ 5.77 28.34 4,113 £ MFS Meridian Funds Luxembourg A YLuxTopic - Aktien Europa A -8.18 28.57 0 DJE Investment Luxembourg StandardFonditalia Euro Defensive -15.99 26.98 7,341 Fideuram Gestions Luxembourg StandardGAM Star Cont European Equity £ Acc -3.25 26.92 9,871 £ GAM Fund Management Ireland A YJOHCM Continental European £ -3.79 30.61 1,645 £ J O Hambro Capital Management Ireland A AA Superior YFonditalia Euro Cyclicals -4.1 35.48 7,341 Fideuram Gestions Luxembourg StandardStandard Life Sicav Euro Equity Uncons D -5.46 32.28 1.4m Standard Life Investments Luxembourg AA YCazenove European Eq ex UK B -8.33 27.39 N/S Cazenove International Fund Ireland AAA AA Superior YPioneer Fds Euroland Equity E ND -9.74 31.07 50 Pioneer Asset Management Luxembourg AA SuperiorBGF Euro-Markets A2 -9.78 32.65 7,341 Blackrock (Luxembourg) Luxembourg AA AA Superior YGartmore Sicav Continental European A -10.02 28.9 3,671 Gartmore Sicav Luxembourg A Superior YBNPP L1 Equity Best Sel Euro Acc -13.67 30.78 1.00 BNP Paribas Invest Partners Lux Luxembourg AA Superior YCapitalAtWork Contr Euro Eq at Work C -15.01 30.56 1.00 Capital at Work Luxembourg AAING (L) Invest Euro Income P Acc -17.34 27.51 0 ING Investment Mgt Luxembourg Luxembourg StandardING (L) Invest Euro Hi Dividend P Acc -18.13 31.27 0 ING Investment Mgt Luxembourg Luxembourg AA SuperiorSchroder ISF Euro Equity A Acc -19.34 33.25 1,468 Schroder Investment Mgt Luxembourg A YFF - Euro Blue Chip A Euro -20.28 31.3 N/S Fidelity (FIL (Luxembourg)) Luxembourg A Superior 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 $ 20.39 19.37 100,000 $ Findlay Park Investment Mgt Ireland AAA YBNPP L1 Equity USA Growth Acc 14.43 20.65 N/S $ BNP Paribas Invest Partners Lux Luxembourg A YRobeco US Premium Equities D $ 12.86 20.65 N/S $ Robeco Luxembourg Luxembourg Superior YSchroder ISF US Sm & MdCp Eq A $ 10.82 21.53 1,000 $ Schroder Investment Mgt Lux Luxembourg AA AAA Elite YAllianz RCM US Equity C2 $ 4.91 22.77 1,000 $ Allianz Global Investors Ireland Ireland A Superior YBL-Equities America B 1.79 19.63 N/S $ Banque de Luxembourg Luxembourg SuperiorLM CB US Appreciation A Inc (A) $ -1.94 17.83 1,000 $ Legg Mason Global Funds (Dub) Ireland A YBGF US Small & MidCap Opps A2 $ 15.09 24.9 5,000 $ Blackrock (Luxembourg) Luxembourg A Superior YGAM GAMCO Eq Acc 13.65 27.9 10,000 $ GAM Fund Management BVI AAA A42 INTERNATIONAL ADVISER [www.international-adviser.com] JULY 2011
  • 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?GAM Star US All Cap Equity $ Acc 9.99 23.41 10,000 $ GAM Fund Management Ireland AA A YW.P Stewart Holdings . 8.78 23.8 1.00 $ W.P Stewart Asset Mgt (Europe) . Luxembourg AA SuperiorING (L) Invest US Growth P $ 7.67 19.85 0 $ ING Investment Management Lux Luxembourg StandardRobeco US Large Cap Equities D 6.4 21.6 0 Robeco Luxembourg Luxembourg AA SuperiorPerkins US Strategic Value A $ Acc 6.38 20.47 2,500 $ Janus Capital Funds Ireland AA Superior YCap Int US Growth and Income B 5.12 20.85 1,468 Capital International Luxembourg Elite YPineBridge US Focus Equity $ Y 4.88 20.96 1m $ PineBridge Investments Ireland Ireland AA YFF - America A $ 4.47 23.03 2,500 $ Fidelity (FIL (Luxembourg)) Luxembourg A Standard YING (L) Invest US High Dividend P Acc 4.31 19.6 0 $ ING Investment Mgt Lux Luxembourg A StandardPioneer Fds US Research E ND 4.03 19.68 50 Pioneer Asset Management Luxembourg StandardJPM America Large Cap A (dist)-$ 3.46 19.5 35,000 $ JPMorgan Asset Mgmt (Europe) Luxembourg Standard YFranklin US Equity A Acc $ 3.02 20.01 5,000 $ Franklin Templeton Invest Funds Luxembourg A YBrown Advisory US Equity Value £ A 2.48 23.74 8,226 £ Brown Advisory Funds Ireland A YInvestec GSF American Eq A Inc Grs $ 2.15 25.44 3,000 $ Investec Asset Mgt Lux Luxembourg AA Superior YNeuberger Berman US Large Cap Gr $ Adv 0.55 19.83 10,000 $ Neuberger Berman Ireland AA YAberdeen Global American Equity A2 0.26 21.52 1,500 $ Aberdeen Asset Managers (Lux) Luxembourg A YGS US Equity Portfolio Base Inc -3.27 21.6 5,000 $ Goldman Sachs Asset Mgt Int’l Luxembourg A A Superior YMFS Meridian US Value A1 $ -3.92 20.91 5,000 $ MFS Meridian Funds Luxembourg AA YPioneer Fds North Amer Bas Val E ND -5.23 19.54 50 Pioneer Asset Management Luxembourg AAEaton Vance Intl(IRL) US Value M2 $ -14.46 21.19 1m $ Eaton Vance Mgt (Int’l) Ireland AA 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 ($) Rating Rating Rating Qual Rating reg?Ignis Intl Cart Enhanced Alp A £ Acc 