Intl Adviser September

SEPTEMBER 2011

BY SIMON DANAHER

Rising numbers of advis-ers relocating from Asia and the Middle East to Europe have prompted the Federation of European IFAs (FEIFA) to form a partnership with Sterling Associates, a firm which specialises in the global placement of financial services workers.

According to Joe Meade, the principle of Sterling Associates, the trend has gathered pace over the past year and has been driven by increasing living and working costs in Asia and the Middle East.

During this period,

BY HELEN BURGGRAF

An established life settle-ments fund provider this month is participating in the launch of a new fund that it says will benefit from the life settlement industry’s growing sophis-tication and skill, as well as from the currently soft market for second-hand life insurance policies.

Life Fund is being pro-moted to international private and institutional

Around eight out of every ten pensions transferred out of the UK into QROPS have gone to Australia, New Zealand or Guernsey, according to never-before-seen HMRC data obtained by the Concept Group and revealed exclusively by International Adviser.

Until now, the pen-sions industry has been in total darkness about which countries were receiving the bulk of UK pension transfers.

This information, obtained via a Freedom of Information Act request, is therefore expected to cause a sensation, even if it largely confirms some experts’ suspicions.

The figures show Australia is the market that has received the most transfers of any jurisdiction since 2007, the first year for which the HMRC pro-vided data.

According to the data, it has received 47% of the transfers, as measured by number, more than twice as many as its nearest rival, New Zealand, with 23%, which in turn took more than twice as many as the third-placed jurisdiction, Guernsey (10%).

Continued on page 5

FEIFA launches service for Europe-bound IFAs

‘Next gen’ life settlement fund unveiled

NEWSAdvisers more optimistic about local economies 3

Dominion unveils QROPS for US-bound workers 3

Zero-10 regimes come under scrutiny 3

UK and Switzerland sign ‘historic’ tax deal 5

Boal & Co launches spousal bypass trust 5

Platform One unveils new wrap offering 6

Skandia Ireland launches trust products 6

Skinner named CEO of Aegon Ireland 9

SFC aggressively pursues insider traders 9

Sanlam EB calls for rethink on pensions 10

L&G enjoys growth in offshore bonds 10

Yorkshire BS to fold Guernsey business 13

Barclays Wealth appoints Asia director 13

Castlestone ‘mirror’ funds come under fire 14

Julius Baer launches China A-share fund 14

Van Der Wielen replaces Sepe at Friends Life 17

Taiwan ‘criminalises’ sale of offshore life policies 17

Spain remains top spot for UK retirees 56

For Distributors of International Fund, Life and Banking Products www.international-adviser.com

Features – page 2

rising prices in both regions, particularly Asia, have hit the headlines.

In January, internation-al property adviser Savills said that financial hub Hong Kong had become the most expensive city internationally in which to buy property, after proper-ties doubled in value in the previous five years.

Asian economies have also struggled with rising prices more generally, and China’s year-on-year infla-tion is running at more than 6%, according to data published last month.

Meanwhile in Dubai, while the property market has had a disinflation-

investors, and has already received a number of inquiries, according to Andrew Walters, a director of the fund, who is also finance director of Policy

Selection, the new fund’s adviser.

The fund has already attracted $10m and is aiming to raise $50m to $100m of investment by August 2012, with a target-ed annual return to inves-tors of 12% a year, Walters said.

It is expected to sell particularly well among investors in South America, he added, where the appe-tite for life settlement prod-ucts is strong.

Australia, NZ, Guernsey top QROPS market: HMRC data

Ipac Hong Kong-based Ipac offers its clients more than dim sum with its holistic brand of lifestyle financial planning

Intermediary profile 23-24

ary impact on the econ-omy, food, non-alcoholic beverage and transport costs have risen at an annual rate of almost 7%.

Meade, whose com-pany has been sourc-ing and placing advis-ers to and from Asia, the Middle East and Australia for more than ten years, said: “Europe has never been more attractive.”

FEIFA’s partnership with Sterling Associates allows advisers using the service to advertise jobs to those based in Asia or the Middle East, and who are looking to come back to Europe, while IFAs in those regions can use it to find work.

FUND FACTSMin investment: $25,000

Annual charge: 1.25% (institutional share class)

Launch date: 1 Oct ’11

Manager: Ironshore Group

Target: yield of 12% pa

Steven Levin The newly appointed CEO of Skandia International explains how determination helps him get results

MD profile 19-20Cyprus After a volatile year of power outages and protests, the island remains a top destination for retiring expats

Country profile 27-28

2 INTERNATIONAL ADVISER [www.international-adviser.com] SEPTEMBER 2011

PROFILES

contents

IA Intermediary PanelGraham BarnesDirector, international division, The Fry Group, UK

Tony ShahAssociate director, Christ-church Investment Mgt, UK

Nick CannChief executive, The Institute of Financial Planning, UK

Gary BoalManaging director, Boal & Co, Isle of Man

Peter SayersDirector, financial planning, Horizon Financial Services, Jersey

Tim SearleChairman, Globaleye

IA Tax Panel

Brendan HarperTechnical services manager, FPI

Neil ChadwickTechnical manager, Royal London 360º

Margaret JagoInternational technical manager, Aegon Ireland

Rachael GriffinHead of product law and financial planning, Skandia International

Gerry Brown Head of trusts and taxation, Prudential

Mark GreenHead of estate and tax planning, Legal & General International

Brian MurphySenior financial planning manager, Axa Sun Life

Julie HutchisonHead of estate planning, Standard Life Int’l

Paul Kennedy Business development director, FundsNetwork

Ernest Chan Chief commercial officer, Convoy Financial Services, Hong Kong

Sam Instone Director, AES International, UK

TECHNICAL

Briefing: US non-doms in the UK 31-32US citizens face draconian regulations related to their offshore finances and many UK banks have washed their hands of the sector. Solutions exist, however, writes Tony McLoughlin of London & Capital

Robert ParkerChief executive, Holborn Assets, Dubai

Sean KelleherChairman, Financial Partners Group, Dubai

Managing director profile: Steven Levin

19-20The recently-appointed chief executive officer of Skandia International discusses the challenges facing the company and the cross-border life industry. He explains why dogged determination is sometimes needed to achieve high-quality results and why some companies fail in their efforts to implement good business strategies

Mahmoud NodjoumiChairman and chief exec, Nexus Group, Dubai

Michael Porter Chief invest officer, Harvard House Investment Mgt, South Africa

PORTFOLIO

Fund selector: Global property shares 34-36Property funds have grown in numbers in recent years and performance can vary significantly depending on the strategy used. OBSR’s Alexander Prineas analyses the sector and picks out his funds to watch

CLASSIFIEDS

Recruitment 52-55Find the job that suits you in IFA firms operating around the globe

Mark Rawson Business director, The Henley Group, Hong Kong

Simon LiewInvestment strategist, In My Opinion, Singapore

Sandra Hogg Senior tax manager, Scottish Widows

David Bojan Managing director, HFS Asset Mgt, Hong Kong

Bill Blevins Managing director, Blevins Franks, pan-Europe

Alan Binnington Private client director,RBC Wealth Mgt, Jersey

Jeremy Croysdill Head of tax services, Kleinwort Benson, UK

Chris Allatt Senior tax consultant,Sanlam UK

Anthony Rothwell Technical consultant,Canada Life International

Intermediary profile: Ipac 23-24Hong Kong-based Ipac split with its Australian parent of the same name in 2010. The company has since found success with its fee-based lifestyle planning approach, and its advisers target several groups, including female clients and parents who are concerned about the financial habits of their children

Life listings 48-50

Service listings 50

The IA Quality Funds 39-44

A list of the blue chips of the offshore fund world

Banking deposits 46The top-paying offshore accounts

STATISTICS

Country profile: Cyprus 27-28After a turbulent few months which have seen the island hit with credit rating downgrades, political protests and an explosion at its main power plant, Cyprus’s economy faces an uncertain future. However, it remains a popular retirement destination and advisers based there are looking to expand their businesses

3

NEWS

IA European Investor Forum this month International Adviser’s European Investor Forum will take place on 22 Sept at the Park Plaza Victoria, London. The half-day conference, which is being held in association with FEIFA, is sponsored by Baker Tilly, Cazenove Capital Management, Fidelity International, Henderson Global Investors, HSBC Global Asset Management, Irish Life International, Neptune and Prudential International. More details at http://events.lastwordmedia.com/

Royal London 360° net sales jump 37%New business premiums increased by 37% at Royal London 360° during the first half of 2011, results released in August showed. The Isle of Man-based life insurer said new business premiums totalled £209m ($340m) over the six months to 30 June, compared with £153m for the equivalent period last year.

Creechurch plans UK, int’l expansionIsle of Man-based investment boutique Creechurch Capital is looking to expand its wealth management offering internationally and into the UK, and has named a new head of business development, Paul Gregson, to oversee the expansion. He was previously at Close Wealth Management.

For the current and all previous editions, with full news archive, go to

www.international-adviser.com

BY SIMON DANAHER

Life companies are increas-ingly launching products tailored to the needs of consumers in specific countries or regions.

Companies such as Skandia International, Royal London 360°, Friends Provident International (FPI), Prudential and Zurich International Life have all unveiled products tailored to a specific audience.

Examples include Zurich’s launch in May of Aspire, an investment-linked annuity product only available in Taiwan; Royal London 360°’s Protected Lifestyle Lebanon; Skandia’s Spanish Collective Invest-ment Bond; and FPI’s Optus Group Protection policy for Middle East investors.

Alongside the big play-ers, smaller life insurance firms are also targeting more esoteric markets.

Stephen Conway, sales manager at group life and benefits insurer Global Benefits Europe, said his company has been tapping into the African market.

“We now have opera-tions in Zimbabwe, Angola and Mozambique, which have been achieved through joint ventures with local firms,” he said.

“We have taken this path because we are not ‘premier division’ players, and so cannot really com-pete in markets like Hong Kong and Singapore.”

But according to Bryan Low, director at Isle of Man-based cross-border financial consultancy com-pany Acuity, one of the big-gest drivers of this change is increased regulation.

“In the past few years there has been an increased pace of regula-tion which has required life companies to launch specific products for spe-cific markets,” he said.

Life firms are tailoring their products to specific areas

BY WILL JACKSON

Advisers are more optimistic about the outlook for their local economies than the global economy as a whole, according to Skandia Inter-national’s ‘Offshore Adviser Confidence Barometer’.

The survey of 300 advis-ers, conducted in July, found respondents rated their confidence in their local economy at an aver-age of 6.2, on a scale of one to ten (ten being the high-est). In comparison, they gave the global economy an average of just 5.4.

“Despite the continuing

Advisers are more confident in local economic recovery

turmoil in world markets, there are areas of strong economic activity, partic-ularly in the developing economies and Asia, which present some great opportu-nities,” said Phil Oxenham, marketing manager at

Skandia International.One-third of respondents

said global contagion was the biggest threat to their local economy, while other concerns included inflation (24%), unemployment (8%) and government spending cuts (7%). Some 37% said clients had become more risk averse over the previ-ous six months.

Regarding investment, about a quarter of those polled said that emerg-ing market equities would outperform other major asset classes over the next 12 months, followed by gold (20%).

Dominion unveils QROPS for US-bound workers BY HELEN BURGGRAF

Dominion Fiduciary Services has launched a new Qualifying Recognised Overseas Pension Scheme (QROPS), domiciled in Malta, which has been structured specifically to accommodate US citizens, non-US citizens and Green Card holders with UK pen-sions who are retiring to the US, or moving back there for good.

It will also be able to be used by US citizens who may have built up UK pen-

The zero-10 corporate tax regimes of Jersey and the Isle of Man will again be the subject of scrutiny this month, as the European Commission’s Code of Conduct Group formally considers steps taken ear-lier this year by both islands to begin to remove the elements of their tax codes deemed by the Conduct Group to be “harmful” from a tax perspective.

Watching this activ-ity with interest will be Guernsey, which also has

Zero-10 regimes on agenda this month

sions while posted in the country by employers, and who may be moving on to another non-US country for work or to retire, accord-ing to James Barber-Lomax, new business team adviser at Dominion.

Malta’s financial serv-ices regulator is in the final stages of approving the new Dominion EU Retirement (US Qualifying) Plan, as it is called, Barber-Lomax said. A number of clients have committed to transferring pensions into it, he added.

News of the Dominion scheme comes as a number of other pension fund administrators have begun pulling the wraps off their own ‘IRS-friendly’ schemes, as reported in International Adviser last month.

The trend also comes in the wake of a double tax agreement between the US and Malta that took effect on 1 Jan, and after changes in UK tax regulations have made some other financial planning tools less attrac-tive in comparison with a well-constructed QROPS.

a zero-10 scheme. It has already said it is willing to replace its scheme, which is why it is not under the microscope as well, but its replacement is yet to be determined, according to officials.

“Guernsey… cannot determine its preferred direction of travel until the outcome of the Conduct Group processes are known definitely,” the island’s Government said.

Under zero-10 schemes, most businesses pay no

corporation tax, while some industries, such as banks, pay 10%, and a few pay 20%.

The Conduct Group reviewed Jersey and the IoM’s tax regimes last year, as it believed the jurisdictions’ personal taxation laws, when com-bined with the zero-10 tax regime, were in conflict with the Code of Conduct on Business Taxation, laid down by Europe’s Council of Economics and Finance (ECOFIN).

NEWSIN BRIEF

SEPTEMBER 2011 [www.international-adviser.com] INTERNATIONAL ADVISER

Oxenham: ‘great opportunities’

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Top decile dividendsnow made in Asia

*Source: Lipper as at 30/06/11. IMA Sector: Asia Pacific Excl Japan. All yield figures are calculated on *Source: Lipper as at 30/06/11. IMA Sector: Asia Pacific Excl Japan. All yield figures are calculated onthe basis of dividing the last 12 months’ dividends (to the latest available distribution date) by the current the basis of dividing the last 12 months’ dividends (to the latest available distribution date) by the currentprice. Current yields are not indicative of future yields. Income calculated net of UK tax and annual price. Current yields are not indicative of future yields. Income calculated net of UK tax and annualcharges, but excluding initial charge. The impact of the initial charge, which may be up to 4%, can be charges, but excluding initial charge. The impact of the initial charge, which may be up to 4%, can bematerial on the performance of your client’s investment. Performance figures including the initial charge material on the performance of your client’s investment. Performance figures including the initial chargeare available upon request. Past performance is not a guide to future performance.are available upon request. Past performance is not a guide to future performance.

Newton Asian Income FundNewton Asian Income Fund Decile ranking for income distributions*

1 yr 3 yr Since launch 30/11/05 Fund Historic yield

1st 1st 1st Newton Asian Income 5.3%

This is a financial promotion and is not intended as investment advice. The information provided within is for use by professional investors and/or distributors and should not be relied upon by retail investors. All information relating to Newton Investment Management (Newton) and Newton Asian Income Fund has been prepared by Newton for presentation by BNY Mellon Asset Management International Limited (BNYMAMI). BNYMAMI and its affiliates are not responsible for any subsequent investment advice given based on the information supplied. The value of investments and the income from them is not guaranteed and can fall as well as rise due to stock market and currency movements. When you sell your investment you may get back less than you originally invested. Newton Asian Income Fund is a sub-fund of BNY Mellon Investment Funds, an investment company with variable capital (ICVC) incorporated in England and Wales under registered number IC27 and authorised by the Financial Services Authority. BNY Mellon Fund Managers Limited (BNY MFM) is the Authorised Corporate Director. The Prospectus and/or Simplified Prospectus should be read before an investment is made. This document can be obtained from www.bnymellonam.co.uk. To help us continually improve our service and in the interest of security, we may monitor and/or record your telephone calls with us. Issued by BNYMAMI, BNY Mellon Centre, 160 Queen Victoria Street, London EC4V 4LA. Registered in England No. 1118580. Authorised and regulated by the Financial Services Authority. BNYMAMI and Newton are ultimately owned by The Bank of New York Mellon Corporation. Newton is a member of the IMA. CP7071-22-07-2011(3m)

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NEWS

Frankland named for MetLife Jersey roleMetLife, the New York-based insurance giant, is to start selling its range of UK pension and life products in Jersey, and has appointed Paul Frankland to head the initiative. The first product will be unveiled this month and is expected to be a guaranteed bond.

FPI strengthens its Global Term product Friends Provident International has strengthened Global Term, an insurance product it offers exclusively in Singapore. The product now offers protection for family, mortgages, loans and businesses from the consequences of death, terminal illness, critical illness or disability.

ClarificationThe lead story on the front page of last month’s International Adviser – ‘Overseas pensions face compensation jeopardy’ – contained an inaccuracy. The article stated that the Guernsey depositor compensation scheme does not cover deposits on behalf of trusts or retirement schemes. This was incorrect – Guernsey QROPS are covered by the Guernsey Banking Deposit Compensation Scheme. But the maximum compensation payable is £50,000 ($81,473)per scheme, not per individual scheme member.

For the current and all previous editions, with full news archive, go to


BY WILL JACKSON

Boal & Co has launched a spousal bypass trust, which aims to improve the inher-itance tax (IHT) efficiency of Trinity and its other Qualifying Recognised Overseas Pension Schemes (QROPS).

QROPS assets are exempt from IHT on a scheme member’s death. However, when death ben-efits are paid to a member’s spouse, they can create additional IHT liability on the eventual death of the spouse, if their assets exceed the combined IHT threshold.

By using a spousal bypass trust, a member can ensure QROPS death bene-fits are paid to the trust and kept outside the spouse’s estate. Boal’s Trinity scheme is able to pay members a retirement lump sum above the 30% level to which other QROPS are restrict-ed, and the same spousal bypass trust can also be used for this benefit.

“The result can be highly tax-efficient in many cases, as it reduces future income tax liability on pension payments,” said Boal sales director Paul Forman.

“For any Trinity clients concerned about their future IHT situation, the use of the spousal bypass trust allows them to pay not just their death benefits but also some or all of their retire-ment lump sum benefit into the bypass trust, so keeping it outside of the IHT net as well,” he added.

Boal launched Trinity, a QROPS approved under the Isle of Man’s 50c legislation, last November. According to the firm, it is a trustee or administrator to more than £400m ($652m) of offshore pension scheme assets.

Further details of the spousal bypass trust are available at www.trinity.im.

Boal unveils new spousal bypass trust to mitigate IHT BY HELEN BURGGRAF

A deal whereby Switzerland will tax, on behalf of the UK, undeclared accounts held in its banks by UK citizens – while keeping their identities a secret – has been agreed.

Sources said the agree-ment could mean as much as £6bn more annually in revenue coming in to HM Revenue & Customs.

The deal was unveiled on 24 Aug, fewer than

UK and Switzerland agree ‘historic’ deal on taxation

ten days after a similar accord was struck between Switzerland and Germany, and will take effect in 2013.

Some accounting indus-try sources said the agree-ment, which the Treasury called “historic”, was short on the detail as to how the process would work in practice, which they sug-gested might have been intentional, ahead of its formal ratification.

Under the terms of the agreement, existing funds

held by UK taxpayers in Switzerland will be subject to what the Treasury says will be “a significant” one-off deduction of between 19% and 34% to settle past tax liabilities, leaving those who have already paid their taxes unaffected.

In addition, the banks will make an up-front pay-ment to the UK of CHF500m ($629.1m), which the Treasury described as “a gesture of good faith” on their part.

Top destinations for transfers into QROPS

Convoy Financial Services last month sought to reas-sure investors that its pro-posed takeover of IPP Financial Services does not contravene Singaporean law.

The firm published a clarification statement on the news website of Hong Kong Exchanges and Clearing, in response to accusations reported by the Apple Daily newspaper.

As International Adviser

Continued from page 1A look at the transfers

that were made in the first part of this year, however, shows a different picture, with Guernsey in the lead with 32% of the total, fol-lowed by New Zealand (28%), Australia (20%) and Isle of Man (5%).

Importantly, Guernsey differs from Australia, and in part from New Zealand, in that it is primarily a “third-country” QROPS destination, meaning that most of the QROPS trans-ferred there are for people who have left the UK to live elsewhere, such as in Europe or Asia.

Roger Berry, managing director of Guernsey-based QROPS specialist Concept Group, said by compari-

Convoy rebuffs accusations over its IPP takeoverreported in July, Hong Kong-based Convoy’s acquisition of IPP is expected to create one of the largest financial advi-sory firms in Asia.

Convoy has over 1,000 IFAs, while IPP, founded in 1983, has more than 400 employees.

According to the state-ment, allegations concern-ing the deal were made in “anonymous letters”. Convoy said it denied the

accusations and that all necessary legal and regula-tory approvals had been obtained.

It added: “Entering into of the sale and purchase agreement by the purchas-er did not violate Singapore laws, and the company has made and would make disclosure(s) and announcement(s) in rela-tion to the transaction(s) in compliance with the list-ing rules.”

son, “Australia’s QROPS market is [comprised] almost totally of people going to Australia to live, while New Zealand is more of a mixture of both” third-country QROPS and those of people moving there permanently from the UK.

Berry added that the

data showed that “prudent jurisdictions are the win-ning business model and should continue to thrive”.

For more on the Concept Group data, and Berry’s analysis, see page 8 of the QROPS supplement contained in this issue of International Adviser.

NEWSIN BRIEF

Transfers out of the UK into QROPS

Jurisdiction % total transfers* % total transfers* ’07 to 31 Jun ’11 first part of ’11

Australia 47% 20%

New Zealand 23% 28%

Guernsey 10% 32%

Isle of Man 2% 5%

Hong Kong 1% <1%

Malta <1% <1%

Others combined 17% 15%* By numbers transferred. Percentages add up to slightly more than 100% due to rounding. Source: HMRC, via FOI Act request by Concept Group.

SEPTEMBER 2011 [www.international-adviser.com] INTERNATIONAL ADVISER 5

NEWS

INTERNATIONAL ADVISER [www.international-adviser.com] SEPTEMBER 20116

Wraps come off new wrap offering from Platform OneBY HELEN BURGGRAF

Platform One, a wrap plat-form aimed at advisers with high net worth clients and multiple family offices, was unveiled last month.

An international ver-sion of the platform for expatriates makes use of the administration facilities and services of Moventum, a Luxembourg offshore fund platform provider owned by US-based LPL Financial. Its custodian is Banque de Luxembourg, according to Michael Ford-ham, managing director of Platform One.

Fordham says Platform One’s high-end approach was taken in response to what the company’s found-

ers saw as a neglected area in the fledgling, but rapidly growing, platform market.

Like most new markets he says, it has been char-acterised by a “land-grab” approach, as most entrants rush to take advantage of being so-called first-movers.

As is customary in the platform world, Platform One charges its clients based on a percentage of the total value of assets held, and also when they buy or sell assets – typi-cally shares and collective investment funds.

In the UK, the percent-age starts at 0.3% of assets and declines to 0.03% on assets of £5m ($8.2m) or more; transaction fees are £15 if automatic and £25 for

AAM receives dressing down from Singapore regulatory body The Monetary Authority of Singapore (MAS) has “rep-rimanded” AAM Advisory and one of its executives for giving financial advice – in a monthly bulletin to clients – without the required licences.

