1. APRIL 2012
For Distributors of International Fund, Life and Banking Products www.international-adviser.com
NEWS
HSBC plans Indian bond
fund launch for Q3 3
Generali eyes UK clients FEIFA creates
conduct code
HMRC settles with draft
QROPS legislation
Holborn Assets opens in
3 with assets of £3m plus for members
BY MARK BATTERSBY
Ghana and South Africa 3 BY HELEN BURGGRAF relationships at Canada
Life International, has been In a refreshing move to
Graham Barnes calls time In one of the boldest moves named to head up the new boost industry standards,
with Fry Group 5 by an offshore life compa- Generali PanEurope opera- the Federation of European
Scottsdale OS unveils ny in recent years, Generali tion as executive director IFAs (FEIFA) is raising the
Quilter DM funds 5 PanEurope will formally of UK and international bar for its own 31 exist-
begin to target the UK business, beginning on 2 ing member firms, spread
HK insurance comp plan high-net-worth and UHNWI April. He will continue to across the continent, with a
concern for the industry 6 market in April with a flag- be based in London. new code of conduct.
AES reveals ME expansion ship portfolio product and Gregory said the PWP FEIFA chief executive
in IA online interview 6 wealth structuring services, “allows the portfolio man- Paul Stanfield told dele-
which it plans eventually Gregory: ‘much wider access’ ager of the private bank to gates at its central London
Mifid II risks ‘unintended to roll out to private banks, access a much wider selec- spring conference on
consequences’ 6 private wealth managers – and a related wealth tion of asset classes than is 19 March that the code of
CMI’s Dean Waddingham and family offices around structuring services com- normally available”. conduct would be sent out
joins NFU Mutual 9 the world, International ponent through a handful Meanwhile, the compa- “within weeks”.
Adviser can reveal. of UK-based private banks, ny is recruiting at least two The code covers ten key
Man Group launches For the past three years according to Generali head additional “team” members, areas ranging from anti-
commodities fund 9 Generali has been quiet- of wealth protection Cillin with plans to hire sup- money laundering, capi-
‘ROSIIP was not a ly trying out its new UK O’Flynn. port staff, during the next tal adequacy, complaints
QROPS’ rules UK court 9 Private Wealth Portfolio David Gregory, for- 12 months. process, clients’ interests,
(PWP) – an offshore bond merly head of institutional Continued on page 3 and conflicts of interest,
Guardian WM opens in to data protection, profes-
Hong Kong 10 sional indemnity insurance,
Ranks of UK non-doms
drop by 16% 10
Tunnicliffe and Pain exit FPI in reshuffle recruitment, regulation and
compliance and tax and
Paul Tunnicliffe is to leaves with my thanks for following the management legal responsibilities.
Jupiter to launch offshore leave Friends Provident building the FPI business changes announcement on The idea for the code
bond fund for Bezalel 13 International (FPI) at the to where it is today and I 5 March. of conduct was sparked
US banking giant Wells same time as Bob Pain, as wish him every success for Tunnicliffe moved to by some of the recruit-
Fargo plans expansion 15 part of the recent strategic the future.” FPI in 2002, where he was ment activities within the
review by Friends Life. Both the men’s roles are responsible for the inte- industry, Stanfield said,
New Lux laws halt launch Tunnicliffe, who in 1992 ending due to their UK gration of the acquired “active ‘poaching’ if you
of SIFs before approval 16 joined Friends Provident focus as the Friends Life Royal & Sun Alliance like – which many of our
one year after internation- international division shifts International Financial members felt was inappro-
Offshore bond sales in UK
al sales director Pain, will the focus of the senior Services business. priate. We thus decided that
fall over 7% in 2011 19
cease to be managing direc- management team to Asia. Pain continues as deputy a recruitment code of con-
51% of accountants admit tor of Friends Provident A new position as exec- chairman of AILO though duct might help to clarify
limited LDF knowledge 56 International in April. utive director for Asia with he is expected to step what we believed was the
John Van Der Wielen, responsibility for business- down from his much longer appropriate way to operate.
Features – page 2 managing director at es in Asia and the Middle standing chair of the sales Continued on page 5
Friends Life, said: “He East, has yet to be filled committee.
