Investors Trust Ad

JULY 2011

BY HELEN BURGGRAF

Two UK Treasury papers currently in consultation with the industry prom-ise to bring about a radi-cal overhaul of both the residency system and the tax treatment of non-doms living in the UK.

The first looks at creat-ing a statutory definition of tax residency, ending the current, often-criticised system in which tax experts have to make what amount to educated guesses based on looking at case law.

The second will shake up the domicile rules to

BY MARYROSE FISON

Sales of UK-distributed offshore bonds enjoyed a jump of 38% last year, as the market rebounded from its 2009 low.

Several factors con-tributed to the increase, according to life industry experts, including the UK Government’s decision to cap at £50,000 annually the amount people may con-tribute to their pensions without incurring tax. The gain also occurred in spite of concerns that the UK

The growing use of plat-forms by financial advis-ers and their international clients as a place to con-solidate their investments is reflected in the almost simultaneous coming to market this month of three new ones.

AES International, Pershing and Præmium are all in the process of going live with new platforms, which take advantage of advances in technology to provide more features and services than most older platforms currently on the market, according to spokesmen from all three companies.

All three firms also accommodate international investors, although each has its own approach and target market.

AES International has had its platform up and running – for use by the company’s own IFA net-work – for two years, according to Sam Instone, managing director at AES, who said this has enabled it to fine-tune its workings.

“But now we are launch-ing it to IFAs outside our network for the first time, beginning on 1 July,” he said.

Continued on page 5

UK orders shake-up of residency and domicile

Offshore bond sales leapt 38% in 2010

NEWSCenturion suspends redemptions on life fund 3

Dubai companies are targeting NRIs 3

Fund managers are ‘unprepared’ for FATCA 3

HMRC approves IoM’s QROPS legislation 5

New Zealand’s FMA warns pension provider 5

Equity Trust appeals against HMRC ruling 6

Isle of Man unveils marketing shake-up 6

Irish Life Int’l adds to funds on Select List 8

Kleinwort buyout of Close Offshore is completed 8

AES Int’l removes EEA fund from its list 11

US adds to expat tax reporting rules 11

Kaupthing IoM depositors claim Iceland victory 13

Lehman mini-bonds saga draws to a close 13

Kremer is elected president of EFAMA 14

Fund manager undeterred by Southern Cross 14

FPI aims to boost onshore take-up of products 17

RL360° rolls out split trust option for UK 17

Percentage of female and young HNWIs grows 56

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

Features – page 2

make it much more attrac-tive for non-doms to invest in the UK, by allowing them to bring in income from foreign investments without incurring tax, as long as they reinvest it onshore.

It will also increase the annual remittance charge levied on those non-doms who have been in the UK for at least 12 of the last 14 tax years to £50,000 annu-ally, from £30,000.

An earlier consultation, also unveiled last month, involves a plan to boost R&D and charitable dona-tions through the use of

tax authorities were con-sidering cracking down on the products and closing loopholes.

Total new premiums for all UK-distributed single-premium offshore business

rose to £6.4bn in 2010 from £4.6bn the previous year, according to new figures released by the Association of British Insurers.

This represents around half the size of the stocks and shares Isa market, which was worth £12bn in the tax year 2009-10.

Life industry experts say the rebound seen in 2010 is expected to con-tinue this year, and are planning their businesses accordingly. For more details go to www.international-adviser.com

AES, Pershing and Præmium go live with new platforms

Fabrice SauvignonThe new CEO of La Mondiale Europartner reveals his cross-border business philosophy

MD profile 21-22

tax incentives, including a reduction in inherit-ance tax when 10% or more of an estate is gifted to charity.

The IHT consultation will run until 31 Aug, while responses to the residency and domicile consultations will be accepted until 9 Sept. So far the industry response has been gener-ally positive. For more on the residency consultation, see page 31-32 for an anal-ysis by Gerry Brown, IA tax panelist and head of trust and tax at Prudential International.

Speaking ‘offshore’ A guide to some of the unusual words you might hear if you spend time in the offshore financial centres

News Analysis 18-19Dubai All but written off following the global downturn, Dubai is regaining its confidence as other Gulf centres erupt in turmoil

Country profile 25-26

UK offshore bonds

Year UK (total new premiums £bn)

’08 7.78

’09 4.63

’10 6.4

’11* 1.55Source: Association of British Insurers * First quarter only

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

PROFILESANALYSIS

Offshore terminology 18-19

In many places around the world, locals have invented words to describe the foreigners who live on their shores; these words, in turn, are often adopted by the foreigners themselves. For many, moving to live and work in offshore centres can involve learning to speak a new language – even where English is spoken

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: UK statutory residence test 31-32Historically, the rules concerning residency in the UK for taxation purposes have caused confusion and resulted in a number of high-profile court cases. This is set to change with the proposed introduction of a statutory definition of UK residency

Robert ParkerChief executive, Holborn Assets, Dubai

Sean KelleherChairman, Financial Partners Group, Dubai

Managing director profile: Fabrice Sauvignon 21-22The newly appointed chief executive of Luxembourg-based La Mondiale Europartner talks about the ‘general account’, a concept the firm has introduced to the UK that can be used to offset volatility. He sees the Retail Distribution Review as a good opportunity for cross-border life offices, allowing his company to demonstrate its values to both advisers and end customers

Mahmoud NodjoumiChairman and chief exec, Nexus Group, Dubai

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

PORTFOLIO

Fund selector: Global high yield bonds 35-38The sector may seem to provide an inexpensive way to generate income, but one cost has always been high volatility. OBSR’s Anthony McDonald analyses the top-performing funds over three years, as newcomers and by AUM

CLASSIFIEDS

Recruitment 53-55Find the job that suits you in IFA firms operating around the globe

Eleanor Wan Chief executive officer, Institute of Financial Planners 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

Country profile: Dubai 25-26While much of the Middle East and North Africa has been consumed by political upheaval recently, Dubai has proven an oasis of calm, thanks in no small part to the emirate’s ruler, Sheikh Mohammed bin Rashid Al Maktoum, who has managed to create an environment in which people are encouraged to make money and live prosperously

Intermediary profile: FEIFA 28-29As the trade association celebrates its second anniversary, chief executive Paul Stanfield talks about the success it has had in bringing together English-speaking advisers from across the continent, and in making it easier for individual members to cope with EU regulations

Life listings 50-51

Service listings 52

The IA Quality Funds 41-46

A list of the blue chips of the offshore fund world

Banking deposits 49The top-paying offshore accounts

STATISTICS

3

NEWS

EEA fund gets Singapore approvalEEA’s Life Settlements Fund has been registered for sale in Singapore. Investors there will be able to gain direct access to the absolute return fund for the first time. The fund manager is expanding in Asia and opened its first regional office in Singapore earlier this year.

Wheatley leaves HK for London roleMartin Wheatley has stepped down from his role as chief executive of Hong Kong’s Securities and Futures Commission. He is returning to the UK to head up the Financial Conduct Authority, which will replace the FSA, in September.

IFIA planning to open five new officesThe Irish Funds Industry Association is to open representative offices in the US and the UK in a joint venture with IDA Ireland, the Irish government’s inward investment agency. The association will have representatives on the ground in New York, Boston, Chicago, Atlanta and London.

Vistra Jersey acquires Herald fundsVistra Jersey has acquired funds under the administration of Herald Fund Services, a member of the Herald Group in Jersey. Existing clients and Herald’s fund administration staff will join Vistra in July.

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

www.international-adviser.com

BY HELEN BURGGRAF

The Malta Financial Services Authority has been drawn into an increasingly fierce row between hundreds of investors in a poorly-performing property fund – managed by a Bank of Valletta (BoV) joint ven-ture with UK-based Insight Investment Management (Global) – and the bank.

The battle over the La Valette Multi-Manager Property Fund is being seen by some as a test of the MFSA’s proficiency as a regulator at a time when Malta, which joined the EU in 2004, is seek-ing to establish itself as a world-class financial serv-ices centre.

Events were continuing to unfold as IA went to press, because a settlement offer announced in May by the BoV to buy back shares in the beleaguered fund from the investors, at a price of €0.75 ($1.07) a share, was due to expire on 30 June.

Many investors were said to be reluctant to accept what they regarded as an inadequate price for their shares, particularly while full details of the findings of an MFSA investigation into the BoV fund were only just beginning to be made available, although only to certain investors. This was an about-face by the MFSA, which initially said it would only publish the conclu-sions of its investigation.

Following its inves-tigation, the MFSA said last month that it was to fine the BoV and Valletta Fund Management €347,816 for regulatory breaches in connection with the fund, which, though not significant by international standards, was said to be the largest fine ever imposed by the MFSA in such a case.

Malta FSA gets dragged into battle over La Vallette fund

BY SIMON DANAHER

Centurion Fund Managers has temporarily suspend-ed redemptions from its traded life policy Argent Fund, and warned those investors who do wish to redeem that they risk losing up to 50% of their original investment.

In a letter sent to shareholders last month, Centurion said it decided to take the action to pro-tect existing investors in the fund after it received redemption requests from “several large investors”.

Centurion redemptions on traded life fund suspended

It explained that a sig-nificant shift in the expect-ed discount rates on the purchase of life policies in the US, from an average of between 10% and 16% at the time of purchase to more than 25% in the cur-rent market, coupled with a “lower than anticipated level of policy maturities” in the portfolio, had creat-ed a “liquidity imbalance” in the Argent Fund.

The increase in the discount rate effectively means that, should Centur-ion decide to sell any of the life policies it has on

its books, it would do so at a loss.

To rectify this, Centurion plans to move all existing assets into a newly created “side pocket” until “market conditions improve and death benefits occur”. The firm expects the market to improve in between three and five years.

But those who wish to redeem now will not have their shares moved to the side pocket, and are likely to lose a significant amount of their initial investment when their assets are sold.

Continued on page 6

Dubai companies show increasing interest in NRIsAdvisory firms and life companies based in Dubai are increasingly targeting the non-resident Indian population as they seek to diversify their client base away from UK expats.

Firms such as Mondial Financial Partners and Holborn Assets have been actively recruiting advisers from Indian and Pakistani backgrounds to target these areas of the market.

According to official estimates, around 85% of the population of Dubai is made up of expats, of which around 70% are

Fund managers and invest-ment managers are largely unprepared for the impact of new US legislation that will oblige non-US finan-cial services firms to regis-ter with the US tax authori-ties if they have US clients or assets, a report from KPMG has warned.

Only one-third, or 32%, of fund managers sur-veyed, expect to be ready in time for the deadline, “and a significant 42% have not yet assessed the time needed to comply”, KPMG

Fund managers ‘unprepared’ for FATCA

Asian. Within this it is esti-mated that around half are from India and just over 15% are Pakistani. In comparison, Westerners make up around 3% of the

expatriate population.Friends Provident Inter-

national (FPI) has also identified the NRI market as a growing client base.

Matthew Waterfield, general manager Middle East and Africa at FPI, said: “There are key differences in the way the NRI market looks at financial planning compared to Westerners,” he said. “For example, extended family is impor-tant to Indians, so our pro-tection and saving products will be attractive to them.”See Country Profile on page 25-26

said, in unveiling its find-ings last month.

The new law is also going to cause some inves-tors to sell out of their US holdings, the report finds, although exactly how many or on what scale has yet to be seen.

Some 6% of the fund promoters across 12 coun-tries who were interviewed by KPMG’s researchers said they definitely would disinvest from both the US equity and fixed income markets as a result of

the Foreign Account Tax Compliance Act (FATCA), while 45% of fixed income funds and 42% of equity funds refused to rule out the possibility of leaving the US market as a result of the legislation.

FATCA, which will require details of US cli-ents with assets in excess of $50,000 to be passed to the US Internal Revenue Service, comes into force on 1 Jan, 2013.The survey may be found at www.kpmg.com.

NEWSIN BRIEF

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

Waterfield: ‘key differences’

AMBEST

B++ Good

Financial Strength Rating

NEWS

UK and China sign double tax treatyA new double taxation treaty has been agreed by China and the UK. This replaces the existing treaty that was signed in July 1984. One of the main changes is that withholding tax on dividends from a Chinese company is reduced to 5%, as long as the recipient is a UK company owning at least 25% of the shares. Previously the withholding tax rate was 10%.

Global Benefits promotes Macdonald Angela Macdonald is to head up sales in Africa for Global Benefits Group, the London-based international group life and disability insurance specialist. The position is a new one and was created in response to recent growth in the company’s Africa business. She has been working for Global Benefits for the past four years.

ML Capital readies Skyline Ucits FundML Capital is poised to launch a Ucits fund that will feature on the Montlake Ucits platform and begin trading on 1 Aug, subject to regulatory approval. The Skyline Ucits Fund will operate a global long/short mandate with a particular focus on emerging markets. ML Capital expects the launch to be the largest to date on the Montlake Ucits platform.

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


Isle of Man-based BW Oakfield Group has appointed John Batty as head of pensions, a new position, as the company looks to expand its pen-sion operations.

For the last two-and-a-half years, he has been business development manager for the insurance and pensions sector at Isle of Man Finance, the island’s financial services business promotional office.

Prior to this, he was technical manager at Axa Isle of Man, and before that worked for HSBC Insurance in Dubai.

Batty’s appointment comes a few months after BW Oakfield, a division of UK-based Kreston Inter-national, merged with EIS Advisors, an Isle of Man accountancy firm.

BW Oakfield is a corpo-rate services provider that manages and administers more than 600 trusts and corporate entities, with underlying assets worth more than £2bn ($3.2bn).

At BW Oakfield, Batty will head up the compa-ny’s pensions unit, which is being relaunched under the Kreston International brand.

BW Oakfield group managing director Stewart Davies said Batty’s “signifi-cant contacts worldwide” would help the firm to increase its international trust services business. See Isle of Man marketing story on page 6

John Batty is named head of pensions at BW Oakfield

BY HELEN BURGGRAF

HM Revenue & Customs has signed off on the Isle of Man’s 50c QROPS legis-lation, allowing companies that had schemes awaiting the regulator’s acceptance to begin to market them to clients.

The formal notification that HMRC had completed a review, announced in December, was received at the end of last month.

However, a number of Isle of Man companies

HMRC gives nod to Isle of Man’s QROPS legislation

at this point had already received letters saying that they had been accepted, and giving them a QROPS number.

Among these schemes is the Baker Tilly Isle of Man QROPS Sipp, and IoM-based pension pro-vider Sipp Specialists’ Sipp Specialists 2010 Scheme.

The Isle of Man unveiled its new 50c QROPS legisla-tion last year, but after HMRC announced its review, the registration of any new 50c schemes was

effectively halted.At that point, just one

50c scheme, Boal & Co’s Trinity Plan – which was initially registered in October 2010, shortly after the 50c-enabling legislation was passed – had made it onto HMRC’s all-important list of QROP schemes.

Pre-existing Isle of Man QROPS, which had been set up before the legis-lation was approved that made the 50c QROPS pos-sible, were not affected by the review.

Three firms roll out platforms this month

BY SIMON DANAHER

The New Zealand Financial Markets Authority has told QROPS and pension pro-vider SuperLife Trustees to “overhaul” its sales practices for its KiwiSaver products.

FMA chief executive Sean Hughes said he is seriously concerned about a number of matters regarding SuperLife’s sales practices, potential non-compliance with the law and “apparent poor moni-toring of the activities of its sales force”.

The FMA also urged

Continued from page 1Instone described the plat-form as an equity- and fund-focused, open-architecture facility that is intended for use by IFAs, wealth man-agers and execution-only clients.

As International Adv-iser was going to press, Australia-based plat-form provider Præmium was awaiting word from Jersey’s Financial Services Commission that its appli-cation for an asset manage-ment licence, in connection

New Zealand’s FMA issues warning to pensions provider SuperLife Trustees over sales practices

investors to be wary of “unacceptable” sales prac-tices being used by unreg-istered KiwiSaver sales rep-resentative Patrick Diack.

According to the FMA, Diack’s sales approaches included soliciting mem-bers of the public out-side Work and Income (employment centre) offic-es, offering clients money to join a KiwiSaver scheme and signing clients up to scheme membership with-out providing them with the investment statement – the disclosure document that provides investors with the information they

need to make an informed decision.

The FMA said it is also concerned about the dis-tribution practices of the SuperLife KiwiSaver Scheme, a registered QROPS.

Hughes said: “From 1 July, FMA will monitor compliance by KiwiSaver providers with their obligations under the Financial Advisers Act. We will not hesitate to take enforcement action against KiwiSaver provid-ers who fail to ensure they comply with their legal requirements.”

with its new, multi-currency offshore platform, has been approved. Once it is, it will be all systems go, accord-ing to John Martin, MD of Præmium’s London-based UK operation.

The Præmium Discre-tionary Platform Service is intended to be accessed by discretionary managers looking to provide services for adviser firms as well as their own client base, according to Martin.

Pershing is also poised to formally unveil its new

Pershing Adviser Solutions, according to Paul Bayliss, the firm’s head of adviser and retirement solutions.