In a ruling that could have implications for other advisory firms which pro-duce investment materials for clients, the MAS found that AAM and one of its executives, Andrew Gordon McKay, contravened “sec-tion 6(1)...[and] the then-section 7(1) of the FAA [Financial Advisers Act]” in a monthly newsletter that the firm said was designed to help its clients to become more knowledgeable on investment matters.

The FAA sections state that no person “shall act as a financial adviser in Singapore” unless author-ised to do so, nor “act as or hold himself out to be a representative of a licensed financial advis-er” without the necessary licence, the regulator said in a statement.

Nick Anderson, one of AAM’s directors, said the “advice” in question was contained in a newsletter called Global View, which was written by McKay, an Australia-based fund man-ager and AAM shareholder, and which did not involve specific advice to any indi-vidual clients.

The newsletter was dis-continued towards the end of last year, when the MAS first revealed its concerns, he added.

manual trades. International fees are slightly different, starting at 0.45% of assets and again, declining as more assets are added.

Transaction fees for col-lective investments range from €5 ($7.20) to €25 if they are done electronically and €25 to €50 if manual, according to the company.

Will Jackson EditorT +44 (0)20 7065 7567E [email protected]

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10,097 July ’10 – June ’11

Skandia Ireland unveils trust productsSkandia Ireland has launc-hed a discounted gift trust (DGT) and loan trust, in response to demand from financial advisers.

The company, which is the Dublin-based hub of Skandia International, part of Old Mutual, said a poll it conducted of 330 advisers globally, indicated that the most important element of trust arrangements was the mitigation of poten-tial inheritance tax (IHT) liabilities for clients.

Rachael Griffin, head of product law and finan-cial planning at Skandia International, said: “Trusts are very powerful financial planning tools. The feed-back received from advis-ers is not surprising, as we

have witnessed a growing demand for IHT solutions over the recent years.”

The DGT arrangement provides UK-domiciled individuals with the ability to make a gift into a trust but retain a life-long right to draw an income stream from that gift. The value of this income stream is

Russell brings Leggate on board Middle East operationBY SIMON DANAHER

Russell Investments will expand its operations in the Middle East and has appointed Jim Leggate to build and lead a team based there.

Leggate, who has been appointed to the newly-created role of managing director, Middle East, joins from MSCI, where he held the position of executive director and head of EMEA asset owners and invest-ment consulting.

He reports to Pascal Duval, president of EMEA at Russell Investments, and will be based in Dubai.

Russell said Leggate’s arrival in the region will signal the start of “an additional expansion in the number of people on the ground to support the Russell businesses”.

He added that one of Leggate’s first responsibili-ties will be to build a team.

The company has had operations in the Middle East for more than 30 years and, at the end of March this year, it had assets under management of about $161bn.

discounted against the gift, which has the effect of reducing the amount of IHT that might eventually have to be paid.

The loan trust, mean-while, offers an individu-al the ability to make an interest-free loan repayable on demand, the proceeds of which are placed in a single premium investment bond written in trust for the chosen beneficiaries.

Any growth in the value of the loan would fall immediately outside the individual’s estate, so would not become liable to IHT.

Unlimited and limited liability loan trust options are being made available by Skandia.

Leggate: building expert team

Fordham: ‘land-grab approach’

Griffin: ‘powerful financial tools’

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T R U S T E D H E R I T A G E A D V A N C E D T H I N K I N G

Tunedinto local knowledge

1 Source: Schroders, as at July 2011. *Schroder International Selection Fund is referred to as Schroder ISF. Morningstar rating as at 31 July 2011, rating is for A accumulation share class. For Professional Investors or Advisers Only. Past performance is not a reliable indicator of future results, prices of shares and the income from them may fall as well as rise. Issued in August 2011 by Schroder Investment Management Limited, 31 Gresham Street, London EC2V 7QA. Registered number 2015527 England. Authorised and regulated by the Financial Services Authority. w40269

Schroder ISF Global Emerging Market Opportunities

www.schroders.comwww.schroders.com

The Henderson Horizon Fund (the “Fund”) is a Luxembourg SICAV incorporated on 30 May 1985. This document is intended solely for the use of professionals and is not for general public distribution. Any investment application will be made solely on the basis of the information contained in the Fund’s full prospectus (including all relevant covering documents), which will contain investment restrictions. This document is intended as a summary only and potential investors must read the Fund’s full prospectus before investing. A copy of the Fund’s full and simplified prospectuses can be obtained from Henderson Global Investors Limited in its capacity as Investment Manager and Distributor.Issued in the UK by Henderson Global Investors. Henderson Global Investors is the name under which Henderson Global Investors Limited (reg. no. 906355) (incorporated and registered in England and Wales with registered office at 201 Bishopsgate, London EC2M 3AE and authorised and regulated by the Financial Services Authority) provide investment products and services. Telephone calls may be recorded and monitored.Past performance is not a guide to future performance. The performance data does not take into account the commissions and costs incurred on the issue and redemption of units. The value of an investment and the income from it can fall as well as rise and may increase or decrease as a result of changes in exchange rates between currencies. Investors may not get back the amount originally invested. Tax assumptions and reliefs depend upon an investor’s particular circumstances and may change if those circumstances or the law change. If you invest through a third party provider you are advised to consult them directly as charges, performance and terms and conditions may differ materially.The securities included in this document are not registered in the Foreign Securities Registry of the Superintendencia de Valores y Seguros for public offering and, therefore, the use of this document is only for general information purposes. Nothing in this document is intended to or should be construed as advice. This document is not a recommendation to sell or purchase any investment. It does not form part of any contract for the sale or purchase of any investment. The Fund is a recognised collective investment scheme for the purpose of promotion into the United Kingdom. Potential investors in the United Kingdom are advised that all, or most, of the protections afforded by the United Kingdom regulatory system will not apply to an investment in the Fund and that compensation will not be available under the United Kingdom Financial Services Compensation Scheme. A copy of the Fund’s full and simplified prospectuses, articles of incorporation, annual and semi-annual reports can be obtained free of cost from the Fund’s: Austrian Paying Agent Raiffeisen Zentralbank Österreich AG, Am Stadtpark 9, A-1030 Vienna; French Paying Agent BNP Paribas Securities Services, 3, rue d’Antin, F-75002 Paris; German Information Agent Marcard, Stein & Co, Ballindamm 36, 20095 Hamburg; Belgian Financial Service Provider Dresdner Van Moer Courtens S.A./N.V. Société de bourse, Drève du Prieuré 19, 1160 Bruxelles; Spanish Representative Allfunds Bank S.A. Estafeta, 6 Complejo Plaza de la Fuente, La Moraleja, Alcobendas 28109 Madrid; or Swiss Representative BNP Paribas Securities Services, Paris, succursale de Zurich, Selnaustrasse 16, 8002 Zurich who are also the Swiss Paying Agent. HGI41877/0811

Henderson Horizon

FundThe Henderson Horizon China Fund, managed by Andrew Mattock and Caroline Maurer provides investors with access to a focused portfolio of Chinese companies that is constantly adjusted with the aim of delivering attractive performance through the economic cycle. Supported by the significant research capabilities of the wider Henderson team, the fund also employs sophisticated short selling techniques that potentially allow it to deliver positive performance in challenging market conditions.

The Henderson Horizon China Fund is available through a number of international distribution partners and life companies. The fund may also be available via open architecture links through other international distributors, please contact your preferred distributor for more information.

Cumulative performance Fund MSCI Golden

Dragon Index

Year to date +5.1% -0.2%

6 months +4.9% -1.3%

1 year +21.0% +15.5%

Since inception* +45.4% +7.8%

Source: Morningstar, bid-bid, gross income reinvested, net of fees, based in USD, at 29 July 2011.*Inception 25 January 2008. †Standard & Poor’s, July 2011.

+44 (0)20 7818 4411 [email protected] www.henderson.com

For professional advisers only

†


NEWS

Skinner fills Aegon Ireland CEO vacancy left by Healy

Hong Kong fund sales rocket in first half of ’11BY SIMON DANAHER

Net sales of funds in Hong Kong hit a record high in the first half of this year, up by 188% compared with the second half of 2010, according to the HK Investment Funds Assoc-iation (HKIFA).

It said the robust sales for the fund industry, which included net sales of $5.1bn over the six-month period, reflected investors’ desire to put their money to work in the “extremely low interest rate environment and the threat of inflation”.

Monthly gross inflows were between $2.5bn and $3.9bn, with all months registering positive fund flows. But the HKIFA said net sales dropped gradual-ly after a strong start in January and only started to pick up again in May. Despite this, gross and net sales in Q2 were still higher than in Q1, reaching $11.2bn and $3.1bn respec-tively, up 14% and 52%.

But Desmond Ng, chair-man of the HKIFA, was cautious about his outlook for the remainder of 2011.

“The markets have been plagued by a lot of uncer-tainties: the eurozone sov-ereign crisis; the worsening US fiscal position; the anaemic global economic growth; and the inflation-ary pressure in the emerg-ing markets all served to dampen investment senti-ment,” he said.

BY HELEN BURGGRAF

Standard Life (Asia), the Hong Kong arm of Edinburgh-based Standard Life, has repositioned its brand, following “exten-sive customer research”.

The firm also revealed that it is targeting a 30% increase in sales of invest-ment-linked insurance products in Hong Kong this year.

Details of a new Standard Life product for the Hong Kong market, which had been expected to be unveiled at the same time as the rebranding, were not revealed, and are understood to be still under wraps, pending reg-ulatory approval.

But an expansion of Standard Life’s online facili-ties for both financial advis-ers and their clients was presented alongside news of the rebranding.

Among other things, cli-ents and advisers may now peruse and tweak their Standard Life invest-ment portfolios from their iPhones and iPads as well as online, thanks to new apps.

The rebranding of Stand ard Life’s Asian sub-sidiary followed a decision by its parent to change its “visual identity” to reflect “the investment being made in the business now and in the future”.

BY WILL JACKSON

Aegon Ireland has appoint-ed Simon Skinner as its chief executive officer.

He replaces David Healy, who left the compa-ny last month after 14 years as managing director.

Skinner previously served as the chief operat-ing officer of life and pen-sions at Aegon UK. Since joining Aegon as customer services director in 2009, he has been responsible for the firm’s UK customer services strategy and cost reduction programme. Before this, he held senior positions with Scottish Widows, Equitable Life and the Automobile Association.

In a statement, Adrian Grace, chief executive of

Aegon UK, noted that the Aegon Ireland operation now headed by Skinner was “well positioned to capitalise on the substantial growth opportunities for variable annuities, both in the UK and across Europe”.

Variable annuities were one of the strengths of Aegon Ireland that Healy cited in an interview earlier this year with International Adviser, which appeared in the April issue.

Its range of variable annuity products, Healy told IA, were an important factor in helping to differ-entiate the company from its rivals, and he noted that enhancing and expanding this range was among Aegon Ireland’s current projects.

Healy joined Scottish Equitable International (later rebranded Aegon Ireland) in 1995, and became its managing direc-tor two years later. He previously worked with J Rothschild, when it was the first cross-border life company to set up in Dublin’s International Financial Centre.

Skinner: moving from Aegon UK

The Hong Kong regulator, the Secur ities and Futures Commission (SFC), last month concluded one insider trading action and opened another.

According to the SFC, it has concluded proceedings against Steve Luk Ka Cheung, a former vice-president and fund manag-er at JF Asset Management.

The Market Misconduct Tribunal, an independent government body, found that Luk, along with David Tsien, a former equity salesman at JPMorgan

Securities (Asia Pacific), and another party engaged in insider dealing with respect to China Overseas Land and Investment shares.

As a result, Luk’s licence was revoked in 2006 and the SFC imposed a ten-year industry ban in April 2010.

The new case relates to alleged insider trading in CITIC Pacific shares.

The SFC has accused Chui Wing Nin, a former assistant director of the finance department at

CITIC Pacific, of selling 81,000 shares in September 2008, while in possession of “confidential, price sensi-tive information” about the firm’s foreign exchange losses – avoiding a notional loss of HK$1.36m.

Chui appeared in the Eastern Magistracy last month, where he pleaded not guilty to two counts of insider dealing. David Dufton, the acting princi-pal magistrate, fixed a pre-trial review for 20 Oct and Chui was released on HK$50,000 ($6,400) bail.

SFC aggressively chases insider traders

Standard Life (Asia) rebrands as it plans HK sales expansion

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Sanlam EB urges rethink on pension needs of consumers

Legal & General Int’l enjoys growth in offshore bonds

BY SIMON DANAHER

South African pension pro-vider Sanlam Employee Benefits (SEB) is calling for a “sea change” in how the pension industry meets consumer needs.

SEB made the call fol-lowing the completion of its 2011 Benchmark survey.

This year the compa-ny surveyed over 1,300 retirement fund trustees, principal officers, retire-ment fund members and pensioners. One of the key findings was that a shift away from defined benefits to defined contributions in the ’90s has left many employees worse off.

Dawie de Villiers, chief executive officer of Sanlam Structured Solutions, a divi-sion of SEB, said: “While we do not challenge the rationale behind the move away from the defined ben-efits system, the research shows that members are still not accepting respon-

Crist to head Ageas Asia as Ziengs moves into new role

PCP planning major global sales strategy

European asset managers turning to private banks

NEWS

International life insurer Ageas has promoted Gary Crist to CEO in Asia. He replaces Dennis Ziengs, who has been appointed executive adviser to the company’s group CEO, Bart de Smet, and to Crist in Asia.

The appointments took effect on 1 Aug.

Crist joined Belgium-based Ageas, which con-centrates its business in Europe and Asia, in 2002 and has been responsible for overseeing its entry into new markets in Asia. In 2006 he became managing director, commercial devel-opment and support.

Ziengs also joined the company in 2002. In his new role, he will advise on specific projects and will work to raise the profile of Ageas in the Asian insur-ance industry.

Ageas is ranked among the top 20 insurance com-panies in Europe and has annual inflows of nearly €13bn ($19bn). It operates partnerships in Belgium, China, Italy, India, Luxem-bourg, Malaysia, Portugal, Thailand and the UK, and has subsidiaries in France, Germany, Hong Kong and the UK.

Ageas last month reported a group net loss of €59m for the first half of 2011. The firm’s net profits of €111m for its insurance operations were offset by an impairment charge of €150m related to Greek sovereign exposure.

Offshore bond sales at L&G International

0

50

100

150£m

200

250

300

H1 ’11H2 ’10H1 ’10Source: Legal & General International

sibility for their own retire-ment savings – and many members are not actually aware they carry the risk.”

The research indicates that, of the one in five respondents who resigned or switched jobs over the past year, more than 70% cashed in their retirement funds, and only 18% pre-served their funds.

Other findings were that 53% of respondents say they are on track for retire-ment, yet nearly one-third do not know how their retirement savings have been invested, and 29% of respondents do not know that they have a choice in how they are invested.

BY WILL JACKSON

Legal & General Inter-national (LGI) saw a 65% increase in its offshore bond sales in the first half of 2011, compared with the same period last year.

The firm revealed the rise in August, as its parent company announced its half-year results to the London Stock Exchange.

Offshore bond sales hit £280m ($460m) in the first six months of this year – up from £170m in 2010. The increase continued the strong growth seen last year, when LGI recorded

European asset manag-ers expect to place great-er emphasis on private banks and direct sales for fund distribution, accord-ing to research by KNEIP, an independent service provider.

A survey of 47 European asset managers, admini-strators and promoters revealed that 42.9% of resp-ondents planned to increase

Crist: promoted to Asia CEO

de Villiers: ‘responsibility’

full-year offshore bond sales of £450m, compared with £80m in 2009.

their use of private banks in the next 12 months (up by 14% from 2010), and 34.3% expected to focus more on direct sales.

“Implementation of new regulation, such as Ucits IV, is pushing asset man-agers to forge closer rela-tionships with investors, as indicated by the increased focus on direct sales,” said CEO Bob Kneip.

“The rise in private bank distribution channels sug-gests some asset managers are increasingly targeting high net worth individuals as the recovery from the financial crisis stabilises.”

Some 94% of respond-ents expected Ucits IV to have the greatest impact on fund management in the next 12 months, up from 83% in 2010.

BY HELEN BURGGRAF

PCP International Market-ing, a Cyprus-based compa-ny, is investing more than €1m ($1.4m) to expand a sales presence into Asia, Europe, the Middle East and Latin America, as it seeks to reach institutional and retail investors with products offered by PCP-related entities.

The company, which was formed in 1996 by Kevin Mudd, said sales in each region will be headed by a regional director, who will be a full shareholder in a joint business with, and financed by, PCP.

“The objective is for each regional partner to build their own distribu-tion business, through their own efforts and by recruiting their own team,” said Mudd, who is also a principal of KMG Capital Markets Luxembourg, a Luxembourg-based funds company he founded in 2007.

He said the firm was aiming for annual sales in each region of $60m within three years, for a company-wide turnover of $240m to $300m.

“For UK investors faced with limitations on tax-advantaged savings via

pensions, offshore bonds are increasingly seen as a useful vehicle for both tax mitigation and retirement planning,” said Legal & General executive director of savings Mark Gregory.

“Our international busi-ness is seeing an increase in the use of offshore investment plans as sup-plementary asset accumu-lation vehicles for retire-ment by higher net worth clients.”

The Legal & General group announced a 4% rise in total global sales, to £920m, in the first half of 2011.

FOR ADVISER USE ONLY – NOT APPROVED FOR USE WITH CLIENTS.

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AEGON is a brand name of AEGON Ireland plc. AEGON Ireland plc, registered office: 2nd Floor IFSC House, Custom House Quay, Dublin 1, Ireland. Registered in Ireland (No. 346275). Authorised by the Central Bank of Ireland and subject to limited regulation by the Financial Services Authority. Details about the extent of our regulation by the Financial Services Authority are available from us on request. An AEGON company. www.aegon.ie

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Investments can go down as well as up and your clients may get back less than they invested. This information 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.


BANK NEWS

Yorkshire Building Society to fold Guernsey business

More job cuts announced by international banking giantsMore major international banks last month announ-ced plans to cut thousands of jobs, as global economic problems continue to weigh on their profits, and con-sumer and business confi-dence remained low.

The news followed job cutbacks unveiled by other banks in July, which some observers said meant a redundancy announce-ment total for the summer of close to 60,000.

Among the latest to unveil planned layoffs was Swiss banking giant UBS, which on 22 Aug said it would eliminate 3,500 jobs, or more than 5% of its workforce, as its business difficulties were com-pounded by the strength of Switzerland’s currency. This is a pain shared by Credit Suisse, which in July announced plans to let go of 2,000 people.

In a statement, UBS warned that it would “con-tinue to be vigilant in man-aging its cost base”, which suggested that additional cuts could follow.

Other major banks to announce cutbacks over the past two months include HSBC, Barclays and Gold man Sachs. Bank of America was reported to be planning to cut some 3,500 jobs, but did not con-firm this ahead of Warren Buffett’s $5bn investment in the company.

BY SIMON DANAHER

Abu Dhabi Islamic Bank has been granted permis-sion by the Qatar Financial Centre Regulatory Auth-ority (QFCRA) to open an Islamic branch in the state.

The decision comes after the Qatar Central Bank declared that conventional banks located in the coun-try would have to get out of the Islamic banking busi-ness by year end.

In announcing the ban, the Central Bank said it had noted that the “recent phe-nomenon” of Islamic branches of conventional banks had led to a “co-mingling of their assets and liabilities”, which, given the “overlapping nature of non-Islamic and Islamic activi-ties” at the conventional banks, had made it difficult to manage the risks encoun-tered by these banks.

There were also con-cerns that conventional banks could have a com-petitive advantage over their Islamic counterparts.

The QFCRA confirmed the decision, saying: “Abu Dhabi Islamic Bank’s authorisation, as a PIIB Prudential Category Five Islamic financial institution, permits it to carry on regu-lated activities in relation to deposit taking, provid-ing and arranging financ-ing facilities and managing investments.”

BY HELEN BURGGRAF

Yorkshire Building Society, the UK’s second-largest building society, is to “wind down” its Yorkshire Guernsey subsidiary, fol-lowing a strategic review.

The operation is based in St Peter Port and employs 14 people, with around 6,000 customers and bal-ances of approximately £800m ($1.3bn). The review was launched last year, fol-lowing changes to the UK’s regulatory regime.

“The review considered a number of options, including a potential change in [the Guernsey operation’s] legal status, sale to a third party or an orderly wind-down of its operations,” the building

society said.“Regrettably, after very

careful consideration, it has been concluded that a process to wind down the company’s activities should begin.”

The building society stressed that all deposits in the Guernsey subsidiary would remain fully sup-ported by the parent com-

pany until they are either returned to customers or transferred to an alterna-tive deposit taker.

Yorkshire Guernsey has been present on the island since June 1990, when it became the first UK build-ing society to open a Guernsey subsidiary.

In a statement, Iain Cornish, Yorkshire Building Society chief executive, said the decision had been taken “with much regret”, but noted that “recent changes to the treatment of offshore deposit-taking subsidiaries now means that it can no longer serve its original role within the Yorkshire Group”.

“We will work closely to support all affected staff,” he added.

Cornish: ‘support for staff’

Barclays Wealth, the global wealth management divi-sion of Barclays, has named Anne Luke manag-ing director and head of client solutions in Asia, as it further expands its serv-ices catering for the region’s ultra high net worth (UNHW) market.

Based in Singapore, Luke reports to Srinivas Siripurapu, head of south Asia and southeast Asia at Barclays Wealth, as well as to Pakorn Boonya-kurkul, head of north Asia.

Luke’s appointment

comes as Barclays Wealth continues to build its UHNW wealth manage-ment operations in Asia. The strategy began around 18 months ago, and has seen the bank introduce customised products in credit, derivatives, foreign exchange and trust structur-ing that it says are designed to “unlock the value” from the often complex portfoli-os of super-wealthy clients.

Luke’s career of more than 20 years has included a stint at UBS, where she was also involved in wealth

management operations related to UHNW clients, as well as private and invest-ment banking posts with other banks. She was also a partner in various law firms, covering banking and finance deals, in addition to corporate advisory work.

At Barclays Wealth, she will work closely with vari-ous units across the Barclays Group to drive the origination, structuring and delivery of private investment banking servic-es to UHNW individuals, Barclays Wealth said.

Barclays Wealth appoints Asia director

Qatar grants licence to Abu Dhabi Islamic Bank branch

# Gross rates are fixed. Interest will be paid without the deduction of income tax to all depositors (Exchange of Information will apply to all depositors resident in the EU). However, it is the responsibility of individuals to discharge any tax liability they may have. † AER stands for Annual EquivalentRate and illustrates what the interest rate would be if interest were paid and compounded each year. As every advert for a savings product that quotes an interest rate will contain an AER, you will be able to compare more easily what return you can expect from your savings over time.Bank of Ireland is a registered trading name of Bank of Ireland (I.O.M.) Limited, which is licensed by the Isle of Man Financial Supervision Commission. Incorporated in the Isle of Man No. 17696c. Registered Office: 4 Christian Road, Douglas, Isle of Man Bank of Ireland (I.O.M.) Limited is a wholly-owned subsidiary of The Governorand Company of Bank of Ireland, which is incorporated in Ireland with limited liability. Bank of Ireland is authorised by the Central Bank of Ireland. Bank of Ireland (I.O.M.) Limited places funds with other parts of the Bank of Ireland Group, thus its financial standing is linked to that of the group. Depositors may wish to form theirown view on the financial standing of Bank of Ireland (I.O.M.) Limited and the Bank of Ireland Group based on publicly available information. A copy of the most recent audited financial statements for Bank of Ireland (I.O.M.) Limited can be viewed at the registered office, are available at www.boioffshore.com, or can be suppliedupon request. Terms and conditions apply, copies are available on request.