Life trends 21-22 Country profile 24-25 Intermediary profile 27-28
Skandia South Africa Creechurch Capital
International A fall in growth Chief executive
Commercial has prompted John Greenwood
director Michelle the authorities hopes the Isle
Andrews explains to establish of Man is set to
the new Wealth ‘macroprudential’ become a wealth
Interactive service type rules management centre

2. contents
ANALYSIS PROFILES TECHNICAL PORTFOLIO
Country profile: Briefing: Fund selector:
South Africa 24-25 Regular gifting 35-36 European equities
Africa’s hub weathered the global Exemptions from inheritance tax 39-41
financial crisis well, but has for UK-based individuals is a European equity investors fled
recently seen a fall in growth, tricky path to follow that requires the field as managers
which prompted the authorities guidance of a financial planner, waited for the end of 2011’s
to establish a new framework of explains Julie Hutchison, head of annus horribilis, says OBSR
‘macroprudential’ type rules international technical insight at investment research analyst
Standard Life International
Intermediary profile: Muna Abu-Habsa
Creechurch Capital STATISTICS
27-28
Isle of Man-based Creechurch The IA Quality Funds
Life trends: Skandia Capital CEO John Greenwood 43-48
International 21-22 hopes the island will become A list of the blue chips
Skandia International commercial a wealth management centre of the offshore fund world
director Michelle Andrews competing with mainland UK
explains the new Wealth Bank profile: Banking deposits 50
Interactive service and how it
aims to help advisers tackle
Lloyds TSB Int’l 31-32 The top-paying offshore accounts
regulatory changes across According to several surveys by
the world. The re-engineering Lloyds TSB Int’l wealthy Britons CLASSIFIEDS
process also will streamline the are deciding to follow many
analysis with information being others leaving the UK and the Life listings 51-52 Recruitment 54-55
used more effectively, but only bank is adding to its services to Find the job that suits you in IFA
once to produce advice meet this need for future expats Service listings 53 firms operating around the globe
IA Intermediary Panel IA Tax Panel
Graham Barnes Tony Shah Paul Stanfield Margaret Jago Rachael Griffin
Director, Associate director, Chief executive, International Head of product
international Christchurch FEIFA technical law and financial
division, Investment Mgt, manager, planning, Skandia
The Fry Group, UK UK Aegon Ireland International
Glen Cochrane Tim Searle Sean Kelleher Gerry Brown Mark Green
Investment Chairman, CEO, Mondial, Head of trusts Head of estate
director, Globaleye, Dubai Dubai and taxation, and tax planning,
Creechurch Prudential Legal & General
Capital, IoM International
David Bellingham Gary Boal Robert Parker Brendan Harper Julie Hutchison
CEO, Professional Managing Chief executive, Technical Head of
Investment director, Holborn Assets, services international
Advisory Services, Boal & Co, Dubai manager, FPI technical insight,
Singapore Isle of Man Standard Life Int’l
Mark Rawson Rex Cowley Mahmoud Brian Murphy Neil Chadwick
CEO, The Henley Principal, Nodjoumi Senior financial Technical
Group, Hong Kong Newdawn Chairman and planning manager, Royal
Consultancy & chief exec, Nexus manager, London 360º
Research, Jersey Group, Dubai Axa Sun Life
Ernest Chan Sam Instone Mike Coady Glenn McIlroy Sandra Hogg
Chief commercial CEO, AES Director, deVere Technical services Senior tax
officer, Convoy International, UK Group, Western manager, Generali manager, Scottish
Financial Services, Europe International Widows
Hong Kong
Bill Blevins Sarah Lord Rainbow Pan Chris Allatt Anthony Rothwell
Managing Wealth planning CEO, ipac, Hong Senior tax Technical
director, Blevins director, Killik Kong consultant, consultant,
Franks, & Co, Middle Sanlam UK Canada Life
pan-Europe East & Asia International
2 INTERNATIONAL ADVISER [www.international-adviser.com] APRIL 2012

3. NEWS
NEWS
HMRC settles
with draft
HSBC plans to expand Sicav IN BRIEF
QROPS rules with Indian bond fund in Q3 DeVere’s Green buys
24% of QROPS firm
BY SIMON DANAHER of this year. The spokes- its Hong Kong office. It is Nigel Green, the chief
person also said the fund managed by Alfred Mui, an executive and founder
HSBC Global Asset would likely be run from investment director in the of global IFA group
Management is planning Asia, either by fund man- Asian fixed income team deVere, has bought
to launch a fixed income agers based in Hong Kong – which may be responsi- a 24% stake in STM
fund targeting bonds in or India itself. ble for the management of Group, the London-
India. HSBC already has an the new India bond fund. listed cross-border
It is understood that the Indian equity fund within Launched in April last year, provider of QROPS and
fund will be part of HSBC’s its GIF range. The HSBC the Asian Currencies Bond other financial products.
Luxembourg-domiciled GIF Indian Equity Fund is Fund had returned 2.7% by The stake was acquired
Global Investment Funds managed by Sanjiv Duggal the end of January, accord- as part of a £1.59m
Cowley: ‘No change to stance’ Sicav umbrella and is who is part of HSBC ing to its latest fact sheet. ($2.52m) purchase
expected to be called the Global Asset Management, Similarly, the fund has a of new shares in the
HMRC is pressing on with HSBC GIF India Fixed Singapore. The equity minimum investment of company, and is subject
its planned changes to Income Fund. fund has an annual charge $5,000 but has a slightly to regulatory approval.
the QROPS regime, with The launch is current- of 1.5% and a minimum lower annual management Skandia SE Asia head
leaked documents pub- ly subject to appropriate investment level of $5,000 charge of 1.25%.
lished by International regulatory approval, but or equivalent. HSBC’s range of GIF
MacDonald bows out
Adviser showing no signifi- a HSBC spokesperson was The company also funds typically have both The principal of
cant changes to the draft able to confirm that it may runs the HSBC GIF Asian institutional and retail Skandia International’s
rules released in December launch in the third quarter Currencies Bond Fund from share classes. Singapore office and
2011. The two documents head of the South
obtained by IA, entitled East Asia region,
“2012 QROPS Guidance”
and “Overseas Transfers of
Holborn Assets opens two African offices David MacDonald, has
decided to leave the
Pensions Savings FAQs”, Dubai-headquartered also said it aims to have tive Bob Parker said: “As company. MacDonald
were, it is believed, due to Holborn Assets has 100 advisers based in its RDR approaches IFAs are handed in his notice
be published at the time of expanded into Africa, with Dubai office by the end looking more than ever earlier this month
the UK’s annual Budget. new offices in both Ghana of 2014 – the headcount at a career overseas. The and the two parties
The unintentional publi- and South Africa, and has stands at 50. offshore market presents are working together
to find a suitable
cation of the documents has announced plans for an Holborn said it hopes bigger opportunities today
departure date, which
eased fears in the QROPS aggressive recruitment to recruit advisers who than ever before as Irish
is likely to be within
industry that there are to be drive. have become disillusioned and British workers move
the next few months.
