www.cfal.com

2011 OUTLOOK CAUTIOUS GROWTH AHEAD The Bahamas and many other coun-tries around the globe have been grap-pling with a severe recession for more than two years. An economic assess-ment of The Bahamas carried out re-cently by the IMF noted that in 2009 tourist arrivals had declined by 10% and foreign direct investment con-tracted by over 30%, resulting in shard reduction in GDP (Gross Domestic Prod-uct) by about 4 ½ %. The slowdown in economic activity led to double-digit unemployment in all sectors of the economy, but most notably in the tour-ism and construction sectors.

Any attempt to form an opinion on the economic outlook for The Bahamas over the next year must, of necessity, reference the outlook for the US econ-omy together with an examination of some of the leading economic indica-tors in the local economy. The strong relationship between performances in the US economy and that of The Baha-mas cannot be overstressed. More than 55% of our GDP is derived from the tourism sector and up to 85% of expenditure in that sector is derived from travellers, mostly air-travellers, from the United States. That compo-nent of expenditure, together with local consumption, accounts for about 75% of our GDP. The other major compo-nents of GDP are investments (both foreign and local) and government spending.

Performance of the US economy and its impact on The Bahamas

A recent economic study using a model that linked developments in the US with stopover arrivals in The Bahamas sug-gests that stopover arrivals in The Ba-hamas for 2011 could grow by as much

NEW YEAR HOW TO’s HOW A MODERN PROFESSIONAL SETS CAREER RESOLUTIONS  

UNDERSTAND YOUR COMPANY’S GOALS Within the next two weeks, ask your boss “What can I do to help you and your team reach the company’s goals and succeed this year?” This sends a clear message that you are ready to bring value and make a difference. It also forces your boss to see you in a different light and look for ways to best utilize your talents and skills. This  can open doors to new responsibilities. 

1

as 5% if the current projection for growth in the US economy materializes at 2.6% p.a. For the period January to October, 2010 stopover arrivals had already increased by 4.3%. It should be noted, however, that the US growth rate is dependent on employment levels in that country which have remained stub-bornly far above 9% for the last several months. An added concern for the US

and the rest of the western world would be any large escalation in commodity prices, especially the price of oil due to increasing demand by the newly emerg-ing economies of China and India. With persistently high unemployment levels in the US, consumer confidence re-mains subdued and that, together with high household debt and the depressed housing markets, would tend to indi-cate that discretionary expenditure on items such as travel to The Bahamas

are not likely to increase dramatically over the next year.

Consumption in The Bahamas in 2011

If we accept that US travel to The Baha-mas this year is likely to grow but not dramatically, then we need to examine the local consumption component in order to obtain a sense of what are the growth possibilities for 2011. Our con-

sumption patterns locally are depend-ent on the level of national income, which in turn is a function of the unem-ployment level. Early on in the reces-sion, unemployment was reported at 14.6% in New Providence and over 18% in Grand Bahama. It’s likely that figure has not been reduced to date and, therefore, it is conceivable that people have less to spend on goods and services over the next few months.

cont’d page 12

2 / THE ADVISOR Q1 / 2011

THE CFAL ADVISOR

Any attempt to form an opinion on the economic outlook for The Bahamas over the next year must, of necessity, reference the outlook for the US economy

You don’t need a long list of career resolutions to stay in the game in 2011. Your career success can be achieved with one resolution — Resolve To Make Yourself                  Indispensable!  In doing so your employer will forced treat you better and compensate you fairly. And if this period of economic decline continues to  negatively   impact your organization, it could ensure that you will be one of the last persons to be shown the door. 

2010 saw a recovery in the financial markets locally and internationally, with commodities outperforming all sectors. Capital Market Activities

Heineken International acquires the ABDAB holdings in Commonwealth Brewery and Burns House a deal estimated at over $100 million.

Island Traders Limiteds headed by Mark Finlayson takes control of the City Market chain of food stores.

General Insurers Bahamas First and Royal Star Assurance raise $15 million and $5 million, respectively. Focol Holdings also taps the market for $5 million. Conglomerate Sunshine Holdings also raises capital in the local market.

Nassau Airport Development Company raises $165 million senior secured Notes for the development of the Airport.