High Interest Anniversary Account Issue 1

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To find out more contact:01624 644222 [email protected] www.boioffshore.com

FUND NEWS


Life offices defend decision to ‘mirror’ Castlestone funds

Investec adds to Luxembourg fixed income product range

BY SIMON DANAHER

Life insurers have defend-ed their decision to offer ‘mirror’ versions of funds from Castlestone Manage-ment, following the com-pany’s decision in July to close its Dublin-domiciled range to new subscriptions and wind down that part of its business.

Friends Provident Inter-national (FPI), Skandia International and Hansard all offered mirror versions of Castlestone funds.

In December 2010, FPI made mirror funds of the Dublin-domiciled (and now closed) Castlestone

Aliquot Commodity and Castlestone Aliquot Agri-culture portfolios avail-able to investors within its Singapore Global Wealth Builder unit-linked savings plan.

FPI – which also offers investors mirror funds of the British Virgin Islands (BVI) domiciled Castlestone Aliquot Gold Bullion and Castlestone Aliquot Precious Metal funds – said they “offered daily dealing and valuation with independent admin-istrators, custodians and auditors appointed”, so “fully meet our admissibil-ity requirements”.

A spokesperson con-firmed that FPI would close down the mirror funds for the two Dublin-domiciled portfolios and switch investors’ money into a cash-only fund.

Skandia said it was awaiting further advice from Castlestone. In the meantime, it had suspend-ed new investments into its commodity mirror fund and investments into the agriculture fund through its UK platform, Skandia Investment Solutions.

Castlestone’s BVI funds are understood not to be winding down, and remain open to new subscriptions.

Hend’son Gartmore China Opps vs index*

-30

0

30

60

90

120

%

0

00

0

0

0

JunFeb ’11OctJunFeb ’10OctJunFeb ’09*Since launch. 1 Feb ’09 – 1 Aug ’11. Source: FE Analytics

MSCI Zhong Hua

Henderson GartmoreChina Opportunities

Julius Baer launches China A-share fund

BY GARY CORCORANAND BRUCE LOVE

Investec has expanded its Luxembourg-domiciled fixed income fund range with the launch of Africa High Income and Global Defensive Bond Sicavs for John Stopford.

Global Defensive Bond was unveiled on 26 July. Stopford and his team will short-sell bonds and cur-rencies to generate returns. They aim to achieve lower volatility than other global fixed income funds.

The fund’s asset allo-cation at launch included investment grade corporate bonds (25%) and emerg-ing market debt (19%), with a further 15% each in developed market infla-tion-linked and high yield corporate bonds.

The $30m fund is dol-lar-denominated and will target the Libor dollar over-night rate.

Africa High Income was launched on 16 Aug and is co-managed by Stopford and Andre Roux. The fund, which is based on a paper portfolio previously run by the two men, has an indic-ative yield of 9.4%.

As a multi-strategy fixed income fund, Investec says that it intends to offer investors the “full spec-trum” of fixed income markets available in Africa – from South African sov-ereign bonds and credit, to the “genuine frontier mar-kets” of African currencies.

KMG Capital ‘all weather’ UK property offering

Henderson closes down offshore China Opportunities

Julius Baer has become the first foreign private bank to launch a fund permitted to invest in the domestic equity and bond markets in China.

In December 2010, the Swiss private bank became the first to receive a QFII licence from the State Administration of Foreign Exchange in China, paving the way for its fund launch. Under the licence, Julius Baer was granted a $100m trading quota, which will be utilised with the launch of the Julius Baer China Fund.

Kenneth Ho, head of products Asia Pacific, said: “We are in a unique posi-tion as a private bank to provide our clients glo-bally with the opportunity to invest directly onshore in China, a market which is growing rapidly and offers so many interesting options for investors.”

Julius Baer said the fund will be invested based on the country’s macroeco-nomic outlook, and in themes and industries that will benefit from China’s 12th five-year plan, as well as bottom-up stock selec-tion based on quantitative and qualitative analysis.

KMG Capital has launched a fund for foreign investors seeking residential property market exposure in London and the UK’s southeast.

The London Actively Managed Property Fund, which will initially target investors based in east Asia, has been structured as an open-ended Luxembourg domiciled Sicav-SIF offer-ing monthly dealing, with targeted returns in excess

of 15% pa, net of fees.Three property adviso-

ry firms – Cignet Capital Management, Chesterton Humberts and SpicerHaart – will present invest-ment opportunities to the manager.

The fund, which can be geared up to 50%, will focus on buying properties from distressed or “moti-vated” vendors and selling them for a return within six

to nine months.Guy Rees, partner at

Cignet, said: “This is an ‘all weather proposition’ in that the managers will be buying properties at prices that are already below-market rate.”

The fund’s initial offer period runs until the end of October. It has a mini-mum investment of £10,000 ($16,300) and is designed for high net worth investors.

Stopford: team leader

Henderson Global Inves-tors will close its off-shore Gartmore China Opportunities Fund after a major shareholder gave notice that it will pull its assets out.

The withdrawal from the Luxembourg-domiciled version of the fund, man-aged by Charlie Awdry, will reduce it in size by half, tipping its assets under management below €5m ($7.2m).

The onshore Henderson China Opportunities Fund currently holds over £700m ($1.14bn) in assets under management.

Originally, it was expec-ted the remaining assets would be amalgamat-ed into Andrew Mattock and Caroline Maurer’s Henderson Horizon China Fund, but instead the board decided to close the fund with effect from 30 Sept. At that time, current subscrip-tions will be cancelled and investors will be able to switch to another fund in the company’s Sicav range.

“Recently a significant shareholder has given formal notification of their intention to redeem their holding,” the company said in a statement to investors.

“As a result, the net assets of the fund will fall below €5m, the level at which the

board of directors of the company are empowered to liquidate the fund.”

AMBEST

B++ Good

Financial Strength Rating


LIFE NEWS

17

Van Der Wielen to replace Sepe as Friends Life MD...BY WILL JACKSON

John Van Der Wielen is to succeed Rocco Sepe as managing director of Friends Life’s international business.

Sepe, who had been with the company for more than six years, announced his departure last month, and will leave Friends Life at the end of September. He has not said what his plans are.

Van Der Wielen is the former managing director of wealth at ANZ Banking Corporation in Sydney. He is expected to take up the London-based role before the end of 2011.

As managing direc-

Taiwan ruling ‘criminalises’ sale of offshore life policies

tor, Van Der Wielen will be responsible for all of Friends Life’s interna-tional businesses, includ-ing Friends Provident International, Financial Partners Business, Lombard and AmLife.

He will report to Andy Briggs, the CEO of Friends

Life, and will become a member of the firm’s group executive committee.

During his time at ANZ, Van Der Wielen was responsible for investment lending, financial planning and the firm’s private bank. Prior to this, he held sev-eral senior roles at HBOS.

“John is a high-calibre executive with the skills and experience to drive the international business forward,” said Briggs.

Sepe led the interna-tional division at Friends Life for over six years, in which time new business more than doubled. The firm also established opera-tions in Singapore, the UAE and Germany.

Manulife plans major drive in Hong Kong’s MPF market

Van Der Wielen: ‘high calibre’

BY SIMON DANAHER

Friends Provident Inter-national (FPI) has appoint-ed ex-Zurich business development manager Ian Black as its regional sales manager for southeast Asia.

Black replaces David Scammell, who will become a national account manager for FPI in the UK, after working in Singapore for the past three years.

He will report to Chris Gill, general manager for southeast Asia and also principal officer of the Singapore branch in which he will be based.

Both Black and Matthew White will be the key points of contact for expa-triate business partners in the region.

Prior to joining FPI, Black held the position of business development manager, having had a specific focus on invest-ments and trusts with Zurich Intermediary Group in the UK.

Before joining Zurich he had also worked for Berkeley Berry Birch, Prudential UK Intermediaries and Scottish Amicable.

Singapore is a key

BY HELEN BURGGRAF

Manulife, the Toronto-based insurance giant, says it plans to recruit “thou-sands more agents” in Hong Kong, as it looks to grow its business there and ramp up its share of the mandatory provident fund (MPF) market.

Michael Huddart, execu-tive vice-president and CEO of Manulife Hong Kong, said the company would also promote yuan prod-ucts, which are in demand among investors who expect them to benefit with the currency’s appreciation.

Huddart said the com-pany plans to increase its agency force in Hong Kong by about 10% each year, to 7,000 people by 2015, up from 4,600 agents at the end of June.

Manulife also intends to boost its sales from non-agency channels, including independent and bank dis-tribution, to 25% of total sales by the end of 2015, from its current level of 13%, and to raise its share of the MPF market to 20% from 17.6% by 2016.

The mandatory provi-dent fund system is Hong Kong’s compulsory retire-ment savings scheme. Manulife is the second-big-gest player in Hong Kong’s MPF market, behind HSBC, and has around 1.6 million clients in Hong Kong.

...as Black joins White at FPI Singaporemarket for Friends Life and its FPI operation. Last month, in its results state-ment for the six months ended 30 June, the compa-ny said the “strong growth” that its international busi-ness had posted during the period had largely been driven by the strong performance in the Asian markets.

In July, FPI’s fifth Investor Attitudes survey found confidence in Singapore had risen in the second quarter of 2011 to its highest level since the company began tracking investor attitudes in 2010.

Taiwan’s legislature has amended the country’s insurance regulations to attach criminal penalties to the sale of unapproved life insurance policies to Taiwanese residents by off-shore companies.

The amendment, which was described by Baker & McKenzie as “an important development for those who issue or market offshore policies to Taiwan resi-dents”, increases the maxi-mum punishment for viola-tors to up to three years imprisonment and a fine of TN$20m (approximately $700,000).

Previously, the maxi-mum punishment would have been an administra-tive fine of up to TN$4.5m, Baker & McKenzie said.

The amendment was described by people famil-iar with the matter as the latest in a series of tweaks by the Taiwanese regulator in the wake of the global financial crisis, designed to ensure that the problems some people have encoun-tered with faulty financial products do not reoccur.

They said large insur-ance companies based elsewhere, such as Prudential and MetLife, typically will not be affect-ed by the new regulations, as their products are likely to already be designed for the Taiwanese market and approved for sale.

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19SEPTEMBER 2011 [www.international-adviser.com] INTERNATIONAL ADVISER

profiles

Steven Levin was named to head Skandia International, the London and Southamp-ton-based offshore business of Old Mutual, in June. Here he discusses his plans for the company and the challenges facing the cross-border life industry.

You joined Skandia Inter-national in June. What are your plans for developing the business and its offering?My focus will be on broad-ening our customer propo-sition, to ensure it delivers what customers and advis-ers want and need.

I would like to see our offering stand out among the competition, while at the same time providing quality and value for money.

The businesses within Skandia International are renowned for their pas-sion, spirit of innovation and high level of technical expertise – it is paramount that this culture continues and is built upon.

What changes have you made so far? My initial focus has been on getting a deeper under-standing of the business, meeting with new people and asking a lot of questions.

I think I have already raised the bar on account-ability and delivery. I have also been advocating a much greater focus on being customer and advis-er centric.

What are the biggest chal-lenges currently facing Skandia International?As the business enters the next phase of growth, we need to focus on enhanc-ing our customer and adviser experiences, and continue to improve the value we offer to both.

Outstanding online functionality, automated processes, a flexible prod-uct set and speed to market are common challenges faced by everyone in this industry – and we are already making headwind on tackling these issues.

The other great chal-lenge we are faced with is responding to regulatory changes across all of our different markets in an effi-cient and timely manner. Having the right infrastruc-ture to be able to react to these changes quickly, and adapt the business to meet the multiple regulatory requirements, are key chal-lenges that I am also look-ing to address.

Where do you see the busi-ness five years from now? I see us offering a deeper and wider proposition to both expatriate and domes-tic clients within our exist-ing markets. I also believe we will have identified and successfully entered sever-al new markets.

My hope is that we will be recognised by both advisers and customers as delivering innovative solu-tions, making a real and

Steven Levin, the recently appointed CEO of Skandia International, explains how dogged determination and the skills to deliver on strategy have helped him meet the challenges of today’s business environment

ships with financial advis-ers, bank distributors and regulators in the markets where we operate. We are part of a FTSE 100-listed financial services group, Old Mutual, which has a 160-year plus history of investment products and services across all segments of the long-term savings market, across the globe.

What is your career background?I have been with Old Mutual for the last 13 years. Most of this time I have been involved with our South African business. I

positive difference to the industry, and contributing to a better offshore market.

How does Skandia Inter-national set itself apart from its competitors? Our people are already rec-ognised as highly passion-ate, offering the best sup-port and technical knowl-edge across offshore mar-kets. Our portfolio bond products are innovative and flexible, and we are a leader in the QROPS space. We have an award-winning sales team, the members of which continuously work on forging strong relation-

Formulating a good business strategy is the easy part. The difficult part and where many companies fall down, is executing the strategy. I would advise people to focus on delivery – a good idea is wasted with bad execution ”

“

Dedication gets results

MD PROFILE STEVEN LEVIN

20

MD PROFILE STEVEN LEVIN


Steven Levin was born in Cape Town, South Africa, and attended the city’s university, where he graduated with a bachelor of business science degree. He is a fellow of the Institute of Actuaries, a chartered financial analyst and a graduate of the general management programme at Harvard Business School. He joined Old Mutual, South Africa, in 1998.

BIOGRAPHY

started out as an invest-ment analyst covering the insurance sector, and later became a portfolio man-ager for specialist financial sector funds.

I then moved into the product and proposition area, rising through the ranks to lead the product function in our South African business where we are a waterfront player, covering all the needs of retail and group customers across income segments.

In 2010 I was appointed to a global role as product director for all of Old Mutual’s long-term savings businesses based in London. The focus here was on driving synergies, expanding our product proposition, and promot-ing innovation and cus-tomer service across all our businesses.

Who has been the biggest influence on your career?In my time as an invest-ment analyst, I had access to the top leaders of the financial services industry in South Africa and global-ly. I learned a huge amount through being exposed to these business leaders, and being able to ask questions and challenge them on both their strategy and execution.

What is the best piece of business advice you could personally offer to someone?Formulating a good busi-ness strategy is the easy part. The really difficult part, and where many companies fall down, is executing the strategy. I would advise people to focus on delivery – a good idea is wasted with bad execution.

What is the hardest business lesson you have learned?Nothing stands out as a

single lesson. But general-ly, I have learned that dogged determination is sometimes needed to achieve quality results. Obstacles and conflicts will always be in the way – the key is never to give up if you feel strongly about something and to stay focused on your end goal.

You are new to the cross-border life business. What do you see as the key challenges facing the industry?Firstly, the financial services sector has got to work hard to win back trust and improve the negative per-ception that some custom-ers now have of the industry.

The increasing regula-tion across all markets can lead to new costs and com-plexity. It is imperative to ensure that any changes, and the way the industry deals with them, do not adversely affect the offer-ing to the customer.

Finally, we must collec-tively support advisers to ensure that customers understand and value the advice channel. There is an increased amount of infor-mation and knowledge now available online. But in our market space, where products are highly sophis-ticated and the customers’ needs so individual, it is imperative clients seek investment advice from qualified professionals.

How do you think the offshore life industry has coped with the effects of the global eco-nomic meltdown? The industry was reasona-bly well insulated from the meltdown, with few off-shore providers suffering major financial losses as a direct result. The impact on the wider financial serv-ices sector and the percep-tion of trust has been

immense. But having a global footprint, rather than being limited to a spe-cific market or territory, has helped limit the expo-sure, as not all markets have felt the same impact of the global meltdown.

Where do you see the indus-try five years from now?I expect to see increasing convergence of regulations globally, with offshore pro-viders in most markets being brought more into the core regulatory framework.

Technology expecta-tions of advisers and cus-tomers will continue to increase, with the ease of use of products becoming a critical success factor. Providers are going to have to drive down costs significantly to ensure they can offer customers the value for money that they will expect.

How does the UK compare with international markets?The UK is a large and well established market. It ben-efits from a single regula-tory framework, sophisti-cated customer needs and well qualified advisers. Customers benefit from taxation and wealth preser-vation strategies which enable them to invest in a tax efficient way, and off-shore products play a key role in this.

The biggest issue cur-rently facing the UK market is the impact of regulation. The Retail Distribution Review [RDR] has the potential to improve customer outcomes, but how it is implemented remains key.

The primary benefits of the offshore markets are their scale and diversity. The constantly changing demographics offer many opportunities for customer-

Technology expectations of advisers and customers will continue to increase, with the ease of use of products becoming a critical success factor. Providers are going to have to drive down costs significantly to ensure they can offer customers the value for money that they will expect”

“focused and innovative product providers.

The biggest issues I would say are around the regulatory environments, specifically the conflicting requirements that exist across different markets. Political and economic sta-bility are factors that can also affect how and where we choose to operate.

Do you think the UK offshore bond market is saturated in terms of providers?The UK offshore market is significant and highly com-petitive, but I think there are still opportunities for providers that are creative and innovative.

There have been several new players entering or aggressively expanding in the UK market in recent years, attracted by the market size and strong market growth.

In the UK, the tax breaks are clear and quantifiable. The RDR will shift the focus from commission-based product sales towards fee-based ongoing wealth pres-ervation solutions, and we believe that offshore pro-viders with a proven exper-tise in taxation, trusts and wealth solutions will serve this market well.

How will you manage your key relationships to achieve success – for example with fund houses, parent compa-nies, regulators and advisers?I will ensure we formulate and implement a clear and well articulated strategy, setting out how we engage with all our partners. Our focus will be on the cus-tomer and how we can be the best in class.

Being open and trans-parent always works in any relationship, and there is a willingness in our business to evolve and improve.

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INTERMEDIARY PROFILE IPAC


BY HELEN BURGGRAF

It is the second week in August, and stock markets around the world have been in freefall, more or less, for days. At this point in the afternoon (Hong Kong time), most of the major bourses are down by several percent from where they were yesterday or the day before; photographs of miserable-looking traders staring glumly at their com-puter screens fill the news-papers, and comparisons are being made with the 2008 global financial crisis.

Not the best of times, you might have thought, to expect the chief executive of a major financial advi-sory firm to be willing to sit and answer the questions of a journalist who, weeks before, had arranged the interview. But China-born Rainbow Pan, CEO since 2009 of the Hong Kong advisory firm Ipac, gra-ciously dismisses any apol-ogies for disturbing her “at such a busy time”.

“We are advocates of lifestyle financial planning, and our clients have been well-educated upfront at our advice meetings about the possibilities of market downturns,” she explains. “So when the market is volatile like this, we are actually doing business as usual.”

That said, she adds: “Even though we do all the upfront educational work, we are [also] quite

proactive at times like this, getting on the phone and speaking to our clients, rather than waiting for them to approach us, and send-ing out market briefings, prepared by our head of research, to make sure cli-ents are well informed.”

l Australian rootsPan’s unruffled and confi-dent demeanour character-ises an approach to finan-cial advising that has stood Ipac in good stead since it was founded in 1983, by four men in their mid-20s in a single room in Sydney, with just one phone line.

One of the founders, Paul Clitheroe, who is still active in the Australian arm of the company – which separated from the Hong Kong operation earlier this year (see box on page

24) – went on to become a well-known Australian television presenter and financial expert; another, Arun Abey, is an invest-ment strategist and author of some note, whose books have included How Much Is Enough, on the relation-ship between wealth and happiness.

A third of the founders, Suvan de Soysa, stepped down last month as man-aging director of Axa-owned UK wealth manager Bluefin, a job he had been given in 2009 as part of a major restructuring aimed at transforming the firm into a fee-based, high-end business, not unlike Ipac.

l Shared visionAccording to Pan, Ipac’s success – which inspired Axa to buy it in 2002

for A$250m ($260m) – is rooted in a “vision” of how wealth advice should be given that the firm’s four founders shared (along with their phone line) back in the ’80s.

Since then, she adds, this vision has been taken on board and perfected by everyone who subse-quently worked for Ipac. It essentially involves giving clients the best possible advice and most suitable investment and insurance products for their particu-lar situation, rather than allowing the sale of prod-ucts to drive the advice process, as is often the case at many commission-based advisory firms in Hong Kong and elsewhere.

“We spend a lot of time with our clients to understand their lifestyle goals, what their current

Founded: 1983; fully separate from its original Australian parent since ’11

Funds under admin: Around $800m

No. of clients: c. 2,000

No. of employees: 92

No. of advisers: 32

Offices: Hong Kong, Singapore and Taiwan

Regulated in Hong Kong by: The Securities & Futures Commission; Professional Insurance Brokers Association; Mandatory Provident Fund Authority

Regulated in Singapore by: Monetary Authority of Singapore

Regulated in Taiwan by: Financial Supervisory Commission

FACT BOX

More than financial dim sumAxa-owned, Hong Kong-based Ipac – decoupled earlier this year from an Australian entity of the same name, for which it used to be the Asian operation – has found success with its distinctive and holistic brand of ‘lifestyle financial planning’

24

INTERMEDIARY PROFILE IPAC


manner, are others. New arrivals, mean-

while, may be given a six-page “Guide to set-tling in Hong Kong” that covers such topics as Hong Kong’s tax system, finding schools for one’s children, and even the matter of bringing one’s pets.

Until now, the types of people who could use a six-page guide to living in Hong Kong have been among Ipac’s chief rai-sons d’être; it was, after all, founded by Australians. But Pan says the firm is looking to expand its pres-ence in the local market, and is currently recruiting advisers for this purpose.

“I would say that more than 70% of our clients are Australia- and UK-centric, but I also think that once we have the right staff on board, this will change,” she says, adding that in Ipac’s Singapore office, locals already account for around half its clients.

There appears to be little appetite at Ipac to aggressively pursue clients who do not fit the Australia, UK and local market pro-file, although the firm does have Russians, Europeans and others on its books, according to Pan.

“We don’t want to spread ourselves too thin,” she explains.

We spend a lot of time with our clients to understand their lifestyle goals, what their current situation is; we use modelling tools to take them through all the different scenarios, including the possible downsides and disadvantages of each option, so they are fully aware of everything before they make any decisions

“

”

situation is; we use mod-elling tools to take them through all the different scenarios, including the possible downsides and disadvantages of each option, so they are fully aware of everything before they make any decisions. And for all of this, we charge a fee.”

The rates vary, but depending on the com-plexity of the client’s plan and the adviser’s seniority, average between $250 and $400 per hour, according to Pan.

l Women-friendlyAnother difference between Ipac and most of its rivals, in Hong Kong and else-where, is the proportion of women who work for it. This is something a recent visitor immediately sensed upon arriving at the com-pany’s understatedly luxu-rious offices, on the 51st floor of an office tower in the centre of Hong Kong’s main business district. Less obviously, it has also won the company a number of awards.