any significant amendments The company has with the environment in overseas to escape the
Skandia has begun the
to the draft legislation. And partnered with adviser the UK, saying that the downturn in the economy
recruitment process
for some jurisdictions, such recruitment firm ifamatch. purpose of seminars is and find work in boom- already.
as Guernsey, it is a “green com, with which it is to to “provide informative ing economies such as
light” for it to continue hold a series of seminars unbiased information in the United Arab Emirates, Guernsey, Jersey and
working on plans to have a across the UK and Ireland. a post-Retail Distribution Qatar and even places like Malta sign DTAs
QROPS-compliant pension Through the seminars the Review (RDR) world to Ghana.” Guernsey and Malta
regime in place when the companies hope to recruit highly qualified advis- The first seminar will have signed a double-
new laws come into effect more than 20 “highly qual- ers who have seen their be held in London on taxation agreement
on 6 April. ified” advisers this year industry slowly eroded 29 March, where Brian (DTA), while Jersey has
Rex Cowley, principal to work within either and are looking for a new Cosgrove, chief executive signed one with Qatar,
of Newdawn Consultancy, Holborn’s UAE or African challenge”. of ifamatch.com, will be as the march towards
said: “The documents operations. Holborn Holborn chief execu- one of the key speakers. tax transparency by
achieve the same outcome “offshore” financial
as the drafts. It seems that centres continues.
HMRC has not changed its
stance and this must be
Generali eyes UK clients with assets of £3m plus The Guernsey DTA
is that island’s third,
seen as a positive step as Continued from page 1 markets as Italy, Spain and News of Generali the other two having
it means the work jurisdic- Generali does not have any Germany, where he notes PanEurope’s move to roll been with the UK and
tions are doing to ensure business presence in the Generali’s insurance prod- out a new offshore bond Jersey. The Channel
compliance is not going to mass-affluent or retail space ucts are popular among product – albeit a high-end Island-based domicile’s
be wasted.” in the UK and, according to those who took advan- one – comes as offshore DTA is its fourth full
In addition to new pen- O’Flynn, it is not interested tage of such tax amnesty bond sales into the UK one that complies
sion legislation from the in competing for market schemes as Italy’s scudo market fell by more than with the OECD Model
likes of Guernsey and the share at this end of the off- fiscale. 7% in 2011, according to Agreement.
Isle of Man, it is widely shore bond market. He added that the client the Association of British
anticipated that Jersey is Instead, O’Flynn said, Generali expects to be most Insurers (see story on page For the current and all
about to enter the QROPS it plans to leverage the interested in the product 19). A lack of confidence previous editions, with
market, with some antici- expertise it has developed will have at least £1m in in the economy on the part full news archive, go to
pating a launch around 3 catering for wealthy indi- investable assets, and prob- of would-be buyers was www.international-adviser.com
April. viduals in such European ably £3m or more. among the reasons cited.
APRIL 2012 [www.international-adviser.com] INTERNATIONAL ADVISER 3

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5. NEWS
NEWS
FEIFA creates
conduct code
Graham Barnes calls time IN BRIEF
for members on 30 years with Fry Group Marks to succeed
Gregory at Can Life
Canada Life, the
Continued from page 1 BY HELEN BURGGRAF UK-based insurance
“This idea then developed and investment
a stage and it was felt Graham Barnes, who is products provider, has
that a code of conduct to thought to hold the record named Andy Marks to
encompass all of the main among offshore-focused succeed David Gregory
areas of activity could be firms for time spent with as head of institutional
highly beneficial to our the same firm, is retiring at sales. As reported
membership.” the end of March after 30 (see page 1), Gregory
The aim then became years with the Fry Group. has left Canada Life
to create sensible and clear He is being succeeded to head up Generali
guidelines, “the parameters as head of Fry’s interna- PanEurope’s new UK
of which would be set tional operations by Aidan operation.
to a great degree by the Bailey, who has been with
membership, as to what the company for 18 years, Handing over: Barnes (r) with Bailey (l) and founder Wilfred T. Fry Guernsey zero-10 tax
is deemed to be relevant and who returned to the regime up for review
behaviour within regulated UK from Fry’s Singapore a London magistrate. (He high-cost products, when The EU Code of
and well-run businesses. office last year, after a was sworn in at the Old the same result could be Conduct Group will
This would then reflect decade there, to prepare to Bailey on 12 March.) achieved for less. discuss Guernsey’s
very well on the member- take Barnes’s place. When asked how the “There is no reason why zero-10 corporate
ship and have a positive Those who know him industry has changed in the equity content of a port- tax regime at its next
effect outside of FEIFA.” say Barnes’s lanky, 6ft 2in the three decades since he folio, say, would be any meeting on 17 April,
He added that it would presence will be much joined Fry’s Exeter office in better or worse because it as the only one of
also provide a template for missed in industry circles, 1982, after ten years with was an odd collection of the three Crown
prospective member com- and not just because of other financial services unit trusts, a multi-manager Dependency islands
panies, “setting principles his generous and gentle businesses, he responds fund, an Oeic, or sat on a not to have received
that they would need to nature, mind for business that he does not think the platform,” he notes. “But the Code Group’s nod
buy into, thus protecting and razor-sharp wit. industry has changed “any- the costs of each of these of approval for its
existing members and the For unlike many who thing like enough”. will be hugely different. zero-10 scheme last
integrity of FEIFA.” talk about the importance “There are still commis- So attacking those costs is year looks to get it in
The new code spells of looking after clients, sion-hungry advisers out really important, especially 2012. It is thought the
out that members should Barnes is known for his there who are still selling at a time when it is difficult island could have its
never proactively directly fervent belief in practising commission-heavy prod- to generate returns on the scheme approved by
contact or “poach advisers what he preaches. ucts,” he grumbles. “I still stock market.” the end of June.
