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Investors Trust Ad

  1. 1. JULY 2011For Distributors of International Fund, Life and Banking Products 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 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 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
  2. 2. 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 [] JULY 2011
  3. 3. 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 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 in such a case. needed to comply”, KPMG markets as a result of 2011 [] INTERNATIONAL ADVISER 3
  4. 4. Financial Strength Rating A M BEST B++ Good
  5. 5. 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- on page 6 ment licence, in connection to formally unveil its new ancial lives”.JULY 2011 [] INTERNATIONAL ADVISER 5
  6. 6. 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 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 or go to E E E 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 E E E 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 E E E 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 E E E 9,898 July ’09 – June ’10 6 INTERNATIONAL ADVISER [] JULY 2011
  7. 7. T R U S T E D H E R I TA G E A D VA N C E D T H I N K I N G Tuned into local knowledge The faster the pace of change, the more important it is to keep an ear to the ground at the local level. With a team of 34 emerging market investment specialists based in 8 countries1, spanning the world from São Paolo to Shanghai, Schroders has the global reach and local perspective to uncover the most exciting opportunities in emerging markets, wherever they are. If you’re looking to capture the full diversity and potential of the world’s most dynamic economies, Schroder ISF* Global Emerging Market Opportunities is the ideal fund. Schroder ISF Global Emerging Market Opportunities www.schroders.com1 Source: Schroders, as at March 2011. *Schroder International Selection Fund is referred to as Schroder ISF. Morningstar rating as at 31 May 2011, rating is for A accumulation share class.For Professional Investors or Advisers Only. Past performance is not a reliable indicator of future results, prices of shares and the income from them may fall as well as rise. Issued in June 2011by Schroder Investment Management Limited, 31 Gresham Street, London EC2V 7QA. Registered number 2015527 England. Authorised and regulated by the Financial Services Authority. w40023
  8. 8. 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: 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. 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.
  9. 9. 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 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.
  10. 10. 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 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
  11. 11. 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 [] INTERNATIONAL ADVISER 11
  12. 12. 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 today. looking ahead For further information on VAM Funds please contact VAM Marketing on + 230 465 6860 or email us at 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.