Currently, the ratio is around 50:50, according to Pan, who adds that this is the result of a “gender-neutral” approach to hiring rather than an actively pro-female strategy.

Nevertheless, she believes women “do have an advantage” in the advis-ing business, and not only because the growing num-bers of wealthy women often prefer to deal with an adviser of the same gender as themselves.

“Women tend to listen more and often are highly committed, and relate to clients particularly well,” she explains.

It is perhaps not surpris-ing that a firm with such a high proportion of women

executives and employees also specialises in catering for women clients. Since 2008, Ipac has run what it calls its Women & Money programme, which Pan says has been good for business as well as for the company’s visibility and public image.

There is less of a ‘glass ceiling’ for women in Hong Kong than in many other financial centres, Pan believes, which also means there are more women executives there with sizeable incomes who require specialist advice – a fact she says is reflect-ed in Ipac’s female client numbers.

“These ladies like to

have financial planners who are also women,” she observes. “Especially, for example, in such cases as [during] a divorce.”

l Specialist areasWomen are not the only specialist area Ipac caters for: helping parents to instil good financial habits at an early age is another popu-lar topic for Ipac’s advisers, particularly on the seminar circuit. Planning for the education of one’s chil-dren, or for one’s return to the UK in a tax-efficient

Axa-owned Ipac is marking its eighth year in Hong Kong by embarking on its first year unaffiliated with its original Australian parent.

Fee-for-advice-based ‘lifestyle financial planning’ is what Ipac seeks to deliver, via a combination of listening to clients and educating them.

Highly visible in Asian media, thanks to TV advertising and proactive marketing, Ipac holds regular educational seminars, both in its offices and for other companies and organisations; these also help to promote the brand.

KEY POINTS

Until last year, Ipac Australia was a wholly-owned subsidiary of Axa Asia Pacific Holdings, which had acquired it in 2002 for A$250m ($260m), when it was just an Australian financial advisory business with a good reputation and a TV investment show presenter on its board. Beginning in 2003, and flush with Axa’s resources behind it, Ipac Asia commenced its operations in Hong Kong, Singapore and Taiwan.

Then, in November last year, Axa and AMP, one of Australia’s largest asset managers and an Axa rival in the marketplace, agreed a A$14bn acquisition/divestiture deal – completed in April – whereby AMP would ultimately end up acquiring all of Axa Asia Pacific Holdings’s Australian and New Zealand businesses, including Ipac Australia, while Axa would get 100% of the merged entity’s Asian operations, consisting of the Ipac Asia businesses in Hong Kong, Singapore and Taiwan in addition to cash.

According to Ipac CEO Rainbow Pan, although Ipac is owned by Axa, its advisers are not allowed to promote Axa products more than those of other life companies, because of its status as an independent financial adviser and licenced insurance broker. Instead, she says, Ipac advisers are obliged to “search the market for the best possible deals for our customers which suit their [particular] needs and circumstances”.

IPAC SPLIT BY AXA DEAL WITH AMP

p gexalxecutives and employees lso specialises in catering

Rainbow Pan, CEO, Ipac

Some of Ipac’s educational materials for clients

Standing firm instormy conditions

Share Class Start Date NAV 1 Month 12 Months Since Launch

GBP Institutional 31/07/2005 168.627 0.73% 10.03% 68.63%Source: Managing Partners Limited 1st August 2011 (All figures net of all charges)

The GBP institutional share class is one of 22 shareclasses of the Traded Policies Fund, each of whichinvest in an asset class which has delivered smooth,predictable investment returns independent of interestrates, equities and commodities.

Not surprising then that interest in Traded Life Policy(“TLP”) funds has continued to grow despite recentmarket turbulence.

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Important Information This communication is issued by Managing Partners Capital Limited (“MPC”). It is directed only at persons who fall withinarticles 19 or 49 of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005, including professional advisers who are authorisedunder the Financial Services and Markets Act 2000, other persons who have professional experience in matters relating to investments andinstitutional investors. The Traded Policies Fund (the “Fund”) is not available for direct sale to members of the public and nothing in thiscommunication is directed at, nor should be relied upon by, retail investors. The Fund is a Cayman Islands-based unregulated collective investmentscheme which is not regulated, authorised or otherwise approved by the United Kingdom Financial Services Authority (“FSA”). The Fund is managedby Managing Partners Limited, which is registered as a company in the Cayman Islands and is registered with the Cayman Islands Monetary Authority(number 14505). This communication does not constitute an invitation or inducement to invest in the Fund. Nothing in this communicationconstitutes, or should be regarded as, investment advice. Prospective investors should note that investment in the Fund can involve significant risksand may result in the loss of all or part of the original investment. Past performance is not a reliable indicator of future results. Investment in theFund will only be allowed on the basis of the relevant offering documents. Prospective investors should read the relevant offering documentscarefully, including the risk factors, and take appropriate professional advice, including financial advice, before making any investment. Investment in the Fund may not be suitable for all investors. Investment in the Fund is currently available through 22 separate share classes*, which are subjectto differing rules as stated in the Fund’s Offering Document, including in relation to minimum investment amounts, redemption rights and charges.The performance shown in this communication relates only to the GBP institutional share class, investment in which may not be suitable for, oravailable to, all investors. Other share classes may perform less favourably. (22nd August 2011)

10.03%per annum

Making the right choice

40

80

60

100

120

140

160

180

FTSE 100S&P 500

DAX 500

TPF –GBP institutionalrebased

31/7/05 31/5/06 31/5/0831/5/07 31/5/09 31/5/10 31/5/11

Traded Policies Fund GBP institutional shareclass performance*

Source: Bloomberg 1st August 2011.*The GBP Institutional Share Class is one of 22 Share Classes. The attributes of eachShare Class can be found in the schedules of the Fund’s offering document.

27

COUNTRY PROFILE CYPRUS


BY WILL JACKSON

When an International Monetary Fund (IMF) team visited Cyprus in February, its assessment of the island was upbeat. A gradual eco-nomic recovery was under way, the group reported, with GDP growth likely to reach a respectable 1.5% to 2% in 2011, and favourable prospects for the following year. The team welcomed government initiatives to reduce its fiscal deficit, and found that conservative practices had left the Cypriot banking system in “sound overall condition”.

The report contained the caveat that its assess-ment was “subject to unu-sually high risks”, but few people could have pre-dicted how swiftly the island’s economic outlook would deteriorate.

l Turbulent timesOver the next six months, the strengthening of market concerns over Greek Government debt, ongoing fears over Cyprus’s fiscal position and an explosion at its main power station would conspire to trigger downgrades by the major credit rating agencies, and leave the country in turmoil.

The accident at the Vasilikos power plant poses the biggest problems for the island’s economy in the immediate term. A cache of confiscated

Iranian munitions being stored at a naval base exploded on 11 July, kill-ing 13 people and render-ing the plant inoperative. Despite plans announced by the Electricity Authority of Cyprus to implement a timetable for power cuts, financial services workers on the island report that the electricity supply remains unpredictable.

l Power cuts“It is highly inconvenient, because I can be sitting typing a report at 3pm and suddenly the electricity goes off – I’ve lost my com-puter, my air conditioning and my lights,” says Graham Donald, the managing director of FCP Insurance Consultants in Limassol. “And it might be off for seven hours, you just don’t know.” Some companies on the island, including the bank that owns FCP’s build-ing, are purchasing their own generators to minimise the disruption, he adds.

Martin Treanor, the sales director at Fraser Mackinlay Financial Advisors, a firm which has been in Cyprus for 16 years, lives some 15km away from Vasilikos and says he was “woken sharply at 5.55am” by the explosion. He is doubtful that a reliable service will be re-established soon. “The island has lost the power plant that produced over 50% of its electricity supply,” Treanor says. “I

think it could take up to a year before we get some semblance of normality back again.”

l Political protestsAnger over the incident sparked a political crisis, as demonstrators took to the streets of Nicosia. Their protests prompted the res-ignation of the country’s cabinet and the swearing in of a new ministerial team last month.

At the time of writing, Demetris Christofias, the country’s president, was resisting calls for his resig-nation. But his position looked precarious, follow-ing reports of a discussion between Christofias and

Bashar al-Assad in 2009, in which he assured the Syrian president that the confiscated munitions would be returned to Iran or Damascus.

The Vasilikos explosion also had a significant impact on external percep-tions of the island’s eco-nomic outlook, as Fitch, Moody’s and Standard & Poor’s (S&P) all downgrad-ed their sovereign credit ratings for Cyprus between 27 July and 10 Aug. Fitch revised down its GDP fore-casts for both 2011 and 2012 by 1.5 percentage points, while Moody’s pre-dicted zero economic growth this year – well below the level anticipated by the IMF in February.

Cyprus has endured a turbulent year of power outages, protests andCyprus has endured a turbulent year of power outages, protests andpolitical upheaval, yet it remains a popular retirement destination among expats and still holds the potential for future growth

Population (’11): 1,120,489

Labour force (’10): 407,700

GDP (’10): $23.17bn

GDP composition: 2.3% agriculture, 17.1% industry, 80.6% services

Entry to EU: ’04

Entry to eurozone: ’08

KEY FACTS

28

COUNTRY PROFILE CYPRUS


But while the accident served as a catalyst for the downgrades, longer-stand-ing problems were also at play. First were concerns over the country’s fiscal imbalances. According to S&P, Cyprus’s budgetary position moved from a sur-plus of 1% of GDP in 2008 to a deficit of 5.3% in 2010.

Government personnel expenditure accounts for about a quarter of its total spending, and although an austerity package aimed at restraining public sector wages was announced last month, there is scepticism that the programme can be successfully implemented.

l Public sector reformA key potential stumbling block in the way of reform is the country’s powerful trade union movement.

“Cyprus has an over-generous pension system which is just not sustainable – it is acknowledged by everybody on Cyprus, apart from perhaps the trade union body,” says Treanor.

“Politicians and media commentators agree that the public sector is a huge drain on the island’s econ-omy. It needs to be radi-cally overhauled to get Cyprus back on track.”

With the Government financially stretched, its ability to support the bank-ing system is also in doubt. The rise of Cyprus’s finan-cial services industry helped fuel strong GDP growth between 2000 and 2008 (see graph). However, the expansion also tied the island closer to the Greek economy. Moody’s esti-mates that 40% of the loans extended by the three larg-est domestic Cypriot banks were to customers based in Greece, while S&P sug-gests that these loans, in addition to holdings of

Greek sovereign and bank debt, equate to 160% of Cyprus’s GDP.

If Greece suffers further macroeconomic stresses, the implications for Cyprus’s banks and gov-ernment could be grave. In August, Stuart Thomson, the chief economist at Ignis Asset Management, fore-cast that the island would become the fourth patient of the European Financial Stability Fund within two months, and would follow Greece into default during the next year. Treanor says Fraser Mackinlay has advised its clients to hold cash “off-island”, owing to uncertainty over how the European Union’s banking compensation scheme would cope.

To add to the woes of its residents, property values on the island have plum-meted. Nigel Howarth, editor of the Cyprus Property News website, reported house purchases fell, year-on-year, for a 13th consecutive month in July.

“The market collapsed in 2009 and in 2010 there was a slight recovery,” Howarth explains.

“This year looks as if it is going to be worse than 2009, and that is driven by the whole economic situa-tion. Unemployment is high, so people are not

going to be buying houses in the current conditions.”

Howarth, who moved to Cyprus in 2002, also highlights a problem affect-ing British expat pension-ers who live on the island and elsewhere in the euro-zone – the strengthening of the euro against sterling.

l Expat destination According to FE Analytics, the euro has risen by about 30% against the pound over the past four years, reducing the purchasing power of eurozone-resi-dent pensioners with ster-ling retirement pots.

“When it was €1.40 [to the pound] we could live quite comfortably, but we have had to pull in our horns a little bit,” he adds. “We do not go out as often as we used to.”

But for all its economic, political and infrastructure difficulties, Cyprus remains a popular destination for Britons, particularly reti-rees, owing to its climate and English-speaking tradi-tion (although Greek is increasingly becoming the official language).

Last month Standard Life said that the island was the eighth most popular retire-ment destination for its British clients, based on where it sends annuities;

Mark Nowell, general manager, 3D Global

Many IFAs that are not MiFID regulated, or will not be able to continue after the Retail Distribution Review, may be interested in working with 3D. We can provide compliant advice and portfolio management for their clients at reduced costs”

“

Economic growth of Cyprus

-2

0

2

4

%

6

2

0

2

4

’10’09’08’07’06’05’04’03’02’01’00Source: IMF

after Spain, Australia, the US, France, Ireland, Canada and New Zealand.

Advisers on the island say business has proved resilient, with some even looking at growth opportu-nities. Mark Nowell is the general manager of 3D Global, an investment and insurance company regu-lated under both the Markets in Financial Instru-ments Directive (MiFID) and Insurance Mediation Directive. He says the firm is investing heavily in IT, as well as its middle and back office systems.

l Growth prospects3D Global operates in 53 countries and Nowell says it is planning “significant” growth, in Europe and beyond.

“We have expanded our MiFID licence to include safe custody and adminis-tration,” Nowell explains.

“Many IFAs that are not MiFID regulated, or will not be able to continue after the Retail Distribution Review, may be interested in working with 3D. We can provide compliant advice and portfolio man-agement for their clients at reduced costs.”

Fraser Mackinlay also views MiFID as key to its future expansion, and the company is awaiting regu-latory approval under the directive.

“We do not want to be restricted to insurance mediation,” says Treanor. “We want to be able to step outside that box and, where appropriate, recommend pure platform investments, Ucits investments and struc-tured products.”

The firm is likely to target other markets where there are “large clusters of retired British expats,” he adds.

Cyprus’s economy grew rapidly between 2000 and 2008, fuelled by expansion in its financial services industry. But the banking sector has increased the island’s exposure to Greek government and personal debt, leaving it vulnerable to external stresses.

Despite the economic problems on the island, financial advisers say they are planning to expand their client bases. Fraser Mackinlay and 3D Global are among the companies aiming to grow their advisory businesses under the MiFID regulations.

KEY POINTS

Choosing the right offshore provider for your UK clients is often a tricky business. It can be time consuming and difficult to work out what’s best. But we can help.

With Friends Provident International, not only do you benefit from over 30 years of offshore experience, but you also have the strength and backing of the Friends Life group.

Combine this with our ongoing commitment to delivering innovative and competitive products and services – as well as access to a range of platforms and our renowned technical team – and we can help you and your clients find the right solutions in this marketplace.

To find out more visit us at www.fpinternational.com/uk or call us on 0845 611 1000 and we’ll set you off in the right direction.

www.fpinternational.com/uk

Navigate a new route through the offshore marketplace

30

ADVERTORIAL OBSR


There is widespread recog-nition among the invest-ment industry’s business leaders and regulators alike that the prevailing fund and product distribu-tion mechanisms need to change, so as to better serve the needs of the end-consumer as well as to build their trust and gener-ate a longer-term savings culture.

In many cases these mechanisms have not served the end-consumer particularly well. Too often investors have experienced poor outcomes and high product churning, which has been partly a function of misaligned commercial interests.

l Regulatory mountainOne consequence of this is an impending avalanche of regulation that will require new strategic thinking on the part of the various stakeholders in the off-shore investment and sav-ings market, in addition to those intermediaries and wealth managers focused on the selling and provi-sion of savings and invest-ment plans.

While this regulatory avalanche is multi-faceted, it encompasses four key aims:

A sharper focus on the consumer More predictable outcomesGreater regulation around distribution mechanisms

Better-quality advice at the point of saleThe offshore investment

and savings market is char-acterised by an over-sup-ply of fund choices and, to some extent, a lack of clar-ity and of appropriate peer groups for comparison purposes – absolute return and multi-asset funds being cases in point.

l Suspect adviceThe greater complexity of a fund’s investment man-date, that has come about because of Ucits 3, com-pounds the issue and now makes the task of selecting the appropriate fund, prod-uct or asset allocation more difficult.

Furthermore, in recent years, individual investors have raised concerns over dubious financial advice and unforeseen market and fund correlations, as well as fundamental ques-tions over the quality of the due diligence being performed by their adviser.

This is leading to the continued growth of spe-cialist financial advisers, which should in turn lead to better consumer choice and ‘survival of the fittest’, which is clearly a good thing.

For many of the reasons outlined above, a number of offshore advisers are not waiting for regulation to catch up with them. The days of recommending single fund solutions on

The days of recommending single fund solutions on the assumption that ‘they should be OK’ are numbered. Doing it properly is not a luxury now, but more a necessity to meet tougher requirements and raise the standards of advice”

“

Meeting the challengethe assumption that ‘they should be OK’ are num-bered. Doing it properly is not a luxury now, but more a necessity to meet tougher requirements and raise the standards of advice.

l Fund researchA number of intermediaries and wealth managers are now looking at their busi-ness models and identify-ing where they can differ-entiate themselves or add value. For a lot of firms, that will not involve researching funds. While determining asset alloca-tion based on client needs is laborious and expensive, getting it wrong also increases the risk to a busi-ness significantly.

With greater strides being made by intermedi-aries to move away from past performance as the main basis for fund and product selection, reliance on external research and asset allocation to identify the most appropriate vehi-cle for their clients is now more commonplace.

Access to forward look-ing investment research can be an expensive item for intermediaries, yet there are now various ways to lever-age this. In the UK, a number of the leading life companies, IFAs and plat-forms have adapted their investment propositions to include fund shortlists, model portfolios, risk-based funds and independent asset allocation from OBSR,

a Morningstar company.We believe we are

entering a phase where offshore life companies are beginning to take the regu-latory trends far more seri-ously, and to consider how they also adapt – and in some cases modernise – their long-standing off-shore investment proposi-tions. Consequently, a number of offshore life companies have chosen to partner with OBSR in order to enhance their invest-ment proposition and meet the changing business and regulatory challenges.

l Offshore solutionsOBSR has an award-win-ning team of 25 dedicated investment analysts, and is widely respected for its independent views on fund managers and for-ward-looking fund recom-mendations. In particular, OBSR has significant expe-rience in supporting its cli-ents with the creation of risk-based model portfoli-os, fund shortlists and risk-based funds, managed with OBSR as sub-adviser.

In the offshore market, we believe the develop-ment of these solutions is a welcome and necessary step in the right direction. This will in turn go some way to supporting interme-diaries in their efforts to meet the regulatory drivers and help ensure the end-investor is offered robust and well-researched invest-ment products.

Increased regulation in the investment industry means that distribution methods need to change, but what solutions are available?

Benjamin Bird, international development director, OBSR


technicalTECHNICAL BRIEFING US NON-DOMS IN THE UK

income and gains arise.Coupled with the 2008

implementation of changes to the domiciliary rules in the UK, this creates an additional set of challenges for US citizens living and working in Britain. US citi-zens also have to under-stand that investments will need to be compliant for both tax jurisdictions.

The introduction of a ‘stay related’ threshold (res-ident for seven of nine tax years) for automatically attracting UK income tax residency is another major hurdle. The only way US citizens deemed domiciled for UK income tax purpos-es in this way can avoid having to include their worldwide income/gains in a UK tax return is by elect-ing to be treated on the remittance basis, and paying a £30,000 annual charge. This enables them to be taxed only on their UK income.

These rules are sched-uled to be amended in 2012, when the threshold changes to 12 out of 14 tax years, and the charge rises to £50,000 per year.

l Avoiding the trapsConfusingly, for the aver-age US citizen living in Britain, relatively simple and popular British savings schemes, such as ISA and Self Invested Personal Pension (Sipp) invest-ments, are, for them, actu-ally potential tax traps.

Many US citizens have

Act (FATCA), which takes effect in 2013, imposes stringent new due diligence and reporting requirements on all non-US financial institutions that happen to hold accounts on behalf of US citizens and residents.

As the US Government seeks to resolve its budget deficit, US citizens and res-idents – in addition to US tax-filers (including Green Card holders with perma-nent US resident status) – can expect, at the very least, significantly greater scrutiny of their non-US holdings.

Key issues facing US non-doms living in the UK include:

US worldwide income and gains tax – report-ing and filing;offshore structures;investment tax traps;information reporting obligations.

l Multiple jurisdictionsThe first thing to under-stand is that the US, unlike virtually all other major countries, taxes its citizens on a worldwide basis, irre-spective of where the

duced in 1970, the US Internal Revenue Service (IRS) began enforcing it with more vigour in the aftermath of the World Trade Center attack in 2001, and again a few years later, after the exist-ence of some tens of thou-sands of Swiss bank accounts held by US citi-zens was revealed in 2007.

The Secrecy Act states that every US citizen or resi-dent must file a report of Foreign Bank and Financial Accounts (FBAR), if he or she has a financial interest in, or signatory authority over, foreign accounts or investments worth $50,000 or more, in aggregate, during any one tax year.

The heat on US expats, and UK-resident non-doms, was turned up again in 2010, after President Obama signed into law a domestic jobs bill, known as the HIRE Act, which contained a little-noticed crackdown on offshore tax evasion that was seen by the Act’s sponsors as a means of helping to fund its job-creation initiatives.

This so-called Foreign Account Tax Compliance

Some 143,000 US citizens live and work in the UK – down from 182,000 in 2008, according to the Office for National Statistics. However, those US citizens who live in Britain but who are not domiciled there – US non-doms – are facing contin-ued draconian rules and regulations pertaining to their financial affairs. The result has been that many UK financial institutions are simply withdrawing from the business of look-ing after them.

For US high net worth citizens whose business or personal interests keep them in the UK, this has become a growing burden, and is forcing them to seek out appropriate solutions to mitigate the problems.

l Tax repercussions Legislative activity in the US during 2010 had some particularly onerous conse-quences for US citizens living and/or working abroad, in relation to their non-US financial assets. US resident Americans with offshore holdings were also affected.

America’s tax treatment of the non-US assets of its citizens has always been strict, but the US authorities have been imposing ever-greater reporting require-ments and penalties for non-disclosure.

Much of the regulation centres on the US Bank Secrecy Act. First intro-

Tony McLoughlin, member of the US family office group and director, London & Capital Asset Management

An increase in draconian regulations targeting the offshore finances of US citizens has led some UK banks to wash their hands of the sector. While this poses problems for high net worth Americans with business interests in the UK, some solutions exist

As the US Government seeks to resolve its budget deficit, US citizens and residents – in addition to US tax-filers (including Green Card holders with permanent US resident status) – can expect, at the very least, significantly greater scrutiny of their non-US holdings

“

”

Avoiding the cold shoulder

Benefits to investing through direct holdings and tax-deferred solutions, such as pensions and dual compliant insurance/annuity products:

Take advantage of UK tax relief and capital gains allowances efficiently while being tax-neutral from a US perspective.Access to PFIC investments.Deferral of tax and reduced information reporting.Estate tax or inheritance tax planning opportunities.

BENEFITS OF DIRECT HOLDINGS

32

TECHNICAL BRIEFING US NON-DOMS IN THE UK


been advised to take advantage of the ISA tax shelter to invest in unit trusts and Oeics, blissfully unaware that this is just about the only investment that will cause them to fall foul of the IRS Passive Foreign Investment Company (PFIC) rules. They will be taxed aggres-sively on all gains, and may be subject to penalties equal to 100% of value – where such fall under the unreported income penalties.