or other staff from other Having recently moved see clients being ripped off Fry was founded 114
FEIFA member compa- with his wife to central in the same way by the years ago as a tax consul- ‘Frozen pensions’ now
nies”. It states: “In fact, London after 22 years same type of product.” tancy by Wilfred T. Fry,
such poaching from any in Sussex, where Fry is And even when they are and in addition to sever- affect over half million
other IFA company in the based, he has been pre- not being overcharged on al UK offices and one in More than half a million
same region should be paring in recent weeks for commissions, Barnes says, Singapore, has outposts in British expatriates who
avoided where possible.” a post-retirement career as they’re often being put into Hong Kong and Cyprus. have retired abroad are
Another point covers “missing out on their
full pension”, according
a formalised and stated
complaints process which
should meet any nation-
Scottsdale OS unveils Quilter DM funds to figures revealed by
the UK government.
The figures were
al and European Union Scottsdale Overseas, a a “global and multi-asset Powell said.
published by welfare
requirements, where UK-expat-focused, Javea, basis”, are a first for the Scottsdale clients ini-
minister Lord Freud, in
relevant. Spain-based financial advi- Spanish market, and will tially will be offered a
response to a written
This latest step towards sory group, has unveiled be welcomed enthusiasti- choice of three invest-
question. According
common good practice sits an exclusive range of cally by investors for their ment strategies designed
to the International
well with one of FEIFA’s discretionary manage- tax efficiency. to meet a range of financial Consortium of British
stated objectives, to raise ment portfolios for its cli- The funds in which objectives based on their Pensioners, the
standards in the industry. ents which are managed the portfolios invest are goals and attitudes to risk: figures show 555,650
In the accompanying state- by the same investment accessed through Skandia’s Defensive, Conservative pensioners are not
ment to members, FEIFA team behind the UK-based Spanish collective invest- and Balanced. receiving a full pension
states that “it has become Quilter Managed Portfolio ment bond, and are being The Skandia Ireland because their pensions
increasingly clear that a Service. managed on the Praemium fund range, from which are not increased in
code of conduct is an Scottsdale director custody platform to reduce the Verdant portfolios line with inflation.
appropriate way of assist- David Wallis-Powell said costs to the client. This are constructed, currently
ing this goal and making the company believed the means an annual custody encompasses more than
For the current and all
members, in particular, “Verdant” portfolios, which fee of 0.35% on top of 500 Spanish tax-compliant
previous editions, with
prospective members, invest “solely in Spanish an annual management funds from major global full news archive, go to
aware of the standards that tax-compliant collective investment fee of 0.40% fund houses, according to www.international-adviser.com
are expected.” investment schemes” on plus 20% UK VAT, Wallis- Scottsdale.
APRIL 2012 [www.international-adviser.com] INTERNATIONAL ADVISER 5

6. NEWS
Mifid II risks
‘unintended
HK plans for insurance comp Skandia Int’l
and Concept to
consequences’ scheme concern the industry launch QNUPS
AILO believes BY HELEN BURGGRAF vide a desirable layer of add risks to the industry.”
BY SIMON DANAHER
BY WILL JACKSON extra protection for con- Under the proposed Skandia International and
Hong Kong’s insurance sumers, or merely an extra scheme, all insurance com- Guernsey-based Concept
The Association of industry is reportedly layer of costs for insurers. panies in Hong Kong would Group have unveiled a
International Life Offices “fuming” over govern- Now the fund is due to be required to contribute to QNUPS to complement the
(AILO) has written to the ment plans to implement a be launched either next year the setting-up of two com- co-branded QROPS which
European Parliament’s compensation scheme that or in 2014, though, insur- pensation funds: one for the two firms launched in
Economic and Monetary would pay policyholders ance executives in China’s life insurance policyhold- March 2010.
Affairs Committee, to in the event that an insurer Special Administrative ers and another for general The Aurora Quantum
warn over potential “unin- were to collapse. Region “have become wor- insurance policyholders. QNUPS (Qualifying
tended consequences” In particular, industry ried about a government The funds would pay Non-UK Pension Scheme)
stemming from the inter- insiders are alarmed about proposal to expand a safety policyholders up to HK$1m will be targeted at
action between Mifid II a new element to the plan net to corporate policyhold- ($129,000) each in the event UK-domiciled individu-
and other European Union which would require small- ers in the event an insurer that their insurer failed. als outside the UK, who
(EU) financial services and medium-sized insur- collapses”, according to the Quoting HK insurance can use it as an additional
legislation. ance industry enterprises to South China Morning Post. industry insiders, the SCMP pension.