2.44 20.43 N/S £ Ignis Asset Management Ireland A YOld Mutual Dublin UK Sel Smllr Companies 18.63 29.87 1,645 £ Old Mutual Asset Managers UK Ireland AAA YCazenove UK Equity B £ 11.16 25.63 8,226 £ Cazenove International Fund Ireland A YAsia Pacific equityOffshore/int’l funds 3-year 3-year Min init Curr Manager name Domicile Morningstar S&P Fd OBSR Morningstar UK % chg volatility inv ($) Rating Rating Rating Qual Rating reg?Templeton Asian Growth A YDis $ 29.48 32.78 5,000 $ Franklin Templeton Invest Funds Luxembourg AAA A YInvestec GSF Asian Eq A Inc Grs $ 16.33 29.29 3,000 $ Investec Asset Mgt Lux Luxembourg AA Superior YRobeco Asia Pacific Equities D 1.75 25.63 0 Robeco Luxembourg Luxembourg A Superior YMacquarie Asia New Stars Fund A1 56.4 38.08 3,000 $ Macquarie Funds Mgt HK Caymans StandardFF - South East Asia A $ 25.81 29.73 2,500 $ Fidelity (FIL (Luxembourg)) Luxembourg AA AA Superior YFF - Asian Special Situations A $ 22.12 27.92 2,500 $ Fidelity (FIL (Luxembourg)) Luxembourg AA Elite YSchroder ISF Emerg Asia A 16.22 29.6 1,000 $ Schroder Investment Mgt (HK) Luxembourg AA Superior YInvesco Asian Equity A 12.01 30.18 1,500 $ Invesco Global Asset Mgt Ireland AA A YInvesco Pacific Equity A 9.22 26.04 1,500 $ Invesco Global Asset Mgt Ireland A YING (L) Invest New Asia P $ Acc 1.77 27.23 0 $ ING Investment Mgt Lux Luxembourg A StandardJapan 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 ¥ 17.86 21.87 N/S ¥ Fidelity (FIL (Luxembourg)) Luxembourg A YPolar Capital Plc Japan $ 7.81 21.62 0 $ Polar Capital Partners Ireland AA AA Superior YValueInvest LUX Japan A Cap 3.07 14.85 0 ValueInvest Asset Management Luxembourg StandardOrbis Sicav Japan Equity (¥) 1.63 25.24 N/S ¥ Orbis Investment Management Luxembourg AAA AAInvesco Japanese Equity Core A -1.12 22.7 1,500 $ Invesco Global Asset Mgt Ireland AA A Superior YInvesco Japanese Equity Advantage A -1.5 20.07 N/S ¥ Invesco Global Asset Mgt Luxembourg AA A YSGAM Fund Eqs Japan CoreAlpha A -4.37 24.24 1.00 ¥ Amundi Luxembourg AAA YLindsell Train Japanese Equity A Acc -12.33 19.54 2,492 ¥ Close Asset Management (UK) Ireland A YGS Japan Small Cap Base Inc 0.13 21.2 6,231 ¥ Goldman Sachs Asset Mgt Int’l Luxembourg A YOyster Japan Opportunities ¥ -5.53 18.08 0 ¥ Oyster Asset Management Luxembourg A YPineBridge Japan Small Cap Equity ¥ -6.13 22.16 1m $ PineBridge Investments Ireland Ireland AA YMelchior ST Japan Advantage B3 ¥ -13.95 20.53 N/S ¥ Dalton Strategic Partnership Luxembourg A YHenderson Horizon Japanese Eq A2 -15.32 21.71 2,500 $ Henderson Management Luxembourg A YJULY 2011 [www.international-adviser.com] INTERNATIONAL ADVISER 43
  • QUALITY FUNDSJapan 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 ($) Rating Rating Rating Qual Rating reg?Fidelity AS Japan A Acc ¥ -15.7 23.72 N/S ¥ Fidelity (FIL (Luxembourg)) Luxembourg A YSchroder ISF Japanese Eq A Acc -16.14 22.16 12 ¥ Schroder Invest Mgt (Japan) Luxembourg Superior YNippon Growth -19.16 26.86 N/S ¥ E.I. Sturdza Strategic Mgt Guernsey AIFDC Japan Dynamic A ¥ -22.81 21.8 1.00 ¥ IFDC Luxembourg AAA AAGlobal emerging markets equityOffshore/int’l funds 3-year 3-year Min init Curr Manager name Domicile Morningstar S&P Fd OBSR Morningstar UK % chg volatility inv ($) Rating Rating Rating Qual Rating reg?First State Glbl Emerg Mkts Leader I 28.38 24.79 1,500 $ First State Invest (Hong Kong) Ireland AAA YAberdeen Global Emerging Markets Eq A2 26.2 28.41 1,500 $ Aberdeen Asset Managers (Lux) Luxembourg AA AAA Elite YSchroder ISF Glbl Emerg Mkt Opp A $ 20.93 28.04 1,000 $ Schroder Investment Mgt Luxembourg Superior YVontobel Emerging Markets Eq B 11.55 25.46 N/S $ Vontobel Management Luxembourg AAComgest Growth Emerging Markets Acc 2.19 27.48 10,000 $ Comgest Asset Management Int’l Ireland AAA Elite YRobeco Active Quant Emerging Eq D 14.88 33.51 0 Robeco Luxembourg Luxembourg AClariden Leu (Lux) Emerging Mkts Eq B 14.61 35.11 10 $ Clariden Leu AG Luxembourg AALazard Emerging Markets Equity $ 10.32 31.34 2m $ Lazard Fund Managers (Ireland) Ireland A Superior YBNY Mellon Global Em Mkts Eq Value A $ 8.47 29.82 5,000 $ BNY Mellon Asset Management Ireland A YJPM Emerging Markets Eq A (dist) $ -1.77 31.37 35,000 $ JPMorgan Asset Mgmt (Europe) Luxembourg Superior 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 $ 38.01 23.33 N/S $ Nuveen Ireland AACalamos Global Equity A Acc 25.16 27.98 29,365 Calamos Global Funds Ireland AA YVeritas Glbl Focus A £ 15.73 19.73 49,355 £ Veritas