Government forms a partnership with private companies coming to establish a new Sea Port Development expected to raise over $30 million in 2011. Government also taps the capital markets, raising $100 million to bring direct local Government debt to $2.404 billion.

Baha Mar signs agreement with China Development Bank for the development of a world class resort valued at $2.5 billion.

A joint venture between the Bahamas International Stock Exchange, CFAL and Royal Fidelity forms the Bahamas Central Securities Depository.

RND Holdings Limited sells majority interest in the company to Colina Insurance Limited.

2010/2011 Investment Review and Preview

Q1 / 2011 THE ADVISOR / 3

THE CFAL ADVISOR

ELIMINATE “THAT’S NOT MY JOB” FROM YOUR VOCABULARY Talk about instant turn‐off! Become branded as the go‐to‐person and im‐mediately increase you value to your employer. Don’t be reluctant to take on projects that are outside of your job description. Better yet, be proactive and volunteer for assignments.  

2 PURSUE SELF DEVELOPMENT EVEN IF YOU HAVE TO PAY FOR IT 2011 is not the year to sit back and wait for Human Resources to “send” you to training. When you schedule that meet‐ing with your boss, you should leave with a better understanding of where your organization is heading and the skills required to do the job.  

3 DON’T UNDERESTIMATE THE VALUE OF ‘SOFT SKILLS’ Soft or “people skills”, are personal attributes that enhance one’s job performance. Hard skills may get you in the door, but often it’s the soft skills like leadership, communication, flexibility and time management that get give you the competitive edge.  

4

BY STACIA WILLIAMS  TOTAL IMAGE MANAGEMENT       stacia@totalimagemanagement.com  

Legislative and Regulatory Developments (Reprinted with permission from the Bahamas Financial Services Board) The legislative agenda during the course of the year covered several pieces of industry and business-relevant legislation. Some 2010 Highlights:

The BFSB Arbitration Committee worked closely with the Office of the Attorney General and the Bahamas Maritime Authority to develop a comprehensive and modern Arbitration Act 2009 and Arbitration (Foreign Arbitration Awards) Act 2009. Both became law in 2010. The services of Watson Far-ley & Williams were secured and proved invaluable during the consultation process.

The Funds Working Group worked diligently to affect recom-mended changes to the funds regime and the Investment Funds (Amendment) Act, 2010 was enacted to redefine and clarify certain words and phrases and for connected purposes. The act clarified the definition of Non-Bahamas-Based Funds, Recognised Foreign Funds and Professional Funds; it also amended the audit filing deadlines.

The latest market oriented development was the Central Bank’s issuance of its “Guidance Notice on the Waiver of the Minimum Number of Shareholders Requirement for Appli-cants for a Restricted Bank and/or Trust Company Licence”. The review and adjustment of the regime was based on a risk based analysis of this specific class of licensee.

Some Other legislation: External Insurance Act, 2009/External Insurance Regulations, 2010: To provide The Bahamas with state of the art legal and administrative machinery with which to compete in the inter-national insurance market; for example, it establishes a clear and efficient structure whereby a captive insurance (or rein-surance) company covering risks outside of The Bahamas, may be established in the jurisdiction. IBC (Amendment) Act, 2010: To clarify striking off and restora-tion powers of the Registrar General and the payment of re-lated fines. Business Licence Act, 2010: To simplify the legal and regula-tory requirements to operate a business and to facilitate a “one stop shop” for business licence applications. (Repeals and replaces previous Business Licence Act). cont’d page 8

CFAL QUARTERLY MARKET RECAP

Continuing its general downward trend which began in Q1 2008, the BISX All-Share Index experienced a decline of 67.26 points or 4.43 percent to close at 1,449.51. This decline com-pletely wiped out the previous quarter’s meager gain of 0.79 percent and represents the 8th quarterly loss out of the last 12 trading quarters. Trading volume was extraordinarily high this quarter as 2,079,704 shares crossed the exchange over 215 trades to accumulate a value of $13,852,053.80 compared to last qu.arter’s exchange of 700,154 shares over 189 trades to accumulate a value of $2,962,056.46. Market capitalization decreased 0.27 percent or $8 million to $2.928 billion.