In a letter to Sharon participate. “Having the safety net noted if the proposed com- While contributions to
Bowles, who chairs the A consultation recently in place is good for policy- pensation scheme were the scheme will not attract
Committee, the trade body concluded on the so-called holders and is in line with expanded to cover SMEs, tax relief, the QNUPS can
advised against including Policyholders’ Protection international practice, but the risk profile would be used to provide a tax
similar investor protection Fund (PPF), after years of industry insiders said the increase “substantially” as efficient wrapper in which
and commission prohibi- discussion about whether proposal had undergone it would cover “such things investors can build up a
tion provisions to those such a scheme would pro- some changes, which may as natural catastrophes”. pension while overseas.
set out in Mifid II, in other There is no limit on
EU legislation – specifically the single and regular pay-
Packaged Retail Investment
Products and Insurance
AES reveals ME expansion in inaugural ments that can be made
into the scheme – although
Mediation Directive II.
According to AILO, International Adviser online interview to ensure UK inheritance
tax efficiency, Skandia and
including such measures AES International has January next year. Concept advise contribu-
would result in a narrower announced plans to open In the interview, Instone tions should be kept within
choice of products for con- two further offices in the discusses the challenges the spirit of “retirement
sumers and policyholders, Middle East over the course of establishing an office in planning”.
and less opportunity to of the next 12 months. frontier locations such as The companies highlight
obtain investment advice. AES chief executive Sam the Middle East and offers several benefits, including
Another concern, the Instone revealed the plans in guidance to advisers con- access to as much as a 30%
Association said, is the the inaugural International sidering similar expansions. lump sum, and the ability
impact a “cut and paste” Insight interview – a new Emery and Instone also to pass on any residue of
of the Mifid proposals into series of filmed interviews discuss the potential inter- the fund to beneficiaries
the Insurance Mediation available to watch on national impact of the RDR on death.
Directive would have on the International Adviser l-r: Emery and Instone and the difficulties faced There is no requirement
the European single market. website. when an adviser wants to to purchase an annuity and
Insurers would no longer Speaking to editorial ry approval, in the summer leave another company no maximum age limit for
have access to independent director Dylan Emery, of this year and in Saudi and join your firm. investing, meaning indi-
channels, and would be Instone said the company Arabia, again pending To watch the full interview, viduals may continue to
prevented from competing is hoping to open an office completion of the required visit www.international- contribute into the scheme
in local markets, it claimed. in Qatar, pending regulato- regulatory approvals, on 1 adviser.com/video after the age of 75.
Dylan Emery Editorial director Mark Jennings Head of online Rod Boulogne Managing director Published in Great Britain by Last Word
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6 INTERNATIONAL ADVISER [www.international-adviser.com] APRIL 2012

8. The new land of opportunity is
the land of opportunity.
We will not rest

9. NEWS
Luxembourg
acquisition
CMI’s Dean Waddingham ‘ROSIIP was
not a QROPS’
key strategy joins team at NFU Mutual UK appellate
for Kinetic BY HELEN BURGGRAF to be based in the Clerical court rules
Medical House building in
BY MARK BATTERSBY Dean Waddingham, man- Douglas. The parent of the Panthera
aging director for the past A spokesman for Lloyds QROPS range has lost its
Global professional servic- three years of what is still said Waddingham’s duties appeal against a High
es firm Kinetic Partners has known to many in the off- there would be assumed Court ruling last May,
acquired Luxembourg- shore life insurance indus- by Nigel Rothery, who will which found that HM
based fund advisory firm try as Clerical Medical move to the IoM from else- Revenue & Customs was
AB Fund Services, as part International (CMI), has where in Lloyds, and within its rights in stripping
of its bid to serve clients joined NFU Mutual, which whose title will be manag- the Recognised Overseas
who operate in multiple specialises in providing ing director, Isle of Man, Self Invested International
jurisdictions. insurance products to Waddingham: new role for Lloyds Banking Group. Pensions Retirement Trust
AB Fund Services advis- Britain’s rural At NFU Mutual – the full (Singapore) of its QROPS
es on regulatory and com- communities. Scottish Widows operation, name of which is the status in 2008.
pliance requirements for Waddingham, who took which marketed offshore National Farmers Union An appeal to the
investment funds domiciled up his new role as client bonds to the UK market, to Mutual Insurance Society – Supreme Court is being
in Luxembourg, with a par- services manager on 1 new business, citing “falls Waddingham is involved in reviewed but is unlikely,
ticular emphasis on the risk March, is moving to the in new business levels as a running its national according to TMF trustees.
management requirements Midlands from the Isle of result of competition”. Flexible Payments opera- The ruling has potential
of the regulator – the Man, where he has lived However, the company tions and customer support implications for those
Commission de Surveillance and worked for the past said 150 out of the 160 staff services within Mutual whose pensions were
du Secteur Financier. three years. employed by the business Direct, the company’s transferred into Panthera’s
This will be Kinetic As reported, Lloyds at the beginning of direct sales and service ROSIIP scheme, as it could
Partners’ first office in Banking Group announced February would remain on operation. He reports to mean their transfers will
Luxembourg, the second- on 7 February that it was its payroll, and that the Donny MacLeod, manager have been an “unauthor-
largest investment fund closing its IoM-based CMI/ company would continue of NFU Mutual Direct. ised payment”, attracting
centre in the world after the significant UK tax liabili-
US. The office will provide ties, a pensions tax expert
support for global and local
financial services organisa-
Man Group launches commodities fund noted.