There are just as many problems with Sipps, which the IRS classifies as a for-eign trust – growth within a Sipp being fully taxable.

Many US citizens living in the UK have also been advised to move their pen-sion pots out of their com-pany scheme – yet another bad idea. This is because investments that were once sheltered from the IRS in a company scheme become fully taxable as a result.

The bottom line is that US citizens living in the UK have never needed special-ist tax and investment advice more.

l Recognising SippsIt is generally accepted that, while Sipps are not specifically referenced in the US-UK tax treaty, the language used should allow a US citizen to make a treaty claim or election on his or her tax filing to have the Sipp recognised as a qualifying retirement plan for US tax purposes. This will avoid the annual change in value or invest-ment growth of the Sipp being subject to US income tax.

Furthermore, as the elec-tion is made on an annual basis, the US citizen can opt in or opt out, in deciding on making the election.

The primary reason for this relates to the US tax treat-ment of the UK tax relief applicable to pension con-tributions. In brief, the US treats the tax relief as taxable.

However, if the US non-dom has accumulated suf-ficient excess Foreign Tax Credits, these can be used to soak-up any potential US tax on the tax relief.

Another point to bear in mind is that US citizens need to consider the UK tax treatment of non-UK based investments if they become deemed ordinarily resident for UK tax pur-poses – once the ‘seven of nine’ tax years threshold is passed – and are required to report worldwide income and gains if they

Another point to bear in mind is that US citizens need to consider the UK tax treatment of non-UK based investments if they become deemed ordinarily resident for UK tax purposes

“

”

FBAR filings by calendar year

0

100,000

200,000

300,000

400,000

500,000

600,000

,

,

,

,

,

,

’10’09’08’07’06’05Source: FinCEN

US citizens living and/or working abroad are under growing scrutiny in relation to their non-US financial assets.

Popular British savings schemes such as the ISA can be tax traps for US citizens and fall under the IRS PFIC rules.

Advisers with US non-dom clients should have a clear understanding of the UK/US tax treatments of the investment solutions they use.

KEY POINTS

FROM A US PERSPECTIVE: Are any investments PFICs for US purposes?Ordinary income tax rates plus compounding interest penalty applies.Tax treatment of UK property disposals subject to tax on the gains in excess of $250,000 – no benefit of UK tax-free gains on sale of personal residence.Inequitable tax treatment of property for income/estate purposes where married couples are not both US citizens.

FROM A UK PERSPECTIVE:Are any investments subject to the UK accrued income or offshore income gain rules? Potentially taxed up to 50% on realised gains.Are any of the investments hybrid entities that could cause dual taxation if remitted to the UK – for example, US funds structured as limited liability companies rather than partnerships?Does any ‘clean capital’ exist, and is it being preserved to allow for tax-free remittances into the UK?

CONSIDERATIONS FOR NON-DOMS

do not make the remit-tance election. Specifically, while domestic US mutual funds realised gains are taxed at 15%, the UK would tax these gains under the offshore income gains rules.

l FATCA pariahsUS citizens may not have been every UK wealth manager’s dream before FATCA came along, but this act has ensured that they are now the pariahs of the international invest-ment community.

Nevertheless, an educat-ed adviser may still find ways of organising invest-ment portfolios for UK resi-dent non-dom US citizens that are compliant, both

from a UK and US tax perspective.

l Wrapper optionsUS-compliant insurance wrappers, for example, are one possible solution.

Such policies enable individual US non-doms to benefit from tax deferral, as compliant US insurance wrappers are not subject to tax on the annual growth in value.

In addition to their tax efficiency, a major attrac-tion of these wrappers, of course, is that the invest-ment portfolio they contain has access to a wide range of investments, including international funds.

What is more, under the current rules such policies would not be subject to new FBAR ‘look-through’ rules, applicable to invest-ment or brokerage accounts requiring detailed annual reporting by the US non-dom.

Of course, there are a number of considerations to bear in mind. Whichever investment is selected, it needs to be risk managed, liquid and tax compliant for the non-dom. Experienced investment advisers with such non-dom clients should investi-gate whether all tax plan-ning opportunities have been explored. In addition to insurance vehicles, these include deferred variable annuities, college plans and pension plans.

Most importantly, invest-ment solutions should not be looked at in isolation. From a tax compliance per-spective, the investment adviser should have a clear understanding of the UK/US tax treatment of each option, as well as its ability to produce the necessary UK/US tax information where required.

Prestige Equity OptionsGlobal / Equity Market Neutral

Fundamental market based experience is more important than ever....

So is protecting the downside when markets fall.

F U N D SInstitutional Marketing & Administration Services Prestige Asset Management Limited33 St. James’s Square, London, SW1Y 4JS, United KingdomT: +44 (0) 203 178 4055F: +44 (0) 203 004 9690E: [email protected]

www.prestigefunds.comAuthorised and regulated by the Financial Services Authority (FSA)Member of the Alternative Investment Management Association (AIMA)Member of the Chartered Institute for Securities & Investment (CISI)

34

FUND SELECTOR GLOBAL PROPERTY SHARES


“To achieve REIT status, property companies typically have to commit to paying out a minimum portion of their earnings (rent) as a dividend, and in return they receive tax or operational concessions from the government”

Top ranked funds Three-year performance

FUND SELECTOR’S COMMENT ALEXANDER PRINEAS, SENIOR INVESTMENT RESEARCH ANALYST, OBSR

The universe of listed property companies has seen significant growth and increasing diversifica-tion in recent years.

The benefits of investing in property via a listed structure include: liquidity; constant market prices, instead of the usual month-ly market estimates associ-ated with direct property funds; transparency from stockmarket regulations; and professional manage-ment teams who operate in a highly competitive envi-ronment, and are therefore incentivised to work the assets as hard as possible for the benefit of investors.

The downsides to the listed structure include price volatility and, in some cases, development and leverage risk. The risks are particularly notable for

listed property companies that are highly leveraged – this became evident to investors during the credit

crunch, with the collapse of several high profile listed property companies.

A decade ago, the global listed property market was largely focused on established markets, such as the US and Australia, and was concen-trated among a few large companies.

In recent years, howev-er, continental Europe and the UK have seen growth in the number of Real Estate Investment Trusts (REITs) and listed property companies, as many coun-tries introduced or modi-fied their REITs legislation.

Many trophy property assets in the UK and Europe were historically held privately, but REIT legislation provided an incentive for some of these to become publicly listed.

To achieve REIT status, property companies typi-cally have to commit to paying out a minimum portion of their earnings (rent) as a dividend, and in return they receive tax or operational concessions from the government.

Much of the progress in REIT legislation across Europe was achieved just

Top 3-year performers vs index

-60

-40

-20%

0

20

0

0

0

0

0

00

AugFeb ’11AugFeb ’10AugFeb ’09Aug ’08Source: Morningstar

MSCI ACWI/Real Estate $

GIF OS Property - Indirect Global

EII Property World Invest

iShares FTSE EPRA/NAREIT Dev PrptYld

EII Global Property A €

Top funds – risk and return

Standard deviation (%)

Retu

rn (%

)

8

To 28 Jul ’11. Bid to bid, gross inc, no cap. Source: Morningstar

8.5 9 9.5 10-5

0

5

10

15

Sector average

Sarasin Sustnbl Eqty - Rel Est Glb B

Perennial Global Property Secs B

EII Property World Invest (Ex-US) Inc

Robeco Property Equities D €

Manulife GF Global Property AADelta Lloyd L Global Property B


MS INVF Global Property A

Henderson Horizon Glbl Prpty Eqs A2

EII Global Property A €

Top 10 property shares funds by 3-year performance 3-year 3-year 3-year 3-year 3-year 3-year M’star Fund Dom % chg Alpha Beta R² Sharpe volatility Ratings size ($m)

EII Global Property A 11.7 0.58 1.02 0.98 0.00 9.1 N/S Ireland

iShares FTSE EPRA/NAREIT Dev Prpt Yld 11.44 0.58 1.04 0.96 0.00 9.37 1,250.83 Ireland

EII Property World Invest (ex US) Inc 11.32 0.58 0.95 0.9 0.01 8.82 148.41 Ireland

Perennial Global Property Secs B 10.86 0.56 0.94 0.89 0.00 8.82 100.51 Ireland

Sarasin Sustnbl Eqty – Rel Est Glb B 8.23 0.54 0.93 0.86 0.00 8.8 50.55 Lux

Henderson Horizon Glbl Prpty Eqs A2 8.02 0.58 1.05 0.95 0.00 9.53 867.95 Lux

MS INVF Global Property A 8.02 0.56 1.05 0.97 0.00 9.4 493.1 Lux

Robeco Property Equities D 7.37 0.47 0.98 0.95 -0.01 8.84 578.37 Lux

Manulife GF Global Property AA 7.25 0.49 1 0.96 -0.01 8.99 21.05 Lux

Delta Lloyd L Global Property B 7.01 0.48 1.03 0.97 -0.01 9.22 422.08 Lux28 Jul ’08 – 28 Jul ’11. Bid to bid, $, gross income, no cap. Source: Morningstar

FIRST STATE GLOBAL PROPERTY SECURITIESThe fund is managed by experienced portfolio manager Andrew Nicholas. He joined First State in 2006, having previously been with UBS. Several other UBS staff moved to First State around the same time, so the core of this team has worked together for many years.

The team has undertaken further hiring since and has offices in London, New York, Hong Kong, Singapore and Sydney, providing the ability to thoroughly cover the global property markets. The team is able to source research from other investment teams at First State, as well as global property research group Colliers.

Although the fund does not yet have a five-year track record, three-year performance is ahead of the UBS and EPRA/NAREIT indices and ahead of the Morningstar Indirect Property category average. While it may hold some development risk, it is benchmarked against the UBS Global Real Estate Investors Index, which focuses on property ownership. The fund holds an OBSR A rating.

FUNDS TO WATCH

Global property sharesWe analyse the best, the newest and the biggest global property shares funds. Commentary from Alexander Prineas, senior investment research analyst at OBSR

35



Top ranked funds Newcomers

prior to the onset of the credit crunch in 2008. The ensuing market conditions saw property assets fall in value, but property assets held in publicly listed form were punished even more harshly.

While some listed prop-erty companies had prob-lems with excessive lever-age, arguably it was the liquidity available in the listed assets that contribut-ed to their underperform-ance rather than any prob-lem with the REIT or listed structure.

Following the global recovery, listed property assets around the world have generally recovered strongly, contributing to an improvement in sentiment towards the sector.

The crisis highlighted that listed property assets may be more volatile owing to their highly liquid and tradable structure, and in some cases leverage.

However it is increasingly recognised that in the long run listed property assets should broadly track prop-erty prices, but with the additional advantages asso-ciated with the listed structure.

The US and Australian markets have had REIT legislation and large, well-established listed property markets for many years. Nevertheless we continue to see increasing diversifi-cation within those mar-kets, in the form of new and varied types of listed property assets being available.

Traditional sectors such as offices, hotels, retail and industrial property have been accessible for many years. But investors have new sectors available, allowing diversification of income streams and more specialised bets within the sector.

Digital Realty Trust pro-

vides computer data centre facilities and infrastructure, and earns its revenue by renting out these highly specialised facilities.

Crown Castle and American Tower are US-listed property compa-nies which own telecom-munications towers and property.

Both companies have been working in recent years towards achieving REIT conversion status. Public Storage rents out storage space and also pro-vides ancillary services such as removal trucks.

Asia has also seen growth in REIT and listed property assets. While

Top newcomers vs index

-5

0

5

10

15%

20

25

30

-55

55

0

5

00

5

0

5

0

AugMayFeb ’11NovAug ’10Source: Morningstar



Marriott IF International RealEstate Acc

GW Fidelity GlobalProperty Acc

Catalyst Global Real Estate

28 Jul ’10 – 28 Jul ’11. Bid to bid, $, gross income, no cap. Source: Morningstar

Top 10 property shares funds with less than a 3-year but at least a 1-year record1-year 1-year 1-year 1-year 1-year 1-year Launch Fund Dom % chg Alpha Beta R² Sharpe volatility date size ($m)

Catalyst Global Real Estate 25.04 0.76 1.3 0.86 0.22 1.93 25 Sep ’08 111.52 Guernsey

GW Fidelity Global Property Acc 22.93 -0.2 1.45 0.92 0.16 1.95 2 Jul ’10 N/S Guernsey

Marriott IF International Real Estate Acc 21.74 0.57 1.31 0.79 0.21 1.88 1 Oct ’08 23.05 Ireland

T. Rowe Price Glbl Rel Est Sec A 20.42 0.42 1.35 0.93 0.2 1.87 27 Oct ’08 5.53 Lux

E&G FONDS Global REITs Professional Dis 20.15 0.54 1.44 0.85 0.2 1.76 24 Jun ’09 74.64 Lux

Carneige Global Property A 19.04 -0.18 1.58 0.75 0.14 2.2 21 Jun ’10 20.66 Lux

Eurobank EFG (LF) FoF-Real Estate 18.01 0.35 1.2 0.87 0.16 2.01 22 Jun ’10 N/S Lux

Russell OW Glb Opp Prop A 16.79 0 1.4 0.91 0.16 1.8 29 Jul ’09 47.01 Ireland

ALNUA Global Real Estate Fund ($) B 16.38 N/A N/A N/A 0.12 1.7 1 Apr ’10 N/S L’stein

STANLIB OUT Global Property 15.22 0.25 1.03 0.79 0.17 1.6 4 Jan ’10 0.92 Jersey

Top newcomers – 1-year risk and return


Retu

rn (%

)

1.5


1.75 2 2.25 2.510

15

20

25

30

Sector average

STANLIB OUT Global Property

ALNUA Global Real Estate Fund ($) B

E&G FONDS Global REITs Professional Dis

Russell OW Glb Opp Prop A

T. Rowe Price Glbl Rel Est Sec A

Marriott IF International RealEstate Acc

Catalyst Global Real Estate

GW Fidelity Global Property Acc

Eurobank EFG (LF) FoF-Real Estate

Carneige Global Property A

“The US and Australian markets have had REIT legislation and large, well-established listed property markets for many years. Nevertheless we continue to see increasing diversification within those markets, in the form of new and varied types of listed property assets being available”

HENDERSON HORIZON GLOBAL PROPERTY EQUITIESPatrick Sumner is the fund manager here, and he heads Henderson’s global property team, which has offices in London and Singapore. The team relies on an external company, Transwestern Securities Management, for the analysis and management of the North American property market and the US part of the portfolio.

Asset allocation is determined by the portfolio manager in conjunction with the regional heads. The team also uses macroeconomic and property market research from Henderson’s economics/strategy team and its direct property team. The approach within each region is tailored to suit local conditions, based on the belief that market characteristics can vary widely around the world.

While macroeconomic and top-down research is an important input, the team expects to generate most of its alpha from stock selection by identifying undervalued securities. It therefore avoids taking unduly large sector positions relative to the EPRA/NAREIT benchmark. The fund holds an OBSR A rating, and is the only Sicav property fund rated by OBSR.

FUNDS TO WATCH

36



Among retail property funds, a wide variety of approaches are available to investors. One of the key differences is the invest-ment universe defined by the fund manager. This can have a significant impact on returns.

Some global property funds allow investment into companies that are not REITs and are not strictly property companies.

An example would be a fund that invests in compa-nies such as Sainsbury’s or Tesco, which own signifi-cant property assets and land banks (supermarkets) that should be reflected in their value, but which are in the business of retail rather than property rentals.

In many cases these investments are made on the basis that, say Tesco, could sell its supermarkets and rent the premises from the new owner – known as a sale and lease-back or

Japan has had a well estab-lished market for many years (known as J-REITs), there are many investable companies in Hong Kong, Singapore, China and other countries throughout the region.

The increasing recogni-tion of property as a sepa-rate asset class, and the increasing number of listed property companies has, in turn, prompted the launch of a range of global prop-erty funds in recent years.

The property market is increasingly global, but local markets retain peculi-arities, meaning that large players with established global investment teams have an advantage.

In fact many of the larg-est and best known funds are from well established property players who have had global teams in place for many years – the likes of Schroders, Morgan Stanley, Fidelity, ING and Henderson.

‘op-co prop-co’ situation.The Fidelity Global

Property Fund historically had a more equity-like approach than many of its peers. This may have been a factor in the fund’s underperformance during the credit crunch, and its subsequent strong rebound as equity markets recov-

ered in 2009. This is a per-fectly valid approach as long as investors are aware of these style differences.

At the other end of the spectrum are funds such as First State Global Property Securities, which typically avoids companies that are not directly associated with property.

In the middle ground sits the Schroders Global Property Securities Fund. It too prefers to avoid non-property related equities and minimises its develop-ment exposure. However it is benchmarked against the FTSE EPRA/NAREIT Global Property Index, which has a broader definition than the UBS index.

The focus remains on property ownership but the index allows a greater exposure to property development activities.

Top ranked funds Assets under management

Top funds by AUM vs index

-60

-40

-20%

0

20

0

60

20

00

40

AugFeb ’11AugFeb ’10AugFeb ’09Aug ’08Source: Morningstar




Henderson Horizon Glbl Prpty Eqs


Top funds – 3-year risk and return


Retu

rn (%

)

8


8.5 9 9.5 10-2

0

2

4

6

8

10

12

ING (L) Invest Glbl Real Estate P


Schroder ISF Glbl Prop Sec A

Cohen & Steers Glbl Real Estate Sec I

MSMM Glb Real Est Sec A

Sector average

Delta Lloyd L Global Property B

FF - Global Property A $


MS INVF Global Property A

Henderson Horizon Glbl Prpty Eqs A2

28 Jul ’08 – 28 Jul ’11. Bid to bid, $, gross income, no cap. Source: Morningstar

Top 10 property shares funds by assets under management3-year 3-year 3-year 3-year 3-year 3-year M’star Fund Dom % chg Alpha Beta R² Sharpe volatility Ratings size ($m)

iShares FTSE EPRA/NAREIT Dev Prpt Yld 11.44 0.58 1.04 0.96 0 9.37 1,250.83 Ireland

Henderson Horizon Glbl Prpty Eqs A2 8.02 0.58 1.05 0.95 0 9.53 867.95 Lux

Robeco Property Equities D 7.37 0.47 0.98 0.95 -0.01 8.84 578.37 Lux

Schroder ISF Glbl Prop Sec A 5.83 0.43 1 0.97 -0.01 8.91 541.65 Lux

MSMM Glb Real Est Sec A -0.31 0.24 1.01 0.98 -0.03 9.03 495.62 Ireland

MS INVF Global Property A 8.02 0.56 1.05 0.97 0 9.4 493.1 Lux

Delta Lloyd L Global Property B 7.01 0.48 1.03 0.97 -0.01 9.22 422.08 Lux

Cohen & Steers Glbl Real Estate Sec I 6.66 0.41 1 0.97 -0.01 8.94 347.86 Lux

FF - Global Property A $ 3.08 0.37 1.03 0.97 -0.02 9.23 219.69 Lux

ING (L) Invest Glbl Real Estate P 2.86 0.3 0.95 0.97 -0.02 8.47 190.32 Lux

“The increasing recognition of property as a separate asset class, and the increasing number of listed property companies has, in turn, prompted the launch of a range of global property funds in recent years”

SCHRODER GLOBAL PROPERTY SECURITIESSchroders contributes some macroeconomic research to this effort, but has appointed European Investors (EII) to manage the fund. Jim Rehlaender, EII’s head of global property securities, has over two decades of experience in the property industry and is supported by a team of regional portfolio managers and analysts. This underlines the global nature of the team, whose size enables it to cover a large portion of the universe of global property stocks.

The investment approach combines top-down and bottom-up analysis, incorporating qualitative and quantitative factors. The team at EII looks for companies that trade at a discount to the underlying real estate value, but also emphasises the quality and execution of management as a key consideration before investing. It will take both strategic and tactical bets, with strategic holdings typically being higher quality property portfolios that are well-managed, while tactical positions involve more severe mispricing of securities.

The team is willing to take on development risk but will apply an additional risk premium to companies with a significant development exposure. The Schroders fund holds an OBSR A rating.

FUNDS TO WATCH

This financial promotion is published by VAM Funds (26 Avenue de la Liberté L-1930 Luxembourg). For professional investors only. The funds are authorised by the Financial Services Authority (UK). This is not an offer to purchase shares, which 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.

For further information on VAM Funds please contact VAM Marketing on + 230 465 6860 or email us at [email protected]

The VAM Global Government Bond Fund

Some people think of investments the way they think of ice cream; they are seduced by the attractive new flavours that promise so much. At VAM Funds, however, we know that most often it is the classics that really endure.

The VAM Global Government Bond Fund is such a classic: an ideal conservative investment. Other investments come and go, but government bonds deliver good, safe, solid returns decade after decade.

In the hands of a VAM Funds investment manager, you can be sure your investment will enjoy all the attention and expertise required, and the performance you can count on. If this is to your taste, call us on +230 465 6860.

Visit www.vam-funds.com today.

FORGET THE FLAVOUR OF THE MONTH. WE HAVE

THE FLAVOUR OF THE DECADE!

l There are a limited number of places – attendance is through registration onlyl The workshop will take place in the morning ending with lunch

Offshore Bonds are set to become an even more important part of the financial planning market in the post-RDR world.

International Adviser has gathered together some of the UK's leading providers of these flexible tax and investment products to demonstrate their many uses for both UK and expat clients.

To register your complimentary place, please go to http://events.lastwordmedia.com/For further information please contact [email protected] or by phone on +44 (0)20 7065 7564

ManchesterTuesday 11th October 2011, Midland Hotel

Offshore Bond Workshop2011

Each seminar will focus on a specific area or areas of financial planning using offshore bonds. Among the broad subjects that will be covered on the day will be retirement planning, the role of offshore bonds in wealth and investment management and cross-border tax planning.

CPD COMPLIANT

Lunch sponsored by

In association with

QUALITY FUNDS


The IA Quality FundsThe IA Quality FundsThe IA Quality Funds is a list of the blue-chip funds of the offshore universe: it contains only well-estab-lished, high-performance funds in the most popular categories.

Methodology Starting from the Morningstar offshore database of 8,600 funds, only those with a qualita-tive rating from independ-ent rating agencies

Standard & Poor’s or OBSR Research qualify. Funds in each category are ranked according to their Morning-star Rating, which is calcu-lated based on a fund’s total returns, adjusted for risk and sales charges, rel-ative to other funds in its Morningstar category.

Sectors The 13 bespoke category divisions are the result of combining vari-

ous Morningstar GIF sec-tors, so the funds listed are firstly a reflection of which styles have done well, sec-ondly of which managers have been successful.

Three-year vol This meas-urement is an annualised volatility of the fund over three years.

UK reg The ‘UK reg’ flag is based on Morningstar’s

list of UK registered for sale funds.

Offshore bond platforms Many of the Quality Funds that appear in the follow-ing pages will be availble on life company offshore bond platforms, as mirror funds or direct fund links. Where they are not, it will be possible to request they are added to product fund ranges.

Data and ratings supplied by

including ratings by

Data source: © 2011 Morningstar, Inc. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance is no guarantee of future results. Performances have been calculated on a bid-to-bid, $, gross income basis. Volatility is expressed as standard deviation of 36 monthly total returns (bid-to-bid). The Morningstar Rating is calculated based on a fund’s total returns, adjusted for risk and sales charges, relative to other funds in its Morningstar Category. The Overall Morningstar Rating published here is based on a weighted average of a fund’s three-, five- and ten-year ratings, depending on the length of its record.