During the quarter, 15 of the 18 publicly traded companies experienced activity, resulting in two price advancements and eight price declines. The star performer this quarter was ICD Utilities Limited (ICD) which gained $1.81 or 32.38 percent to close at $7.40 as a result of Lady St. George selling her sub-stantial interest in the company to the Canadian based energy firm, Emera which now has a controlling interest in the Grand Bahama Power Company. This single share transfer skewed the total trading volume for the quarter as mentioned earlier. Commonwealth Bank Limited (CBL) followed, adding $0.40 or 6.06 percent to close at $7.00 ending the year unchanged year-over-year. The biggest percentage decline for the quarter was realized by Doctors Hospital (DHS) which suffered a loss of $0.30 per share or 15.79 percent to end at a new 52-week low of $1.60. FINCO (FIN) followed, dropping $1.27 or 14.94 percent to $7.23. Bahamas Waste (BWL) retracted $0.45 or 14.29 percent to $2.70. Other laggards to performance were Colina Holdings Bahamas Limited (CHL) -4.00 percent, AML Foods Limited (AML) -3.96 percent, FirstCaribbean Interna-tional Bank (CIB) -3.59 percent, Consolidated Water (CWL) -3.17 percent, and J.S. Johnson (JSJ) -1.01 percent.

Accordingly, ICD was the volume leader this quarter as 1,077,567 shares or 51.81 percent of total volume traded over just 6 trades to accumulate a value of $7,967,388.30. FirstCaribbean International Bank (Bahamas) Limited (CIB) continues to hold the largest market share, making up 38.55 percent of the market capitalization at quarter end.

CORPORATE ACTIONS Ordinary Dividend Payments: • J.S. Johnson (JSJ): $0.16 per share to all ordinary shareholders of

record October 8th, 2010 paid October 15th, 2010. • Consolidated Water BDRs (CWCB): $0.015 per share to all ordinary

shareholders of record October 1st, 2010 paid November 5th, 2010.

• Focol Holdings Ltd. (FCL): $0.07 per share to all ordinary share-holders of record October 29th, paid November 9th, 2010.

• FamGuard Corporation Limited (FAM): $0.06 per share to all ordinary shareholders of record November 10th, 2010 paid No-vember 17th, 2010.

• Commonwealth Bank Limited (CBL): $0.03 per share to all ordi-nary shareholders of record November 18th, 2010 paid Novem-ber 30th, 2010.

• Colina Holdings Ltd. (CHL): $0.08 per share to all ordinary share-holders of record December 10th, 2010 paid December 17th, 2010.

• Cable Bahamas (CAB): $0.08 per share to all ordinary sharehold-ers of record December 15th, 2010 paid December 31st, 2010.

• Commonwealth Bank Limited (CBL): $0.05 per share to all ordi-nary shareholders of record December 17th, 2010 paid Decem-ber 31st, 2010.

Preferred Dividend Payments: • Focol Holdings Ltd. Preference B payment of record October

15th, 2010 paid October 18th, 2010 • Colina Holdings Ltd. Preference payment of record September

30th, 2010 paid October 12th, 2010 • Cable Bahamas Series 1 USD & BSD Preference share pay-

ment of record October 15th, 2010 paid October 31st, 2010. • Commonwealth Bank Limited (CBL): A quarterly payment to

Preference A, B, C, D, E, F, G, H and I shareholders of record December 17th, 2010 paid December 31st, 2010.

• Royalstar Assurance semi-annual payment for the period July 1st, 2010 to December 31st paid December 30th, 2010.

BISX Index

Dec. 31, ‘10

Quarterly %

YTD %

Market Cap $

1,499.51 -4.43 -7.402 2.928 bn

MARKET MOVERS

Advancers 2 Decliners 8 Unchanged 8

4 / THE ADVISOR Q1 / 2011

THE CFAL ADVISOR

BISX All Share Index

1,350.00

1,400.00

1,450.00

1,500.00

1,550.00

1,600.00

1,650.00

Dec-09 Mar-10 Jun-10 Sep-10 Dec-10

Quarter IV 2010 Volume leaders

ICD

CBL

FCL

CHL

0 200,000 400,000 600,000 800,000 1,000,000 1,200,000

1

Volume - No. Shares

Company Name

This Quarter Closing Price

Dec 2010

Previous Quarter Closing Price

Sep 2010 Change % 52-Week High/

low

Volume Traded During

the Quarter ADVANCERS

ICD Utilities Ltd. $7.40 $5.59 +32.38 7.40/5.00 1,077,567 Commonwealth Bank Limited $7.00 $6.60 +6.06 7.00/ 5.40 458,826