Equity Trust, the parent
tions operating in BY ESTHER ARMSTRONG The Man Commodities Systematic Strategies, said: of Panthera and original
Luxembourg, with a focus Fund was launched with “More investors want to defendant in the case, said
on regulatory compliance Man Group has launched a $50m of seed assets and is add commodities to their in a statement that it “fun-
and risk management serv- Commodities Fund for actively-traded, seeking to portfolios, but there are damentally disagree[d]”
ices. The service offering both retail and institutional outperform passive indices relatively few options for with the decision and was
will be extended to include investors, offering expo- while minimising downside them in a Ucits format. “extremely disappointed”.
corporate recovery and sure to the asset class risk. “Passive investment It added, in a statement:
forensic services. within a Ucits format. It has long-only expo- products like [ETFs] and “The transfer of funds by
Raymond O’Neill, a The underlying strategy sure to the Man Systematic index-linked swaps are gen- members was only made
founding member of Kinetic of the fund has been devel- Commodity Index, which is erally poor at dealing with on the basis of express
Partners, said: “The acquisi- oped by Man Systematic based on trading in 25 severe drawdowns and representations by HMRC
tion is in line with the firm’s Strategies, and is aimed at liquid futures contracts, in heightened volatility in that ROSIIP was a QROPS.
planned expansion strategy investors who want to precious metals, energy commodity bear markets, so In particular HMRC issued
to open in new jurisdictions diversify their portfolios and agricultural products. we think an actively-man- a letter of confirmation
in response to the changing from investments in equi- Sandy Rattray, the chief aged, systemic approach is acknowledging that
needs of our clients, who ties and bonds. investment officer at Man a better solution.” [ROSIIP] was regarded as a
rely on our ability to oper- QROPS at the time. HMRC
ate seamlessly across bor- also included ROSIIP on
ders. Expansion is a crucial
requirement given the
Frontier unveils offshore share classes the list of QROPS on the
HMRC website.
growing global nature of BY SIMON DANAHER ness development manag- asset range, which has “There was no sugges-
our industry.” er for international markets more than $700m in AUM, tion from the court that
Established in 2005, Frontier Investment at Frontier, said: “The is inspired by US university Equity Trust (Singapore) or
Kinetic Partners serves Management has partnered Frontier Multi-Asset Fund endowment funds, which the members acted in any-
more than 1,200 clients glo- with IFA service provider is being successfully used it said have been “pio- thing other than good faith,
bally, providing a bespoke Acordias, to launch off- by financial advisers across neers” of multi-asset invest- but unfortunately the origi-
service for firms who need shore share classes for its the UK as a core holding ing for over 30 years and nal decision stands.
industry advice, analysis multi-asset fund range. The within clients’ portfolios, consistently achieved “Equity Trust have vig-
and valuation across bor- portfolios are available in providing them with an attractive annual returns. orously opposed the deci-
ders. It has six offices – in dollar, sterling, euro and efficient method of captur- London-based Frontier sion by HMRC for more
London, Dublin, Grand Swiss franc with “attractive ing returns across the claims to be the first com- than four years but may
Cayman, New York, Geneva terms for offshore IFAs”. global capital markets.” pany to offer “true multi- now have no further ave-
and Hong Kong. Conor O’Donnell, busi- Frontier said its multi- asset style investing”. nues of appeal.”
APRIL 2012 [www.international-adviser.com] INTERNATIONAL ADVISER 9

10. NEWS
Ranks of UK
non-doms
Guardian WM opens in HK Barclays group
blocked from
drop by 16% and pushes Asia manoeuvre using ‘abusive’
BY HELEN BURGGRAF BY WILL JACKSON and mainland Chinese. The
tax schemes
Chinese markets will be Barclays has been blocked
The number of individuals Advisory firm Guardian handled by a separate team, by the UK government
registered with HM Wealth Management has which the firm is building. from using two “highly
Revenue & Customs as opened an office in Hong Howell, who is heading abusive” tax avoidance
non-domiciles in the UK Kong, and intends to the Hong Kong office until schemes, which it is
has fallen by 16% in the launch further operations he can find a suitable claimed have cost the UK
two years since a £30,000 in Malaysia, Singapore and person to run it, said the Treasury £500m in lost
($47,000) annual levy, mainland China. mainland Chinese sector revenue.
which permits non-doms David Howell, the firm’s will be the hardest to crack. According to a Treasury
to keep their income free chief executive officer, told “It is about relationships,” statement, the schemes
of UK tax obligations, was International Adviser that Howell: ‘It is about relationships’ he added. were voluntarily disclosed
introduced, data obtained he expected the business to Expanding into Asia is a to HM Revenue & Customs
by law firm McGrigors expand more quickly in the Kong, has opened its office significant development for by the bank.
shows. Middle East – it has offices at the Hopewell Centre, Guardian, which previously The Treasury said the
News of the decline in in Qatar and Dubai – than located at 183 Queen’s only had a presence in “aggressive tax avoidance”
the number of non-doms Asia, but it has identified Road East in Wanchai. Europe and the Middle schemes were designed to
came as the annual levy several attractive opportuni- Howell says the office, East. Building on its “work around legislation
they pay was due to rise to ties for growth in the which houses a team of European business, the firm introduced in the past to
£50,000 this month. region. eight plus administrative opened an office in Qatar block similar attempts at
According to the data, The company, which staff, will target three mar- in 2009, with the aim of tax avoidance”.
which was obtained by trades as Guardian Life kets in Hong Kong: expats, tapping into the country’s Owing to the nature of
McGrigors through a Management in Hong local Hong Kong Chinese, burgeoning expat market. one of the schemes, the
Freedom of Information Treasury took the unusual
Act request, the number of step of introducing legisla-
non-doms slumped to ‘Best ideas’ EM debt fund launched by BNY Mellon tion not only preventing its
118,000 in 2009/10 from use in future, but also retro-
140,000 in 2007/08. The BY SIMON DANAHER financial derivative instru- market issuers, compared spectively blocking its
numbers, the law firm says, ments issued by emerging with similar corporate issu- recent use.