Pan-European markets equityOffshore/int’l funds 3-year 3-year Min init Curr Manager name Domicile Morningstar S&P Fd OBSR Morningstar UK

% chg volatility inv ($) Rating Rating Rating Qual Rating reg?

Standard Life Sicav Euro Smaller Co’s D 32.24 31.1 1.4m Standard Life Investments Luxembourg AA Y

Allianz RCM Europe Eq Growth AT 31.38 28.86 7,094 Allianz Global Investors Lux Luxembourg Standard Y

MainFirst Top European Ideas A 26.12 32.59 3,547 MainFirst Sicav Luxembourg Luxembourg A Superior Y

BL-Equities Europe B 16.35 25.05 3,547 Banque de Luxembourg Luxembourg Superior

Invesco Pan European Structured Eq A 13.3 24.39 2,128 Invesco Global Asset Mgt Luxembourg AA Superior Y

Jupiter JGF European Growth L 12.53 29.3 1,419 Jupiter Asset Management Luxembourg AA Y

BGF European Focus A2 11.4 30.22 N/S Blackrock (Luxembourg) Luxembourg AAA AA Superior Y

Uni-Global Min Variance Europe B1 9.85 21.36 1.00 Unigestion Luxembourg Superior

MFS Meridian Europ Value A1 9.76 25.22 5,675 MFS Meridian Funds Luxembourg AA Y

Robeco European Conservative Eqs B 2.32 24.69 0 Robeco Luxembourg Luxembourg A Standard Y

Jupiter JGF European Opportunities L 1.5 27.36 1,419 Jupiter Asset Management Luxembourg AA Superior Y

MFS Meridian Europ Equity A1 -0.46 27.96 5,675 MFS Meridian Funds Luxembourg A AA Y

Henderson Horizon Pan Eurp Eq A2 -0.67 26 3,547 Henderson Management Luxembourg AA AA Y

JOHCM European Select Val 39.05 27.81 1,419 JO Hambro Capital Mgt Ireland A Y

Franklin European Growth A Acc 22.33 24.61 7,094 Franklin Templeton Invest Fds Luxembourg A A Y

Threadneedle (Lux) Pan European Eqs AE 18.94 24.64 3,547 Threadneedle Investment Svcs Luxembourg A Y

Comgest Europe 17.15 20.4 26,297 CHF Comgest Luxembourg Elite Y

Comgest Growth Europe Acc 15.78 20.42 14,188 Comgest Asset Mgt Int’l Ireland AA Elite Y

BSF European Opps Ext Strategies A2 14.6 29.38 N/S Blackrock (Luxembourg) Luxembourg AA Y

Danske Invest Europe Small Cap A 14.27 35.22 0 Danske Invest Luxembourg AA

Nordea-1 European Value BP 12.52 27.27 71 Nordea Investment Funds Luxembourg AA A Y

Allianz RCM Europe Small Cap Eq AT 12.33 32.01 1.00 Allianz Global Investors Lux Luxembourg Elite

Allianz RCM Small Cap Europa A 12.29 32.2 1.00 Allianz Global Investors Lux Luxembourg Elite

Montanaro European Smaller Comp £ 11.93 29.18 1,631 £ Montanaro Asset Mgt Ireland AAA AA Superior Y

Franklin European Sm-Md Cap Gr A Acc 11.53 26.62 7,094 Franklin Templeton Inv Fds Luxembourg A A Superior Y

EDM Intl Strategy 9.36 22.89 0 EDM Fund Management Luxembourg Standard

Skandia European Best Ideas A1 9.11 31.22 1,419 Skandia Fund Mgt (Ireland) Ireland A Y

BGF European Growth A2 8.02 27.95 N/S Blackrock (Luxembourg) Luxembourg AA A Superior Y

BNPP L1 Equity Europe Growth C C 4.36 27.1 N/S BNP Paribas Inv Partners Lux Luxembourg Superior Y

Invesco Pan European Equity A Acc 4.29 29.7 2,128 Invesco Global Asset Mgt Luxembourg AA Y

Danske Invest Europe Focus A 3.45 31.44 1.00 Danske Invest Luxembourg AA

Schroder ISF European Special Sit A 3.44 27.59 1,419 Schroder Invest Mgmt Lux Luxembourg AA Superior Y

BGF European A2 3.21 29.37 N/S Blackrock (Luxembourg) Luxembourg AA AA Superior Y

Alken European Opportunities R 2.1 30.69 0 Alken Asset Management Luxembourg Superior Y

QUALITY FUNDS


Pan-European markets equity (cont)Offshore/int’l funds 3-year 3-year Min init Curr Manager name Domicile Morningstar S&P Fd OBSR Morningstar UK


BNPP L1 Equity Best Sel Europe C C 1.54 26.8 1.00 BNP Paribas Invest Prtnrs Lux Luxembourg AA Superior Y

Invesco European Growth Equity A 1.47 26.85 N/S Invesco Global Asset Mgt Luxembourg AA Y

Digital Stars Europe 1.22 30.18 N/S Digital Funds Luxembourg Standard Y

Ignis Intl Argo Pan Eur Alpha I Acc -1.03 26.27 4.2m Ignis Asset Management Ireland A A Y

CapitalAtWork European Eq at Work C -1.55 28.9 0 Capital At Work Luxembourg AA

Pioneer Fds Core European Eq E ND -2.21 26.06 1,419 Pioneer Asset Management Luxembourg Standard

MS INVF European Equity Alpha A -2.33 26.88 0 Morgan Stanley Invest Funds Luxembourg Superior Y

DNCA Invest Centifolia Europe B -3.18 25.54 0 DNCA Finance Luxembourg Luxembourg Standard

Danske Invest Europe High Dividend A -4.66 29.52 1.00 Danske Invest Luxembourg AA

Cazenove Pan Europe B Euro -5.36 26.52 N/S Cazenove International Fund Ireland AAA A Superior Y

Oyster European Opportunities -6.04 28.63 0 Oyster Asset Management Luxembourg Standard Y

Franklin Mutual European A Acc -6.54 24.9 7,094 Franklin Templeton Invest Fds Luxembourg AA A Elite Y

FF – European Growth A Euro -9.23 28.11 1.00 Fidelity (FIL (Luxembourg)) Luxembourg AA Superior Y

Carnegie European Equity 1A -9.42 27.24 1,419 Carnegie Fund Mgt Company Luxembourg AA

GAM Star European Equity Acc -9.77 26.33 14,188 GAM Fund Management Ireland A Y

Ashburton European Equity PC -11.56 32.01 14,188 Ashburton (Jersey) Jersey A A Y

Europe ex UK equityOffshore/int’l funds 3-year 3-year Min init Curr Manager name Domicile Morningstar S&P Fd OBSR Morningstar UK


Allianz RCM Euroland Eq Growth W 27.34 30.6 14m Allianz Global Investors Lux Luxembourg Superior Y

BGF Continental European Flexible A2 25.03 31.78 N/S Blackrock (Luxembourg) Luxembourg AAA AA Superior Y

MainFirst Classic Stock Fund A 20.92 32.87 3,547 MainFirst Sicav Luxembourg Luxembourg A Superior Y

Edinburgh Partners Europe Opp I 14.49 29.06 141,884 Edinburgh Partners Ireland AA Superior Y

MFS Meridian Continental Europ Eq A1 £ 13.37 27.8 4,078 £ MFS Meridian Funds Luxembourg A Y

LuxTopic – Aktien Europa A -3.97 28.53 0 DJE Investment Luxembourg Standard

Fonditalia Euro Defensive -11.6 26.63 7,094 Fideuram Gestions Luxembourg Standard

Henderson Horizon Eurp Gr R 4.34 29.43 3,547 Henderson Management Luxembourg AAA AAA Y

Fonditalia Euro Cyclicals 3.59 35.28 7,094 Fideuram Gestions Luxembourg Standard

GAM Star Cont European Equity £ Acc -0.4 26.71 9,787 £ GAM Fund Management Ireland A Y

JOHCM Continental European £ -0.71 30.41 1,631 £ JO Hambro Capital Mgt Ireland A AA Superior Y

Henderson Gartmore Fd Cont European A -3.73 28.5 3,547 Henderson Management Luxembourg AA A Superior Y

Pioneer Fds Euroland Equity E ND -5.96 30.91 1,419 Pioneer Asset Management Luxembourg AA Superior

BGF Euro-Markets A2 -5.99 32.32 7,094 Blackrock (Luxembourg) Luxembourg AA AA Superior Y

Cazenove European Eq ex UK B -6.27 27.13 N/S Cazenove International Fund Ireland AAA AA Superior Y

CapitalAtWork Contr Euro Eq at Work C -7.27 30.11 0 Capital at Work Luxembourg AA

BNPP L1 Equity Best Sel Euro C C -7.39 30.31 1.00 BNP Paribas Inv Partners Lux Luxembourg AA Superior Y

ING (L) Invest Euro Income P Acc -11.74 27.22 0 ING Investment Mgt Lux Luxembourg Standard

ING (L) Invest Euro Hi Dividend P Acc -11.91 30.71 0 ING Investment Mgt Lux Luxembourg AA Superior Y

FF – Euro Blue Chip A Euro -14.5 31.08 N/S Fidelity (FIL (Luxembourg)) Luxembourg A Superior Y

Schroder ISF Euro Equity A Acc -15.37 32.95 1,419 Schroder Invest Mgt Lux Luxembourg A Y

US equity Offshore/int’l funds 3-year 3-year Min init Curr Manager name Domicile Morningstar S&P Fd OBSR Morningstar UK


Findlay Park American Smlr Coms $ 21.73 19.2 100,000 $ Findlay Park Investment Mgt Ireland AAA Y

BNPP L1 Equity USA Growth Acc 18.73 20.35 N/S $ BNP Paribas Invest Ptnrs Lux Luxembourg A Y

Robeco US Premium Equities D $ 15.55 20.29 N/S $ Robeco Luxembourg Luxembourg Superior Y

BL-Equities America B 3.53 19.23 N/S $ Banque de Luxembourg Luxembourg Superior

LM CB US Appreciation A Inc (A) $ 3.53 17.37 1,000 $ Legg Mason Gbl Funds (Dub) Ireland A Y

UK equityOffshore/int’l funds 3-year 3-year Min init Curr Manager name Domicile Morningstar S&P Fd OBSR Morningstar UK


Cazenove UK Equity B £ 19.29 25.26 8,156 £ Cazenove Int’l Fund Ireland A Y

Old Mutual Dublin UK Sel Sml Companies 26.15 29.68 1,631 £ Old Mutual Asset Mgrs UK Ireland AAA Y

QUALITY FUNDS


US equity (cont)Offshore/int’l funds 3-year 3-year Min init Curr Manager name Domicile Morningstar S&P Fd OBSR Morningstar UK


Calamos US Growth A Acc 26.69 27.91 28,377 Calamos Global Funds Ireland AA Superior Y

MS INVF US Growth A $ 22.36 25.38 0 $ Morgan Stanley Invest Funds Luxembourg A Y

W.P. Stewart Holdings 14.7 22.74 1.00 $ W.P. Stewart Asset Mgt (Eur) Luxembourg AA Superior

ING (L) Invest US Growth P $ 12.07 19.54 0 $ ING Investment Mgt Lux Luxembourg Standard

FF – America A $ 11.78 22.57 2,500 $ Fidelity (FIL (Luxembourg)) Luxembourg A Standard Y

Cap Int US Growth and Income B 11.57 20.03 1,419 Capital International Luxembourg Elite Y

Robeco US Large Cap Equities D 10.53 21.03 0 Robeco Luxembourg Luxembourg AA Superior

Pioneer Fds US Research E ND 10.44 19.28 1,419 Pioneer Asset Management Luxembourg Standard

Schroder ISF US Sm & MdCp Eq A $ 9.62 21.48 1,000 $ Schroder Investment Mgt Lux Luxembourg AA AAA Elite Y

ING (L) Invest US High Dividend P Acc 9.15 19.03 0 $ ING Investment Mgt Lux Luxembourg A Standard Y

Perkins US Strategic Value A $ Acc 8.74 20.15 2,500 $ Janus Capital Funds Ireland Superior Y

Franklin US Equity A Acc $ 7.83 19.56 5,000 $ Franklin Templeton Invest Fds Luxembourg A Y

Allianz RCM US Equity C2 $ 6.12 22.35 1,000 $ Allianz Global Invest Ireland Ireland A Superior Y

Neuberger Berman US Large Cap Gr $ Adv 5.89 19.5 10,000 $ Neuberger Berman Ireland AA Y

Aberdeen Global American Equity A2 3.98 21.01 1,500 $ Aberdeen Asset Mngrs (Lux) Luxembourg A Y

BNPP L1 Opportunities USA Acc 2.23 24.03 1.00 $ BNP Paribas Inv Partners Lux Luxembourg AA Superior Y

MFS Meridian US Value A1 $ 0.14 20.5 5,000 $ MFS Meridian Funds Luxembourg AA A Y

Pioneer Fds North Amer Bas Val E ND -0.15 19.04 1,419 Pioneer Asset Management Luxembourg AA

Japan equityOffshore/int’l funds 3-year 3-year Min init Curr Manager name Domicile Morningstar S&P Fd OBSR Morningstar UK


FF – Japan Advantage A ¥ 29.83 21.72 N/S ¥ Fidelity (FIL (Luxembourg)) Luxembourg A Y

Polar Capital Plc Japan $ 26.73 21.2 0 $ Polar Capital Partners Ireland AA AA Superior Y

Orbis Sicav Japan Equity (Yen) 20.35 24.99 N/S ¥ Orbis Investment Management Luxembourg AAA AA

Invesco Japanese Equity Advantage A 15.3 19.88 N/S ¥ Invesco Global Asset Mgt Luxembourg AA A ¥

ValueInvest LUX Japan A Cap 7.32 14.99 0 ValueInvest Asset Management Luxembourg Standard

Melchior ST Japan Advantage B3 ¥ 2 20.16 N/S ¥ Dalton Strategic Partnership Luxembourg A Y

Lindsell Train Japanese Equity A Acc -1.7 19.28 2,575 ¥ Close Asset Mgt (UK) Ireland A Y

Parvest Equity Japan Small Cap C 20.88 23.59 1.00 ¥ BNP Paribas Luxembourg A Y

GS Japan Small Cap Base Inc 17.42 21.08 6,437 ¥ Goldman Sachs Asset Mgt Int’l Luxembourg A Y

PineBridge Japan Small Cap Equity Y 12.1 21.88 1m $ PineBridge Investments Ireland Ireland AA Y

Oyster Japan Opportunities JPY 9.47 17.89 0 ¥ Oyster Asset Management Luxembourg A Y

Invesco Japanese Equity Core A 8.74 22.43 1,500 $ Invesco Global Asset Mgt Ireland AA A Superior ¥

JOHCM Japan Yen 6.49 20.44 N/S ¥ JO Hambro Capital Mgt Ireland AA A Superior Y

Henderson Horizon Japanese Eq A2 -0.66 21.17 2,500 $ Henderson Management Luxembourg A Y

Nippon Growth -1.14 26.81 N/S ¥ E.I. Sturdza Strategic Mgt Guernsey A

Fidelity AS Japan A Acc ¥ -3.05 23.36 N/S ¥ Fidelity (FIL (Luxembourg)) Luxembourg A Y

GS Japan Portfolio Base Inc -5.59 20.85 6,437 ¥ Goldman Sachs Asset Mgt Int’l Luxembourg AA A Superior Y

IFDC Japan Dynamic A ¥ -7.93 21.2 1.00 ¥ IFDC Luxembourg AAA AA

Global emerging markets equityOffshore/int’l funds 3-year 3-year Min init Curr Manager name Domicile Morningstar S&P Fd OBSR Morningstar UK


First State Glbl Emerg Mkts Leader I 40.9 24.33 1,500 $ First State Invest (Hong Kong) Ireland AAA Y

Aberdeen Global Emerging Markets Eq A2 40.76 27.72 1,500 $ Aberdeen Asset Mngrs (Lux) Luxembourg AA AAA Elite Y

Clariden Leu (Lux) Emerging Mkts Eq B 34.42 34.19 10 $ Clariden Leu Luxembourg AA

Vontobel Emerging Markets Eq B 32.03 24.51 N/S $ Vontobel Management Luxembourg AA

Schroder ISF Glbl Emerg Mkt Opp A $ 23.89 27.92 1,000 $ Schroder Investment Mgt Lux Luxembourg Superior Y

Comgest Growth Emerging Markets Acc 9.3 26.67 10,000 $ Comgest Asset Mgt Int’l Ireland AAA Elite Y

Robeco Active Quant Emerging Eq D 29.38 32.91 0 Robeco Luxembourg Luxembourg A

Lazard Emerging Markets Equity $ 17.15 30.89 2m $ Lazard Fund Mgrs (Ireland) Ireland A Superior Y

BNY Mellon Global Em Mkts Eq Value A $ 15.72 29.33 5,000 $ BNY Mellon Asset Mgt Ireland A Y

Robeco Emerging Markets Eq D 12.33 33.08 0 Robeco Luxembourg Luxembourg Superior Y

JPM Emerging Markets Eq A (dist)-$ 11.32 30.59 2,000 $ JPMorgan Asset Mgt (Europe) Luxembourg Superior Y

QUALITY FUNDS


Global equityOffshore/int’l funds 3-year 3-year Min init Curr Manager name Domicile Morningstar S&P Fd OBSR Morningstar UK


Nuveen Tradewinds Global All-Cap I $ 47.5 23 N/S $ Nuveen Ireland AA

Calamos Global Equity A Acc 38.41 27.37 28,377 Calamos Global Funds Ireland AA Y

Veritas Glbl Focus A £ 30.11 19.07 48,936 £ Veritas Asset Management UK Ireland AA Superior Y

Veritas Global Eq Income A £ 19.43 20.53 48,936 £ Veritas Asset Management UK Ireland AA Superior Y

Orbis Global Equity 16.06 23.85 50,000 $ Orbis Investment Management Bermuda AAA

Amundi International Sicav AU-C 16.04 14.43 1.00 $ Amundi Luxembourg Luxembourg Standard

Tweedy Browne Intl Value Fd ( ) B 15.13 25.36 35,471 Tweedy Browne Co Luxembourg Superior

Orbis Sicav Global Equity Inv 14.29 23.89 N/S Orbis Investment Management Luxembourg AA

Franklin Mutual Global Disc A Acc $ 14.2 14.94 5,000 $ Franklin Templeton Invest Fds Luxembourg A Superior Y

MercLin Sicav Global Equity F 13.82 21.71 1.00 Mercier Vanderlinden Ass Mgt Luxembourg Superior

ValueInvest LUX Global A Cap 12.77 19.63 0 ValueInvest Asset Management Luxembourg Superior

MFS Meridian Glbl Equity A1 $ Acc 10.91 22.51 5,000 $ MFS Meridian Funds Luxembourg A Y

Schroder ISF QEP Global Quality A 10.69 21.56 1,000 $ Schroder Invest Mgt Lux Luxembourg A

Asia Pacific equityOffshore/int’l funds 3-year 3-year Min init Curr Manager name Domicile Morningstar S&P Fd OBSR Morningstar UK


Macquarie Asia New Stars Fund A1 98.01 36.6 3,000 $ Macquarie Funds Mgt HK Caymans Standard

Templeton Asian Growth A YDis $ 61.05 31.35 5,000 $ Franklin Templeton Invest Fds Luxembourg AAA A Y

Investec GSF Asian Eq A Inc Grs $ 32.07 28.58 3,000 $ Investec Asset Mgt Lux Luxembourg AA Superior Y

FF – South East Asia A $ 44.31 28.9 2,500 $ Fidelity (FIL (Luxembourg)) Luxembourg AA AA Superior Y

FF – Asian Special Situations A $ 38.73 27.22 2,500 $ Fidelity (FIL (Luxembourg)) Luxembourg AA Elite Y

Schroder ISF Emerg Asia A 32.8 28.82 1,000 $ Schroder Investment Mgt Lux Luxembourg AA Superior Y

Invesco Asian Equity A 27.67 29.52 1,500 $ Invesco Global Asset Mgt Ireland AA A Y

Invesco Pacific Equity A 22.36 25.52 1,500 $ Invesco Global Asset Mgt Ireland A Y

Robeco Asia Pacific Equities D 21.65 24.93 0 Robeco Luxembourg Luxembourg A Superior Y

Global bondsOffshore/int’l funds 3-year 3-year Min init Curr Manager name Domicile Morningstar S&P Fd OBSR Morningstar UK


Pimco GIS Global Bond Ins CHF Hdg Acc 63.32 18.9 N/S CHF Pimco Global Advsrs (Ireland) Ireland AA Y

Templeton Glbl Total Return A MDis $ 57.75 12.14 5,000 $ Franklin Templeton Invest Fds Luxembourg AA/V4 A Y

Templeton Global Bond A MDis $ 45.57 8.95 5,000 $ Franklin Templeton Invest Fds Luxembourg AAA/V4 AA Superior Y

Templeton Glbl Total Return A Acc -H1 43.4 24.1 7,094 Franklin Templeton Invest Fds Luxembourg AA/V4 A Y

Templeton Global Bond A Acc -H1 34.17 21.16 7,094 Franklin Templeton Invest Fds Luxembourg AAA/V4 AA Y

LGT Bond Global ( ) B 33.92 10.21 1.00 LGT Capital Management Liechtenstein A/V5

Thames River Sterling Glbl Bond $ 33.68 10.8 7,500 $ Thames River Capital Ireland AA/V4 Y

Aegon Strategic Global Bond A 33.06 20.19 N/S Aegon Fund Mgt (UK) Ireland A Y

Templeton Glbl Total Return A MDis £-H1 29.12 20.57 8,156 £ Franklin Templeton Invest Fds Luxembourg AA/V4 A Y

Schroder ISF Global Bond I Hdgd 25.36 3.1 5m $ Schroder Investment Mgt Lux Luxembourg Standard Y

Thames River Sterling Glbl Bond 23.74 16.89 10,641 Thames River Capital Ireland AA/V4 Y

Templeton Global Bond A MDis £-H1 22.87 16.99 8,156 £ Franklin Templeton Invest Fds Luxembourg AAA/V4 AA Superior Y

Thames River Euro Glbl Bond Acc 22.42 11.17 10,641 Thames River Capital Ireland AA/V5 Y

Pimco GIS Global Bond Ins Hdg Acc 16.61 19.19 N/S Pimco Global Advsrs (Ireland) Ireland AA Y

Investec GSF Glbl Bd A Inc Grs $ 27.67 10.3 3,000 $ Investec Asset Mgt Lux Luxembourg A Y

Loomis Sayles Glob Opp Bd Fd I/D $ 27.62 10.71 100,000 $ Natixis Global Associates Ireland Superior Y

Pimco GIS Global Bond Inv $ Unhdg 26.99 11.04 5m $ Pimco Global Advsrs (Ireland) Ireland AA Y

Pimco GIS Global Bond Ins Acc 24.82 6.82 10m $ Pimco Global Advsrs (Ireland) Ireland AA Y