Although the new plat-form is UK adviser/wealth manager-focused, it accom-modates offshore funds, and has “already engaged with a number of clients in Ireland”, Bayliss said.

He described Pershing’s target audience as “growth- oriented, advice-based firms [which look after] clients with complex fin-ancial lives”.

NEWSIN BRIEF

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

Batty: pensions unit relaunch

NEWS

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

Equity Trust appeals against HMRC ruling on Singapore BY SIMON DANAHER

Equity Trust last month filed an appeal against a High Court ruling which decided in favour of HM Revenue & Custom’s deci-sion to remove the QROPS status of one of its schemes.

As International Adviser was going to press, no hearing date had been given.

After Equity Trust filed its appeal, both it and HMRC had 14 days in which to submit a skel-eton case to the Court of Appeal. The case has a

“window” of between 10 Nov, 2011 and 12 March, 2012 in which to be heard.

Equity Trust’s Singapore-based Recognised Overseas Self Invested International Pension (ROSIIP) had its QROPS status removed in 2008 after HMRC decided that it did not satisfy the criteria set out in the Finance Act 2006 for QROPS.

On 20 May, a High Court judge decided that ROSIIP was not open to Singaporean residents, as required under QROPS rules, and was not regu-

Redemptions suspended on Centurion TLPContinued from page 3

Centurion has given investors until between late June and early July to decide whether or not they wish to redeem.

In addition to creat-ing the side pocket, the company is to change its pricing model from the mark-to-model, whereby the fund’s value is dictated by actuary assumptions on life expectancy, to mark-to-market, meaning the price is dictated by the rate it can be sold at on the market.

Centurion said it believes it is the first traded life policy company to do this, and said it is able to do so using the values given to it by investment banks on a monthly and quarterly basis.

Director of the fund David Rawson-Mackenzie said: “We are giving our investors the opportunity to remain in the fund and benefit from the continu-ing maturity of policies and an expected upturn in the life settlement market.

“As a fund manager, I did not want to make all of our investors pay for the decision of some, which is why we have decided to create the side pocket to protect the assets.”

He added that a major reason the market discount rate for policies has reached current levels is the forced selling of around $6bn worth of assets by Belgian bank KBC last year. Many of the assets were of “dubi-ous origin”, which forced policy sellers into discount-ing heavily in order to sell.

lated by the Singaporean pension regulator, when in fact it could have been, also as required under QROPS rules. Equity Trust has consistently refuted these arguments.

The ruling, if it stands, could pave the way for the Revenue to tax the more than 100 investors in that scheme up to 55% of the amount they had trans-ferred into ROSIIP.

Panthera managing director Bethell Codrington said he could not comment on the case because it was ongoing.

Helen Burggraf Acting editorT +44 (0)20 7065 7568E [email protected]

Simon Danaher Senior online reporterT +44 (0)20 7065 7577E [email protected]

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Isle of Man marketing shake-up unveiledBY HELEN BURGGRAF AND MARYROSE FISON

The Isle of Man govern-ment has unveiled a radi-cal shake-up in the way it promotes its financial serv-ices and related industries, which will involve the creation of a new “public private sector promotion model”.

This new promotional model will provide for the sharing of resources and funding between all par-ties, the IoM’s Department of Economic Development said in a statement.

The total budget for financial services promo-tion will be more than £2m and less than £5m, spread over two years, an Isle of Man spokesman said. He added that this is a marked increase in the budget com-pared to last year, but did not provide details.

The new initiative will start with the island’s fund management and admin-istration industry, with other island industries set to follow.

Among the first actions expected to be taken include the recruitment of direct marketing rep-resentation in London for the funds sector, and the appointment of a head of financial services develop-ment, whose job it will be to manage and coordinate

CySec warns investors about unregulated asset manager The Cypriot investment reg-ulator is warning investors not to use asset manage-ment company Plaza Capital as it is not authorised.

The Cyprus Securities and Exchange Commission (CySec), which licences Cypriot investment firms, released a statement last month warning inves-tors that the company is not permitted to provide “investment and ancillary services” in Cyprus.

CySec said Plaza Capital has never been authorised in Cyprus as an investment company, bank or coop-erative to provide invest-ment services. It added that it has not been con-tacted by any other EU member state regulator to confirm that Plaza Capital has any form of investment authorisation.

According to its web-site – which offers trans-lations from the original Greek into both Russian and broken English – Plaza Capital provides asset man-agement and cash depos-it services to individuals and “trustees”, although its definition of trustee is not given.

The website, which has the slogan “based on expe-rience, racing the time”, claims that the company is a leading investment bank and lists addresses in Cyprus and Russia.

In its warning letter, CySec urged investors to consult companies’ web-sites to confirm whether a business is regulated prior to using its services.

the new strategy. The IoM expects to

announce an appointment on 21 July, the spokesman said.

The creation of a new strategic body, consist-ing of between 12 and 20 industry representatives, is also planned, to help drive the strategy forward as it is rolled out.

John Spellman, spe-cial adviser to the Isle of Man government, said the government was react-ing to changes in the marketplace.

Allan Bell, the island’s Economic Development minister, said the IoM’s new promotional strategy seeks to employ what he has always regarded as one of the Isle of Man’s strongest attributes, “the close working relationship between the public and private sector”.

Spellman: market changes cited

The faster the pace of change, the more important it is to keep an ear to the ground at the local level.

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Irish Life Int’l boosts range of funds on its Select ListBY SIMON DANAHER

Irish Life International is increasing the number of funds accessible via its insurance products through a new fund range called Select List.

The Dublin-based life insurance company said the new range, which is available through its Portfolio products, will “significantly” increase the number of funds availableto clients.

ILI said there will ini-tially be 80 funds available on the new fund platform from across all the main asset classes offering inves-tors geographical and man-ager diversification.

The range will include funds from asset manag-ers including Henderson

Global Inves tors/Gartmore, BlackRock, HSBC GlobalAsset Manage ment, Mor-gan Stanley Investment Management, JPMorgan Asset Management and Schroders.

ILI said Select List willbe made available first inBelgium and Spain, with the new fund options being rolled out to other jurisdictions at a later date.

Kleinwort completes its buyout of Close Offshore

NEWS

Kleinwort Benson has completed its acquisition of Close Offshore Group.

The acquisition, whichwas announced in March this year, is for a cash consideration of £26.4m ($42.3m), subject to post-closing adjustments, and comprises Close’s privatebanking, fund administra-tion, fund management, trust and asset manage-ment businesses across Guernsey, Jersey and the Isle of Man.

Kleinwort said the acquisition will increase the size of its private wealth assets under management by £1.6bn ($2.5bn), and extends its offshore reach into South Africa and the Isle of Man. It is also expected to strengthen the firm’s banking proposition in terms of liquidity and capital.

Sally Tennant, chief exec-utive of Kleinwort Benson, said: “The acquisition of Close Offshore Group fol-lows our strategy of devel-oping our offshore capabili-ty. This strategic acquisition adds scale to our banking and fiduciary businesses and will enhance our client offering with the addition of innovative products and new distribution channels. The combined business will have strength and depth in terms of its people, services and systems.”

Kleinwort Benson is a wholly-owned subsidi-ary of RHJ International, a Brussels-based holding firm. It was sold to RHJ in 2009 by its previous owner, Germany’s Commerzbank, which gained it when itacquired Dresdner bank in 2008 from German insurer Allianz.

Conor McCarthy, head of sales and marketing, said: “The development of the new suite is in response to market demand for a quality-focused range of internal funds. The prod-ucts now offer the best of both guided and openarchitecture.”

In February, SEB Life, a subsidiary of the SEB Group, a large, publicly-traded Stockholm-based bank and financial services provider, announced it had agreed a purchase of ILI from its parent, Irish Life & Permanent Group hold-ings, for €26m ($37.5m).

The deal, which is expected to complete this month, is currently await-ing regulatory approv-al by the Central Bank of Ireland.

McCarthy: ‘market demand’

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NEWS

Adviser group removes EEA fund from its approved list

Nigel Smith to head deVere’s international technical team Nigel Smith has joined the deVere Group as global technical manager, a new position that the company said was created to support its international expansion plans while offering more services to its clients.

Until the end of last year, Smith, who is based in Malta, had been head of wealth management (Middle East) for Friends Provident International (FPI), the Isle of Man-based international arm of Resolution’s Friends Life Group.

At FPI, Smith has been succeeded by Alan Loader, whose title is technical manager, and who had been technical and devel-opment manager in individual and corporate savings at Zurich International Life.

Smith is a 25-year vet-eran of the industry and has particular technical expertise in the areas of taxation, trusts and finan-cial planning matters, according to deVere.

At deVere, he will be involved in supporting financial advisers on the technical issues involved in developing wealth man-agement business with high net-worth expatriates, deVere said.

Smith is an associate of the Chartered Insurance Institute and a member of the Personal Financial Society and the Society of Trust & Estate Practitioners. He has won a number of industry-sponsored prizes.

Brewin Dolphin is to pur-chase Irish asset manager Tilman for as much £31.5m ($50.5m), as it looks to capitalise on investors’ dis-satisfaction with banks and other institutions.

Brewin will pay an initial £18.3m ($29.3m) upon completion of the deal, with a further £13.2m ($21.1m) payable in Dec-ember 2014, dependent on the performance of Tilman to September 2014.

The entire consideration is payable in Brewin shares, with Tilman to be renamed Tilman Brewin Dolphin.

The rationale behind the deal centres on the opportunity created by cli-ents “moving from banks and other institutions, which were dominant in our field” as a result of the Irish financial crisis, Brewin said.

“We are excited about the prospect of capitalising on what we perceive as a big opportunity in Ireland,” said Jamie Matheson, exec-utive chairman of Brewin Dolphin, a London-based private client wealth man-ager with AUM of £25bn ($40bn).

Tilman had funds under management of £807m ($1.2bn) as at 30 April, 70% of which are managed on a discretionary basis.

BY SIMON DANAHER

Adviser group AES International has removed the EEA Life Settlements Fund from its list of approved funds, after rais-ing concerns with the fund’s manager, EEA Fund Management.

The fund’s managers said AES’s concerns were unfounded, and the infor-mation on which it made its decision was based on inaccurate research.

AES said the fund was primarily removed from its list of approved funds

because it aims for the list to be as risk-averse as pos-sible and, pending a suffi-ciently reassuring explana-tion from EEA, it felt it prudent to remove the fund – something it said it does “all the time” with funds, along with adding them.

Among its concerns, AES said, was the relation-ship between ViaSource, the US-based company responsible for valuing the assets of the traded life policies fund and EEA, which it said left open the potential for a conflict of interest. AES based its con-

cerns on research conduct-ed by WL Consulting.

EEA marketing director Peter Winders denied that ViaSource – while serving as the fund’s US-based spe-cialist investment adviser – valued the fund, and added that he was disappointed the fund had been removed on the basis of a report he understands was commis-sioned by a competitor and which he said was “factu-ally incorrect and arguably misleading and biased”.

“We pride ourselves on transparency and welcome calls,” he said.

Smith: ‘particular expertise’

BY HELEN BURGGRAF

The US Internal Revenue Service has added to the information it requires from US citizens who have over-seas banking and invest-ment accounts – including those living abroad – while bowing to pressure to amend its latest tax amnesty programme, criticised for being particularly tough.

The latest measures come as the 1 Jan, 2013 start date for the imple-mentation of the US’s increasingly controversial Foreign Account Tax Com-

p liance Act approaches.For years, US citizens

with offshore bank accounts have had to file a Foreign Financial Account Reporting (FBAR) form, annually, whether they live in the US or abroad.

Some individuals also have to inform the IRS about any investments they may have in so-called pas-sive foreign investment companies (PFICs), foreign companies, foreign part-nerships and foreign trusts.

However, beginning in 2012, those with foreign financial assets of more

than $50,000 will have to begin filing a new docu-ment, known as “new Form Number 8938”, according to David Treitel, tax director at US Tax & Financial Services, a London-based company which specialises in look-ing after the tax matters of expatriate US citizens.

The first of these to be filed by US taxpayers will report on assets they have held since 1 Jan, 2011 and the potential penalties for failing to file this new form “are substantial”, Treitel said.

US adds to expatriate tax reporting rules

Brewin Dolphin to acquire Tilman AM for up to £31.5m

The total value of deposits held in the Crown Depen-dencies’ banks collectively rose a scant 1.4% in the first three months of 2011, as savers looked beyond deposit accounts for better rates.

Philip Marr, director of banking at the GFSC, noted that the first-quarter story of Guernsey’s banking indus-try was one “of an increase in the volume of deposits” that was mostly reduced in sterling terms by foreign exchange effects.

Bank deposits in Crown Dependencies flatline in Q1

“There were no clear cut trends, with mixed move-ments in balance sheets, including contractions and expansions,” Marr said.

Peter Niven, Guernsey

Finance chief executive, added that Guernsey offi-cials were hopeful that Guernsey’s 1.7% rise in quarterly deposits, the first rise in a year, was “an indi-

cation of light at the end of the tunnel”. But he noted that it would be wrong to overstate the gain, coming as it did after three quarters of contraction.

Guernsey’s end-of-March total deposit figure is 28% off the peak, reached at the end of 2008, of £157bn ($251.7bn).

Jersey’s data showed that deposits from Middle Eastern savers have grown as a percentage of the total to 12.1% from 10.4% at the end of March 2010.

Crown Dependency bank deposits Q1 ’11Crown Bank assets end ’10 Bank assets % increase/ dependency (% up or down from end March ’11 decrease in

end ’09) first quarter

Jersey £161.6bn (-2.2%) £166.49bn +3%

Guernsey £111.03bn (-5.4%) £112.9bn +1.7%

IoM £50.23bn (-5%) £48.13bn -4.2%

Total £322.86bn (-3.8%) £327.52bn +1.4%Source: JFSC, GFSC, IOMFSC

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BANK NEWS

Kaupthing IoM depositors claim Iceland court victory

Santander boss and family face scrutiny over outstanding tax Santander chairman Emilio Botín and 11 members of his family are under inves-tigation by Spanish tax authorities for allegedly failing to pay taxes, it was reported last month.

Ana Botín, Emilio Botín’s daughter and Santander UK’s new chief executive, is also among those said to be included in the investigation. No specific charges were brought, and a spokesman for the Botín family told journalists the family mem-bers expected to be cleared by the investigation.

The matter came to light after Spain’s High Court said in a statement that it was carrying out an inves-tigation based on informa-tion it had received from French tax authorities, which in turn came from material leaked by a former HSBC employee, according to various reports. The announcement was under-stood to have been made to meet a statute of limita-tions that would otherwise have expired.

The investigation was reported to involve an account set up in the ’30s by Emilio Botín’s father, who died more than 15 years ago. The Botín family is reported to have volun-tarily paid €200m ($288.3m) to settle an outstanding tax bill over a more recent Swiss bank account.

Thomas Roiz has been named to a newly-created role at Barclays Wealth’s International Private Bank Europe, Middle East and Africa (IPB EMEA) opera-tion, which is expanding to meet the needs of the global high-net-worth market.

Roiz will be based in Geneva, and will hold the title of managing director and market head for Latin America of the IPB EMEA division. He is joining the bank this month, and reports to Patrick Ramsey, market manager for Latin America, IPB EMEA and general manager of Barclays Bank (Suisse).

He will have responsibil-ity for building the Latin America strategy for IPB EMEA, focusing on each of the Latin America regions, Barclays Wealth said. This includes client acquisition, and the development of products tailored to the needs of high and ultra high net worth clients.

BY HELEN BURGGRAF

Depositors in the Isle of Man subsidiary of Iceland’s defunct Kaupthing Singer & Friedlander bank have claimed a victory in their battle to get all of their sav-ings back, after winning an appeal in Iceland’s Supreme Court.

The court decided that a parental guarantee on the IoM subsidiary, signed by the bank’s Icelandic chief executive on behalf of the parent, Kaupthing, had been “valid and binding on the bank”, according to the KSFIOM Depositors Action

Group. It was unclear at the time of going to press what effect the decision would have.

In a statement, the Kaupthing depositors’ group said it welcomed the decision, but went on to reiterate previous criticism of the “institutions and authorities” that it said had failed in their duty to pro-tect depositors in the first place. It called for imple-mentation of a plan it pro-poses to reimburse deposi-tors immediately which would be funded by the IoM and UK governments.

As envisioned by the

depositors’ group, the pro-posed UK and Isle of Man Government Sponsored Loan Trust would immedi-ately recover the full bal-ance of their savings, while the two governments would get paid eventually once their actual money was released by the KSF (IoM) liquidator, which estimates say is expected before 2017.

However, the Isle of Man responded that the proposal was “impractical on a number of levels and would result in very high costs and poor value for [IoM] taxpayers”.

Roiz: Latin America focus

BY SIMON DANAHER

Most of the 31,000 Hong Kong investors who held Lehman Brothers mini-bonds when that company collapsed in 2008 got most of their money back last month, Pricewaterhouse-Coopers, the receiver, said.