Asset Management UK Ireland AA Superior YFranklin Mutual Global Disc A Acc $ 10.36 15.3 5,000 $ Franklin Templeton Invest Funds Luxembourg A Superior YVeritas Global Eq Income A £ 9.75 20.89 49,355 £ Veritas Asset Management UK Ireland AA Superior YTweedy Browne Intl Value Fd ( ) B 8.77 25.67 36,706 Tweedy Browne Co Luxembourg SuperiorValueInvest LUX Global A Cap 8.28 20.03 0 ValueInvest Asset Management Luxembourg SuperiorAmundi International Sicav AU-C 6.66 14.86 1.00 $ Amundi Luxembourg StandardMercLin Sicav Global Equity F 4.96 22.13 1.00 Mercier Vanderlinden Asset Mgt Luxembourg SuperiorMFS Meridian Glbl Equity A1 $ Acc 3.85 23.06 5,000 $ MFS Meridian Funds Luxembourg A YOrbis Global Equity 2.98 25.03 50,000 $ Orbis Investment Management Bermuda AAASchroder ISF QEP Global Quality A1 Acc 2.79 22 1,468 Schroder Investment Mgt Luxembourg APlanetarium - Riverfield Eqs 1.63 22.32 7,341 Planetarium Fund Luxembourg AOrbis Sicav Global Equity Inv 1.48 24.83 N/S Orbis Investment Management Luxembourg AAPEH Strategie Flexibel P 1.38 15.83 3,671 Axxion Luxembourg ABL-Global Equities B 1.06 20.96 3,671 Banque de Luxembourg Luxembourg SuperiorBNY Mellon Lg-Trm Global Equity A 0.31 19.48 7,341 BNY Mellon Asset Management Ireland AA A YBGF Global Dynamic Equity $ A2 -2.1 19.92 5,000 $ Blackrock (Luxembourg) Luxembourg AAA AA Superior YVontobel Global Value Equity B -3.97 19.07 N/S $ Vontobel Management Luxembourg AAGamax Funds Junior A 3.93 23.79 367,062 GAMAX Management Luxembourg AGAM Global Diversified $ 2.37 N/A 5,000 $ GAM Fund Management BVI AABNPP L1 Opportunities World Acc 1.62 25.26 2,202 BNP Paribas Invest Partners Lux Luxembourg AA YAberdeen Global World Equity A2 -0.84 25.25 1,500 $ Aberdeen Asset Managers (Lux) Luxembourg AA A Superior YSchroder ISF Glbl Eq Alpha A $ Acc -1.39 24.47 1,000 $ Schroder Investment Mgt Luxembourg Superior YSchroder ISF QEP Global Core C Acc -1.72 24.18 500,000 $ Schroder Investment Mgt Luxembourg A YTweedy Browne Glbl Hi Div Val ( ) D -2.73 N/A 36,706 Tweedy Browne Co Luxembourg SuperiorDJE Dividende & Substanz P -3.63 24.31 0 DJE Investment Luxembourg SuperiorBPI GIF - Opportunities R -4.4 26.63 22,024 BPI Global Invest Fund Mgt Co Luxembourg SuperiorGAM Star Worldwide Equity $ Inc -5.44 24.09 10,000 $ GAM Fund Management Ireland AAA YDWS Invest Top Dividend LC -5.89 23.16 1.00 DWS Investment Luxembourg Superior YJanus Global Research A $ -6.04 26.47 2,500 $ Janus Capital Funds Ireland A YOasis Global Equity -6.97 23.7 5,000 $ Oasis Global Mgt Co (Ireland) Ireland AAInvestec GSF Glbl Eq A Inc Grs $ -8.34 24.09 3,000 $ Investec Asset Mgt Lux Luxembourg A Superior YACPI Global Equity Ucits A $ -9.93 N/A 1m $ ACP Partners Inv Mgr (Ireland) Ireland A YInvestec GSF Glbl Str Eq A Inc Grs $ -11.7 24.95 3,000 $ Investec Asset Mgt Lux Luxembourg AA Superior YSarasin EquiSar - Global A -11.95 23.79 1,468 Sarasin Investmentfonds Luxembourg A YDWS Invest Global Value LC -11.99 24.29 0 DWS Investment Luxembourg Superior44 INTERNATIONAL ADVISER [www.international-adviser.com] JULY 2011
  • 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?DWS Global Value -12.16 24.67 734 DWS Investment Luxembourg SuperiorING (L) Invest Glbl Hi Div P Acc -12.46 23.32 0 ING Investment Mgt Lux Luxembourg A StandardGlobersel Equity -15.45 27.4 3,671 Ersel Gestion Internationale Luxembourg SuperiorCarnegie Worldwide 1A -17.1 22.23 1,000 $ Carnegie Fund Mgt Company Luxembourg AAAGlobal 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?Templeton Glbl Total Return A MDis $ 53.14 12.44 5,000 $ Franklin Templeton Invest Funds Luxembourg AA/V4 A YPimco GIS Global Bond Ins CHF Hdg Acc 46.92 18.51 N/S CHF Pimco Global Adv (Ireland) Ireland AA YTempleton Global Bond A MDis $ 43.06 9.19 5,000 $ Franklin Templeton Invest Funds Luxembourg AAA/V4 AA Superior YTempleton Glbl Total Return A Acc -H1 40.05 24.18 7,341 Franklin Templeton Invest Funds Luxembourg AA/V4 YThames River Sterling Glbl Bond $ 38.38 10.7 7,500 $ Thames River Capital Ireland AA/V4 YAegon Strategic Global Bond A 34.46 20.18 N/S Aegon Fund Management (UK) Ireland A YTempleton Global Bond A Acc -H1 32.69 21.2 7,341 Franklin Templeton Invest Funds Luxembourg AAA/V4 YThames River Sterling Glbl Bond 28.73 16.75 11,012 Thames River Capital Ireland AA/V4 YLGT Bond Global ( ) B 27.25 9.85 1.00 LGT Capital Management Liechtenstein A/V5Thames River Euro Glbl Bond Acc 26.69 11.06 11,012 Thames River Capital Ireland AA/V5 YTempleton