DECLINERS Doctors Hospital Health System $1.60 $1.90 -15.79 2.55/1.60 68500 FINCO $7.23 $8.50 -14.94 10.20/ 7.23 10,950 Bahamas Waste $2.70 $3.15 -14.29 3.49/2.70 12,500 Colina Holdings $2.40 $2.50 -4.00 2.84/ 2.36 81,111 AML Foods Limited $0.97 $1.01 -3.96 1.26/ 0.97 4,750 FirstCaribbean International Bank $9.39 $9.74 -3.59 11.40/ 8.77 3,500 Consolidated Water BDRs $1.83 $1.89 -3.17 3.65/ 1.63 3,500 J.S. Johnson $9.82 $9.92 -0.10 10.50/ 9.82 7,750

UNCHANGED Bahamas Property Fund $10.63 $10.63 0.00 10.75/9.67 Cable Bahamas $10.77 $10.77 0.00 12.50/9.62

Famguard $6.07 $6.07 0.00 6.99/5.94 Premier Real Estate $10.00 $10.00 0.00 10.00/10.00 Bank of The Bahamas $4.90 $4.90 0.00 6.18/4.50 FOCOL $5.46 $5.46 0.00 5.51/3.75

Fidelity Bank $2.17 $2.17 0.00 2.17/2.14 Benchmark Bahamas $0.18 $0.18 0.00 0.58/0.18

• Sunshine Holdings semi-annual payment for the period July 1st, 2010 to December 31st paid December 29th, 2010.

• Cable Bahamas Series 5 Preference share payment of record December 15th, 2010 paid December 31st, 2010.

• Famguard Preference share payment of record December 10th, 2010 paid December 17th, 2010.

International Market Overview October 1-December 31, 2010 In the international markets, rising corporate profitability along with gradual improvements with employments levels and in-creased stimulus measures helped to ease renewed concerns of a double dip recession. This mosaic of improving fundamen-tals increased confidence amongst consumers and investors alike allowing the global equities markets to generally continue rising. The Dow Jones Industrial Average continued its climb

increasing 789.50 points or 7.32 percent quarter over quarter to close at 11,577.50. The S&P 500 soared 116.44 points or 10.20 percent to end at 1,257.64. The NASDAQ Composite Index gained 284.25 points or 12.00 percent to settle at 2,652.87. The Toronto Stock Exchange added 1,074.50 points or 8.69 percent to 13,443.20. In the Euro zone, the Euro Stoxx 50 gained 44.92 points or 1.63 percent higher at 2,792.82 while the FTSE 100 rose 351.32 points or 6.33 percent to 5,899.94. The Nikkei 225 climbed 859.57 points or 9.17 per-cent to 10,228.92. Commodities again closed up this quarter as Crude Oil ended at $92.22 per barrel after a gain of $9.01 or 10.83 percent while investors continue to turn to Gold as a safe haven sending prices up $112.43 or 8.59 percent to end at $1,420.78 per oz.

Dec 31, 2010

Quarterly % YTD% YOY%

DJIA 11,577.5 +7.32 +11.02 +11.02

S&P 1,257.64 +10.20 +12.78 +12.78 NASDAQ 2,652.87 +12.00 +16.91 +16.91 S&P/ TSX 13,443.20 +8.69 +14.45 +14.45

Nikkei 225 10,228.92 +9.17 -3.01 -3.01 Euro Stoxx50 2,792.82 +1.63 -5.81 -5.81 UK-FTSE 100 5,899.94 +6.33 +9.00 +9.00