By the end of June, holders of series ten to 12, 15 to 23, and 25 to 36 of the mini-bonds would have received back between 71.43% and 95.1% of their investments in the struc-tured notes, now that the underlying collateral has been distributed, in accord-ance with a settlement agreement with Lehman, PwC said in a statement.

The PwC announce-ment represented a final step in a saga which began with the collapse of the US investment bank in 2008, and which has led to the introduction of major changes in the way Hong Kong banks develop and distribute structured prod-ucts and other investment solutions.

Thousands of Hong Kong investors had bought the so-called Lehman mini-bonds from a total of 16 distributing banks, on the premise that they repre-sented a low-risk invest-ment; when the bank sub-sequently imploded, all of these investors lost their money.

Since then, the Securities and Futures Commission and Hong Kong Monetary Authority have worked alongside the banks and trustees to try to recoup the investors’ losses.

In its statement, PwC noted that investors would now expect to receive 1.6% more than was agreed by the banks in March – which itself was a substantial increase on the 60% initially agreed by the banks in July 2009. The new deal will mean the average eligible investor, depending on which series of mini-bond they were invested in, may expect to receive between 85% and 96.5% of their ini-tial investment.

Lehman mini-bond saga draws to close

Roiz to develop HNW presence for Barclays in Latin America

INTERNATIONAL

ADVISERrecruitment section

For more information on how to advertise your vacancies to our global readership, please contact Giles Whittingham on +44 (0)20 7065 7579 or email [email protected]

For the latest opportunities within the international intermediary space, please see pages 53-55

FUND NEWS


Claude Kremer is elected president at EFAMA AGM...

Fund manager undeterred by Southern Cross

BY MARYROSE FISON

The European Fund and Asset Management Association (EFAMA) last month elected Claude Kremer president, suc-ceeding Jean-Baptiste de Franssu.

The election took place during the association’s annual general meeting in Lucerne. At the same time, representatives of the European investment management industry also chose two vice-presidents, Christian Dargnat and Massimo Tosato.

It was the first time EFAMA’s members elected two vice-presidents instead of one, which it said reflected its commitment to

engaging with the indus-try and regulatory bodies. All three officials will serve two-year terms.

Kremer, a found-ing partner and head of investment management at Luxembourg-based law firm Arendt & Medernach, has already served as vice-president of EFAMA, and

until last month had been chairman of the Association of the Luxembourg Fund Industry (see below) for four years. He has also served as a non-execu-tive board member for a number of Luxembourg funds and listed companies.

Dargnat is chief execu-tive officer at BNP Paribas Asset Management, and Tosato is executive vice-chairman of Schroders.

Based in Luxembourg, EFAMA represents the inter-ests of the European invest-ment management industry, on behalf of 27 member associations and 56 corpo-rate members. Assets under management of its compo-nent members total around €14trn ($20trn).

US commodity trader launches on DB platform

BY HELEN BURGGRAF

Richard August, the man-ager of a recently-launched fund that was set up to invest in care homes and assisted living properties primarily in the UK, admits that he could have done without the widely-publi-cised travails of care home giant Southern Cross over the past few weeks, but says he has lost none of his enthusiasm for the sector.

Southern Cross, the UK’s largest care home operator, has been on the ropes since March. Its share price at the end of June was somewhere around 10p, down from 550p a share in December 2007.

August, who man-ages the newly launched BlueSky Care Home Fund, stresses that Southern Cross’s problems are “com-pany specific rather than sector specific”.

As a result, the market opportunities created by the ageing of the Baby Boom generation are as compelling as they were six months or a year ago, he argues.

“Southern Cross’s prob-lems... are the result of rapid expansion over the last decade and poor man-agement,” August says.

“The company grew to become the largest care home operator very quick-ly by acquiring smaller care operators and becoming over-leveraged as a result.”

...while Marc Saluzzi is named Kremer’s replacement as incoming ALFI chairman

US-based commodities trading adviser Millburn has launched a Ucits III version of its Multi-Markets Trading Program Fund on the Deutsche Bank Platinum IV platform.

The dbX Millburn Multi-Asset Index Fund, which offers weekly liquidity, is open to European retail investors in a number of share classes and curren-cies including euro, ster-ling, dollar and yen.

Millburn is a global asset manager with more than £2.3bn ($3.6bn) in assets under management, as at 1 June.

The company’s main expertise is in the develop-ment of systematic, quanti-tative investment strategies to trade on liquid global commodities, futures and foreign exchange markets.

Millburn’s Multi-Markets trading programme, on which the Ucits fund’s strategy is based, trades a set of more than 120 mar-kets and utilises strategies with holding periods rang-ing from short term (intra-day) to long term (several weeks or months).

According to the com-pany, the Multi-Markets trading programme, which has a track record of more than six years, has gener-ated an average compound annual net return of 12.4% and has demonstrated low correlation to stock, bond and hedge fund indices.

Members of the Association of the Luxembourg Fund Industry (ALFI), which represents the interests of Luxembourg’s investment fund industry, elected Marc Saluzzi to succeed Claude Kremer as chair-man. Saluzzi will serve for two years.

Saluzzi, a French national, has been a PricewaterhouseCoopers partner since 1996, and is currently responsible for the firm’s Luxembourg

Financial Services practice.He has been on the

board of ALFI since 2001,

and became chairman of the ALFI Alternatives Committee in 2009.

Founded in 1988, ALFI represents more than 1,000 Luxembourg-domiciled investment funds, asset management firms and a wide range of service providers, such as deposi-tary banks, fund admin-istrators, tax experts and accountants.

Luxembourg claims to be Europe’s largest fund domicile.

Kremer: incoming president

Saluzzi: replacing Kremer

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LIFE NEWS

17

FPI aims to boost onshore take-up of offshore productsBY HELEN BURGGRAF

Friends Provident Inter-national (FPI), which for the last two years has gen-erated more than half of its UK parent’s total new business – something it had not done before 2009 – is looking to boost take-up in the UK of its offshore products, citing a surge in onshore interest in off-shore bonds in particular.

That does not mean it intends to let up on the off-shore side of things, how-ever, according to manag-ing director Rocco Sepe.

Indeed, Andy Briggs, the new chief executive of FPI’s parent company, Friends Life, will be touring the various outposts of the

Skandia Int’l adds 36 funds to its Spanish bond offering

Friends overseas empire this month as he becomes familiar with the business he now heads in place of Trevor Matthews, who left for Aviva in early June.

“But the UK has been a market in which we have been under-represented until now,” Sepe added.

“We have recruited a

top executive, in the form of Irvine Baxter [UK sales director since January], and we think we can make a difference,” he said.

“We are not saying we will take over the UK cross-border retail life insurance market, which we currently only have a small share of, overnight, but we think we can do a lot more here than we are doing now.”

The UK’s offshore sin-gle-premium market is said to be the world’s largest, worth around £6bn a year in premiums.

FPI has been involved in it for more than 30 years, often testing products here before launching them into overseas markets, accord-ing to Seppe.

Aegon targets ‘at retirement’ market with offshore bonds

Sepe: ‘under-represented in UK’

Royal London 360°, the Isle of Man-based off-shore arm of the UK-based Royal London Group, has launched a split trust for use with its LifePlan whole of life international protec-tion product.

The LifePlan Split Trust allows a UK domiciled LifePlan policyholder, who has selected both critical illness and life cover, to have access to his or her critical illness benefit while ensuring that the life cover

does not fall into their tax-able estate for UK inherit-ance tax purposes.

Upon the diagnosis of a critical illness, and sub-ject to the patient surviving the diagnosis by 30 days, the trustees will advance the critical illness cover to the life assured for them to use as they see fit. The life cover element of LifePlan will remain in trust and will not be taken into account for UK IHT valua-tion purposes on death.

BY MARYROSE FISON

Life insurance and pen-sions provider Aegon has launched three unit-linked guarantee products as part of its strategy of focusing more on the ‘at retirement’ market.

The new products, which each require a minimum investment of £15,000, are the Aegon Secure Capital, Aegon Secure Income and Aegon Secure Trustee Investment bonds.

The Aegon Secure Capital bond offers inves-tors a guaranteed future capital value over a pre-selected term – the length of which ranges between eight and 20 years. This means that providing no additional withdrawals are made, the bond guaran-tees that the fund value at the end of the chosen term will be a minimum of 100% of the original invest-ment – and possibly more, if the underlying invest-ments have increased in value (gains are locked in every year).

There is also an option-al death benefit guarantee, which means that if the client dies before the term is up, the client’s benefici-aries would receive at least 100% of the original invest-ment (or highest locked in value) at that point, even if the underlying value of the investment had fallen below that amount at the time the client died.

The Aegon Secure Income product also offers an income guarantee, an optional death benefit guarantee and a guarantee benefit payable at the end of the guaranteed income period. The income guar-antee is equal to 5% of the original investment for 20 years, or less for longer, until 100% of the original investment has been taken as income.

BY PHIL HALLIDAY

Legal & General Portfolio Management Services, the London-based life opera-tion of UK insurance giant Legal & General, has launched the eighth plan in its ongoing series of Six Year Growth structured deposit bonds.

Although the L&G Six Year Growth Deposit Bond Eight is a UK prod-uct, it may be wrapped

into an offshore bond. Legal & General’s head

of business development, James Harrington, said the deposit bond series is prov-ing popular with investors who are struggling to keep pace with inflation, and with the Consumer Prices Index “likely to remain at or above its current level for some time yet”.

The latest L&G deposit bond offers a minimum return of 13.5% at matu-

RL360° rolls out split trust option for UK

L&G issues new product in six-year growth seriesrity (2.13% AER) with the potential of 100% of any capital growth in the FTSE 100 Index (subject to aver-aging), up to a maximum of 50% of the original invest-ment, whichever is greater.

It aims to return the investors’ original capital at the end of the six-year fixed term on 31 Aug, 2017. It is described as unsuitable for customers who need access to their money before the six-year term is up.

If the life assured does not survive the diagnosis by 30 days, the critical ill-ness benefit is not paid, and remains in trust and outside of the UK IHT assessable estate, accord-ing to RL360°.

LifePlan aims to pay a cash sum on the death of the life assured, or upon diagnosis of a terminal illness. Its core benefit is primary life cover, which is available up to the value of $7.5m.

Skandia International has added more than 30 funds to its Spanish Collective Investment Bond, includ-ing from five investment groups not previously avail-able through the product.

The existing range of assets available via Skandia’s Spanish CIB now has access to a further 36 funds, bringing the total number of funds in the range to 525. Investors will be able to access prod-ucts from five additional investment companies – JO Hambro, Julius Baer, Distinction, Brown Advisory and the Danish investment firm, Jyske Invest.

The existing range of Spanish regulatory, author-ity-friendly assets available via the Spanish Collective Investment Bond has now been expanded to provide access to a further 36 funds, bringing the total number of funds in the range to 525, Skandia said.

The extended fund range further diversifies the investment opportunities available across Europe, the emerging markets and the other major regions, while also giving investors the option of accessing such new asset classes as Swedish and Danish bonds and Danish equities.

The Spanish CIB was launched in July 2010 and was designed to be tax-efficient for investors resi-dent in Spain. Skandia says it was designed to offer IFAs and their clients the flexibility to create tailor-made portfolios from a wide range of tax-compli-ant funds.

An additional feature is that it remains tax compli-ant even if the client returns to the UK.

The product is offered through Skandia Life Ireland, the Dublin-based operation of Skandia International.


NEWS ANALYSIS OFFSHORE TERMINOLOGY

BY HELEN BURGGRAF

When are you a ‘comeo-ver’, a ‘stayover’ or a ‘stop-over’ in the Isle of Man? Is Gwailo still considered a derogatory term for a for-eigner in Hong Kong? Why has China’s renminbi been nick-named the hongbi(‘redback’)?

And what is a half-pat anyway?

Moving overseas, wheth-er for work or in search of a more agreeable lifestyle, has always meant learning new ways of doing things. Depending on where one ends up, language has usually been a significant element of this adjustment process, particularly if the newbie expat’s knowledge of the local language is not good.

Britons, Americans and other native English speak-ers enjoy an advantage over most other nation-alities, of course, in that English is, for now at least, the main language of inter-national business, whatever else may be spoken in the streets and shops outside of the office towers and five-star hotels.

But as any expat who has spent time in the off-shore world would tell you, expats living and working in the various major finan-cial centres – along with those locals who interface with them on a regular basis – have evolved a lexi-con of words and expres-sions all their own.

This phenomenon is neither new, nor a prob-lem; indeed, most expa-triates who live in such financial centres as Hong Kong, Dubai, the Isle of Man, Jersey and Guernsey seem to take particular delight in learning the local expat patois and slang expressions.

This is the case even when the local expressions are seemingly insulting, as in the case of the time-honoured and, most would agree, out-of-date acronym FILTH – ‘failed in London try Hongkong’.

Anyone who might have thought that expression still had a ring of truth about it would have had a dif-ficult time explaining why Fidelity superstar Anthony Bolton moved to Hong Kong from London in 2010.

l Local vocabularyPerhaps the place with the richest expat/offshore vocabulary is the tiny but feisty Isle of Man. Its his-torically small and, until recently, not particularly affluent population has cultivated an expressive set of words to describe the outsiders who have been frequenting its shores in large numbers ever since Victorians from Liverpool and Manchester began taking summer holidays there.

Though there is some disagreement in Manx circles, most agree that

anyone who has lived in the Isle of Man for less than ten years is a mere ‘comeover’; and those who have been resident for between ten and 30 years are ‘stopovers’. You only get to be a full-fledged ‘stayover’ when you have been there for 30 years.

l Manx as the hillsTo be truly Manx, accord-ing to this line of thought, you have to have been born on the island; and a further level of purity is awarded to those who can attest to both sets of grandparents having come into the world on the island. This is a rarity these days, with around 54% of the population esti-mated to have been born elsewhere, although Gary Quaggan, head of retail service and operations for Anglo Irish Bank’s opera-tions in Douglas is one such Manxman.

(As in Jersey and Guernsey, having both sets of grandparents born on the island is a formally acknowledged state by the European Union, which does not permit such pure-bred islanders the freedom of movement enjoyed by others who have at least one EU-born grandparent or parent.)

“I am as Manx as the hills,” admits Quaggan, whose island ances-try has been traced back to the 12th century, and

who passes the old family homestead, Ballaquaggan (home of the Quaggans) every time he travels to the airport from Douglas.

Quaggan’s name sug-gests it is Manx, because it begins with a Q; you will also find a lot of island-ers named Craine, Quayle, Kennaugh and Crellin.

Another Manx word typ-ically heard and sometimes embraced by comeovers, stopovers and stayovers is traa dy liooar, meaning ‘time enough’, a sort of IoM version of mañana.

There is also Manannán’s Cloak, a reference to the heavy fog that was once thought to have been sent to the island to protect it from invaders, but now mainly inconveniences those seeking to arrive or depart by plane accord-ing to a fixed schedule. Manannán is a mythical Isle of Man (and Celtic) figure, who according to legend, was the IoM’s first ruler.

l Boat in the morningThe land mass many Britons might assume Manx residents would refer to as the mainland – England, Scotland and Wales – some islanders like to call ‘the adjacent isle’, as if to keep it in its place.

Perhaps one of the most important expres-sions in regular use, and reserved for those who would dare, as Royal London 360º communi-

Though there is some disagreement in Manx circles, most agree that anyone who has lived in the Isle of Man for less than ten years is a mere ‘comeover’; those who have been resident for between ten and 30 years are ‘stopovers’. You only get to be a full-fledged ‘stayover’ when you have been there for 30 years

“

”

Living and working in the world’s various offshore financial centres often involves learning a new language – even in some English-speaking countries. International Adviser listens in on the cross-border conversation

Learning to speak ‘offshore’

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

In many places around the world, locals have invented words to describe the foreigners who live on their shores; these words, in turn, are often adopted by the foreigners themselves.

The phenomenon of foreigners picking up and inventing words is neither new nor a problem; indeed, most expatriates seem to take particular delight in learning the expatriate patois.

Those inclined to disrespect the Isle of Man may be told, “there’s always a boat in the morning” – which is sometimes useful for others as well, given the frequency with which Manannán’s Cloak closes the airport.

KEY POINTS

cations executive Merita Taylor (an IoM comeover of nearly five years) puts it, “to diss the IoM”, is the following put-down: “There’s always a boat in the morning”. (Jersey and Guernsey locals say this is in common use in those islands as well).

l Western ghost menThe Isle of Man’s terms for resident foreigners – its comeover, stopover and stayover definitions – are echoed in Hong Kong’s gwailo and Japan’s gaijin, both of which came into frequent use when England was a major, and not always popular, presence in Asia. Some say these terms have now lost their original pejo-rative connotations, others say they never will.

Gaijin, which, spelled Gai-Jin, was the title of a 1993 James Clavell novel, means foreigner (from gaikokujin, mean-ing ‘people outside of the country’), while gwailo is a Cantonese word said to mean ‘ghost man’ – a refer-ence to the foreigners’ rela-tively light complexions.

In Singapore, foreign-

ers are known as ang mo, which literally means ‘Westerners’, according to a British expatriate who cur-rently lives there.