Glbl Total Return A MDis £-H1 26.29 20.5 8,226 £ Franklin Templeton Invest Funds Luxembourg AA/V4 A YLoomis Sayles Glob Opp Bd Fd I/D $ 23.5 10.73 100,000 $ Natixis Global Associates Ireland Superior YPimco GIS Global Bond Ins Hdg Acc 14.46 19.2 N/S Pimco Global Adv (Ireland) Ireland AA YInvestec GSF Glbl Bd A Inc Grs $ 25.07 10.27 3,000 $ Investec Asset Mgt Luxembourg Luxembourg A YPimco GIS Global Bond Inv $ Unhdg 22.23 11 5m $ Pimco Global Advisors (Ireland) Ireland AA YPimco GIS Global Bond Ins Acc 21.87 6.82 10m $ Pimco Global Advisors (Ireland) Ireland AA YTempleton Global Bond A MDis £-H1 21.74 16.88 8,226 £ Franklin Templeton Invest Funds Luxembourg AAA/V4 AA Superior YThames River Sterling Glbl Bond £ Inc 18.9 7.3 8,226 £ Thames River Capital Ireland AA/V5 YTriAlpha International Bond 18.58 7.16 5,000 $ TriAlpha Fund Mgrs (Jersey) Jersey A/V3Dexia Bonds World Government Plus C Acc 16.93 8.64 1.00 Dexia Asset Management Luxembourg StandardTempleton Global Bond Euro A YDis 12.99 19.21 7,341 Franklin Templeton Invest Funds Luxembourg AA/V4 YRobeco Lux-o-rente D 8.53 16.69 1.00 Robeco Luxembourg Luxembourg AA/V3 Superior YPimco GIS Global Bond Ins £ Hdg Inc 3.07 16.13 N/S £ Pimco Global Advisors (Ireland) Ireland AA YGlobal emerging market 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?BNY Mellon EM Debt Local Ccy X $ 32.7 16.59 0 $ BNY Mellon Asset Management Ireland A/V6 YMFS Meridian Emerg Mkts Dbt A2 $ 31.25 13.78 5,000 $ MFS Meridian Funds Luxembourg AAA/V5 A YPictet-Global Emerging Debt-HP 23.21 24.76 0 Pictet Funds (Europe) Luxembourg Standard YTempleton Emerging Mkts Bd A QDis $ 38.79 17.12 5,000 $ Franklin Templeton Invest Funds Luxembourg AA/V5 AA Superior YING (L) Flex Emerg Mkts Debt $ P Acc 36.26 17.09 0 $ ING Investment Management Lux Luxembourg AA/V6Pictet-Global Emerging Debt-P $ 33.9 12.03 0 $ Pictet Funds (Europe) Luxembourg Standard YAB Emerging Markets Debt A $ 33.79 17.46 2,000 $ AllianceBernstein (Luxembourg) Luxembourg AA/V5LO Funds Emerging Market Bond P A 33.22 13.05 N/S $ Lombard Odier Funds (Europe) Luxembourg StandardBNPP L1 Bond World Emerg Local Acc 30.46 16.55 N/S $ BNP Paribas Invest Ptnrs Lux Luxembourg AA/V5 YBNY Mellon Emerg Mkts Dbt A $ 29.66 14.17 5,000 $ BNY Mellon Asset Management Ireland AA/V5 YBlueBay Emerging Mkt Loc Ccy Bd Acc 26.56 18.51 100,000 $ BlueBay Asset Management Luxembourg A/V6 YGS Glbl Emerg Mkts Debt Base Inc 26.26 18.31 1,500 $ Goldman Sachs Asset Mgt Int’l Luxembourg A/V6 YAllianz Emerg Markets Bond A 13.24 26.13 1.00 Allianz Global Investors Ireland Ireland AA/V5 YSchroder ISF EMkt Dbt Abs Ret A H Acc 4.06 20.84 1,468 Schroder Investment Mgmt Lux Luxembourg AA/V4 Superior YFunds of hedge fundsOffshore/int’l funds 3-year 3-year Min init Curr Manager name Domicile Morningstar S&P Fd OBSR Morningstar UK % chg volatility inv ($) Rating Rating Rating Qual Rating reg?GAM Multi-Emerging Markets $ Open Cl 0.18 10.18 15,000 $ GAM Fund Management BVI AAGAM Trading II - $ Open Class 10.66 4.74 25,000 $ GAM Fund Management BVI AAHDF Eurovest Class A $ -1.05 N/A 25,000 $ HDF Finance Luxembourg AAJULY 2011 [www.international-adviser.com] INTERNATIONAL ADVISER 45
  • QUALITY FUNDS Corporate and high-yield 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? Neuberger Berman HY Bd Adv Acc 33.78 24.6 14,683 Neuberger Berman Ireland AAA/V5 A Y Cap Int Global High Income Opp A 30.9 14.12 7.3m Capital International Luxembourg AA/V5 Y BlueBay High Yield Bond B 30.53 24.38 146,825 BlueBay Asset Management Luxembourg AAA/V5 Y Invesco Euro Corporate Bond A Acc 22.09 19.34 N/S Invesco Global Asset Mgt Luxembourg AA/V4 AA Superior Y BlueBay Investment Grade Bd B 18.58 16.8 146,825 BlueBay Asset Management Luxembourg AAA/V3 A Y Schroder ISF Glbl High Yld I £ Hdg Acc 12.33 22.93 82.2m £ Schroder Investment Mgt Lux Luxembourg A/V5 Y Allianz Euro High Yield Bond A 38.45 26.3 1.00 Allianz Global Investors Lux Luxembourg Standard Y Aegon High Yield Global Bond A $ 37.07 15.85 100,000 $ Aegon Fund Management (UK) Ireland A Y Muzinich Europeyield H/Y Acc 34.66 24.59 146,825 Muzinich & Co Ireland AA/V6 Y FF - US High Yield A $ 34.6 15.36 2,500 $ Fidelity (FIL (Luxembourg)) Luxembourg AAA/V5 A Y Invesco Global High Income A 31.51 16.42 1,500 $ Invesco Global Asset Mgt Ireland A/V6 Y Aegon High Yield Global Bond A 27.5 26.3 146,825 Aegon Fund Management (UK) Ireland A Y Schroder ISF Glbl Corp Bond A Acc 27.47 5.53 1,000 $ Schroder Investment