Q1 / 2011 THE ADVISOR / 5

THE CFAL ADVISOR

US Indices

0.00

2,000.00

4,000.00

6,000.00

8,000.00

10,000.00

12,000.00

14,000.00

Dec-09 Mar-10 Jun-10 Sep-10 Dec-10

DJIA

S&P 500

Nasdaq

THE CFAL ADVISOR

6 / THE ADVISOR Q1 / 2011

CFAL FUND REVIEW

Performance Analysis QTR4 Y-T-D 1 Year

Fund +0.45% +0.05% +0.05%

Benchmark -1.17% -4.31% -4.31%

+/- Benchmark +1.62% +4.37% +4.37%

CFAL Growth Fund | As of December 31, 2010

Fund Composition Composition by Sector

Performance Analysis QTR4 Y-T-D 1 Year

Fund 1.25% 4.50% 4.50%

Benchmark 0.83% 3.51% 3.51%

+/- Benchmark +0.42% +0.99% +0.99%

CFAL Money Market Fund | As of December 31, 2010

Fund Composition Investment Type

Performance Analysis QTR4 Y-T-D 1 Year

Fund 1.37% 6.08% 6.96%

Benchmark 1.47% 5.88% 5.88%

+/- Benchmark -0.10% +0.20% +0.20%

CFAL Bond Fund | As of December 31, 2010

Fund Composition Investment Type

Performance Analysis QTR4 Y-T-D 1 Year

Fund +0.98% +2.92% +2.92%

Benchmark +1.10% -0.19% -0.19%

+/- Benchmark -0.12% +3.11% +3.11%

CFAL MSI Fund | As of December 31, 2010

Fund Composition Composition by Sector

Performance Analysis QTR4 Y-T-D 1 Year

Fund +1.22% +11.32% +11.32%

+/-Benchmark -2.18% +11.23% +11.23%

+/- Benchmark +3.40% +0.09% +0.09%

CFAL Global Bond Fund | As of December 31, 2010

Sector Allocation Credit Quality

Performance Analysis QTR4 Y-T-D 1 Year

Fund +4.61% +9.58% +9.58%

+/-Benchmark +10.20% +12.78% +12.78%

+/- Benchmark -5.59% -3.20% -3.20%

CFAL Global Equity Fund | As of December 31, 2010

Fund Composition Equity Sector Exposure

CFAL Launches 3rd USD Fund

Donation to Children’s Home

Investment Department Grows

Employee of the Year Named

Q1 / 2011THE ADVISOR / 7

THE CFAL ADVISOR

CFAL Makes Donation to Bahamas Children’s Emergency Hostel

The Children’s Emergency Hostel received a welcomed dona-tion this past December from employees of CFAL. Sophia Thurston, VP Pension/Operations noted that CFAL staff make Nassau’s children’s homes the focus of the company’s annual end of year donations programme, although it has a year round commitment to charitable gifts. CFAL became aware of the Hostel’s need further to an article posted in The Nassau Guardian in which the Hostel indicated a slowdown in donations due to the recession.

CFAL’s Sophia Thurston, VP Pension/Operations (right) and Jomarie Thomp-son (left), both of CFAL, present a cheque to Ms. Ferguson of the Children’s Emergency Hostel. CFAL staff make children’s homes the focus of the com-pany’s annual end of year donations programme.

CFAL PREPARES TO LAUNCH THIRD USD FUND CFAL expects to launch its third USD Fund during the first quarter. The Fund, which will be know as the CFAL Global Asset Allocation Fund, will add to the divesity of the CFAL Mutual Funds offering, which currently includes a Global Bond Fund and a Global Equity Fund.

The objective of the Global Asset Allocation Fund is to gener-ate high, uncorrelated, risk-adjusted returns over a range of timeframes. The approach leverages tools in both “traditional” and “alternative” asset management models with enhanced risk management and client flexibility.

The Strategy invests across a number of asset classes includ-ing Global Equities, Global Fixed Income, Commodities and Currencies.

Investment Department Welcomes New Additions 

During the last quarter of 2010 CFAL welcomed Jeanelle Francis (l) and Giovanah Evans (r) to its Brokerage & Trading Team.

Mrs Francis, a member of the firm’s investment committee, joined CFAL in October 2010 in the capacity of Supervisor, Brokerage & Trading. She has over 9 years of experience in fund accounting, pricing analysis and corporate services. She is also a member of the CFA Society of the Bahamas and is a level III candidate in the CFA programme.