“It is a neutral expres-sion, and I don’t think anyone would take offense,” he adds. “Some-times the kids use it when they are trying to be cool, but it just makes us laugh. You would use it like this: ‘the ang mo’s are taking all the good jobs’.”

l Fistful of redbacksOther words used by expatriates but mined from the Chinese spoken by many Singapore resi-dents include hong bao – a reference to a traditional red envelope filled with money that is given over the Chinese New Year, and which under certain cir-cumstances might be con-sidered a bribe; and ah beng, a Singapore gang-ster stereotype. The female equivalent is an ah lian.

Explains the Singapore expat: “This is the sort of chap who wears a leather jacket, bright jewelry and is a bit notorious. To call someone that in business

would imply that he is a real shark.”

Perhaps not surpris-ingly, the offshore lexi-con in Asia is not limited to nicknames for people. Honkers, for example, an Australian term for Hong Kong, is one such word, though not one of the newest ones. And quite a number of new financial terms seem to have crept into the expatriate vocabu-lary only recently.

A currently trendy expression is hongbi, which refers to the Chinese renminbi and which, in Chinese, literally means ‘redback’ – leaving the listener in no doubt as to China’s aspirations for its currency, vis-à-vis the American greenback.

l Expat or half-patAnother renminbi term is the ‘dim sum market’, a reference to the market for Chinese-currency denomi-nated bonds, which have lately burst on to world markets.

Dim sum, of course, is a Cantonese speciality asso-ciated with Hong Kong, which is where these

bonds are currently being offered to Western buyers.

A specific term said to exist only in Shanghai – for now, anyway, sources say – is ‘half pat’, which refers to an expatriate who is hired on a local contract rather than on an expatri-ate one.

India, meanwhile – which during the time of the British Raj gave the world several particu-larly colourful and useful words, including Blighty, bungalow, doolally and jodhpur – continues to be a source of fresh material for expatriate wordsmiths.

A Financial Times jour-nalist earlier this year made reference to a babu, which, the writer explained, is “an Indian stereotype for a cer-tain type of officious gov-ernment clerk… he drinks lots of chai (sweet tea) and is generally a pain in the rear”.

Editor’s note: To see a complete list of offshore words we have discovered, or to suggest words that we may have overlooked in this article, go to www.international-adviser.com, and find the online version of this story.

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profiles

In March, Fabrice Sauvignon was appointed chief execu-tive of Luxembourg-based La Mondiale Europartner. Though only 39, he is a veteran of the international wealth management indus-try, having held senior roles at Axa as well as at AGR2 La Mondiale, La Mondiale Europartner’s parent com-pany. Here, he talks about his approach to business.

What are your career high-lights/ business background?I have spent most of my working life in the cross-border insurance industry. Most recently I was high-net-worth technical and financial director for La Mondiale Europartner’s parent company, AGR2 La Mondiale, where I devel-oped new products such as a new variable annuities product, but also new structured insurance funds.

Prior to coming to AGR2 La Mondiale in 2006, I held a number of roles at Axa, including a stint as a Singapore-based vice pres-ident, where I was involved in actuarial and investment operations.

I was born in Paris in 1972, and studied mathe-matics and actuarial sci-ence at Lyon University before I decided to qualify as an actuary.

Who are your business heroes?I would not say he is a hero, exactly, but I am impressed by Steve Jobs. Not only did he establish a

world class strategic vision for Apple decades ago, but he has been able to suc-cessfully manage it through all the subsequent techno-logical revolutions, while making sure that service to the company’s clients remained a top priority.

Who has been the biggest influence on your career to date? Without doubt, my wife, Marie. We met in Kuala Lumpur 14 years ago, and we share the same taste for international environments. She knows me better than anyone, and she has an excellent business acumen

Fabrice Sauvignon, the newly appointed chief executive of cross-border provider La Mondiale Europartner, explains his business strategy and how the firm’s ‘general account’ concept can be used to offset volatility

movement, and there is a constant need for addi-tional investment.

Likes: This industry is very much in line with my personal taste for interna-tional business, and a mul-ticultural environment.

What is your business strate-gy, and why?To offer UK nationals and non-domiciled clients access to investment solu-tions that enable them to move freely across EU bor-ders while retaining the benefits of a compliant life assurance solution.

This strategy builds on and utilises the expertise developed in dealing with French nationals across Europe, and also on the European leadership of the AG2R La Mondiale group in the HNWI life insurance segment.

How is business? Very good at the moment. In a stable French HNWI market, AG2R La Mondiale’s sales grew by 8% in 2010, with total premium income rising by €3.9bn to bring its HNWI AUM to €31bn. The first half of 2011 should confirm this strong growth trend.

La Mondiale Europartner by itself expanded even faster, and last year saw premium income total €825m. We expect our growth this year to surpass that.

This success is the result of our offering a wide range of investment solu-

– as well as a vested inter-est in my career!

What is the best piece of business advice you could personally offer to someone?A strategy is nothing if the execution is not run with care and energy. I have even seen poor business strategies that ultimately proved to be successful, simply because their owners were determined not to give up.

What are your personal likes and/or dislikes about the off-shore life industry? Dislikes: The offshore life industry is in perpetual

A strategy is nothing if the execution is not run with care and energy. I have even seen poor business strategies that ultimately proved to be successful, simply because their owners were determined not to give up”

“

Born in Paris, Fabrice Sauvignon was appointed chief executive of La Mondiale Europartner in March. Previously he was high net worth technical and financial director for La Mondiale Europartner’s parent company, AGR2 La Mondiale, and before that, he held a number of executive positions at Axa.

His career in the cross-border insurance industry means he now speaks three of Europe’s main languages of business – French, English and Spanish – as well, he says, as “a bit of Malay (siki siki)”.

BIOGRAPHY

Growth across borders

MD PROFILE FABRICE SAUVIGNON

22

MD PROFILE FABRICE SAUVIGNON


tions, combined with our reputation for servicing our clients well.

Of course, for UK resi-dents, the current strength of the euro relative to ster-ling, combined with a sof-tening in UK residential house prices, is making people think twice before moving to Europe.

However, we are seeing new opportunities emerg-ing as a result of the Retail Distribution Review, with private banks, asset man-agers and IFAs reviewing their business models, and looking for new solutions.

What are the biggest issues facing La Mondiale Europartner currently? La Mondiale Europartner has grown rapidly over the past few years. The chal-lenge we set ourselves was to improve the quality of our services, while expand-ing the size of business quickly. So far, we have been successful in achiev-ing this goal.

We also put a clear focus on being able to adapt and develop new investment solutions quick-ly, as opportunities arise in the countries and markets we are targeting.

Where do you see the busi-ness five years from now? In line with our position in France and Italy, we aim to rank among the UK’s top five providers of cross-bor-der compliant and tailored investment solutions.

What is the hardest business lesson you have learned? Having only just started at La Mondiale Europartner four months ago, it is a little too soon to answer this question with respect to my current role. However, I think the hardest time for me was when I started up a variable annuities business

in Asia Pacific in September 2001, which was a time of low interest rates and high volatility. At that time, I learned that patience and perseverance pay off, as this business finally took off after two years of hard work.

How does La Mondiale Europartner set itself apart from its competitors? La Mondiale Europartner has introduced to the UK the concept of the ‘general account’, which offers a range of guaranteed funds in several currencies. In the current context of money market funds performing poorly, investors appreciate these funds, which com-bine a higher and predicta-ble performance with full liquidity. They also like that they are able to hold multi-currencies within the same policy and move across borders while remaining locally compliant.

We also believe that by offering a bespoke service and solutions tailored to the specific requirements of our partners – advisory firms, intermediaries and wealth managers, for example – La Mondiale Europartner pro-vides a solid framework for these businesses to design the best solutions for their clients.

For example, we have observed that there is a trend in the UK market for asset managers to work in closer partnership with IFAs. This favours Luxem-bourg life assurance struc-tures such as dedicated funds, which happens to be an area that La Mondiale Europartner specialises in.

Where do you see the indus-try in five years?Providers in the UK will continue to refine and develop their offshore solutions. Competition is

driving costs down, and there is likely to be more consolidation, with some deciding to focus outside the UK. We see growing expat markets in places like Hong Kong and Singapore, for example.

How do you think the offshore life industry has coped with the effects of the global eco-nomic meltdown?I believe that cross-border life insurance is still at an early stage of development, as the EU is gradually estab-lishing a framework for set-ting the conditions for a unique European market.

Luxembourg, being at the heart of Europe, has benefitted from this devel-opment. With a total pre-mium income of more than €20bn in 2010, the country has emerged as the preferred choice within the EU.

When do you predict that we will see some kind of stabili-ty/significant recovery? The markets are likely to remain volatile over the next few years. As a result, the industry will have to provide solutions designed to help its clients, and their clients, to cope with this volatility.

That is why we put a great deal of emphasis on our ‘general account’.

As for the UK market, specific issues include soft residential house prices after a period of rapid rise, as well as household debt, and it is likely to be three -to-five years before these stabilise or improve.

Do you think the UK offshore bond market is saturated in terms of providers? Yes, there are a number of providers, and it is difficult to differentiate your prod-uct. Therefore, more con-solidation is likely, with

The Retail Distribution Review is a significant opportunity for cross-border life insurance companies like us, since it is forcing UK private banks, asset managers and IFAs to re-evaluate how they do business there ”

“ specialist providers like La Mondiale Europartner cov-ering the niche markets.

What are your immediate plans to grow/develop La Mondiale Europartner and its offering?The Retail Distribution Review is a significant opportunity for cross-bor-der life insurance compa-nies like us, since it is forc-ing UK private banks, asset managers and IFAs to re-evaluate how they do busi-ness there.

Fortunately for La Mondiale Europartner, the behaviours driven by this reform are very much in line with our way of work-ing, and enable us to dem-onstrate these values to both intermediaries and end customers.

How do you need to manage your key industry relation-ships to achieve success in the current economic climate?As a niche provider, we look to form close allianc-es with our partners. This means identifying compat-ible firms to work with and developing a strategy together. There are many challenges in the cross-border market and we do not have all the answers, therefore working in part-nership is the key to success.

If you could make one busi-ness wish come true, what would you wish for, and why? My foremost business wish, of course, would be for La Mondiale Europartner to be the UK’s leading cross-border compliant bond provider within the next three years. This market is at the forefront of the global finance industry, and such an achievement would set the pace for our entire development.

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25

COUNTRY PROFILE DUBAI


BY SIMON DANAHER

The past few months have been nothing if not extraor-dinary for much of the Middle East and North Africa. The Arab Spring has claimed the governments of Egypt and Tunisia; caused the deaths of possibly thou-sands of lives; sent Libya into civil war; brought tanks onto the streets of Bahrain; and sparked protests throughout much of the Arab world. Scarcely any country in the region has been spared.

Dubai, though, is one such place. Despite the political turmoil going on around it, the emirate, one of seven that comprise the United Arab Emirates, has remained stable, continu-ing its business of making and spending money as though nothing were going on around it.

The state’s apparent iso-lation from the rest of the Arab world can be attrib-uted to many factors. But according to some of those who live there, much credit is due to the emirate’s ruler, Sheikh Mohammed

bin Rashid Al Maktoum, who has managed to create an environment in which people are encouraged to make money and live prosperously.

Emiratis native to Dubai, they say, have also been less inclined to join the protests because they are arguably treated much better than in neighbour-ing countries.

If anything, Dubai is seen as likely to benefit from the regional turmoil, as individuals and compa-nies seek to relocate assets and businesses from what are now seen as either unstable or potentially unstable countries, while at the same time keeping them in the Gulf rather than moving them to Europe or Asia.

l Visionary sheikhSheikh Mohammed, who has now ruled Dubai for more than 15 years as part of the Al Maktoum family dynasty – which came to power in the 1830s – is regarded as a reformer, and for almost single-hand-

edly creating the phenom-enon in the desert that is modern Dubai.

This is not to say that Dubai has managed to remain completely isolated from external events. In 2009, for example, it fell into recession, although it was one of the last of the world’s economic centres to succumb.

Having largely ridden out the first phase of the economic downturn, the emirate became caught up in it after Dubai World – the state-owned invest-ment company that owns such assets as the DP World ports operator and Palm Islands development – announced it was to restructure some $25bn-worth of debt. The firm’s announcement came out of the blue, and sent the Dubai Financial Market – the state’s stock exchange – plummeting, while inves-tors fled. The effects of the debt restructure were soon felt around the world.

When International Adviser last profiled Dubai in March 2010, the sense of lost confidence was still

tangible. Both literally and figuratively, Dubai had stopped building; the infa-mous Dubai traffic jams were less infuriating, and progress seemed to be at a plateau.

But even then it was not all doom and gloom, and, fast-forwarding to the present day, it is almost hard to believe anything was ever wrong. The Dubai Mall, described as the world’s largest in terms of square footage, has no empty shops; opposite, the recently completed Burj Khalifa, the world’s tallest building, soars into the heavens, while all around it cranes fill the skyline.

l Property woesThis is not to say that noth-ing has changed, however. The property market, for example, has suffered, and continues to languish. At its height it was not uncom-mon for Dubai real estate to be worth several times its purchase price only a matter of months later; now, some of those who bought into the market at

Dubai has proven immune to the unrest that has beset much of the rest of the Middle East and North Africa, while appearing to have regained its economic confidence following the global downturn

Population (’10): 1,905,476 Male: 1,485,046 (78%) Female: 420,430 (22%)

Currency: UAE dirham

Latest GDP (’08): AED342.9m ($93.3m)

Financial services contribution to GDP: 11.5% (’09) vs 10.1% (’08)

Direct imports: -28% (’09) vs 48% (’08)

DUBAI FACTS

If anything, Dubai is seen as likely to benefit from the regional turmoil, as individuals and companies seek to relocate assets and businesses from what are now seen as either unstable or potentially unstable countries”

“

26

COUNTRY PROFILE DUBAI


or near the top find they are holding assets worth half the price they paid.

This step-change may not have been an entirely bad thing, though (except for those individual loss-nursing investors perhaps). A more sober approach is arguably just what Dubai needed, many commenta-tors have said.

l Market evolutionMeanwhile, Dubai contin-ues to evolve and mature as a market. One notable recent change has been the way many of the financial advisory firms that in the past largely targeted UK and other European expa-triates are now increasingly going after other groups, such as non-resident Indians (NRI), who make up a large percentage of Dubai’s expat population.

Sean Kelleher, chairman of Dubai-based advisory firm Mondial Financial Partners, has been recruit-ing Pakistani and Indian advisers and targeting the NRI market since 2009. He believes that to effectively access the market, it is important to understand its needs and that, to do so, it is fundamental to under-stand how investments are viewed in the culture, and what these clients’ invest-ment goals are.

“Family is a much bigger consideration when putting together a financial plan for an Indian client,” he says. “The client will want to make sure they are pro-viding for their dependents both while they are alive and after, so protection is an important area for us.

“It is also noticeable that the type of asset our NRI clients will wish to invest in differs from [that of] our Western clients. Gold, for example, is a very highly

sought after asset, so is property and other ‘tangi-ble’ assets.”

Another key difference, says Kelleher, is that Indians are likely to be much more “stock market aware”.

“India is a booming economy and our NRI cli-ents want to be part of that. It is expected that by 2015 India’s growth rate will overtake that of China and our clients are very much aware of this, and are keen to participate in this growth.”

In view of this, Kelleher has been developing new technology, in conjunction with Indian financial serv-

ices firm Padmakshi, to support NRI clients wish-ing to trade on the Indian stock markets.

Another large Dubai-based advisory firm, Hol-born Assets, has also begun to look more concertedly at the NRI market as part of its plans to become the “first choice for financial advice in Dubai”. It has begun hiring advisers to target this growing market and, according to director Simon Parker, ones of a very high calibre.

The decision to diversify one’s client base has been seen across the global financial services industry since the financial crisis. A

good example of this has been in the UK and Europe, where there has been an inexorable rise in the number hedge fund houses launching Ucits-compliant products to widen their client base to include retail investors.

l Regulations on riseAnother knock-on effect of the crisis has been the introduction of tighter regu-lation. In the UAE, and Dubai specifically, this has meant a toughening up of regulations within Dubai’s financial free zone, the Dubai International Financial Centre, through

Sean Kelleher, chairman, Mondial Financial Partners

It is noticeable that the type of asset our NRI clients will wish to invest in differs from [that of] our Western clients. Gold, for example, is a very highly sought after asset, so is property and other ‘tangible’ assets”

“its regulator, the Dubai Financial Services Authority. This has included strength-ening laws on the promo-tion and sale of products.

In addition, the Emirates Securities and Commodities Authority (ESCA), the body that governs the investment industry in the UAE, has published a proposal to overhaul the regulatory regime in Dubai. In the proposal, which was first published for industry con-sultation in January this year, ESCA announced its intention to restructure the oversight of investment funds. The intention is for ESCA to take on responsi-bility for conduct of busi-

UAE stock market performance20

0

-20

-40%

-60

-80Jan ’08Source: Bloomberg, DIFC Economics

Jun Jan ’09 Jun Jan ’10 Jan ’11Jun

Abu Dhabi Securities Exchange

DubaiFinancialMarket

ness requirements – both in respect of market oversight and consumer protection – for licensed firms, with the UAE Central Bank left to focus on systemic stability and prudential oversight.