are continuing to fall. BNY Mellon has unveiled market issuers. ers in developed markets. The scheme was aimed
McGrigors said the an Emerging Market With a focus on invest- Furthermore, BNY at dodging corporation tax
annual £30,000 levy on Corporate Debt Fund, ing in issues from compa- Mellon said the fund invests when the bank purchased
non-domiciles is thought managed by Insight nies big enough to ensure in the credit improvement its own debt.
to be a “significant con- Investment Management. good liquidity, BNY Mellon of newer issuers, as emerg- The Treasury added that
tributory factor” in the The Dublin-domiciled said the fund is a globally- ing countries gain a more the second scheme, which
decline in the number of Ucits portfolio was diversified “best ideas” significant share of both it will block from future
UK-resident non-doms. launched on 31 January portfolio which seeks “to global GDP and trade. use, including the instance
Just 4% of non-doms are and is run by Insight’s invest in the most compel- Alan Mearns, chief raised by Barclays,
paying the charge, and the emerging market debt ling risk-adjusted opportu- executive officer of BNY involved Authorised
number is still falling. It team, headed by Colm nities, irrespective of Mellon Asset Management Investment Funds and was
dropped to 5,100 in McDonagh. benchmark weighting, International, said: “We designed to convert non-
2009/10 from 5,410 in BNY Mellon said the from both dollar and local believe that the emerging taxable income into an
2008/09, the data reveals, fund aims to generate a currency issuers”. market corporate debt amount carrying a repaya-
while the amount of tax total return comprised of The firm added that a asset class is the next sig- ble tax credit, in an attempt
collected by the charge income and capital growth, core objective is to capture nificant ‘structural’ compo- to secure “repayment”
also fell, to £153m in by investing primarily in the structural premium nent within the emerging from the exchequer of tax
2009/10. corporate debt and related available from emerging market universe.” that had not been paid.
• Good investment options
• No NZ tax on fund income or gains.
Benefits also tax free
QROPS Advisors
NZ Endeavour Fund fully complies with new QROPS • Advisory fees can be negotiated
regulations in force from April 6, 2012 • Trail commission for on-going service
To find out more visit: www.nzendeavour.com or email: info@nzendeavour.com
10 INTERNATIONAL ADVISER [www.international-adviser.com] APRIL 2011

12. 5.9%* yield and market-beating performance
When talented people work together and share their ideas they find fresh
perspectives and new investment opportunities. You can see this philosophy INVESTMENT PERSPECTIVE: New technology is opening up
at work in the outstanding performance of our Global Equity Income Fund.
vast oil and gas reserves across the USA but since production
Global Equity Since launch peaked in 1969 there has been little growth in the industry’s
1 yr 2 yr 3 yr 4 yr distribution infrastructure.
Income Fund July 2007
Fund -4.5% 17.3% 39.0% 12.1% 14.6% The manager of the Global Equity Income Fund spotted this
opportunity and, after sharing ideas with our commodities team,
MSCI World Index -6.2% 9.6% 32.1% 6.4% 9.1%
became a keen investor in an oil and gas pipeline manufacturer.
Sector -9.7% 4.9% 30.0% -1.8% -0.2% With an American network of oil and gas pipelines that is already
Quartile 1st 1st 1st 1st 1st over 50,000 miles long – enough to go twice round the equator –
the company is expanding to meet the increase in demand.
Please remember that past performance is not a guide to future returns. This is just one of the outstanding investments behind the Fund’s
All data as at 31.12.2011 unless otherwise shown and all Fund performance
success and shows how we continually strive to out-think and
is net of charges including comparison with index. Fund is in IMA Global
out-perform for our clients.
Growth Sector. The Fund is managed against the benchmark and the sector
is included for comparative purposes only.
Out-think. Out-perform.
threadneedle.co.uk
Important information Information for investment professionals only. *Fund has an historic yield of 5.9% as at 31.12.2011 The value of investments and any income from them can go down as well as up. Threadneedle Specialist
Investment Funds ICVC (“TSIF”) is an open-ended investment company structured as an umbrella company, incorporated in England and Wales, authorised and regulated in the UK by the Financial Services Authority (FSA) as a UCITS
scheme. The value of investments can fall as well as rise and investors might not get back the sum originally invested, especially if investments are not held for the long term. Where investments are made in assets that are denominated
in foreign currency, changes in exchange rates may affect the value of the investments. The Fund may exhibit significant price volatility. Subscriptions to a Fund may only be made on the basis of the current Prospectus or Simplified
Prospectus (to be replaced by the Key Investor Information Document in 2012) and the latest annual or interim reports, which can be obtained free of charge on request. Please refer to the ‘Risk Factors’ section of the Prospectus for all
risks applicable to investing in any fund and specifically this Fund. This material is for information only and does not constitute an offer or solicitation of an order to buy or sell any securities or other financial instruments, or to provide
investment advice or services. The mention of any specific shares or bonds should not be taken as a recommendation to deal. The research and analysis included in this document has been produced by Threadneedle Investments for its
own investment management activities, may have been acted upon prior to publication and is made available here incidentally. Any opinions expressed are made as at the date of publication but are subject to change without notice.