Mgt Luxembourg AA/V3 Y BlueBay Investment Grade Bd B$P 27.2 4.41 100,000 $ BlueBay Asset Management Luxembourg AAA/V3 A HSBC GIF Euro High Yield Bond A Acc 24.25 26.51 7,341 HSBC Investment Funds (Lux) Luxembourg AA/V6 Superior Y Janus US High Yield A 23.68 24.37 3,671 Janus Capital Funds Ireland A/V5 Y FF - Euro High Yield A Euro 23.54 26.84 N/S Fidelity (FIL (Luxembourg)) Luxembourg AA/V6 Superior Y Axa WF Glbl High Yield Bonds AC $ 23.3 14.25 0 $ Axa Investment Managers Paris Luxembourg Superior Robeco High Yield Bonds DH 20.02 25.62 0 Robeco Luxembourg Luxembourg A/V5 Superior Y Schroder ISF Glbl Corp Bd A Hdg Acc 18.32 18.44 1,468 Schroder Investment Mgt Luxembourg AA/V3 Y WestLB Me Co Fd Euro Hi-Yld Bd A 17.72 27.32 734,125 WestLB Mellon Asset Mgt (Lux) Luxembourg A/V6 Y Schroder ISF Euro Corporate Bond A Acc 16.65 16.99 1,468 Schroder Investment Mgt Lux Luxembourg AA/V3 Standard Y Oyster European Corporate Bonds 14.14 17.46 0 Oyster Asset Management Luxembourg Standard Y Standard Life Sicav Eurp Corp Bd D 13.83 17.74 1.5m Standard Life Investments Luxembourg AA/V4 Y Axa WF Euro Credit Plus AC 13.37 17.48 0 Axa Investment Managers Paris Luxembourg Superior 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 19.15 16.5 7.3m BNY Mellon Asset Management Ireland AAA/V3 Y Schroder ISF US Dollar Bd A Hdg 14.86 17.38 1,468 Schroder Invest Mgt Nth America Luxembourg AA/V2 Y Pioneer Fds Euro Aggt Bd A ND 13 15.91 1.00 Pioneer Asset Management Luxembourg Superior Pimco GIS Glbl Real Ret Ins Hdg Acc 11.32 21.64 N/S Pimco Global Advisors (Ireland) Ireland AA Y LM WA GMS A Acc (H) 15.13 25.43 1,468 Legg Mason Global Funds (Dub) Ireland A/V4 Y HSBC GIF Euro Bond A Acc 12.34 15.99 N/S HSBC Investment Funds (Lux) Luxembourg AA/V3 Superior Y BGF Euro Bond A2 11.1 15.62 N/S Blackrock (Luxembourg) Luxembourg AA/V3 AA Superior Y Parvest Bond Euro C 9.6 15.6 1,000 BNP Paribas Luxembourg AA/V3 Superior Y MS INVF Euro Bond A 8.91 15.7 0 Morgan Stanley Invest Funds Luxembourg Standard Y FF - Glbl Inflatn Lkd Bd AC Hdg Acc 8.88 20.13 N/S Fidelity (FIL (Luxembourg)) Luxembourg A/V4 A BGF Euro Short Duration Bond A2 8.46 15.15 N/S Blackrock (Luxembourg) Luxembourg AA/V2 Superior Y Pimco GIS Euro Bond Ins Acc 7.39 16.99 N/S Pimco Global Advisors (Ireland) Ireland AA Y LGT Bond Global Inflation Linked B 6.9 18.96 1.00 LGT Capital Management Liechtenstein A/V4 Axa WF Euro Inflation Bonds IC 5.5 19.42 146,825 Axa Investment Managers Paris Luxembourg Superior UniEuroKapital -net- 0.79 15.21 0 Union Investment Lux Luxembourg A/V2Data 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. ADVISER INTERNATIONAL The premier source of news and analysis for financial intermediaries online www.international-adviser.com using cross-border fund, life and banking products. All the latest offshore news, updated daily LifeBase - a comprehensive database of offshore life products46 INTERNATIONAL ADVISER [www.international-adviser.com] JULY 2011
  • 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
  • CPD ACCREDITED ADVISER INTERNATIONAL Singapore Expert Investor Forum MARINA MANDARIN, SINGAPORE 11 OCTOBER 2011 To reserve your place for our fifth annual, one-day exclusive educational investment forum, featuring some of the top fund featuring managers in the world, email emily.proctor@lastwordmedia.comHot investment strategies... ...a great networking opportunityl Which emerging frontier markets will provide the most l Meet and talk to some of the most respected exciting prospects for returns? fund managers in the worldl What about commodities? Are they relentlessly moving l See a mixture of mainstream managers up in price as the whole world consumes more, or will and boutique specialists there be a correction? l Meet respected investment professionalsl Where are the next big growing commercial and and associates, locally and globally residential property markets? l Attendance is by invitation only www.international-adviser.com For more information, contact event manager Emily Proctor by emailing emily.proctor@lastwordmedia.com or calling +44 20 7065 7561