ESCA also plans to change the registration of investment funds, with the intention being that foreign funds must be approved by the Central Bank and ESCA prior to their distribution.

The proposals are still in draft form and it is not clear how the new regime will work in practice but, according to many Dubai-based asset management firms, the changes will cause upheaval.

l Ending dodgy sellingThere are also signs that the free-wheeling days of little regulation of financial advisers in the UAE may be about to end. Earlier this year, for example, the UAE Central Bank unexpectedly declared that institutions it regulated would be banned from cold-calling customers to market loans and invest-ment products.

Sarah Lord, wealth plan-ning director at the Dubai office of Killik & Co, who has long been an advocate for qualifications and “cleaning up” the offshore investment world, says more needs to be done to protect consumers.

“I often have clients who come to me with products that are wholly unsuitable for them, which they have been sold after only a couple of high-pressure meetings. It is just unacceptable,” she says.

In view of this, Lord says she hopes to establish an accredited body similar to the Institute of Financial Planning or the Association of Independent Financial Advisers in the UK.

After a much-publicised downturn that followed the global economic crisis, Dubai is regaining its economic confidence.

Dubai’s financial services businesses, banks and infrastructure are expected to benefit from the unrest elsewhere in the Middle East as assets are relocated.

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KEY POINTS

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28

INTERMEDIARY PROFILE FEIFA


BY MARYROSE FISON

Next month, the European trade association for English-speaking inde-pendent financial advisers (FEIFA) will celebrate its two-year anniversary. The date will represent a mile-stone in the organisation’s development, from an all-but-unheard-of handful of internationally-focused advisers, to an increasingly visible association com-prised of 25 member busi-nesses, operating across four continents.

Today, the Federation of European Independent Financial Advisers – as it is formally known – has member companies with a presence in Europe, the Far East, Africa and/or South America. The major-ity, though, work through-out mainland Europe, with the highest concentration in Spain.

l Shared visionThe idea to set up a trade association emerged out of a dinner meeting with co-director (and Spectrum IFA Group principal) Michael Lodhi in the winter of 2008, Paul Stanfield, founding director and chief execu-tive, recalls. The two advis-ers discovered they shared a vision of a single, uni-fied trade body that would represent English-speaking advisers doing business outside the UK. Further discussions followed.

“There was a general feeling that there was a need for an entity to draw together what decent, regu-lated IFAs do in Europe, and act as a conduit between them and [invest-ment product] providers,” Stanfield says.

“We wanted to be able to act as a single voice, so that product consistency could be created and prod-uct development enhanced, which would benefit the end consumer.”

Four months later, Stanfield booked a Gatwick Airport conference room and invited interested advis-ers to attend. The venue of the meeting was key to facilitating international travel for advisers based in other countries, according to Stanfield, who is himself based in Northamptonshire in England’s East Midlands.

“As the individuals con-cerned lived in various parts of Europe, we decid-ed that meeting in the UK made most sense. Thus, in early February 2009, we booked a conference room at a hotel in Gatwick, and the rest of the attendees flew in while I took a train down.”

Despite initial concerns, Stanfield says he was impressed by the input and views of advisers around the table.

“I was a little sceptical beforehand, because I have seen similar ideas get side-tracked by hidden agendas and individuals who wish

to take them in a different direction for their own ben-efit, rather than for what a trade body should be.

“So I was pleasantly sur-prised by the end of that day when I did not feel that. I felt that all those people sitting around the table had got together for the right reasons, and they were the sort of people I could work alongside to potentially build something like this.”

l Membership growthSix months later the asso-ciation was officially launched, and over the last 24 months, has added an average of a new member organisation each month.

In May, it launched its first professional indemnity cover facility for members, which is provided by ACE Europe and which gives FEIFA members standard

EU-compliant PII cover.“In any EU company,

professional indemnity insurance is a requirement for financial advisers, [but] it is not always that easy to obtain in certain countries,” Stanfield notes.

“Sometimes there is little or no competition, and therefore premiums can be inappropriately high, so we wanted to bring a more relevant and appropriate facility to our clients. In my experience, a similar level of cover for an apparently similar risk can be two or three times more expensive in one European country against another,” he adds.

Stanfield’s pan-Europe-an vision reflects a profes-sional life spent on both sides of the Channel.

After gaining Chartered Insurance Institute creden-tials, he started out in finan-cial services as a broker consultant for GA Life in London and southeast England in the early ’90s, but subsequently moved to Europe in 1995, where he eventually became manag-ing director of Javea, Spain-based Churchill Personal Investments. He remained in that role for a decade, until Churchill merged with Jersey-based Pegasus Financial Services in 2007.

Some 18 months later he returned to the UK to strike out on his own with a consultancy busi-ness, Professional Wealth Services, which he still runs but is zealous in

Founded: August ’09

No. of member organisations: 25

No. of FEIFA-affiliated advisers: More than 300

Total territory covered by members: 25 European countries, as well as parts of the Middle East, Africa and South America

Chief executive: Paul Stanfield

Total assets under advice of members: In excess of 2bn ($2.9bn) (estimated)

FACT BOX

I felt that all those people sitting around the table had got together for the right reasons, and they were the sort of people I could work alongside to potentially build something like this

“

”

Strength in numbersPaul Stanfield, chief executive of the Federation of European Independent Financial Advisers, discusses the trade association’s success in bringing together English-speaking advisers operating on the Continent, and challenges its critics and naysayers

29

INTERMEDIARY PROFILE FEIFA


experience to be working in that field,” he says.

l Fee structureFEIFA is registered as a not-for-profit organisation and 100% of membership fees go towards member servic-es, Stanfield says. However, he earns an income from offering additional, consult-ing services to members at an extra cost.

Members pay two fees when they join – a one-off establishment fee and an annual fee. The estab-lishment fee costs €250 (£220/$360) per company regardless of size, and the annual payment is propor-tionate to the number of advisers in each firm, with larger firms paying more than smaller firms.

Annual fees for firms with up to five advisers are €250. Firms with six to ten advisers pay €825, firms with 11 to 25 advisers pay €1,000, and firms with more than 25 advisers pay €1,500.

Having operated over-seas for almost two dec-ades, Stanfield says he is all too aware of the exist-ence of so-called ‘cowboy’ advisers that give regulated, qualified overseas inde-pendent financial advisers a bad name. He is also aware that FEIFA has come in for some criticism, and he is keen to dispel what he says are misguided beliefs.

“Whatever you do, there are always going to be some people who are criti-cal,” he says.

“Often criticism is unfounded, in my opinion, or simply factually incor-rect. Sometimes it comes from a lack of understand-ing of what we are trying to achieve.

“[Changing minds] is not something that can be done overnight.”

Whatever you do, there are always going to be some people who are critical. Often criticism is unfounded, in my opinion, or simply factually incorrect. Sometimes it comes from a lack of understanding of what we are trying to achieve

“

”

keeping separate from his FEIFA activities.

l Future prospectsThis year, Stanfield wants to maintain the momentum in growth that the group has seen over the past two years, bringing on board at least another 12 member firms.

“We want to carry on increasing our membership because we think that is important. We have got 25 companies as members at the moment. My person-al view is that we would hopefully add another com-pany each month for the rest of this year.”

He is keen to boost job opportunities for mem-bers and in April, final-ised an arrangement with Total Investor.co.uk, a website that publishes con-tact details of more than 5,000 independent financial advisers.

The site, which receives

40,000 page hits a month and acts as a financial information forum for its users, aims to connect consumers with financial advisers.

“Members of the public and professionals interest-ed in advisers in mainland Europe, or financial infor-mation relating to other European countries, will be directed towards FEIFA and our members,” he says.

“We are looking to help advisers generate both potential client leads, potential joint ventures and business relationships with other professionals.”

A number of FEIFA’s members comply with MiFID, the European Union’s Market in Financial Instruments Directive, and Stanfield says further changes to the regulatory framework within Europe will impact all advisers who operate on the continent.

“The three recent EU consultations showed that

increasing and expanded European regulation is on its way,” he says. “It is part of our role to keep our members informed of the changes as early as possible.

“In keeping with UK IFAs, Europe-based advis-ers will also need to work towards more sustainable business models, and create greater tangible value in their businesses.

“We have negotiated a number of arrangements that provide more appropri-ate ongoing remuneration to our members to help slowly reduce the over-reli-ance on initial commissions – and we will continue to develop these aspects.”

While membership growth is key to FEIFA’s strategy, Stanfield says he is not willing to compro-mise on quality in his quest for quantity. The company has what he describes as a “rigorous vetting and due diligence process”.

l Application criteriaProspective members need to be evaluated on a case-by-case basis, according to Stanfield, because min-imum legal qualification requirements vary from one jurisdiction to another.

As a bare minimum though, prospective com-panies need to be licensed to do business in the coun-try in which they operate, and are asked to show a professional indemnity schedule, a copy of a client questionnaire, sample report or recommenda-tion, a valuations statement and a company’s terms of business.

“We judge each applica-tion on its own merit. We expect to see that an indi-vidual, or more than one individual at a company, has relevant expertise and

The Federation of European Independent Financial Advisers is marking its second year in existence.

Paul Stanfield, CEO of FEIFA, says it gives member firms the advantages that come from being part of a group, while also providing a forum for sharing information and ideas.

Helping FEIFA members to stay abreast of, and cope with, the growing number of EU regulations is seen by the organisation as among its key functions.

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technicalTECHNICAL BRIEFING UK STATUTORY RESIDENCE TEST

residency, as he was held to be UK resident.

More recently, the social and business life of Seychelles-based Robert Gaines-Cooper has been memorably chronicled in a series of cases (who can forget the yellow Mini?) that might reach a conclu-sion this year in the UK Supreme Court.

With its proposed SRT, though, the Treasury may at last reduce years of judi-cial wisdom and case law to a simple, box-ticking process.

l Keeping it simpleThe SRT is intended to provide a simple process,

and shooting rights in Scotland for the whole of a term of three years, later extended to six years. He travelled over with his valet, had food and serv-ants provided by a London caterer, and hosted resi-dent guests while he stayed in the property. The house was kept available for his use at all times, and he spent two months continu-ously each year there.

Decades on, Cadwala-der’s story for tax practi-tioners was not just an insight into everyday life at the turn of the 20th century for a certain type of HNW individual but, more impor-tantly, was an early refer-ence point for defining UK

June, they were the subject of an avalanche of com-ment and opinion from tax experts, accounts, lawyers and others.

l The SRTThe proposed introduction of a statutory residence test (SRT) into the UK is bad news for those who enjoy reading tax cases. At last, it seems a veritable library of cases, from Cooper v Cad-walader in 1904 to Gaines-Cooper in 2010, will finally begin to gather dust, as tax practitioners no longer need to refer to them.

Cadwalader was a US citizen who resided in New York. He rented a house

Last month, HM Treasury released two major consul-tation documents, one of which involves establish-ing, for the first time, a statutory definition of UK residence for tax purposes. The intention is to put an end, once and for all, to a case-law-based system that has long been criticised for being vague, antiquated and potentially subjective.

The other consultation involves a proposed reform of the UK’s non-dom tax structure.

Both consultations, for which the Treasury hopes to receive responses by 9 Sept, have very significant international aspects for advisers. And by the end of

Gerry Brown, head of trusts and taxation, Prudential International

For decades, Britons and foreigners alike have tussled with UK tax authorities over what conditions precisely constituted UK residency, which have never been formally defined in law. At least, not until now...

Tax clarity at last?

32

TECHNICAL BRIEFING UK STATUTORY RESIDENCE TEST


A and Part B apply, then Part A takes precedence, and the individual will def-initely be non-UK resident in that year.

So far so good.

l Part CPart C deals with difficult cases, where neither Part A nor Part B apply.

Part C involves a com-parison between number of days spent in the UK versus a small number of clearly defined ‘connection factors’. These connection factors are then combined with days spent in the UK into a ‘scale’.

It is proposed to have separate scales for arrivers and leavers, to reflect the ‘principle’ that it should be harder for leavers to relinquish residence than it is for new arrivers to acquire it.

What are the connec-tion factors?(1) Family: spouse, or

“common law equiva-lent”, or minor children who are UK-resident;

(2) Accommodation: acces-sible accommodation in the UK;

(3) Substantive work in the UK: where substantive UK (but not full time) work is involved;

(4) UK presence in previ-ous years: 90 days or more in either of previ-ous two tax years;

(5) More time is spent in the UK than in any other single country For arrivers, this last

and a clear outcome for the vast majority of people whose circumstances are straightforward.

For those with more complicated affairs, the new SRT will take into account both the amount of time the individual spends in the UK, as well as other connections he or she has with the UK.

The SRT will distinguish between:

Arrivers: individuals not UK-resident in all of the previous three tax years; andLeavers: individuals resi-dent in any one or more of the previous three tax yearsThe idea is that leavers,

who have lived in the UK for three years or more, will have to work harder to show they are not resi-dent than arrivers, who have not lived in the UK recently.

Like ancient Gaul, the test has three parts:

Part A: contains conclu-sive non-residence fac-tors that would be suffi-cient to make an indi-vidual non-resident;Part B: contains conclu-sive residence factors that would be sufficient to make an individual resident; andPart C: other connection factors and day-counting rules that only need to considered by those whose status is not determined by Part A or Part B.

l Part AAn individual is definitely non-resident for a tax year if he or she meets any one of the following conditions:

Non-UK resident in all of the three previous tax years, and present in the UK for fewer than 45 days in the current tax year;UK-resident in one or more of three previous tax years, and present in the UK for fewer than ten days in the current tax year; andLeaves the UK to carry out full-time work abroad, providing he/she is present in the UK for fewer than than 90 days in the tax year, and no more than 20 days are spent working in the UK during the tax year.

l Part BIf Part A does not apply, then the individual is defi-nitely resident if he or she meets any one of the fol-lowing conditions:

Present in the UK for 183 days or more in a tax year;Has only one home, and that is in the UK (or has two or more homes, and all of these are in the UK);Carries out full-time work in the UK.On the rare occasions

that conditions in both Part

It is hard to resist the conclusion that HMRC has designed these tests to give it the results it wants. That said, the process will give definite results. The areas of potential dispute will be greatly reduced, even if not completely eliminated

“

”

factor is largely irrelevant and is ignored. The day-factor matrix is demon-strated in the ‘arrivers’ box out above.

For leavers, meanwhile, all five factors are relevant. The day-factor matrix for them is highlighted in the ‘Leavers’ box out below.

Piece of cake, really. For those advisers and individuals who have not fully grasped the above, there is a simple solution. HMRC has provided an online tool, www.hm-treasury.gov.ukconsult_statutory_residence_test.htm. This tells you if some-one is ‘resident’ or ‘non-resident’, as appropriate.

l The bottom lineIt is hard to resist the con-clusion that HM Revenue & Customs has designed these tests simply to give it the results it wants. That said, the process will give definite results. The areas of potential dispute will be greatly reduced, even if not completely eliminated.

The benefit of the SRT is that individuals will be able to plan, in advance, to fix their UK-resident status by acting to fall within (or without) the UK connec-tion factors and/or the days spent in the UK.

The Government is to be congratulated for its efforts to cut the Gordian knot of current law and practice relating to tax residence.

Days spent in UK Impact of connection factors

Fewer than 45 days Always non-resident

45-89 days Resident if four factors apply

90-119 days Resident if three factors apply

120-182 days Resident if two factors apply

183 days or more Always resident

Day factor matrix: arrivers

Days spent in UK Impact of connection factors

Fewer than 10 days Always non-resident

10-44 days Resident if four factors apply

45-89 days Resident if three factors apply

90-119 days Resident if two factors apply

120-182 days Resident if one factor applies

183 days or more Always resident

Day factor matrix: leavers

Two UK Treasury consultation papers may bring about some of the biggest changes in rules on residency and domicile in a century.

The new rules will mean that areas of potential dispute will be greatly reduced, although they are unlikely to be completely eliminated.

The SRT will allow individuals to plan, in advance, to fix their UK-resident status.