Ms Evans, a Stock Broker/Trader holds a BBA, Accounting degree from Acadia University and an MBA, Finance from Nova Southeastern University. She has also completed the Series 7 Certification and is a level I candidate in the CFA programme. She is also just one examination away from completing her Boat Masters qualification — so we suppose you can have a sense of security with Giovanah on land or at sea!

Tiffany Smith Named Employee of the Year As a company focused on quality

client service and sound financial planning advice, CFAL rewards employees who deliver this import- ant duo with consistency and profes-sionalism. At the end of 2010, the Company named Portfolio Assistant Tiffany Smith Employee of the Year.

Finalists included Richard Pinder, Operations Supervisor, Jom-arie Marshall-Thompson, Network Administrator and Shanice Cooper, Reconciliation Specialist.

The Bahamas has long been considered to be on the leading edge for providing financial services to offshore clients. Indeed with over 280 registered banks and trust companies and about seven hundred mutual funds the country is a success story by any measurement. That success however, has up to now, been concen-trated in the offshore sector but that is rapidly changing. New legislation and a change in direction of some financial service providers have focused attention on the local market with a view to introducing Bahamian residents to the world of mod-ern wealth management. As Bahamian individuals achieve financial success and build wealth through hard work and astute management, they need to take time to safeguard this wealth for their families and future generations.

Mary Rodland Head of Fiduciary Ansbacher (Bahamas) Limited

Often when I meet a friend, the question that is asked of me is not “how are you?”but “will the industry survive?” Indeed the accusations leveled by the global community towards centres such as The Bahamas have changed our value proposi-tion irrevocably. Some key reasons for coming to The Bahamas were dismantled or more difficult to access.

However, the antidote is quite simple: Make The Bahamas a compelling financial services jurisdiction for Owners of Capital – those individuals who pursue a wide range of activities, directly or indirectly related to the financial services industry.

This requires deliberation and discussion based on our desired position in the market. However, I would argue that having a competitive platform, one that is relevant to the needs of clients, and having sufficient human resources – managerial and technical talent - are key components. The opportunity for The Bahamas is to capitalise on its geographic location and market timing. Ultimately, the government must lead the way; however, the private sector must take a risk and make the investment of capital. Areas where we have not scratched the surface and the business has not settled in this region should be pursued when it represents a good fit with The Bahamas. Residence, Asset Man-agement, Arbitration and Yacht Registry are a few examples. ((Adapted from Ms. Warren’s speech at Bahamas Business Outlook Jan-2011)

Challenging Times, Emerging Opportunities Business Leaders Forecast the Coming Year

cont’d from page 3 International Tax Cooperation Act, 2010: To effect the implementation of the newly signed TIEAs and to amend The Bahamas and United States TIEA Act and Regulations Probate and Administration Of Estates Act, 2010: To consolidate the law on the proce-dures for obtaining a grant of representation in respect of the estate of a deceased person and for the administration of a deceased person's property.

8 / THE ADVISOR Q1 / 2011

THE CFAL ADVISOR

Mary Rodland Head of Fiduciary Ansbacher (Bahamas) Limited

Wendy Warren Executive Director Bahamas Financial Services Board

www.cfal.com

CAN YOU RETIRE TODAY? FACTORS TO CONSIDER 

Your health today and in the future 1 Number of years in retirement 2 Future long‐term economic               

variables — inflation, etc. 3

Ah, the key question. One rule of thumb is that you'll need 70% of your pre‐retirement yearly salary to live comfortably. It's important to make realistic estimates about what kind of expenses you will have in retirement. Be honest about how you want to live in retirement and how much it will cost. One way to begin estimating your retirement costs is to take a close look at your current expenses in various categories, and then estimate how they will change. For example, your mortgage might be paid off by then ‐ and you won't have commuting costs. Then again, your health care costs are likely to rise. From www.cnnmoney.com 

Q1 / 2011 THE ADVISOR / 9

THE CFAL ADVISOR

Our progressive nature demands that we stay fresh. Whether it’s developing new products for your financial gain or upgrading our essential business tools and services, we fully understand how even a small investment can have a big impact. If we didn’t apply the same investment principles to ourselves, how could we hold the trust that our customers have in us? Come on in and see what else is fresh at CFAL.