  • BANKING DEPOSITS OFFSHORE ACCOUNTS RANKED BY INTEREST RATESNo-notice £ accountsProvider Account Notice Deposit Gross Interest Telephone number/ or term % paid web addressAnglo Irish Bank Corporation (Int’l) Privilege Demand None £5,000 2.7% Yly +44 (0)1624 698000Anglo Irish Bank Corporation (Int’l) Privilege Access ll None £5,000 2.47% 6-mly +44 (0)1624 698000Nationwide International Base Rate Tracker Prem None £25,000 2.4%* Yly +44 (0)1624 696000Irish Nationwide (IoM) Instant Quarterly None £25,000 2.35% Yly +44 (0)1624 673373Lloyds TSB International International Bonus Saver None £100,000 2.01%* Mly +44 (0)1624 641825No-notice $ accountsAnglo Irish Bank Corporation (Int’l) Privilege Demand None $5,000 2.3% Yly +44 (0)1624 698000Anglo Irish Bank Corporation (Int’l) Privilege Access None $5,000 1.51% 6-mly +44 (0)1624 698000Lloyds TSB International International Bonus Saver None $100,000 1.51%* Mly +44 (0)1624 641825Barclays Wealth Easy Access Savings None $100,000 0.75% Qly +44 (0)1624 684316Barclays Wealth Reward Saver None $75,000 0.55% Mly +44 (0)1624 684316No-notice accountsAnglo Irish Bank Corporation (Int’l) Privilege Demand None 5,000 2.7% Yly +44 (0)1624 698000Lloyds TSB International International Bonus Saver None 100,000 2.27%* Mly +44 (0)1624 641825Anglo Irish Bank Corporation (Int’l) Privilege Access None 5,000 2.26% 6-mly +44 (0)1624 698000Irish Nationwide (IoM) Instant Quarterly None 25,000 1.75% Yly +44 (0)1624 673373Nationwide International Tracker Premium None 50,000 1.35%* Yly +44 (0)1624 696000Notice accountsYorkshire (Guernsey) Global 90 90-day £100,000 2.6% Yly +44 (0)1481 710510Alliance & Leicester International eSaver Offshore Notice 120 120-day (W) £5,000 2.25% Yly www.alil.co.imAlliance & Leicester International Select Offshore Notice 120 120-day £5,000 2.25% Yly +44 (0)1624 641888Britannia International 60 Day Notice 60-day £50,000 2.25% Yly +44 (0)1624 681100Skipton International International Premium 90 90-day £100,000 2.25% Yly +44 (0)1481 727374Monthly interestYorkshire (Guernsey) Global 90 90-day £100,000 2.6% Mly +44 (0)1481 710510Alliance & Leicester International Select Offshore Notice 120 120-day £5,000 2.25% Mly +44 (0)1624 641888Alliance & Leicester International eSaver Offshore Income120 120-day (W) £5,000 2.25% Mly www.alil.co.imNationwide International Base Rate Tracker Prem None £25,000 2.22%* Mly +44 (0)1624 696000Skipton International International Premium 90 90-day £100,000 2.02% Mly +44 (0)1481 727374Fixed rates1-YEAR FIXED RATESBank of Ireland (IoM) High Int Anniversary A/c 1-year bond £25,000 3.5% F OM +44 (0)1624 644222Anglo Irish Bank Corporation (Int’l) Privilege Fixed Interest 1-year bond £5,000 3.3% F OM +44 (0)1624 698000Alliance & Leicester International 1 Year Fixed Rate Bond 92 29 Jun ’12 £5,000 3% F OM +44 (0)1624 6418882-YEAR FIXED RATESAlliance & Leicester International 2 Year Fixed Rate Bond 23 28 Jun ’13 £5,000 3.7% F Yly +44 (0)1624 641888The Co-operative Bank Fixed Term Deposit 2-year bond £5,000 3.5% F OM +44 (0)1481 710527Nationwide International L’time Guarantee 2 – Iss 2 2-year bond £50,000 3.35% F Yly +44 (0)1624 6960003-YEAR FIXED RATESAlliance & Leicester International 3 Yr Fixed Rate Bond Iss 5 30 Jun ’14 £5,000 4.01% F Yly +44 (0)1624 641888Nationwide International L’time Guarantee 3 – Iss 5 3-year bond £50,000 3.8% F Yly +44 (0)1624 696000The Co-operative Bank Fixed Term Deposit 3-year bond £5,000 3.75% F OM +44 (0)1481 710527Please note: rates correct on 23 June, 2011All 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 ratesand terms subject to change without notice and should be checked before finalising any arrangement. No liability can be accepted for any direct or consequential loss arising from the use of, or reliance on,this information. Readers who are not financial professionals should seek expert advice.Source: www.moneyfacts.co.ukJULY 2011 [www.international-adviser.com] INTERNATIONAL ADVISER 49
  • INTERNATIONAL LIFE & BANKING LISTINGS LIFE LISTINGSProfessionalservices Company name: Aegon Ireland plc Address: 2nd Floor, IFSC House, Custom House Quay, Dublin 1, Ireland Company name: La Mondiale Europartner Sa Address: Atrium Business Park, 23A, rue du puits romain, ZA Bourmicht L- 8070 Bertrange, LuxembourgHere are some of the biggest Tel: +353 (0)845 600 0173 Tel: +352 45 858744 • 0808 234 6607 (client services in UK) Fax: +353 (1)673 8940 Fax: + 352 45 8718players in the offshore professional Email: 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: 23 Lime Tree Bay Avenue Governors Square, Bldg 4 Address: IOMA House, Hope Street, Douglas, Isle of Man, Address: Irish Life Centre, Lower Abbey St, Dublin 1, IrelandFL 2, 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.50 INTERNATIONAL ADVISER [www.international-adviser.com] JULY 2011