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Share Class Start Date NAV 1 Month 12 Months Since Launch

GBP Institutional 31/07/2005 166.062 0.81% 10.08% 66.06%Source: Managing Partners Limited 1st June 2011 (All figures net of all charges)

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40

80

60

100

120

140

160

180

FTSE 100S&P 500

DAX 500

TPF –TPF –GBP institutionalGBP institutionalrebasedrebased

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*

Important Information This communication is issued by Managing Partners Capital Limited (“MPC”). It is directed only at persons who fall within articles19 or 49 of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005, including professional advisers who are authorised under theFinancial Services and Markets Act 2000, other persons who have professional experience in matters relating to investments and institutional investors.The Traded Policies Fund (the “Fund”) is not available for direct sale to members of the public and nothing in this communication is directed at, norshould be relied upon by, retail investors. The Fund is a Cayman Islands-based unregulated collective investment scheme which is not regulated,authorised or otherwise approved by the United Kingdom Financial Services Authority (“FSA”). The Fund is managed by Managing Partners Limited,which is registered as a company in the Cayman Islands and is registered with the Cayman Islands Monetary Authority (number 14505). Thiscommunication does not constitute an invitation or inducement to invest in the Fund. Nothing in this communication constitutes, or should be regardedas, investment advice. Prospective investors should note that investment in the Fund can involve significant risks and may result in the loss of all or partof the original investment. Past performance is not a reliable indicator of future results. Investment in the Fund will only be allowed on the basis of therelevant offering documents. Prospective investors should read the relevant offering documents carefully, including the risk factors, and take appropriateprofessional advice, including financial advice, before making any investment. Investment in the Fund may not be suitable for all investors. Investment in the Fund is currently available through 18 separate share classes*, which are subject to differing rules as stated in the Fund’s Offering Document,including in relation to minimum investment amounts, redemption rights and charges. The performance shown in this communication relates only to theGBP institutional share class, investment in which may not be suitable for, or available to, all investors. Other share classes may perform less favourably.

(11th May 2011)

Source: Bloomberg 1st June 2011

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BY MARYROSE FISON

Global high yield bonds have come under the spot-light in recent years for their potential to generate striking returns in spite of being relatively cheap. The downside, though, is that they can be volatile.

The latest figures from Morningstar, for example, show that over the past three years, the top ten global high yield bonds generated returns worth between 29% and 37%. These results, though, do not tell the full story.

For if we look at the 12-month period between June 2008 and June 2009, all ten of the Morningstar bonds contracted by between 3% and 12%. A year later they recouped the losses, growing between 16% and 19%, and last year the bonds increased by 15% and 18%.

l Unique conditionsClinton Comeaux, fund manager at institutional asset manager Muzinich, says global high yield bonds are unlikely to gen-erate similar levels of returns in the next few years, because the condi-tions that created such high three-year returns are unlikely to be repeated so quickly.

“At the end of 2008, the average price of a high yield bond was a little over 61 cents on the dollar,” explains Comeaux. “One of

two things was going to happen from that point: either a vast majority of high yield corporates were going to default, or inves-tors had a very unique opportunity to enrich them-selves by investing in the market.

“Given that the long-term recovery on a high yield bond is 35 cents in a dollar, if you were at 60 cents, it was one of those rare opportunities on high yield where you actually had less downside than you had upside,” he adds.

Today the picture has changed. “The high yield market today is trading at above par, as opposed to trading at 60 cents on the dollar in the trough. The high yield market today is largely about capturing the coupon of the market.”

Across the globe, the high yield market has grown more quickly in Europe than in the US, due partly to its smaller base. While the US high yield

mediation trend has been slower to occur, because the high yield markets are newer there. Hence the dif-ference in the size of the market.”

As eurozone ministers postpone making a deci-sion on further loans to Greece, following last year’s €110bn ($158.7bn) aid package, analysts are now speculating on the possible impact of that country’s financial problems on the rest of Europe.

Comeaux says its effect on global high yield bonds is unlikely to be pro-nounced, given that very few high yield corporates actually have direct expo-sure to Greece’s relatively small economy.

“What the Greek sover-eign situation presents to the high yield market is a systematic risk, to the extent that if you have a Greece default that would lead to problems within the finan-cial systems in Europe, banks’ willingness to lend, contraction of lending and investors become cautious and selling risky assets,” he says.

market used to be approxi-mately ten times the size of the European market, it is now closer to eight times its size.

This is in part down to the smaller base of Europe’s high yield bond market. Comeaux says the US market is still growing in absolute terms, but as far as a percentage of the under-lying size of the market goes, the European markets are growing more quickly.

l Systematic risk“The reason for this is that historically, the US market has dis-intermediated to an institutional market,” Comeaux explains. “The majority of corporate lend-ing happens at least on an unsecured basis as an insti-tutional function. Pension funds, insurance companies and retail investors are find-ing these corporates, as opposed to banks being the primary funding source.

In Europe, the dis-inter-

Global high yield sector avg vs index

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% 0

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00

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Jun ’11DecJun ’10DecJun ’09DecJun ’08Source: Morningstar

GIF OS Global High Yield Bond

Aegon High Yield Global Bond A $

On the surface, global high yield bonds may seem an inexpensive way of generating income, but the returns they offer are not without volatility

“Given that the long-term recovery on a high yield bond is 35 cents in a dollar, if you were at 60 cents, it was one of those rare opportunities on high yield where you actually had less downside than you had upside”

portfolioFUND SELECTOR GLOBAL HIGH YIELD BONDS

A calculated risk

Clinton Comeaux, fund manager, Muzinich

36

FUND SELECTOR GLOBAL HIGH YIELD BONDS


“Most fund managers remain constructive on the outlook for the next 12 months, believing that modest further spread tightening is possible and will lead to a return a little higher than the yield available”

Top ranked funds Three-year performance

FUND SELECTOR’S COMMENT ANTHONY MCDONALD, INVESTMENT RESEARCH ANALYST, OBSR

It has been a topsy-turvy ride for high yield inves-tors over recent years. The asset class was hit hard by the 2007-08 financial crisis, suffering particularly from the economic uncertainty and illiquidity that marred the second half of 2008, after the collapse of Lehman Brothers.

This downturn was sharply reversed in 2009-10, as high yield bonds

rebounded particularly strongly during the recov-ery phase for capital mar-kets and the global econo-my, supported initially by the repricing of lower-quality, CCC-rated issuers that had previously been shunned by investors fear-ing that they were close to bankruptcy.

The pace of this rally – from December 2008 – has surpassed that of other mainstream asset classes, such as equities and invest-ment grade bonds, fuelled by unprecedented inflows as investors seek an attrac-tive yield in a world of near zero interest rates.

At the same time, high yield has shown relative resilience during more challenging periods.

However, this recovery period has at times been a challenging environment for active fund managers to generate outperformance; the strong returns from

CCC-rated bonds in the first part of the rally was a headwind for many funds, as mainstream managers’ typical emphasis on rigor-ous credit analysis often leads to a preference for higher quality BB and B- rated issues.

For the analyst team at OBSR and Morningstar, the first half of 2011 has been an interesting time to research high yield funds.

Whereas many were broadly positioned for strength from the asset class over much of 2009-10, there has been a greater divergence in positioning over recent months. Most fund managers remain con-structive on the outlook for the next 12 months, believ-ing that modest further spread tightening is possi-ble and will lead to a return a little higher than the yield available.

However, some inves-tors have gradually but

demonstrably moderated the aggressiveness of their overweight credit posi-tions, on the view that fuller valuations do justify the previous level of risk.

Meanwhile, others are comfortable maintaining much more of a pro-risk stance in line with their positive 12-month outlook for high yield bonds. This is a divergence that we are monitoring carefully.

In this context, the Aegon High Yield Global Bond Fund, which holds an OBSR A rating, has been the best performer in the sector over the past three years.

The fund benefited from a higher weighting in euro-denominated issues during the recovery phase, as this part of the market rallied strongly. A disciplined approach to relative valua-tions also helped the fund participate well in rising markets without underper-forming significantly when conditions became more challenging.

Elsewhere, we would stress that the sector incor-porates a reasonably diverse range of mandates. This is highlighted by the fact that some offerings in the sector have a notably broader investment uni-verse that incorporates emerging market debt alongside traditional high yield bonds in search of a high income.

It is notable that two such offerings, Alliance-Bernstein High Yield Bond and Invesco Global High Income appear on the list of best performers despite the underperformance of traditional, dollar-denomi-nated emerging market bonds relative to high yield over the three-year period. Both funds were recovering from more difficult total returns in 2008, as their off-benchmark exposures to local currency-denominat-ed emerging market bonds rebounded from earlier weakness.

Top 3-year performers vs index

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Baring High Yield Bond A $ Inc

Parvest Bond World High Yield C


Top funds – risk and return

Standard deviation (%)

Retu

rn (%

)

3

To 10 Jun ’11. Bid to bid, gross inc, no cap. Source: Morningstar

4 5 625

30

35

40

Sector avg

LGT Multi Manager Bd High Yield $ B


Invesco Global High Income A

AB Global High Yield A $

Baring High Yield Bond A $ Inc

Schroder ISF Glbl High Yld A $ Acc

T. Rowe Price Glbl High Yld Bd A

Cap Int Global High Income Opp A

Parvest Bond World High Yield C

Putnam Global High Yield Bond A

Top 10 global high yield bond funds by 3-year performance3-year 3-year 3-year 3-year 3-year 3-year M’star Fund Dom % chg Alpha Beta R² Sharpe volatility Ratings size ($m)

Aegon High Yield Global Bond A $ 36.77 0.49 0.84 0.86 0.15 4.63 N/S Ireland

Parvest Bond World High Yield C 33.46 0.5 0.75 0.79 0.16 4.3 48.16 Lux

Baring High Yield Bond A $ Inc 33.1 0.48 0.72 0.91 0.17 3.84 559.63 Ireland

Cap Int Global High Income Opp A 32.25 0.44 0.74 0.87 0.15 4.09 1,083.58 Lux

AB Global High Yield A $ 31.79 0.36 1.02 0.89 0.12 5.56 19,561.86 Lux

LGT Multi Manager Bd High Yield $ B 31.51 0.45 0.81 0.82 0.14 4.55 327.44 L’stein

Invesco Global High Income A 31.46 0.37 0.87 0.87 0.13 4.79 757.13 Ireland

T. Rowe Price Glbl High Yld Bd A 30.47 0.42 0.72 0.85 0.15 4.01 1,711.76 Lux

Putnam Global High Yield Bond A 30.33 0.42 0.8 0.84 0.14 4.46 623.88 Ireland

Schroder ISF Glbl High Yld A $ Acc 28.96 0.42 0.69 0.79 0.14 3.96 3,482.68 Lux10 Jun ’08 – 10 Jun ’11. Bid to bid, $, gross income, no cap. Source: Morningstar

37



Top ranked funds NewcomersFUND SELECTOR’S COMMENT ANTHONY MCDONALD, INVESTMENT RESEARCH ANALYST, OBSR

Over the recovery period in the asset class, high investor demand was able to absorb a robust supply pipeline as companies took the opportunity to refinance existing bonds.

As a result of this refi-nancing period, the high yield universe has an unu-sually long average matu-rity, ensuring technical support for a part of the market that also continues to benefit from improving credit metrics at the com-pany level.

The corporate environ-ment is expected by many fund managers to remain healthy, therefore support-ing sub-investment grade issuers and allowing fur-ther spread tightening that should, in their view, allow the asset class to deliver attractive performance in excess of its average yield over the full year of 2011.

The combination of exceptional investor demand and a positive high yield outlook has encouraged many asset managers to launch dedi-cated high yield products over recent years, espe-cially given the likelihood of ongoing support for the asset class from income-seeking investors in a world of positive but anae-

mic economic growth. The surge of money

into high yield over recent years has encouraged both new fund launches and greater availability of exist-ing strategies.

One such new offering was the Standard Life Sicav Global High Yield Bond Fund, launched in April 2010.

Erlend Lochen, who previously spearheaded the group’s European high yield effort and managed the UK-domiciled Standard Life Higher Income Fund, relocated to Boston in 2009 to build an experienced team that could support a new global high yield product.

The five-strong invest-ment team has ensured a solid first year for the fund. The approach, which focuses on traditional high yield companies and there-fore follows an ex-finan-cials benchmark, leverages the group’s continued capability in European high yield but is biased towards US issuers in line with the global market.

Elsewhere, the estab-lished Schroder ISF Global High Yield Bond Fund, which also appears as one of the largest and best-performing funds in the sector, has been made available to broader audi-ences and the strategy con-sequently appears in differ-ent guises on the list of new funds.

Managed by the group’s high yield team, with lead-ership from Wesley Sparks, head of US credit, this is a robust offering.

The manager’s pragmat-ic approach combines top-down and bottom-up inputs to construct a high yield bond portfolio with the aim of outperforming the benchmark in most market conditions.

Detailed bottom-up

research is the primary input to the investment process, with the analyst team responsible for rating issuers according to the group’s proprietary ratings methodology.

This combines funda-mental credit analysis with the relative value assess-ment of each company’s bonds within its sector and across the different issues available.

Top newcomers vs index

0

5

10

15

20

%

25

30

5

00

00

5

0

5

JunAprFeb ’11DecOctAugJun ’10Source: Morningstar


JPM Global High Yield Bd A $ Acc

Nordea-1 Global High Yield Bond BP

Standard Life Sicav Global High Yld Bd D

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

Top 10 global high yield bond 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)

Standard Life Sicav Global High Yld Bd D 21.01 0.07 0.61 0.87 0.46 0.69 6 Apr ’10 260.85 Lux

Nordea-1 Global High Yield Bond BP 18.48 0.28 0.48 0.77 0.38 0.72 10 Feb ’10 33.67 Lux

JPM Global High Yield Bd A $ Acc 16.67 0.09 0.52 0.93 0.36 0.67 2 Sept ’08 1,789.81 Lux

Tower Fund Global High Yield Bond ($) 13.8 0.23 0.32 0.88 0.58 0.33 6 Oct ’08 77.96 Lux

Investment World Fd Cpt Glbl High Income 13.36 -0.34 0.5 0.81 0.31 0.6 29 Jan ’10 137.55 Lux

RS USD Schroder ISF Gbl High Yield N/A N/A N/A N/A N/A N/A 25 Feb ’11 N/S IoM

Janus Global High Yield A $ Acc N/A N/A N/A N/A N/A N/A 29 Oct ’10 22.2 Ireland

Clariden Leu (Lux) I Glbl High Yld Bd B N/A N/A N/A N/A N/A N/A 29 Apr ’11 267.79 Lux

FF - Global High Yield Bond A Acc $ N/A N/A N/A N/A N/A N/A 30 Jun ’10 0.93 Lux

SK IRL $ Schroder ISF Gbl High Yield N/A N/A N/A N/A N/A N/A 25 Feb ’11 N/S Ireland

Top newcomers – 1-year risk and return


Retu

rn (%

)

0.3


0.4 0.5 0.6 0.7 0.810

15

20

25

Tower Fund Global High Yield Bond ($)

Investment World Fd Cpt Glbl High Income

Sector avg

JPM Global High Yield Bd A $ Acc

Standard Life Sicav Global High Yld Bd D

Nordea-1 Global High Yield Bond BP

“The healthy corporate environ-ment in the US is also viewed to be positive for sub-investment grade issuers, with many investors anticipating ongoing improvements in credit quality as well as further spread tightening, supporting their forecasts of attractive returns over the full year of 2011”

38



A corollary of the strong demand for high yield bonds over recent years has been a sharp increase in assets under management by most highly-regarded high yield bond teams, sev-eral of whom now run tens of billions of dollars.

This is an area that investors and consultants should monitor carefully in an asset class that is prone to bouts of severe illiquid-ity, during which weak or deteriorating credits can be difficult to sell.

Indeed, the much increased level of assets in high yield bond funds, combined with significant investment from crossover investors whose primary focus is elsewhere, is a growing long-term liquidi-ty concern.

Unfortunately, it is inher-ent in the nature of the asset management industry that in many cases, the best investors manage the larg-

FUND SELECTOR’S COMMENT ANTHONY MCDONALD, INVESTMENT RESEARCH ANALYST, OBSR

Over the recovery period in the asset class, high investor demand was enough to absorb a robust supply pipeline, as compa-nies took the opportunity to refinance existing bonds.

Most high yield fund managers anticipate attrac-tive returns from the asset class over 2011, expecting it to be supported by fur-ther demand from income-seeking investors in a world of positive but anae-mic economic growth.

The healthy corporate environment in the US is also viewed to be positive for sub-investment grade issuers, with many inves-tors anticipating ongoing improvements in credit quality as well as further spread tightening.

est funds, whose size often constrains the level of out-performance that they are able to deliver.

One of the larger offer-ings in the universe is the Pimco GIS Global High Yield Bond Fund. It is man-aged by Andrew Jessop, an experienced investor who helped build a strong high yield business at Goldman Sachs AM before joining Pimco in 2009.

We have a high opinion of his investment ability, and note that his arrival has not had a significant impact on the fund’s deliberately conservative flavour within the high yield universe, as reflected by its choice of benchmark, which excludes issues rated below B. The investment process lever-ages Pimco’s macroeco-nomic analysis, which sets a framework that informs the positioning of the group’s funds.

Stockpicking is seen as

the key driver of returns in high yield, however, and the new manager has con-sequently bolstered the 30-plus credit analyst team since he arrived to enhance coverage of smaller B-rated credits.

We believe the fund is a strong offering in the sector, with a conservative flavour that makes it a compelling proposition for investors who are keen to invest in high yield but in a more conservative format.

The fund previously co-managed by Jessop, the Goldman Sachs Global High Yield Fund, is also one of the larger vehicles in the sector. However, the team has continued to suffer turnover since Jessop’s departure and the investment approach is in the process of evolution following the appointment of Kent Wosepka and Michael Goldstein to senior credit roles. Their process incorporates more top-down input to supplement the team’s fundamental credit research.