ACPI Global Fixed Income Ucits $ A 21.74 N/A 500,000 $ ACP Prtnrs Inv Mgr (Ireland) Ireland A/V3 Y

TriAlpha International Bond 21.2 7.2 5,000 $ TriAlpha Fund Mngrs (Jersey) Jersey A/V3

Dexia Bonds World Government Plus C Acc 19.78 8.74 1.00 Dexia Asset Management Luxembourg Standard

Thames River Sterling Glbl Bond £ Inc 13.71 7.49 8,156 £ Thames River Capital Ireland AA/V4 Y

Robeco Lux-o-rente D 8.05 16.67 1.00 Robeco Luxembourg Luxembourg AA/V3 Superior Y

Pimco GIS Global Bond Ins £ Hdg Inc 4.66 16.41 N/S £ Pimco Global Advsrs (Ireland) Ireland AA Y

QUALITY FUNDS


Global equity (cont)Offshore/int’l funds 3-year 3-year Min init Curr Manager name Domicile Morningstar S&P Fd OBSR Morningstar UK


Planetarium – Riverfield Eqs 8.93 21.87 7,094 Planetarium Fund Luxembourg A

Vontobel Global Value Equity B 8.32 18.29 N/S $ Vontobel Management Luxembourg AA

BNY Mellon Lg-Trm Global Equity A 8.24 19.07 7,094 BNY Mellon Asset Mgt Ireland AA A Y

BL-Global Equities B 6.85 20.69 3,547 Banque de Luxembourg Luxembourg Superior

BGF Global Dynamic Equity $ A2 5.37 19.5 5,000 $ Blackrock (Luxembourg) Luxembourg AAA AA Superior Y

PEH Strategie Flexibel P 4.08 15.69 3,547 Axxion Luxembourg A

Gamax Funds Junior A 14.07 23.24 354,710 GAMAX Management AG Luxembourg A

Aberdeen Global World Equity A2 7.58 24.76 1,500 $ Aberdeen Asset Mgrs (Lux) Luxembourg AA A Superior Y

GAM Global Diversified $ 7.2 N/A 5,000 $ GAM Fund Management BVI AA

FF – Global Opportunities A $ 6.54 24.33 2,500 $ Fidelity (FIL (Luxembourg)) Luxembourg TR Y

Harris Associates Glob Value Fd R/A $ 5.88 26.64 0 $ Natixis Global Associates Luxembourg AA Y

FF – Global Focus A $ 4.41 24.33 2,500 $ Fidelity (FIL (Luxembourg)) Luxembourg TR Y

Schroder ISF QEP Global Core C Acc 4.08 23.73 500,000 $ Schroder Investment Mgt Lux Luxembourg A Y

DJE Dividende & Substanz P 3.5 24.02 0 DJE Investment Luxembourg Superior

Tweedy Browne Glbl Hi Div Val ( ) D 3.2 N/A 35,471 Tweedy Browne Co Luxembourg Superior

Oasis Global Equity 2.58 23 5,000 $ Oasis Global Mgmt Co (Ireland) Ireland AA

BGF Global Opportunities A2 $ 2.44 24.65 5,000 $ Blackrock (Luxembourg) Luxembourg AA A Superior Y

BNPP L1 Opportunities World Acc 1.88 25.18 2,128 BNP Paribas Inv Partners Lux Luxembourg AA Y

Investec GSF Glbl Eq A Inc Grs $ 0.45 23.57 3,000 $ Investec Asset Mgt Lux Luxembourg A Superior Y

GAM Star Worldwide Equity $ Inc 0.44 23.67 10,000 $ GAM Fund Management Ireland AAA Y

BPI GIF – Opportunities R -0.17 26.42 21,283 BPI Global Invest Fund Mgt Co Luxembourg Superior

DWS Invest Top Dividend LC -0.24 22.89 1.00 DWS Investment Luxembourg Superior Y

MFS Meridian Research Intl A1 $ -2.29 26.44 5,000 $ MFS Meridian Funds Luxembourg A Y

D&R Multi Asset Strategy - Growth P -3.51 21.2 1.00 HANSAINVEST LUX Luxembourg A

Investec GSF Glbl Str Eq A Inc Grs $ -4.02 24.52 3,000 $ Investec Asset Mgt Lux Luxembourg AA Superior Y

ACPI Global Equity Ucits A $ -6.96 N/A 500,000 $ ACP Partners Inv Mngr (Ireland) Ireland A Y

DWS Global Value -7.15 24.42 709 DWS Investment Luxembourg Superior

ING (L) Invest Glbl Hi Div P Acc -7.23 22.64 0 ING Investment Mgt Lux Luxembourg A Standard

DWS Invest Global Value LC -7.38 24.07 0 DWS Investment Luxembourg Superior

Sarasin EquiSar - Global A -7.73 23.57 1,419 Sarasin Investmentfonds Sicav Luxembourg A Y

Carnegie Worldwide 1A -10.68 22.03 1,000 $ Carnegie Fund Mgt Company Luxembourg AAA

Corporate and high-yield bondsOffshore/int’l funds 3-year 3-year Min init Curr Manager name Domicile Morningstar S&P Fd OBSR Morningstar UK


Neuberger Berman HY Bd Adv Acc 36.69 24.55 14,188 Neuberger Berman Ireland AAA/V5 AA Y

Cap Int Global High Income Opp A 35.09 13.97 7m Capital International Luxembourg AA/V5 Y

BlueBay High Yield Bond Acc B 30.85 24.37 141,884 BlueBay Asset Management Luxembourg AAA/V5 Y

Pimco GIS Gl Inv Grd Crdt Ins Hg Acc 23.17 19.97 N/S Pimco Global Advsrs (Ireland) Ireland AA Y

Invesco Euro Corporate Bond A Acc 22.05 19.34 N/S Invesco Global Asset Mgt Luxembourg AA/V4 AA Superior Y

BlueBay Investment Grade Bd Acc B 18.31 16.8 141,884 BlueBay Asset Management Luxembourg AAA/V3 A Y

Schroder ISF Glbl High Yld I £ Hdg Acc 13.41 23.12 N/S £ Schroder Investment Mgt Lux Luxembourg A/V5 Y

Allianz Euro High Yield Bond A 41.06 26.23 1.00 Allianz Global Investors Lux Luxembourg Standard Y

FF – US High Yield A $ 36.87 15.32 2,500 $ Fidelity (FIL (Luxembourg)) Luxembourg AAA/V5 A Y

AB Global High Yield A $ 36.38 19.01 2,000 $ AllianceBernstein (Lux) Luxembourg A/V6

Invesco Global High Income A 35.18 16.38 1,500 $ Invesco Global Asset Mgt Ireland A/V6 Y

Muzinich Europeyield H/Y Acc 33.92 24.62 141,884 Muzinich & Co. Ireland AA/V6 Y

FF – Euro High Yield A Euro 29.41 26.67 N/S Fidelity (FIL (Luxembourg)) Luxembourg AA/V6 Superior Y

Schroder ISF Glbl Corp Bond A Acc 28.43 5.55 1,000 $ Schroder Investment Mgt Lux Luxembourg AA/V3 Y

HSBC GIF Euro High Yield Bond A Acc 28.08 26.42 N/S HSBC Investment Funds (Lux) Luxembourg AA/V6 Superior Y

BlueBay Invmt Grade Bd Acc B $ (Perf) 27.66 4.29 100,000 $ BlueBay Asset Management Luxembourg AAA/V3 A

Robeco High Yield Bonds DH 26.29 25.46 0 Robeco Luxembourg Luxembourg A/V5 Superior Y

GS Glbl High Yield Base Hdg 22.81 27.58 7,094 Goldman Sachs Asset Mgt Int’l Luxembourg AA/V6 A Y

Invesco Global High Income A Hdg 22.27 27.66 2,128 Invesco Global Asset Mgt Ireland A/V6 Y

QUALITY FUNDS


Global emerging market bondsOffshore/int’l funds 3-year 3-year Min init Curr Manager name Domicile Morningstar S&P Fd OBSR Morningstar UK


MFS Meridian Emerg Mkts Dbt A2 $ 36.25 13.71 5,000 $ MFS Meridian Funds Luxembourg AAA/V5 A Y

BNY Mellon EM Debt Local Ccy X $ 29.9 16.26 0 $ BNY Mellon Asset Management Ireland AA/V6 Y

Pictet-Global Emerging Debt-HP 26.63 24.75 0 Pictet Funds (Europe) Luxembourg Standard Y

Templeton Emerging Mkts Bd A QDis $ 39.83 16.98 5,000 $ Franklin Templeton Invest Fds Luxembourg AA/V5 AA Superior Y

ING (L) Flex Emerg Mkts Debt $ P Acc 39.79 17.02 N/S $ ING Investment Mgt Lux Luxembourg AA/V6

AB Emerging Markets Debt A $ 38.76 17.33 2,000 $ AllianceBernstein (Lux) Luxembourg AA/V5

Pictet-Global Emerging Debt-P $ 38.49 11.95 0 $ Pictet Funds (Europe) Luxembourg Standard Y

LO Funds Emerging Market Bond P A 36.14 12.92 N/S $ Lombard Odier Funds (Europe) Luxembourg Standard

BNY Mellon Emerg Mkts Dbt A $ 34.56 14.11 5,000 $ BNY Mellon Asset Mgt Ireland AA/V5 Y

Pimco GIS Emerg Local Bond Instl $ Acc 32.83 16.3 10m $ PIMCO Global Advsrs (Ireland) Ireland Superior Y

BNPP L1 Bond World Emerg Local C C 28.51 16.39 N/S $ BNP Paribas Invest Prtnrs Lux Luxembourg AA/V5 Y

Allianz Emerg Markets Bond A 17.02 26.12 1.00 Allianz Global Invstrs Ireland Ireland AA/V5 Y

Data source: © 2011 Morningstar, Inc. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance is no guarantee of future results. Performances have been calculated on a bid-to-bid, $, gross income basis. Volatility is expressed as standard deviation of 36 monthly total returns (bid-to-bid). The Morningstar Rating is calculated based on a fund’s total returns, adjusted for risk and sales charges, relative to other funds in its Morningstar Category. The Overall Morningstar Rating published here is based on a weighted average of a fund’s three-, five- and ten-year ratings, depending on the length of its record.

Fixed income EuropeOffshore/int’l funds 3-year 3-year Min init Curr Manager name Domicile Morningstar S&P Fd OBSR Morningstar UK


BNY Mellon Euroland Bond C 16.83 16.51 7m BNY Mellon Asset Management Ireland AAA/V3 Y

Schroder ISF US Dollar Bd A Hdg 14.83 17.35 1,419 Schroder Investment Mgt Lux Luxembourg AA/V2 Y

Pioneer Fds Euro Aggt Bd A ND 12.91 15.9 1,419 Pioneer Asset Management Luxembourg Superior

Pimco GIS Glbl Real Ret Ins Hdg Acc 12.06 21.61 N/S Pimco Global Advsrs (Ireland) Ireland AA Y

LGT Bond Global Inflation Linked B 8.33 18.91 1.00 LGT Capital Management Liechtenstein A/V4

Pioneer Fds Euro Strat Bd E ND 39.16 29.4 1,419 Pioneer Asset Management Luxembourg AAA

Schroder ISF Euro Bond A Acc 16.26 14.75 1,419 Schroder Investment Mgt Lux Luxembourg TR Y

LM WA GMS A Acc (H ) 15.69 25.42 1,419 Legg Mason Global Fds (Dub) Ireland A/V4 Y

AB European Income A2 14.54 23.11 2,838 AllianceBernstein (Lux) Luxembourg A/V5

Schroder ISF Strategic Bd A Hdg 12.47 17.41 1,419 Schroder Investment Mgt Lux Luxembourg TR Y

HSBC GIF Euro Bond A Acc 11.49 16 N/S HSBC Investment Funds (Lux) Luxembourg AA/V3 Superior Y

FF – Glbl Inflatn Lkd Bd A Hdg Acc 8.77 20.07 N/S Fidelity (FIL (Luxembourg)) Luxembourg A/V4 A

Parvest Bond Euro C 7.95 15.61 1,000 BNP Paribas Luxembourg AA/V3 Superior Y

Pimco GIS Euro Bond Ins Acc 7.32 16.99 N/S Pimco Global Advsrs (Ireland) Ireland AA Y

BGF Euro Short Duration Bond A2 7.13 15.16 N/S Blackrock (Luxembourg) Luxembourg AA/V2 Superior Y

Triodos Sustainable Bond R 6.5 15.32 0 Triodos Investment Mgt Luxembourg Standard

Swisscanto (LU) Bd Invest A 6.34 15.09 1.00 Swisscanto Holding AG Luxembourg A

Axa WF Euro Inflation Bonds IC 3.02 19.45 141,884 Axa Investment Mngrs Paris Luxembourg Superior

Corporate and high-yield bonds (cont)Offshore/int’l funds 3-year 3-year Min init Curr Manager name Domicile Morningstar S&P Fd OBSR Morningstar UK


Schroder ISF Glbl High Yld A Hdg Acc 21.16 24.41 1,419 Schroder Investment Mgt Lux Luxembourg A/V5 Y

Schroder ISF Glbl Corp Bd A Hdg Acc 18.6 18.42 1,419 Schroder Investment Mgt Lux Luxembourg AA/V3 Y

Aegon Investment Grade Global Bd A 18.12 21.35 141,884 Aegon Fund Mgt (UK) Ireland A Y

Schroder ISF Euro Corporate Bond A Acc 16.19 16.99 1,419 Schroder Invest Mgt Lux Luxembourg AA/V3 Standard Y

Standard Life Sicav Eurp Corp Bd D 14.43 17.74 1.4m Standard Life Investments Luxembourg AA/V4 Y

Axa WF Euro Credit Plus AC 14.11 17.47 0 Axa Invest Managers Paris Luxembourg Superior

Funds of hedge fundsOffshore/int’l funds 3-year 3-year Min init Curr Manager name Domicile Morningstar S&P Fd OBSR Morningstar UK


GAM Multi-Emerging Markets $ Open Cl 8.15 9.86 15,000 $ GAM Fund Management BVI AA

GAM Trading II – $ Open Class 9.9 4.53 25,000 $ GAM Fund Management BVI AA

GAM Trading II – Open Class 1.79 17.14 35,471 GAM Fund Management BVI AA

FLY THE NEST WITH QROPS

MARLBOROUGH PENSION TRUSTEES LIMITED

PO BOX 19 ALBERT HOUSE SOUTH ESPLANADE ST. PETER PORT

GUERNSEY CHANNEL ISLANDS GY1 3AJ

TEL: +44 (0)1481 713100 FAX: +44 (0)1481 713200

Registered No. 48383

Our ethos reflects the free-spirited Shearwater and our Qualifying Recognised Overseas Pension Scheme (QROPS) has been designed to suit the lifestyles of those clients who wish to embark on new adventures with a flexible, secure and rewarding pension plan that they can take with them.

The Shearwater Pension Plan offers a bespoke retirement solution to non UK residents and individuals who are about to leave the UK. The transfer of accrued pension benefits from UK pension schemes to our QROPS provides individuals with a greater flexibility in their retirement options, with tax efficiency, a choice of investment management and peace of mind that all remaining funds within the Plan upon death are paid to their nominated beneficiaries.

KEY BENEFITS OF THE SHEARWATER PENSION PLAN

• Choice of investment management• Tax efficiency: no tax on the pension assets within the Plan;

pension income paid gross (excluding Guernsey residents)• Increased flexibility when taking pension income on retirement• Freedom to make additional contributions with no lifetime limit• No requirement to purchase an annuity• All remaining funds within the Plan, following death, can be

distributed to chosen beneficiaries• Open to all nationalities

Licensed by the Guernsey Financial Services Commission under The Regulation of Fiduciaries, Administration Businesses and Company Directors, etc (Bailiwick of Guernsey) Law, 2000 as amended

FOR MORE INFORMATION VISIT WWW.SHEARWATERPENSIONS.COM OR CALL +44 (0)1481 713100

BANKING DEPOSITS OFFSHORE ACCOUNTS RANKED BY INTEREST RATES


Provider Account Notice Deposit Gross Interest Telephone number/ or term % paid web address

Anglo Irish Bank Corporation (Int’l) Privilege Demand None £5,000 2.7% Yly +44 (0)1624 698000

Anglo Irish Bank Corporation (Int’l) Privilege Access ll None £5,000 2.47% 6-mly +44 (0)1624 698000

Nationwide International Base Rate Tracker Prem None £25,000 2.4%* Yly +44 (0)1624 696000

Irish Nationwide (IoM) Instant Quarterly None £25,000 2.35% Yly +44 (0)1624 673373

Lloyds TSB International International Bonus Saver None £100,000 2.01%* Mly +44 (0)1624 641825

No-notice £ accounts

Please note: rates correct on 25 Aug, 2011All rates are shown gross. * Introductory rate for a minimum of 6 months. (P) Operated by post. (F) Fixed rate. (W) Operated by internet. (OM) On maturity. (S) Available to those aged 60 and over. All rates and terms subject to change without notice and should be checked before finalising any arrangement. No liability can be accepted for any direct or consequential loss arising from the use of, or reliance on, this information. Readers who are not financial professionals should seek expert advice.

Source: www.moneyfacts.co.uk

Yorkshire (Guernsey) Global 90 90-day £100,000 2.6% Yly +44 (0)1481 710510

Alliance & Leicester International eSaver Offshore Notice 120 120-day (W) £5,000 2.25% Yly www.alil.co.im

Alliance & Leicester International Select Offshore Notice 120 120-day £5,000 2.25% Yly +44 (0)1624 641888

Britannia International 60 Day Notice 60-day £50,000 2.25% Yly +44 (0)1624 681100

Skipton International International Premium 90 90-day £100,000 2.25% Yly +44 (0)1481 727374

Notice accounts

Yorkshire (Guernsey) Global 90 90-day £100,000 2.6% Mly +44 (0)1481 710510

Alliance & Leicester International Select Offshore Notice 120 120-day £5,000 2.25% Mly +44 (0)1624 641888

Alliance & Leicester International eSaver Offshore Income120 120-day (W) £5,000 2.25% Mly www.alil.co.im

Nationwide International Base Rate Tracker Prem None £25,000 2.22%* Mly +44 (0)1624 696000

Skipton International Ltd International Premium 90 90-day £100,000 2.02% Mly +44 (0)1481 727374

Monthly interest

1-YEAR FIXED RATES

Bank of Ireland (IoM) High Int Anniversary A/c 1-year bond £25,000 3.5% F OM +44 (0)1624 644222

The Co-operative Bank Fixed Term Deposit 1-year bond £5,000 3.4% F OM +44 (0)1481 710527

Irish Nationwide (IoM) Fixed Rate Bond 1-year bond £50,000 3.35% F OM +44 (0)1624 673373

2-YEAR FIXED RATES

The Co-operative Bank Fixed Term Deposit 2-year bond £5,000 3.75% F OM +44 (0)1481 710527

Alliance & Leicester International 2 Year Fixed Rate Bond 25 30 Aug ’13 £5,000 3.5% F Yly +44 (0)1624 641888

Clydesdale Bank International Term Deposit 24 Month £10,000 3.25% F Yly +44 (0)1481 711102

3-YEAR FIXED RATES

The Co-operative Bank Fixed Term Deposit 3-year bond £5,000 4% F OM +44 (0)1481 710527

Clydesdale Bank International Term Deposit 36 Month £10,000 3.75% F Yly +44 (0)1481 711102

Alliance & Leicester International 3 Year Fixed Rate Bond Iss 7 29 Aug’ 14 £5,000 3.7% F Yly +44 (0)1624 641888

Fixed rates

Anglo Irish Bank Corporation (Int’l) Privilege Demand None $5,000 2.3% Yly +44 (0)1624 698000

Anglo Irish Bank Corporation (Int’l) Privilege Access None $5,000 1.51% 6-mly +44 (0)1624 698000

Lloyds TSB International International Bonus Saver None $100,000 1.51%* Mly +44 (0)1624 641825

Barclays Wealth Bonus Saver None $100,000 0.8%* Mly +44 (0)1624 684316

Nationwide International Base Rate Tracker Prem None $50,000 0.5%* Yly +44 (0)1624 696000

No-notice $ accounts

Anglo Irish Bank Corporation (Int’l) Privilege Demand None 5,000 2.7% Yly +44 (0)1624 698000

Lloyds TSB International International Bonus Saver None 100,000 2.27%* Mly +44 (0)1624 641825

Anglo Irish Bank Corporation (Int’l) Privilege Access None 5,000 2.26% 6-mly +44 (0)1624 698000

Irish Nationwide (IoM) Instant Quarterly None 25,000 1.75% Yly +44 (0)1624 673373

Nationwide International Euro Tracker Premium None 50,000 1.75%* Yly +44 (0)1624 696000

No-notice accounts

Recent awards include Moneyfacts Best Offshore Account Provider for 2010 & 2011. Alliance & Leicester International (ALIL) is a wholly owned subsidiary of Santander UK plc. Santander UK plc is regulated by the UK Financial Services Authority. Santander is part of Banco Santander, S.A. of Spain which is regulated by the Bank of Spain. ALIL places funds with Santander UK plc and thus its fi nancial standing is linked to that of Santander UK plc. Further information, including report & accounts, is available at alil.co.im or on request. Santander, Alliance & Leicester and the fl ame logo are registered trademarks. Telephone calls may be recorded. 19/21 Prospect Hill, Douglas, Isle of Man IM99 1RY, British Isles. Incorporated in the Isle of Man (No. 81918C). Licensed by the Isle of Man Financial Supervision Commission to take deposits.

Award winning range of deposit accounts with great rates.

Call

Notice

Time deposits

Fixed rate bonds

£ / US$ / euro

Online or postal

+44 (0) 1624 641 888

alil.co.im

l Meet and talk with fund managers, life companies andMeet and talk with fund managers, life companies andpension experts

l Find out what you need to know about retirement optionsFind out what you need to know about retirement options

ll The conference is free to attend for financial advisersThe conference is free to attend for financial advisers

To register your place go to http://events.lastwordmedia.comFor further information contact Victoria Parker at

[email protected] or +44 (0)20 7065 7564

CPD COMPLIANT

Expand your horizons

Are you an European-based IFA with expat clients?If so, this half-day interactive seminar is for youIf so, this half-day interactive seminar is for you

Investor ForumEuropean

PARK PLAZA VICTORIA, LONDON

22 SEPTEMBER 201122 SEPTEMBER 2011

In association with

INTERNATIONAL

ADVISERADVISER

48

INTERNATIONAL LIFE & BANKING LISTINGS


Professional servicesHere are some of the biggest players in the offshore professional services arena with a description of their services and their contact details. If you are interested in being included, please contact Ben Wiseman on +44 (0)20 7065 7573 or email: [email protected]

Company name: IOMA GroupAddress: IOMA House, Hope Street, Douglas, Isle of Man, IM1 1APTel: +44 (0) 1624 681200Fax: +44 (0) 1624 681390Email: [email protected] Website: www.iomagroup.co.im IOMA Life is part of IOMA Group, which offers a complete wealth and risk management service from its base in the Isle of Man, one of the world’s best regulated and most successful financial centres. We administer or manage over $8 billion of funds for global clients, and have a proven track record in innovative solutions that deliver good results and mitigate risk.