THE CFAL ADVISOR

THE CFAL ADVISOR

FOCUS ON HEALTH

York, PhD, a psychologist and executive coach in New York and Con-necticut. She recommends taking stock of activities that aren't really enhancing your career or personal life and minimizing the time you spend on them. You may even be able to leave work earlier if you make a conscious effort to limit the time you spend on the web and social media sites, making personal calls, or checking your bank balance. "We often get sucked into these habits that are making us much less efficient without realizing it," Stack says. 3. Rethink your errands. Consider whether you can outsource any of your time-consuming household chores or errands. Stack also suggests trading services with friends. Offer to do tasks that you enjoy or that you were plan-ning to do anyway. "You could exchange gardening services for baby-sitting services," Stack says. "If you like to cook, you could prepare and freeze a couple of meals and give them to a friend in exchange for wrapping your holiday gifts." 4. Get moving. It's hard to make time for exercise when you have a jam-packed schedule, but experts say that it may ultimately help you get more done by boosting your energy level and ability to concentrate. "Research shows exercise can help you to be more alert," Brooks says. "And I've noticed that when I don't exercise because I'm trying to squeeze in another half hour of writing, I don't feel as alert." Samantha Harris, a lawyer who works for a nonprofit organization in Philadelphia, says she recently started sneaking in a trip to the gym two or three mornings a week before her family wakes up. "It's been a real boost in terms of the way I feel for the rest of the day," she says. "I feel like my head is clearer and I've had a little time to my-self." 5. Remember that a little relaxation goes a long way. Don't get overwhelmed by assuming that you need to make big changes to bring more balance to your life. Brooks recommends setting realistic goals, like trying to leave the office earlier one night per week. "Slowly build more activities into your schedule that are important to you," he says. "Maybe you can start by spending an hour a week on your hobby of carpentry or planning a weekend getaway with your spouse once a year," he says. Stack points out that even during a hectic day, you can take 10 or 15 minutes to do something that will recharge your batteries. "Take a bath, read a novel, go for a walk, or listen to music," she suggests. "You have to make a little time for the things that ignite your joy."

5 Tips for Better Work-Life Balance Beat burnout by discovering ways to devote more time to the activities and people that matter most to you. If you're feeling overworked and finding it more challenging than ever to juggle the demands of your job and the rest of your life, you're not alone. "A lot of people are having a more difficult time finding balance in their lives because there have been cutbacks or layoffs where they work. They're afraid it may happen to them, so they're putting in more hours," says psychologist Robert Brooks, PhD, co-author of The Power of Resilience: Achieving Balance, Confidence, and Personal Strength in Your Life. "But even if you don't have much control over the hours you have to work, you can ask yourself: In what other ways am I bringing greater enjoyment into my life?" Brooks says. "Focus your time and attention on things you can control." Here are five ways to bring a little more balance to your daily routine: 1. Build downtime into your schedule. When you plan your week, make it a point to schedule time with your family and friends and activities that help you recharge. If a date night with your spouse or a softball game with friends is on your calendar, you'll have something to look forward to and an extra incentive to manage your time well so you don't have to cancel. "It helps to be proactive about scheduling," says Laura Stack, a pro-ductivity expert in Denver and author of SuperCompetent: The Six Keys to Perform at Your Productive Best. "When I go out with my girlfriends, we all whip out our cell phones and put another girls' night out on the calendar for one month later," she says. Stack also plans an activity with her family -- like going to a movie or the park -- every Sunday afternoon. "We do this because if there's nothing on the schedule, time tends to get frittered away and the weekend may end without us spending quality time together," she says. Michael Neithardt, an actor and television commercial producer in New York City, wakes up three hours before he has to leave for work so he can go for a run and spend some time with his wife and baby. "A lot of my friends tend to wake up, shower, and go straight to work. And they often complain about having no time to do anything," he tells WebMD in an e-mail. "I find that if I can get those three hours in the morning, I have a more productive and peaceful workday. I can sure tell the difference when I don't." 2. Drop activities that sap your time or energy. "Many people waste their time on activities or people that add no value -- for example, spending too much time at work with a col-league who is constantly venting and gossiping," says Marilyn Puder- By Jen Uscher, WebMD Feature