Alongside the aforemen-tioned AllianceBernstein offering, another fund that incorporates structural exposure to emerging market debt alongside sub-investment grade corporate bonds is the Capital International Global High Income Fund. Managed according to Capital International’s established internal multi-manager process, the portfolio is pri-marily constructed by the investment team of Ellen Carr, a high yield specialist; Robert Neithart, an emerg-ing market debt specialist; and Laurentius Harrier, who covers both asset classes and whose input is there-fore the primary determi-nant between them.

This approach combines the team’s significant credit research with a top-down input that guides the overall portfolio exposure; it has delivered attractive returns over the longer term.

Top ranked funds Assets under management

Top funds by AUM vs index


Retu

rn (%

)

Sector avg Pioneer Fds Glbl High Yield E € ND

Pimco GIS Global Hi Yld Bd E Acc

T. Rowe Price Glbl High Yld Bd A

Cap Int Global High Income Opp A

3


4 5 615

20

25

30

35

BGF Global High Yield Bond A2 $

GS Glbl High Yield Base Inc


Schroder ISF Glbl High Yld A $ Acc

Top funds – 3-year risk and return

-40

-20

% 0

20

40



Pioneer Fds Glbl High Yield E €

GS Glbl High Yield Base Inc


10 Jun ’08 – 10 Jun ’11. Bid to bid, $, gross income, no cap. Source: Morningstar

Top 10 global high yield bond 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)

AB Global High Yield A $ 31.79 0.36 1.02 0.89 0.12 5.56 19,561.86 Lux

GS Glbl High Yield Base Inc 27.13 0.33 0.87 0.81 0.11 4.96 6,214.37 Lux

Pioneer Fds Glbl High Yield E ND 19.45 0.11 0.97 0.82 0.07 5.45 3,689.11 Lux

Schroder ISF Glbl High Yld A $ Acc 28.96 0.42 0.69 0.79 0.14 3.96 3,482.68 Lux

PIMCO GIS Global Hi Yld Bd E Acc 27.18 0.39 0.68 0.83 0.14 3.83 3,440.83 Ireland

GS Glbl High Yield Port.- II N/A N/A N/A N/A N/A N/A 1,831.9 Ireland

JPM Global High Yield Bd A $ Acc N/A N/A N/A N/A N/A N/A – 1,789.81 Lux

T. Rowe Price Glbl High Yld Bd A 30.47 0.42 0.72 0.85 0.15 4.01 1,711.76 Lux

BGF Global High Yield Bond A2 $ 22.32 0.24 0.85 0.78 0.09 4.93 1,523.91 Lux

Cap Int Global High Income Opp A 32.25 0.44 0.74 0.87 0.15 4.09 1,083.58 Lux

“A corollary of the strong demand for high yield bonds over recent years has been a sharp increase in assets under management by most highly-regarded high yield bond teams, several of whom now run tens of billions of dollars ”

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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?

Allianz RCM Europe Eq Growth W 28.03 29.35 14.6m Allianz Global Investors Lux Luxembourg A Standard Y

Standard Life Sicav Euro Smaller Co’s D 26.3 31.35 1.4m Standard Life Investments Luxembourg AA Y

MainFirst Top European Ideas A 10.91 33.47 3,671 MainFirst Sicav Luxembourg Luxembourg A Superior Y

Jupiter JGF European Growth L 8.4 29.51 1,468 Jupiter Asset Management Luxembourg AA Y

Invesco Pan European Structured Eq A 7.98 24.77 2,202 Invesco Global Asset Mgt Luxembourg AA Superior Y

BL-Equities Europe B 6.66 25.73 3,670 Banque de Luxembourg Luxembourg Superior

BGF European Focus A2 6.64 30.45 N/S Blackrock (Luxembourg) Luxembourg AAA AA Superior Y

Uni-Global Min Variance Europe B1 1.7 21.9 1.00 Unigestion Luxembourg Superior

MFS Meridian Europ Value A1 0.41 25.75 5,873 MFS Meridian Funds Luxembourg AA Y

Robeco European Conservative Eqs B -2.61 24.99 0 Robeco Luxembourg Luxembourg A Standard Y

Henderson Horizon Pan Eurp Eq A2 -3.93 26.2 3,671 Henderson Management Luxembourg AA AA Y

Jupiter JGF European Opportunities L -4.48 27.72 1,468 Jupiter Asset Management Luxembourg AA Superior Y

DNCA Invest Centifolia Europe B -6.6 25.81 0 DNCA Finance Luxembourg Luxembourg Standard

MFS Meridian Europ Equity A1 -7.89 28.5 5,873 MFS Meridian Funds Luxembourg A AA Y

JOHCM European Select Val 21.93 29 1,468 J O Hambro Capital Management Ireland A Y

Franklin European Growth A Acc 14.95 25.04 7,341 Franklin Templeton Invest Funds Luxembourg A A Y

Threadneedle(Lux) Pan European Eqs AE 9.92 25.12 3,671 Threadneedle Investment Svcs Luxembourg A Y

Franklin European Sm-Md Cap Gr A Acc 8.56 26.81 7,341 Franklin Templeton Invest Funds Luxembourg A A Superior Y

BSF European Opps Ext Strategies A2 8.05 29.67 N/S Blackrock (Luxembourg) Luxembourg AA Y

Comgest Europe 7.95 20.89 23,862 CHF Comgest Luxembourg Elite Y

Danske Invest Europe Small Cap A 7.4 35.63 0 Danske Invest Luxembourg AA

Comgest Growth Europe Acc 7.29 20.93 14,683 Comgest Asset Management Int’l Ireland AA Elite Y

EDM Intl Strategy 6.59 23.19 0 EDM Fund Management Luxembourg Standard

BGF European Growth A2 4.4 28.11 N/S Blackrock (Luxembourg) Luxembourg AA A Superior Y

Allianz RCM Europe Small Cap Eq AT 3.35 32.48 1.00 Allianz Global Investors Lux Luxembourg Elite

Allianz RCM Small Cap Europa A 2.8 32.68 1.00 Allianz Global Investors Lux Luxembourg AA Elite

Nordea-1 European Value BP 2.01 28.12 73 Nordea Investment Funds Luxembourg AA A Y

Montanaro European Smaller Comp £ 1.89 29.7 1,645 £ Montanaro Asset Management Ireland AAA AA Superior Y

Kempen (Lux) European Small Cap A 1.53 32.78 1,468 Kempen Capital Management Luxembourg Superior

Metzler European Focus 1.13 31.21 734,125 Metzler Ireland Ireland AA Superior

BGF European A2 -0.88 29.6 N/S Blackrock (Luxembourg) Luxembourg AA AA Superior Y

Metropole Best of Europe R (PEA) -1.79 30.72 1.00 Métropole Gestion Luxembourg Standard

BNPP L1 Equity Europe Growth Acc -2.41 27.5 N/S BNP Paribas Invest Partners Lux Luxembourg Superior Y

Reyl (Lux) GF European Equities F -2.7 29.18 1.00 Reyl & Cie Luxembourg A Y

Digital Stars Europe -2.89 30.37 N/S Digital Funds Luxembourg Standard Y

Schroder ISF European Special Sit A -3.16 28.04 1,468 Schroder Investment Mgt Luxembourg AA Superior Y

Invesco Pan European Equity A Acc -4.27 30.36 2,202 Invesco Global Asset Mgt Luxembourg AA 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


Danske Invest Europe Focus A -5.14 31.85 1.00 Danske Invest Luxembourg AA

BNPP L1 Equity Best Sel Europe C Acc -5.65 27.25 1.00 BNP Paribas Invest Partners Lux Luxembourg AA Superior Y

Invesco European Growth Equity A -6.1 27.49 N/S Invesco Global Asset Mgt Luxembourg AA Y

Alken European Opportunities R -7.01 31.44 0 Alken Asset Management Luxembourg Superior Y

Pioneer Fds Top European Plyrs E ND -8.17 27.06 50 Pioneer Asset Management Luxembourg A

MS INVF European Equity Alpha A -8.41 27.31 0 Morgan Stanley Invest Funds Luxembourg Superior Y

UBS (Lux) EF European Opp P -8.95 27.77 1.00 UBS Global Asset Mgt (Lux) Luxembourg Standard Y

Cazenove Pan Europe B Euro -9.5 26.8 N/S Cazenove International Fund Ireland AAA A Superior Y

CapitalAtWork European Eq at Work C -10.36 29.46 1.00 Capital at Work Luxembourg AA

Oyster European Opportunities -11.11 28.93 0 Oyster Asset Management Luxembourg Standard Y

Danske Invest Europe High Dividend A -11.82 30.05 1.00 Danske Invest Luxembourg AA

Lazard Pan European Eq -12.41 29.82 2,937 Lazard Fund Managers (Ireland) Ireland Superior Y

Franklin Mutual European A Acc -13.01 25.41 7,341 Franklin Templeton Invest Funds Luxembourg AA A Elite Y

Ignis Intl Argo Pan Eur Alpha I Acc -13.02 27.05 4.4m Ignis Asset Management Limited Ireland A A Y

GAM Star European Equity Acc -13.63 26.65 14,683 GAM Fund Management Limited Ireland A Y

GS Europe CORE Equity Base Inc -16.36 29.53 7,341 Goldman Sachs Asset Mgt Int’l Luxembourg AA Superior Y

FF - European Growth A Euro -17.14 28.51 1.00 Fidelity (FIL (Luxembourg)) Luxembourg AA Superior Y

Carnegie European Equity 1A -17.25 27.75 1,468 Carnegie Fund Mgt Company Luxembourg AA

JPM Europe Dynamic A (dist)- -18.35 29.42 N/S JPMorgan Asset Mgt (Eur) Luxembourg A Superior Y

Carmignac Portf Grande Europe A -19.54 25.9 1.00 Carmignac Gestion Luxembourg Superior

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


BGF Continental European Flexible A2 20.33 31.98 N/S Blackrock (Luxembourg) Luxembourg AAA AA Superior Y

Allianz RCM Euroland Eq Growth W 18.4 31.24 14.6m Allianz Global Investors Lux Luxembourg A Superior Y

MainFirst Classic Stock Fund A 14.72 33.21 3,671 MainFirst Sicav Luxembourg Luxembourg A Superior Y

Edinburgh Partners Europe Opp I 6.72 29.67 146,825 Edinburgh Partners Ireland AA Superior Y

MFS Meridian Continental Europ Eq A1 £ 5.77 28.34 4,113 £ MFS Meridian Funds Luxembourg A Y

LuxTopic - Aktien Europa A -8.18 28.57 0 DJE Investment Luxembourg Standard

Fonditalia Euro Defensive -15.99 26.98 7,341 Fideuram Gestions Luxembourg Standard

GAM Star Cont European Equity £ Acc -3.25 26.92 9,871 £ GAM Fund Management Ireland A Y

JOHCM Continental European £ -3.79 30.61 1,645 £ J O Hambro Capital Management Ireland A AA Superior Y

Fonditalia Euro Cyclicals -4.1 35.48 7,341 Fideuram Gestions Luxembourg Standard

Standard Life Sicav Euro Equity Uncons D -5.46 32.28 1.4m Standard Life Investments Luxembourg AA Y

Cazenove European Eq ex UK B -8.33 27.39 N/S Cazenove International Fund Ireland AAA AA Superior Y

Pioneer Fds Euroland Equity E ND -9.74 31.07 50 Pioneer Asset Management Luxembourg AA Superior

BGF Euro-Markets A2 -9.78 32.65 7,341 Blackrock (Luxembourg) Luxembourg AA AA Superior Y

Gartmore Sicav Continental European A -10.02 28.9 3,671 Gartmore Sicav Luxembourg A Superior Y

BNPP L1 Equity Best Sel Euro Acc -13.67 30.78 1.00 BNP Paribas Invest Partners Lux Luxembourg AA Superior Y

CapitalAtWork Contr Euro Eq at Work C -15.01 30.56 1.00 Capital at Work Luxembourg AA

ING (L) Invest Euro Income P Acc -17.34 27.51 0 ING Investment Mgt Luxembourg Luxembourg Standard

ING (L) Invest Euro Hi Dividend P Acc -18.13 31.27 0 ING Investment Mgt Luxembourg Luxembourg AA Superior

Schroder ISF Euro Equity A Acc -19.34 33.25 1,468 Schroder Investment Mgt Luxembourg A Y

FF - Euro Blue Chip A Euro -20.28 31.3 N/S Fidelity (FIL (Luxembourg)) Luxembourg A Superior 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 $ 20.39 19.37 100,000 $ Findlay Park Investment Mgt Ireland AAA Y

BNPP L1 Equity USA Growth Acc 14.43 20.65 N/S $ BNP Paribas Invest Partners Lux Luxembourg A Y

Robeco US Premium Equities D $ 12.86 20.65 N/S $ Robeco Luxembourg Luxembourg Superior Y

Schroder ISF US Sm & MdCp Eq A $ 10.82 21.53 1,000 $ Schroder Investment Mgt Lux Luxembourg AA AAA Elite Y

Allianz RCM US Equity C2 $ 4.91 22.77 1,000 $ Allianz Global Investors Ireland Ireland A Superior Y

BL-Equities America B 1.79 19.63 N/S $ Banque de Luxembourg Luxembourg Superior

LM CB US Appreciation A Inc (A) $ -1.94 17.83 1,000 $ Legg Mason Global Funds (Dub) Ireland A Y

BGF US Small & MidCap Opps A2 $ 15.09 24.9 5,000 $ Blackrock (Luxembourg) Luxembourg A Superior Y

GAM GAMCO Eq Acc 13.65 27.9 10,000 $ GAM Fund Management BVI AAA A

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


GAM Star US All Cap Equity $ Acc 9.99 23.41 10,000 $ GAM Fund Management Ireland AA A Y

W.P. Stewart Holdings 8.78 23.8 1.00 $ W.P. Stewart Asset Mgt (Europe) Luxembourg AA Superior

ING (L) Invest US Growth P $ 7.67 19.85 0 $ ING Investment Management Lux Luxembourg Standard

Robeco US Large Cap Equities D 6.4 21.6 0 Robeco Luxembourg Luxembourg AA Superior

Perkins US Strategic Value A $ Acc 6.38 20.47 2,500 $ Janus Capital Funds Ireland AA Superior Y

Cap Int US Growth and Income B 5.12 20.85 1,468 Capital International Luxembourg Elite Y

PineBridge US Focus Equity $ Y 4.88 20.96 1m $ PineBridge Investments Ireland Ireland AA Y

FF - America A $ 4.47 23.03 2,500 $ Fidelity (FIL (Luxembourg)) Luxembourg A Standard Y

ING (L) Invest US High Dividend P Acc 4.31 19.6 0 $ ING Investment Mgt Lux Luxembourg A Standard

Pioneer Fds US Research E ND 4.03 19.68 50 Pioneer Asset Management Luxembourg Standard

JPM America Large Cap A (dist)-$ 3.46 19.5 35,000 $ JPMorgan Asset Mgmt (Europe) Luxembourg Standard Y

Franklin US Equity A Acc $ 3.02 20.01 5,000 $ Franklin Templeton Invest Funds Luxembourg A Y

Brown Advisory US Equity Value £ A 2.48 23.74 8,226 £ Brown Advisory Funds Ireland A Y

Investec GSF American Eq A Inc Grs $ 2.15 25.44 3,000 $ Investec Asset Mgt Lux Luxembourg AA Superior Y

Neuberger Berman US Large Cap Gr $ Adv 0.55 19.83 10,000 $ Neuberger Berman Ireland AA Y

Aberdeen Global American Equity A2 0.26 21.52 1,500 $ Aberdeen Asset Managers (Lux) Luxembourg A Y

GS US Equity Portfolio Base Inc -3.27 21.6 5,000 $ Goldman Sachs Asset Mgt Int’l Luxembourg A A Superior Y

MFS Meridian US Value A1 $ -3.92 20.91 5,000 $ MFS Meridian Funds Luxembourg AA Y

Pioneer Fds North Amer Bas Val E ND -5.23 19.54 50 Pioneer Asset Management Luxembourg AA

Eaton Vance Intl(IRL) US Value M2 $ -14.46 21.19 1m $ Eaton Vance Mgt (Int’l) Ireland AA Y

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 ¥ 17.86 21.87 N/S ¥ Fidelity (FIL (Luxembourg)) Luxembourg A Y

Polar Capital Plc Japan $ 7.81 21.62 0 $ Polar Capital Partners Ireland AA AA Superior Y

ValueInvest LUX Japan A Cap 3.07 14.85 0 ValueInvest Asset Management Luxembourg Standard

Orbis Sicav Japan Equity (¥) 1.63 25.24 N/S ¥ Orbis Investment Management Luxembourg AAA AA

Invesco Japanese Equity Core A -1.12 22.7 1,500 $ Invesco Global Asset Mgt Ireland AA A Superior Y