Information obtained from external sources is believed to be reliable but its accuracy or completeness cannot be guaranteed. This document is a marketing communication. The research and analysis included in this document have
not been prepared in accordance with the legal requirements designed to promote its independence and have been produced by Threadneedle Investments for its own investment management activities, may have been acted upon
prior to publication and is made available here incidentally. Any opinions expressed are made as at the date of publication but are subject to change without notice. Information obtained from external sources is believed to be reliable
but its accuracy or completeness cannot be guaranteed. Issued by Threadneedle Investment Services Limited. Registered in England and Wales, Registered No. 3701768, St Mary Axe, London EC3A 8JQ, United Kingdom. Authorised
and regulated in the UK by the Financial Services Authority. Threadneedle Investments is a brand name and both the Threadneedle Investments name and logo are trademarks or registered trademarks of the Threadneedle group of
companies. threadneedle.com AD0083

13. NEWS
Shift to Shariah
model ‘could
Jupiter to launch offshore
increase value’
BY HELEN BURGGRAF
strategic bond for Bezalel
BY SIMON DANAHER The UK-domiciled unit the fund is to “achieve a
Converting a financial serv- trust, which the new fund high income with the pros-
ices business to a Shariah- Jupiter Asset Management will mirror, is one of the pect of capital growth by
compliant model could is to launch an offshore company’s more popular seeking out the best oppor-
Fuhr: ETF growth tremendous
increase the value of a mirror of its high perform- funds, with assets under tunities within the fixed
company by 18% to 25%, ing Strategic Bond Fund management at the end of interest universe globally”.
due to the current scarcity
of genuine Islamic invest-
for manager Ariel Bezalel.
The new fund will be
January of £695m.
Launched in June 2008,
The fund is currently
weighted towards the mid-
Fuhr sets up
ments, a report issued by
Switzerland-based Bank
part of the company’s
Luxembourg-domiciled
the fund has achieved con-
sistently strong perform-
rated bond range, with a
total allocation of around
independent ETF
Sarasin concludes.
However, the third edi-
Jupiter Global Funds Sicav.
Euro-denominated, it will
ance through investment in
a mixture of high and mid-
50% towards bonds rated
between BBB and B.
research firm
tion of the Bank Sarasin offer investors the choice rated government and In geographic terms, the BY ESTHER ARMSTRONG
Islamic Wealth Management of four currencies: the company bonds from fund has its highest weight-
Report notes that there are euro, the dollar, Swiss across the world. ing towards the UK and Former BlackRock ETF
risks involved, as convert- franc or sterling. The stated objective of Europe. guru Deborah Fuhr has
ing a business to Islamic established an independ-
principles is “complex”, ent research and consul-
and there are many issues tancy firm, ETF Global
to consider, including the Insight, aimed at providing
business’s location. services to the rapidly
For example, “a butcher expanding exchange-trad-
in Germany who might ed fund industry.
wish to be publicly Fuhr and her long-
declared halal to attract We’re not here established team will pub-
new or different types of
customers would need to
to make waves. lish independent research
on the industry and its
address many issues”, it products, as well as com-
says, that a company based We’re here to petitor analysis and assist-
in Saudi Arabia might not navigate you ance to investors on prod-
need to. uct comparison.
The Sarasin Group, safely through them. She was previously
which has its roots as a global head of ETF research
Swiss private bank, and implementation strate-
launched a full range of Asset management for institutions gy and a managing director
Shariah-compliant banking at BlackRock (and Barclays
and private clients. tminvestment.com
products and services in Global Investors) from
2009. 2008 to 2011.
These now include Co-founders Shane
estate and succession plan- Kelly and Matthew Murray
ning and financing and are both former-Merrill
asset management servic- Lynch and BlackRock
es, including money employees, where they
market and structured worked under Fuhr.
products such as Wakala Sir Robin Knox-Johnston. Fuhr said: “Having cov-
Murabaha and Maraya. The first man to sail single-handedly around the globe, non-stop. ered the ETF industry since
The most compelling Thomas Miller Investment Ltd is authorised and regulated by the Financial Services Authority No 189829. 1997 when there were only
argument for businesses to Calls may be recorded. Clients are advised that the value of investments can go down as well as up. 21 products and $21bn
go after the Muslim market AUM, I believe ETFs have
is its size, the report notes, been one of the most suc-
pointing out that it accounts
for around 23% of the
IoM targets Asia with new Singapore office cessful financial products
of the past 25 years.
world’s population, or 1.9 BY MARK BATTERSBY growing number of its busi- founder members and it “While asset growth in
billion people “across 112 ness interests in the region. will have a stand at the ETF industry has been
countries”. The Isle of Man govern- A key player with a Singapore’s yacht show. tremendous, regulators,
The Muslim population ment is building its com- presence in Singapore is Anne Blythe, senior reg- ETF mangers, index pro-
is expected to increase by mercial ties with Singapore the Isle of Man Ship Registry istrar at the Isle of Man Ship viders and all of the mem-
26% to 2030 to approxi- by opening a representative which, since 2009, has put Registry, said the show bers of the ETF eco-system
mately 2.2 billion. In office in the country’s cen- its flag on 20 vessels oper- attracts high net worth indi- have been citing the need
numerical terms, the 1.9 tral business district. ated from Singapore. viduals and hopes fiduciary for more and better inde-
million Muslims of 2010 Based in Raffles Place, Earlier this year, the reg- services and other business- pendent education,
will beget a further 300 the ambitious plan is for the istry joined the Asia Pacific es from the island will research and customised
million. Isle of Man to represent a Superyacht Association as come over for the event. assistance to investors.”
APRIL 2012 [www.international-adviser.com] INTERNATIONAL ADVISER 13