  • 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)17233 311611 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 Provident group of companies, which has more than 2.5 It has built up an enviable record for flexible and competitive2009). AXA Isle of Man has 18 years’ experience of providing million customers worldwide. FPI was established in the investment solutions supported through its network ofaward-winning flexible, cost-effective products for the Isle of Man in 1978, and has been delivering innovative and regional offices in Cyprus, Hong Kong and Ireland. Thecustomers of financial advisers. A member of the Manx sophisticated propositions to a competitive market for more company is based in Guernsey, a premier offshore location, isInsurance Association (MIA) and the Association of than 30 years. FPI’s business continues to grow and today a Registered Insurer under the Insurance Business (BailiwickInternational Life Offices (AILO), the company works within the it has offices in the Isle of Man, Hong Kong, Singapore and of Guernsey) Law 2002 and is also an authorised insurer inoffshore industry to help educate the market in key areas such Dubai. This enables the delivery of first class customer Hong Kong.as the uses and tax treatment of offshore bonds. service to local markets in a language they understand. Product offerings Product offerings A range of flexible unit-linked regular and single premium-Product offerings FPI offers a range of individual savings, protection and based savings, retirement and investment plans, with accessThe Estate Planning Bond is an offshore investment solution investment products, as well as group savings and group to over 120 funds selected from some of the worlds leadingthat may be suitable for clients seeking to mitigate the effects of protection policies and tax planning trusts. An extensive fund houses. A variety of specifically packaged portfolio bondsinheritance tax on their estates. Evolution is an offshore portfolio fund range, is complemented by FPI’s Dynamic Portfolio offering the widest choice of investment options through anbond that offers a range of investment options for individual, Planner international (DPPi) – an innovative portfolio-planning open architecture platform.corporate and trustee investors. The Regular InvestmentAccount is a flexible offshore bond that accepts regular as well tool that enables advisers to build bespoke investmentas single premiums. portfolios for their clients.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, 2010JULY 2011 [www.international-adviser.com] INTERNATIONAL ADVISER 51
  • 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.52 INTERNATIONAL ADVISER [www.international-adviser.com] JULY 2011
  • RECRUITMENTRecruitment listingsTo have access to over 10,000 potential candidates globally,book your recruitment advertisement by calling Ben Wiseman on+44 (0)20 7065 7573 or email ben.wiseman@lastwordmedia.comRates: Full page £6,500 Half page £4,500 Strip £3,500 Quarter page £3,000 Are you a Wealth Manager or Financial Adviser? Are you currently offering financial product to the expat communities or would you like to? Our clients are looking for new and experienced professionals to join them. Some of our clients work within the non-regulated countries, others require qualifications, some pay basics others are fee only, some supply leads… Most importantly, we could introduce you to a client and country that suits your lifestyle choice while giving you the opportunity to earn your true worth! An international funds company is expanding its sales presence through regional centres in Asia, Europe, Middle East and Latin America; targeting institutions and IFAs. Each region to be headed by a Sales Director/ MD who will be a business partner/shareholder in a joint business. High basic salary and bonuses paid. Are you a recruiting? Clients with integrity welcome!JULY 2011 [www.international-adviser.com] INTERNATIONAL ADVISER 53
  • RECRUITMENT54 INTERNATIONAL ADVISER [www.international-adviser.com] JULY 2011
  • RECRUITMENTJULY 2011 [www.international-adviser.com] INTERNATIONAL ADVISER 55