The IOMA Group is small enough to offer a highly personal service, but sufficiently large to provide in-depth, specialist expertise. The business is comprised of eight divisions. Each is a specialist in its own area, but all share the same desire to grow our business by delivering effective results. Some clients only use one service, others mix and match between businesses to suit their needs at the time. The divisions are: Solutions, Life, Investment Management, Fund Management, Pensions, Fiduciary, Captives and Insurance.Product offeringsIOMA Life offers a wide range of inheritance tax mitigation and estate planning products. It provides traditional single premium UK products via an offshore portfolio bond and a wide range of specialist unit linked life products. IOMA Life is also a sought after provider of offshore bonds for investment platforms.

Company name: Investors Trust Assurance SPCAddress: Suite 4210, 2nd Floor, Canella Court, Camana Bay, PO Box 32203, Grand Cayman, KY1-1208, Cayman IslandsTel: +1 (305)603-1400Fax: +1 (786)363-1822Email: [email protected]: www.investors-trust.comInvestors Trust Assurance SPC (“ITA”) is an international insurance company licensed and regulated by the Cayman Islands Monetary Authority. ITA has gained a leadership position in the international insurance markets by specializing in the provision of investment–linked insurance products and class leading customer service. With service offices established to support policyholders around the world, ITA seeks to provide opportunity to its policyholders through access to the global financial markets. ITA is constantly innovating, and investing in technology to allow clients online multi-language (English, Spanish, Portuguese, Chinese and Japanese) access to manage their investment-linked products.Product offeringsITA works with some of the world’s top asset managers under its convenient open architecture platform. It provides clients with greater investment choices and the ability to plan for a happy and comfortable retirement and to provide for their children. Specialising in medium to long term investment-linked products tailored to meet the needs of investors around the world, ITA offers a range of flexible, tax-efficient products including regular and single premium annuities, designed to suit various income levels and financial planning needs.

Company name: La Mondiale Europartner Sa

Address: Atrium Business Park, 23A, rue du puits romain, ZA Bourmicht L- 8070 Bertrange, Luxembourg

Tel: +352 45 858744 • 0808 234 6607 (client services in UK)

Fax: + 352 45 8718

Email: [email protected]

Website: www.ag2rlamondiale.lu

La Mondiale Europartner is based in Luxembourg and has gained experience in wealth management solutions over many years. They now operate in several EU countries including France, Luxembourg, Italy, Portugal, Spain, Belgium and the UK.

Their focus is aimed at the cross-border aspects of wealth management, enabling them to produce unit-linked, multi-currency, multi-manager, multi-lingual – investment and expatriate pension solutions.

Product offeringsBond 4 European Mobility is for UK-based independent financial advisers providing a cross-border-compliant, tax-efficient, multi-currency wrapper with open architecture. Investment is allowed via collective investment schemes chosen by the client/IFA or may be managed by a discretionary manager.

The bond allows access to the La Mondiale’s main fund, which provides guaranteed returns in £, and $. Locally compliant investment solutions are also available to IFA’s advising UK expatriate clients residing in Spain and France.

Company name: Aegon Ireland plc

Address: 2nd Floor, IFSC House, Custom House Quay, Dublin 1, Ireland

Tel: +353 (0)845 600 0173

Fax: +353 (1)673 8940


Website: www.aegonsei.ie

Aegon (a brand name of Aegon Ireland plc) provides attractive investment solutions, particularly to UK investors. With a heritage in the offshore market dating back to 1995, Aegon is a leading provider in its chosen market.

We are part of the Aegon Group, which is one of the world’s largest listed insurance companies with assets under administration of around £348bn.

Based in Dublin, one of the world’s most dynamic financial centres, we also benefit from an enviable infrastructure. The client service team in Dublin draws on the talents of a large, young, motivated and highly skilled workforce.

Our service ensures that quality assurance is embedded in all we do to meet the requirements of our customers.

Product offeringsA portfolio bond, a packaged inheritance tax plan (a discounted gift trust plan), a regular savings plan and a guaranteed income plan.

Company name: Irish Life International Limited

Address: Irish Life Centre, Lower Abbey St, Dublin 1, Ireland

Tel: +353 (1) 704 1500 • Fax: +353 (1) 704 1580


Website: www.irishlifeinternational.com

Established in 1994, Irish Life International is a life insurance company incorporated and regulated in Ireland. The company is the international insurance arm of the Irish Life & Permanent Group, the largest life assurance company in Ireland and the market leader in the provision of life, pension and investment products.

The group has funds under management of 27bn, has over 65 years of investment expertise and is quoted on the Dublin and London Stock Exchanges.

Product offeringsIrish Life International engages in the cross-border distribution of insurance-based investment products under the EU Third Life Directive on a freedom-of-services basis. It provides a range of unit-linked whole-of-life insurance products that offer an extensive choice of investment options and funds. It offers a wide range of territory compliant products for residents of UK, Isle of Man and Channel Islands, Spain, Italy, the Netherlands, Belgium, France, Sweden, Finland and Cyprus. A range of 32 multi-manager internal funds is available.

LIFE LISTINGS



Company name: Generali InternationalAddress: PO Box 613, Generali House, Hirzel St, St Peter Port, Guernsey, Channel Islands, GY1 4PATel: +44 (0) 1481 714 108Fax: +44 (0) 1481 712 424Email: [email protected] Tracing its roots back to 1977, Generali International is a specialist arm of the Generali Group, one of the largest insurance groups in the world. It is a leading offshore provider offering sophisticated and powerful, life insurance-based, wealth management solutions to a global audience, including international expatriates and certain local resident populations. It has built up an enviable record for flexible and competitive investment solutions supported through its network of regional offices in Cyprus, Hong Kong and Ireland, and a local office in Singapore. The company is based in Guernsey, a premier offshore location, is a Registered Insurer under the Insurance Business (Bailiwick of Guernsey) Law 2002 and is also an authorised insurer in Hong Kong.Product offeringsA range of flexible unit-linked regular and single premium-based savings, retirement and investment plans, with access to over 120 funds selected from some of the worlds leading fund houses. A variety of specifically packaged portfolio bonds offering the widest choice of investment options through an open architecture platform.

Company name: Friends Provident International

Address: Royal Court, Casteltown, IM9 1RA, Isle of Man

Tel: +44 (0)1624 821 212


UK address: UK House, Castle St. Salisbury, Wiltshire SP1 3SH

UK phone number: +44 (0)1722 415088

UK email: [email protected]

Website: www.fpinternational.com

Friends Provident International (FPI) is part of the Friends Life group. FPI was established in the Isle of Man in 1978, and has been delivering innovative and sophisticated propositions to a competitive market for more than 30 years. FPI’s business continues to grow and today it has offices in the Isle of Man, Hong Kong, Singapore and Dubai. This enables the delivery of first class customer service to local markets in a language they understand. Product offeringsFPI offers a range of individual savings, protection and investment products, as well as group savings and tax planning trusts. An extensive fund range, is complemented by FPI’s Dynamic Portfolio Planner international (DPPi) – an innovative portfolio-planning tool that enables advisers to build bespoke investment portfolios for their clients.

Company name: Royal London 360°Address: Royal London House, Cooil Rd, Douglas, Isle of Man, IM2 2SPTel: +44 (0)1624 681893Fax: +44 (0)1624 677336Email: [email protected]: www.royallondon360.com

Today’s offshore investor demands a combination of investment choice, security and quality service. Royal London 360°’s attractive range of products provide flexible solutions and are supported by experienced servicing teams, effective marketing support and strong technical back up, which allow investors to plan for the future with confidence and security.

Headquartered in the Isle of Man, one of the world’s leading offshore financial jurisdictions, Royal London 360° was established through the merger of Scottish Life International Insurance Company Limited and Scottish Provident International Life Assurance Limited. The company has combined industry experience of over 30 years, and assets under administration of £1.88bn*.

Royal London 360° is the international division of the Royal London Group. Royal London is the largest mutual life and pensions company in the UK with Group funds under management of £41bn. Group businesses serve around 3.4 million customers and employ 2,830 people*.

360° represents a number of significant advantages; the international nature of its business; the way its employees think and take personal responsibility; and the Company’s adaptable approach to meeting tailored requirements. * Source: Royal London. All figures as at 30 Sept, 2010

Company name: AXA Isle of Man Limited

Address: Royalty House, Walpole Avenue, Douglas, Isle of Man, IM1 2SL, British Isles

Tel: +44 (0)1624 643333. Calls may be recorded

Fax: +44 (0)1624 643444


Website: www.axa-iom.com

Established in July 1992, AXA Isle of Man Limited operates from the secure and tax-efficient environment of the Isle of Man. A member of the global AXA Group, one of the world’s largest insurance groups, AXA Isle of Man manages in excess of £6.3bn for over 30,000 customers (as at 31 December 2009). AXA Isle of Man has 18 years’ experience of providing award-winning flexible, cost-effective products for the customers of financial advisers. A member of the Manx Insurance Association (MIA) and the Association of International Life Offices (AILO), the company works within the offshore industry to help educate the market in key areas such as the uses and tax treatment of offshore bonds.

Product offeringsThe Estate Planning Bond is an offshore investment solution that may be suitable for clients seeking to mitigate the effects of inheritance tax on their estates. Evolution is an offshore portfolio bond that offers a range of investment options for individual, corporate and trustee investors. The Regular Investment Account is a flexible offshore bond that accepts regular as well as single premiums.

Company name: Prudential International Assurance

Address: Montague House, Adelaide Rd, Dublin 2, Ireland

Advisers tel: +44 (0)808 234 2200

Non-UK advisers fax: +44 (0)808 234 0000

Website: www.pruadviser.co.uk/international

Prudential International is part of the Prudential Group, one of the UK’s largest and best-known financial services organisations. As a group, Prudential has been managing money for over 160 years. It has in excess of £309bn of funds under management (at 30 June, 2010).

Product offeringsPortfolio Account is an open architecture bond with access to over 2,500 funds. Its key features include a choice of four flexible charging options, annual management charge (AMC) rebates and discounted fund terms. AMC rebates are not guaranteed and are subject to change.International Prudence Bond provides a range of risk-graded unit-linked funds, from Prudential and other leading fund managers. These include the PAC with-profits funds and the PruFund range of funds, each available in sterling, euro and US dollar. Flexible Protection Bond and Flexible Life Plan are Prudential’s single and regular premium whole of life protection plans. Both offer a selection of investment funds and a single or joint life basis.All the funds available for the company’s products grow largely tax-free.It also offers a range of trusts for inheritance tax planning.

Company name: Legal & General International (Ireland) Ltd

Address: Beaux Lane House, Lower Mercer St, Dublin 2, Ireland

Tel: +44 (0)845 674 0803

Fax: +44 (0)845 674 0804

Website: www.legalandgeneralinternational.comEmail: [email protected]

Legal & General International (Ireland) Limited was established in July 2007. It currently offers international investment and tax planning solutions to investors who are resident in the UK, Channel Islands or Isle of Man. The company is a subsidiary of the Legal & General Group Plc, which was established in 1836 and is one of the UK’s leading financial services companies. As at 31 Dec, 2010, Legal & General Group was responsible for investing £365bn worldwide on behalf of investors, policyholders and shareholders. It also had over 7 million customers in the UK for life assurance, pensions, investments and general insurance plans.

Product offeringsInternational Portfolio Bond: Provides a tax-efficient wrapper with a choice of charging structures and investment in a wide range of assets. The International Portfolio Bond also offers access to the UK’s largest independent fund platform, Cofunds. The value of investments in these products is not guaranteed and customers may not get their full money back.

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Company name: Alliance & Leicester International Limited

Address: PO Box 226 ,19/21 Prospect Hill, Douglas, Isle of Man, IM99 1RY

Tel: + 44 (0)1624 641 888 • Fax: + 44 (0)1624 663577

Website: www.alil.co.im

The Alliance & Leicester Group has offered offshore savings from the Isle of Man since 1990. Alliance & Leicester International Limited (ALIL) was incorporated in November 1996 and offers a range of offshore savings solutions to personal customers. From its office in Douglas, ALIL serves account holders in well over 100 countries worldwide.

Alliance & Leicester International Limited is a wholly owned subsidiary of Santander UK plc.

Product offeringsCompetitive interest rates on a wide range of offshore accounts, including all major currencies.

Company name: Clydesdale Bank International

Address: Clydesdale Bank International, Regency Court, Glategny Esplanade, St Peter Port, Guernsey, GY1 3ZU

Tel: +44 (0)1481 754910


Website: www.clydesdalebankinternational.com

Clydesdale Bank International is a branch of Clydesdale Bank, part of the National Australia Bank Group – one of the world’s largest banking groups by market capitalisation. We offer savings accounts suitable for individuals, companies and trusts and our savings accounts are suitable for inclusion within offshore bonds. Clydesdale Bank International is a participant in the Guernsey Banking Deposit Compensation Scheme* (details are available from our office on request).

Product offeringsWe offer a range of savings accounts and fixed term deposits with competitive rates, from instant savings accounts to five-year fixed term deposits for £. In addition, we offer $, C$, €, A$ and NZ$ instant savings accounts. We offer current accounts with internet banking and debit cards in £, $, €, A$ and NZ$.* Deposits with Clydesdale Bank International are not covered by the Financial Services Compensation Scheme established in the UK under the Financial Services and Markets Act 2000

Company name: William Russell Ltd

Address: William Russell House, The Square, Lightwater Surrey, GU18 5SS, UK

Tel: +44 (0)1276 486455

Fax: +44 (0)1276 486466


Website: www.william-russell.com

Contact: James Cooper, sales director

William Russell are specialists in international life, income protection and health insurance for expatriate individuals and groups. Our commitment as a global partner supports both our customers and advisers. We offer award-winning international insurance plans for expatriates of all nationalities, and exceptional support for IFAS and our customers.

Product offeringsInsurance plans providing a level of flexibility and worldwide cover expatriates need to protect their standard of living and their well-being, including Global Life Insurance, Global Income Protection and Global Health insurance.

Company name: Standard Bank Offshore

Address: Standard Bank House, One Circular Road, Douglas, Isle of Man

Tel: +44 (0)1624 643668


Website: www.standardbank.com/offshore

Contact: John Hall, director intermediary distribution

At Standard Bank, we understand that people with international lifestyles have individual requirements and that no two expatriates’ needs are the same. Standard Bank Offshore is ideally placed to help you make the most of your changing circumstances. Our products and services are specifically designed to make your financial arrangements simpler and also to assist you in taking advantage of any benefits that your new status may present.

Product offeringsWe have specifically designed a flexible range of bank accounts to hold your cash in any major currency. Our accounts will meet your needs, whether you wish to access money on a regular basis, or are saving for the longer term. We also have a range of structured products, fund investments and lending services.

Company name: Standard Life International

Address: 90 St Stephen’s Green, Dublin 2, Ireland

Tel: +44 (0)845 300 4273 • Fax: +353 (1) 475 4025


Website: www.slinternational.ie

Standard Life International is an Irish life assurance company wholly owned by Standard Life Assurance Limited, which has been set up to sell insurance business from its base in Ireland into the UK, Channel Islands and the Isle of Man. The Standard Life group of companies has been looking after its customers for over 185 years and currently has over 6 million people worldwide relying on them for their financial needs.

Our impressive parent means that we attach a great deal of importance to excellent customer service and quality products. Standard Life International was awarded Best Adviser Support and Customer Services from International Adviser for their International Bond in 2010. Our International Bond has been rated 5 Star by Defaqto for the past 2 years.

Product offeringsOur core product is the International Bond. This is an offshore portfolio bond that provides a tax-efficient wrapper with a transparent charging structure payment flexibility (including recurrent single premiums) and flexible commission options. Your clients can choose from a wide choice of investments including Insured funds, Mutual funds, whole-of-market funds, deposit accounts and have access to a panel of Discretionary Investment Managers. A comprehensive range of trust options is also available, which can be adapted to help meet your client’s estate planning needs.

Company name: CMI Insurance Company Limited

Address: Clerical Medical House, Victoria Rd, DouglasIM99 1LT, Isle of Man

Tel: +44 (0)1624 638888 • Fax: +44 (0)1624 625900

Website: www.scottishwidows.co.uk/ifa

Clerical Medical and Scottish Widows have combined forces operating under the Scottish Widows brand. CMI Insurance Company Limited (CMI) is Scottish Widows’ specialist offshore insurance company. Set up in 1987, it has over 20 years of offshore expertise into the UK market.

Financial strengthScottish Widows is one of the longest established providers in the country. It is part of the Lloyds Banking Group, one of the biggest financial service providers in the UK – providing strength and security. The Group has over 30 million customers and is the UK’s leading provider of current accounts, savings, personal loans, credit cards and mortgages. Scottish Widows and Clerical Medical have £4.3bn free capital, as at the end of 2008, well in excess of regulatory solvency requirements.

Product offerings (UK, Channel Islands and Isle of Man)CMI Global Investor – a flexible tax-efficient offshore, single premium portfolio bond offering almost unlimited fund choice.CMI Corporate Investor – an offshore, single premium bond intended specifically for UK corporate investors.A comprehensive range of trust plans including Gift Trust, Loan Trust, Discounted Gift and Income Trust, Excluded Property Trust and Probate Trust.

BANK LISTINGSLIFE LISTINGS

l Complimentary for advisersl Limited number of places availablel Attendance is through registration onlyl Morning event ending with a lunch

To register for your complimentary place please go to http://events.lastwordmedia.comFor further information please contact [email protected]

or by phone on +44 (0)20 7065 7564

South AfricaQROPS Forum

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20 OCTOBER 2011

settle for moreIf you are based in South Africa and have clients with UK pensions, then you need to keep up to date with QROPS.The International Adviser QROPS Forum in Cape Town will bring together a group of experts so you can get the latest information on how best to use these highly flexible international pension products.

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Interested in selling your insurance broker practice… Or at least interested to partner with a larger organisation who can help you with your exit strategy… Regardless of where your business is located?

Elite Capital Solutions, a growing international wealth management force with offices in Dubai, Hong Kong, Singapore and Malaysia, are rapidly expanding their insurance broker, investment advisory/asset management model and looking to acquire or otherwise partner with established insurance broker businesses. Using leading, cutting-edge technology with some of the biggest names globally, Elite’s business model is everything that you would expect from a high-end broker, investment advisory business. The Elite group are in a unique position to offer an established business owner the opportunity to either sell their business or consolidate with a larger partner, with a very specific plan on how to maximise value over a period of time in order for them to retire and achieve a level of financial outcome that they might currently think is unachievable.

Opening discussions with Elite may give you additional opportunities you otherwise may not have been able to consider. With the support of a listed UK investment bank plus other international institutions the Elite group is worth talking to.

Send your business details to [email protected] or phone our chief executive officer, Mr. Phil Neilson, at (852) 90331964 for a strictly confidential and private discussion. Elite Capital Solutions HK Ltd, 15F Printing House, 6 Duddell Street, Central, Hong Kong. Website: elitecapitalsolutions.com

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RECRUITMENT


The number of Britons arrested overseas fell by more than 10% in the 12 months to the end of March, as overseas jour-neys fell, but the UK’s Foreign Office said its staff still handled 5,700 arrest cases abroad last year.

The Philippines was the country in which Britons were most likely to require assistance, when visitor and resident numbers are taken into account, followed, in order, by Thailand, Pakistan, Cyprus, India and Spain. In terms of absolute numbers, though, Spain

BY HELEN BURGGRAF

Spain remained the top retirement destination for Britons last year, despite its debt woes, youth unem-ployment, falling residen-tial property prices and a backlog of unsold newly-built homes, data mined from Standard Life’s cus-tomer base reveals.

Australia, which was not in Standard Life’s top five retirement destinations last year, is now the second most popular place for Britons who have retired abroad, according to the life insurance giant, which

While average investors are only too happy to invest in the world’s major foreign markets, they are not always comfortable with the greater volatil-ity and uncertainty such investments typically incur.

Over the past decade we have seen a number of major market fluctuations over short periods, such as during the dotcom crash in 2000-01, the banking crisis in 2008 (which ultimately led to a major global reces-sion), and most recently, an international stock market collapse rooted in concerns over the level of debt held by such coun-tries as Greece, Italy, Spain, Cyprus and even the US.

For advisers, the ques-tion is how you manage client portfolios during volatile times – particular-ly when your clients are expecting you to deliver realistic growth, no matter what is happening on Wall or Threadneedle streets.

At Christchurch, we have had to adapt our busi-ness to these changing con-ditions, and now structure client portfolios on an asset allocation basis, whereby capital is spread between all the major asset groups.

The idea is that since these asset classes are not correlated, one sector should be rising, or at least holding its value, as anoth-er one tumbles.

The percentage in each asset class is dictated by the client’s risk profile and investment objectives. Fund selection is also a key requirement, and our proc-ess is to select the top quar-tile funds within each asset allocation class, and regu-larly monitor the chosen funds’ performances.

Last but not least, we strive never to forget that we are in the people busi-ness, and managing clients’ expectations is ultimately as important as the construc-tion of their portfolios.

Keeping your head when all about you are losing theirs

Spain remains top spot for UK retirees: Standard Life

Tony Shah, associate director, international division, at Christ- church Investment Management, shares his strategy for advising during times of volatility

OPINION


topped the list for Britons in trouble, with 4,971 cases requiring consular assist-ance – down 5.9% from the previous year.

Although down by 20% overall, drug arrests con-tinue to be a significant

Britons still getting into trouble overseas

looked at where its cus-tomers were asking their annuity payments to be sent.

Compared with last year’s list, France dropped to fourth place from second, the US stayed in third place, Ireland remained in fifth place, and Canada dropped out of the top five.

In order, the top 20 countries to which Standard Life sends annuity payments are: Spain, Australia, the US, France, Ireland, Canada, New Zealand, Cyprus, South Africa, Germany, Italy, Portugal, Thailand,

Switzerland, Greece, Jamaica, Netherlands, Sweden, Barbados and the Philippines.

Standard Life head of pension policy John Lawson emphasised that making the dream of retir-ing abroad come true requires careful planning and advice.

“Many people think living abroad is cheaper than living in the UK, but this is not always the case,” he added.

Just over 3,000 cus-tomers were included in the data, a Standard Life spokesman said.

problem for UK citizens in some countries, particularly in parts of South America and the Caribbean, where a high proportion of total arrests are drug related, the annual ‘British Behaviour Abroad’ report showed.

Although fewer Britons travelled outside the UK during the past year, the number of those hospital-ised abroad grew by 1.7% to 3,752 cases, the Foreign Office noted. A total of 5,972 died abroad, up from 5,930 the previous year. Lost and stolen passports fell slightly, to 25,969.

+44 (0)20 8209 [email protected]

www.overseaspension.com

The Overseas Pension Scheme, Fairbairn House, PO Box 192, Rohais, St Peter Port, Guernsey. GY1 3LT

Winner: Best QROPS Provider 2011Winner: Best QROPS Provider 2011


Rank Country Cases

1 Spain 4,971

2 US 1,673

3 France 1,283

4 Thailand 967

5 Greece 797Source: Foreign & Commonwealth Office

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Intl Adviser September

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