CircleVision Financial Planning TM

Corporate Advisory Services Anthony Ferguson | aferguson@cfal.com Investment & Portfolio Management Pamela Musgrove | pmusgrove@cfal.com Pension Administration Sophia Thurston | sthurston@cfal.com

Brokerage, Trading & Custodial Services Jeanelle Francis | jfrancis@cfal.com Registrar & Transfer Agency Services Escrow Services Shareholder Services Bahamas Central Securities Depository 242.322.5573

Client Relationship Manager (Freeport) Dwayne Swann | dswann@cfal.com General Enquiries Tel: 502 7000 (Nassau) | 351.8928 (Freeport) info@cfal.com | www.cfal.com

THE CFAL ADVISOR

10 / THE ADVISOR Q1 / 2011

Indeed, given a labour force of about 170,000, and per capita GDP of ap-proximately $28,000, a 13% increase in the unemployment rate translates into a sizeable reduction in spending power in the economy. That reduced spending power not only adversely af-fects sales on the retail and wholesale levels, but it also places downward pressure on government tax receipts, which could ultimately lead to a widen-ing of the fiscal deficit.

Consumption during 2011 could also be constrained because of the current debt situation as regards both house-holds and businesses. The Central Bank has noted the quality of bank loans continue to deteriorate because in a weakened economy borrowers are finding it increasingly more difficult to service their loans. As of November 2010, private sector loan arrears had escalated to about $1.17 billion or ap-proximately 19% of all outstanding loans in the local banking system. What is most disturbing about that fig-ure is that $608 million represents mortgage arrears and another $648 million is classified as non-performing loans – those where the banks have stopped accruing interest. Suffice it to say that unless and until the local debt situation improves, that portion of local consumption that depends on bank loans will continue to be challenged during 2011.

Foreign and Domestic Investment

The next important component of GDP which determines economic growth in The Bahamas is the level of foreign and

domestic investment in a given period. By examining past trends in this compo-nent it is possible to obtain a fairly good assessment of what is likely to happen in the coming year. As a proxy for do-mestic investment we could examine past and planned activities in the con-struction or mortgage market. Con-struction represents about 10% of our GDP. According to the Central Bank’s quarterly report, mortgage disburse-ments (which measure future or ongo-ing activity in the sector) by banks, in-surance companies and the Bahamas Mortgage Corporation, fell by 15% to $53 million and that follows a 32% de-cline in construction activity in 2009. Mortgage commitments, which are a forward-looking indicator, are also mar-ginally down in both numbers and value compared to a year ago. This would suggest that this sector continues to be challenged even though a number of large scale projects both in New Provi-dence and in the Family Islands have been announced. If initiated in 2011, these might provide some stimulus to this sector.

Foreign direct investment is a very im-portant component of our GDP both in terms of job creation and the contribu-tion to our balance of payments. In the last report on this item, it was noted that direct investments (which repre-sent equity investments and land sales) had declined by about 48% to $115 million at the end of the third quarter last year. It would appear, therefore, that unless those major projects come on stream, we can only expect a lack-luster contribution from this sector

throughout 2011.

Government Spending

Total government spending is currently in the region of $1.5 billion per year and consists of payments of salaries, pensions, rents and utilities as well as expenditure on capital works such as roads, docks and office buildings to-gether with subsidies to public corpora-tions such as Bahamasair, Water and Sewerage Corporation, and the Broad-casting Corporation of The Bahamas. Government spending represents about 20% of our GDP and is likely to be maintained at about that level through-out 2011.

Summary and Conclusions

By examining the major components of our GDP – Consumption, Investment and Government Spending – and mak-ing some assumptions about the ex-pected behaviour of the variables over the next year, it is possible to make only general and imprecise predictions with certain caveats. On the assump-tion that there are no major external shocks (such as terrorist threats in this part of the world) or major increases in oil prices, it is likely that the Bahamian economy would grow positively and moderately this year (the IMF estimates 2.6% growth). While that modest growth rate is unlikely to make a major dent in our serious unemployment fig-ures, it’s a starting point that the Baha-mian economy could be on the road to recovery.