  • www.international-adviser.comPercentage of female and David Treitel, tax director at US Tax & Financial Services,young global HNWIs grows says that now the IRS is playing hardball,BY MARYROSE FISON while the proportion of be anyone with investable female HNWIs climbed assets of $30m or more, advisers with AmericanFinancial advisers and to 27% from 24% during not counting their main clients need to take carewealth management firms the same period, the data home and other exclud-cannot afford to ignore showed. able assets. OPINIONthe growing percentage of In certain regions, these The number of HNWIsfemale and under-45 high-net worth individuals. This was among the two trends were more pronounced, with 41% of HNWIs in the Asia Pacific and their total wealth final- ly surpassed pre-financial crisis levels in nearly every The perils of looking afterkey findings in the annual‘Merrill Lynch Wealth ex Japan region just 45 years old or younger, for region last year, with the total population of HNWIs American clients increaseManagement/Capgemini example, and women climbing 8.3% to 10.9 mil- The word is already out resident in the US mustWorld Wealth Report’, now accounting for 37% of lion globally. Their col- that advising Americans is also report to the IRS aboutin its 15th year and one HNWIs in North America. lective wealth increased not for the faint of heart. every non-US bank accountof the best-known barom- The researchers define just under 10% to reach Indeed, many advisers who they have, may wish toeters of the state of the HNWIs as those having $42.7trn. do not have any US clients, consider taking some pro-world’s population of the investable assets of $1m The global popula- or who do not have many, fessional advice himself.seriously rich. or more, excluding such tion of ultra-HNWIs grew are quietly announcing Advising Americans has The percentage of assets as their primary resi- by 10.2% in 2010, and its that such clients are not or never been easy. But withyoung (under 45) HNWIs dences, collectables and wealth by 11.5%. will no longer be welcome. the IRS commissioner talk-globally rose to 17% in consumer durables; they The survey can be found at For some, though, there ing about “ferreting out”2010 from 13% in 2009, consider ultra-HNWIs to www.capgemini.com is no question of turn- Americans overseas, and ing away an extended threatening clients with family and all its business financial penalties equal toSingapore rises in expensive city league just because one family member happened to take 50% of any financial assets, it is easy to see why fewerSingapore has jumped other major currencies. ees now cost almost 3% a Yankee for his or her advisers are keen to talk tothree places to become the As a result, Singapore more in Singapore than in spouse, or because a wee Americans.sixth most expensive city is now more expensive for Hong Kong,” according to sprog was born in the US. And the pressure is onlyand third most expensive expatriates to live in than a summary of the report’s While such advisers going to intensify. Fromcountry in Asia in which New York, Amsterdam, findings. “Just a year ago, may be admired for their January 2013, the IRS willto live, according to ECA Frankfurt and Shanghai, they cost 5% more in bravery, they are also to be be conscripting the helpInternational’s latest Cost the survey reveals. Hong Kong.” urged to learn the US tax of every bank and finan-of Living Survey. The list of the most Lee Quane, region- rules sooner rather than cial institution around the Globally, it is now the expensive cities in the al director for Asia and later – and to brush up on globe to become a tax col-36th most expensive city, world continues to be ECA International, said them, if for example, they lector, increasing the com-while Hong Kong has dominated by Japanese the increase in currency do not know what an FBAR pliance burden.fallen to 45th position. and Swiss cities, both of value had already begun (Report of Foreign Bank Another way to look at The high cost of which have four in the to result in multinational and Financial Accounts) is. all of this, however, is asliving in Singapore was global top 11. firms changing the way Likewise, any adviser an opportunity. A well-pre-explained by the continued “Goods and servic- they pay employees posted surprised to learn that in pared adviser who under-strength of the Singapore es commonly purchased to Singapore, to reflect the addition to filing US tax stands US tax law stands todollar against many of the by international assign- higher living costs. returns, all Americans not gain clients from his rivals. The only QROPS provider that is part of a FTSE100 Group Company +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] JULY 2011