Invesco Japanese Equity Advantage A -1.5 20.07 N/S ¥ Invesco Global Asset Mgt Luxembourg AA A Y

SGAM Fund Eqs Japan CoreAlpha A -4.37 24.24 1.00 ¥ Amundi Luxembourg AAA Y

Lindsell Train Japanese Equity A Acc -12.33 19.54 2,492 ¥ Close Asset Management (UK) Ireland A Y

GS Japan Small Cap Base Inc 0.13 21.2 6,231 ¥ Goldman Sachs Asset Mgt Int’l Luxembourg A Y

Oyster Japan Opportunities ¥ -5.53 18.08 0 ¥ Oyster Asset Management Luxembourg A Y

PineBridge Japan Small Cap Equity ¥ -6.13 22.16 1m $ PineBridge Investments Ireland Ireland AA Y

Melchior ST Japan Advantage B3 ¥ -13.95 20.53 N/S ¥ Dalton Strategic Partnership Luxembourg A Y

Henderson Horizon Japanese Eq A2 -15.32 21.71 2,500 $ Henderson Management Luxembourg A Y

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


Templeton Asian Growth A YDis $ 29.48 32.78 5,000 $ Franklin Templeton Invest Funds Luxembourg AAA A Y

Investec GSF Asian Eq A Inc Grs $ 16.33 29.29 3,000 $ Investec Asset Mgt Lux Luxembourg AA Superior Y

Robeco Asia Pacific Equities D 1.75 25.63 0 Robeco Luxembourg Luxembourg A Superior Y

Macquarie Asia New Stars Fund A1 56.4 38.08 3,000 $ Macquarie Funds Mgt HK Caymans Standard

FF - South East Asia A $ 25.81 29.73 2,500 $ Fidelity (FIL (Luxembourg)) Luxembourg AA AA Superior Y

FF - Asian Special Situations A $ 22.12 27.92 2,500 $ Fidelity (FIL (Luxembourg)) Luxembourg AA Elite Y

Schroder ISF Emerg Asia A 16.22 29.6 1,000 $ Schroder Investment Mgt (HK) Luxembourg AA Superior Y

Invesco Asian Equity A 12.01 30.18 1,500 $ Invesco Global Asset Mgt Ireland AA A Y

Invesco Pacific Equity A 9.22 26.04 1,500 $ Invesco Global Asset Mgt Ireland A Y

ING (L) Invest New Asia P $ Acc 1.77 27.23 0 $ ING Investment Mgt Lux Luxembourg A Standard

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


Ignis Intl Cart Enhanced Alp A £ Acc 2.44 20.43 N/S £ Ignis Asset Management Ireland A Y

Old Mutual Dublin UK Sel Smllr Companies 18.63 29.87 1,645 £ Old Mutual Asset Managers UK Ireland AAA Y

Cazenove UK Equity B £ 11.16 25.63 8,226 £ Cazenove International Fund Ireland A Y

QUALITY FUNDS


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 28.38 24.79 1,500 $ First State Invest (Hong Kong) Ireland AAA Y

Aberdeen Global Emerging Markets Eq A2 26.2 28.41 1,500 $ Aberdeen Asset Managers (Lux) Luxembourg AA AAA Elite Y

Schroder ISF Glbl Emerg Mkt Opp A $ 20.93 28.04 1,000 $ Schroder Investment Mgt Luxembourg Superior Y

Vontobel Emerging Markets Eq B 11.55 25.46 N/S $ Vontobel Management Luxembourg AA

Comgest Growth Emerging Markets Acc 2.19 27.48 10,000 $ Comgest Asset Management Int’l Ireland AAA Elite Y

Robeco Active Quant Emerging Eq D 14.88 33.51 0 Robeco Luxembourg Luxembourg A

Clariden Leu (Lux) Emerging Mkts Eq B 14.61 35.11 10 $ Clariden Leu AG Luxembourg AA

Lazard Emerging Markets Equity $ 10.32 31.34 2m $ Lazard Fund Managers (Ireland) Ireland A Superior Y

BNY Mellon Global Em Mkts Eq Value A $ 8.47 29.82 5,000 $ BNY Mellon Asset Management Ireland A Y

JPM Emerging Markets Eq A (dist) $ -1.77 31.37 35,000 $ JPMorgan Asset Mgmt (Europe) Luxembourg Superior Y

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


Fidelity AS Japan A Acc ¥ -15.7 23.72 N/S ¥ Fidelity (FIL (Luxembourg)) Luxembourg A Y

Schroder ISF Japanese Eq A Acc -16.14 22.16 12 ¥ Schroder Invest Mgt (Japan) Luxembourg Superior Y

Nippon Growth -19.16 26.86 N/S ¥ E.I. Sturdza Strategic Mgt Guernsey A

IFDC Japan Dynamic A ¥ -22.81 21.8 1.00 ¥ IFDC Luxembourg AAA AA

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 $ 38.01 23.33 N/S $ Nuveen Ireland AA

Calamos Global Equity A Acc 25.16 27.98 29,365 Calamos Global Funds Ireland AA Y

Veritas Glbl Focus A £ 15.73 19.73 49,355 £ Veritas Asset Management UK Ireland AA Superior Y

Franklin Mutual Global Disc A Acc $ 10.36 15.3 5,000 $ Franklin Templeton Invest Funds Luxembourg A Superior Y

Veritas Global Eq Income A £ 9.75 20.89 49,355 £ Veritas Asset Management UK Ireland AA Superior Y

Tweedy Browne Intl Value Fd ( ) B 8.77 25.67 36,706 Tweedy Browne Co Luxembourg Superior

ValueInvest LUX Global A Cap 8.28 20.03 0 ValueInvest Asset Management Luxembourg Superior

Amundi International Sicav AU-C 6.66 14.86 1.00 $ Amundi Luxembourg Standard

MercLin Sicav Global Equity F 4.96 22.13 1.00 Mercier Vanderlinden Asset Mgt Luxembourg Superior

MFS Meridian Glbl Equity A1 $ Acc 3.85 23.06 5,000 $ MFS Meridian Funds Luxembourg A Y

Orbis Global Equity 2.98 25.03 50,000 $ Orbis Investment Management Bermuda AAA

Schroder ISF QEP Global Quality A1 Acc 2.79 22 1,468 Schroder Investment Mgt Luxembourg A

Planetarium - Riverfield Eqs 1.63 22.32 7,341 Planetarium Fund Luxembourg A

Orbis Sicav Global Equity Inv 1.48 24.83 N/S Orbis Investment Management Luxembourg AA

PEH Strategie Flexibel P 1.38 15.83 3,671 Axxion Luxembourg A

BL-Global Equities B 1.06 20.96 3,671 Banque de Luxembourg Luxembourg Superior

BNY Mellon Lg-Trm Global Equity A 0.31 19.48 7,341 BNY Mellon Asset Management Ireland AA A Y

BGF Global Dynamic Equity $ A2 -2.1 19.92 5,000 $ Blackrock (Luxembourg) Luxembourg AAA AA Superior Y

Vontobel Global Value Equity B -3.97 19.07 N/S $ Vontobel Management Luxembourg AA

Gamax Funds Junior A 3.93 23.79 367,062 GAMAX Management Luxembourg A

GAM Global Diversified $ 2.37 N/A 5,000 $ GAM Fund Management BVI AA

BNPP L1 Opportunities World Acc 1.62 25.26 2,202 BNP Paribas Invest Partners Lux Luxembourg AA Y

Aberdeen Global World Equity A2 -0.84 25.25 1,500 $ Aberdeen Asset Managers (Lux) Luxembourg AA A Superior Y

Schroder ISF Glbl Eq Alpha A $ Acc -1.39 24.47 1,000 $ Schroder Investment Mgt Luxembourg Superior Y

Schroder ISF QEP Global Core C Acc -1.72 24.18 500,000 $ Schroder Investment Mgt Luxembourg A Y

Tweedy Browne Glbl Hi Div Val ( ) D -2.73 N/A 36,706 Tweedy Browne Co Luxembourg Superior

DJE Dividende & Substanz P -3.63 24.31 0 DJE Investment Luxembourg Superior

BPI GIF - Opportunities R -4.4 26.63 22,024 BPI Global Invest Fund Mgt Co Luxembourg Superior

GAM Star Worldwide Equity $ Inc -5.44 24.09 10,000 $ GAM Fund Management Ireland AAA Y

DWS Invest Top Dividend LC -5.89 23.16 1.00 DWS Investment Luxembourg Superior Y

Janus Global Research A $ -6.04 26.47 2,500 $ Janus Capital Funds Ireland A Y

Oasis Global Equity -6.97 23.7 5,000 $ Oasis Global Mgt Co (Ireland) Ireland AA

Investec GSF Glbl Eq A Inc Grs $ -8.34 24.09 3,000 $ Investec Asset Mgt Lux Luxembourg A Superior Y

ACPI Global Equity Ucits A $ -9.93 N/A 1m $ ACP Partners Inv Mgr (Ireland) Ireland A Y

Investec GSF Glbl Str Eq A Inc Grs $ -11.7 24.95 3,000 $ Investec Asset Mgt Lux Luxembourg AA Superior Y

Sarasin EquiSar - Global A -11.95 23.79 1,468 Sarasin Investmentfonds Luxembourg A Y

DWS Invest Global Value LC -11.99 24.29 0 DWS Investment Luxembourg Superior

QUALITY FUNDS


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


Templeton Glbl Total Return A MDis $ 53.14 12.44 5,000 $ Franklin Templeton Invest Funds Luxembourg AA/V4 A Y

Pimco GIS Global Bond Ins CHF Hdg Acc 46.92 18.51 N/S CHF Pimco Global Adv (Ireland) Ireland AA Y

Templeton Global Bond A MDis $ 43.06 9.19 5,000 $ Franklin Templeton Invest Funds Luxembourg AAA/V4 AA Superior Y

Templeton Glbl Total Return A Acc -H1 40.05 24.18 7,341 Franklin Templeton Invest Funds Luxembourg AA/V4 Y

Thames River Sterling Glbl Bond $ 38.38 10.7 7,500 $ Thames River Capital Ireland AA/V4 Y

Aegon Strategic Global Bond A 34.46 20.18 N/S Aegon Fund Management (UK) Ireland A Y

Templeton Global Bond A Acc -H1 32.69 21.2 7,341 Franklin Templeton Invest Funds Luxembourg AAA/V4 Y

Thames River Sterling Glbl Bond 28.73 16.75 11,012 Thames River Capital Ireland AA/V4 Y

LGT Bond Global ( ) B 27.25 9.85 1.00 LGT Capital Management Liechtenstein A/V5

Thames River Euro Glbl Bond Acc 26.69 11.06 11,012 Thames River Capital Ireland AA/V5 Y

Templeton Glbl Total Return A MDis £-H1 26.29 20.5 8,226 £ Franklin Templeton Invest Funds Luxembourg AA/V4 A Y

Loomis Sayles Glob Opp Bd Fd I/D $ 23.5 10.73 100,000 $ Natixis Global Associates Ireland Superior Y

Pimco GIS Global Bond Ins Hdg Acc 14.46 19.2 N/S Pimco Global Adv (Ireland) Ireland AA Y

Investec GSF Glbl Bd A Inc Grs $ 25.07 10.27 3,000 $ Investec Asset Mgt Luxembourg Luxembourg A Y

Pimco GIS Global Bond Inv $ Unhdg 22.23 11 5m $ Pimco Global Advisors (Ireland) Ireland AA Y

Pimco GIS Global Bond Ins Acc 21.87 6.82 10m $ Pimco Global Advisors (Ireland) Ireland AA Y

Templeton Global Bond A MDis £-H1 21.74 16.88 8,226 £ Franklin Templeton Invest Funds Luxembourg AAA/V4 AA Superior Y

Thames River Sterling Glbl Bond £ Inc 18.9 7.3 8,226 £ Thames River Capital Ireland AA/V5 Y

TriAlpha International Bond 18.58 7.16 5,000 $ TriAlpha Fund Mgrs (Jersey) Jersey A/V3

Dexia Bonds World Government Plus C Acc 16.93 8.64 1.00 Dexia Asset Management Luxembourg Standard

Templeton Global Bond Euro A YDis 12.99 19.21 7,341 Franklin Templeton Invest Funds Luxembourg AA/V4 Y

Robeco Lux-o-rente D 8.53 16.69 1.00 Robeco Luxembourg Luxembourg AA/V3 Superior Y

Pimco GIS Global Bond Ins £ Hdg Inc 3.07 16.13 N/S £ Pimco Global Advisors (Ireland) Ireland AA Y

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


DWS Global Value -12.16 24.67 734 DWS Investment Luxembourg Superior

ING (L) Invest Glbl Hi Div P Acc -12.46 23.32 0 ING Investment Mgt Lux Luxembourg A Standard

Globersel Equity -15.45 27.4 3,671 Ersel Gestion Internationale Luxembourg Superior

Carnegie Worldwide 1A -17.1 22.23 1,000 $ Carnegie Fund Mgt Company Luxembourg AAA

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


BNY Mellon EM Debt Local Ccy X $ 32.7 16.59 0 $ BNY Mellon Asset Management Ireland A/V6 Y

MFS Meridian Emerg Mkts Dbt A2 $ 31.25 13.78 5,000 $ MFS Meridian Funds Luxembourg AAA/V5 A Y

Pictet-Global Emerging Debt-HP 23.21 24.76 0 Pictet Funds (Europe) Luxembourg Standard Y

Templeton Emerging Mkts Bd A QDis $ 38.79 17.12 5,000 $ Franklin Templeton Invest Funds Luxembourg AA/V5 AA Superior Y

ING (L) Flex Emerg Mkts Debt $ P Acc 36.26 17.09 0 $ ING Investment Management Lux Luxembourg AA/V6

Pictet-Global Emerging Debt-P $ 33.9 12.03 0 $ Pictet Funds (Europe) Luxembourg Standard Y

AB Emerging Markets Debt A $ 33.79 17.46 2,000 $ AllianceBernstein (Luxembourg) Luxembourg AA/V5

LO Funds Emerging Market Bond P A 33.22 13.05 N/S $ Lombard Odier Funds (Europe) Luxembourg Standard

BNPP L1 Bond World Emerg Local Acc 30.46 16.55 N/S $ BNP Paribas Invest Ptnrs Lux Luxembourg AA/V5 Y

BNY Mellon Emerg Mkts Dbt A $ 29.66 14.17 5,000 $ BNY Mellon Asset Management Ireland AA/V5 Y

BlueBay Emerging Mkt Loc Ccy Bd Acc 26.56 18.51 100,000 $ BlueBay Asset Management Luxembourg A/V6 Y

GS Glbl Emerg Mkts Debt Base Inc 26.26 18.31 1,500 $ Goldman Sachs Asset Mgt Int’l Luxembourg A/V6 Y

Allianz Emerg Markets Bond A 13.24 26.13 1.00 Allianz Global Investors Ireland Ireland AA/V5 Y

Schroder ISF EMkt Dbt Abs Ret A H Acc 4.06 20.84 1,468 Schroder Investment Mgmt Lux Luxembourg AA/V4 Superior Y

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 0.18 10.18 15,000 $ GAM Fund Management BVI AA

GAM Trading II - $ Open Class 10.66 4.74 25,000 $ GAM Fund Management BVI AA

HDF Eurovest Class A $ -1.05 N/A 25,000 $ HDF Finance Luxembourg AA

QUALITY FUNDS


All the latest offshore news, updated daily

LifeBase - a comprehensive database of offshore life products

INTERNATIONAL

ADVISERonlinewww.international-adviser.com

The premier source of news and analysis for financial intermediaries using cross-border fund, life and banking products.

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 19.15 16.5 7.3m BNY Mellon Asset Management Ireland AAA/V3 Y

Schroder ISF US Dollar Bd A Hdg 14.86 17.38 1,468 Schroder Invest Mgt Nth America Luxembourg AA/V2 Y

Pioneer Fds Euro Aggt Bd A ND 13 15.91 1.00 Pioneer Asset Management Luxembourg Superior

Pimco GIS Glbl Real Ret Ins Hdg Acc 11.32 21.64 N/S Pimco Global Advisors (Ireland) Ireland AA Y

LM WA GMS A Acc (H) 15.13 25.43 1,468 Legg Mason Global Funds (Dub) Ireland A/V4 Y

HSBC GIF Euro Bond A Acc 12.34 15.99 N/S HSBC Investment Funds (Lux) Luxembourg AA/V3 Superior Y

BGF Euro Bond A2 11.1 15.62 N/S Blackrock (Luxembourg) Luxembourg AA/V3 AA Superior Y

Parvest Bond Euro C 9.6 15.6 1,000 BNP Paribas Luxembourg AA/V3 Superior Y

MS INVF Euro Bond A 8.91 15.7 0 Morgan Stanley Invest Funds Luxembourg Standard Y

FF - Glbl Inflatn Lkd Bd AC Hdg Acc 8.88 20.13 N/S Fidelity (FIL (Luxembourg)) Luxembourg A/V4 A

BGF Euro Short Duration Bond A2 8.46 15.15 N/S Blackrock (Luxembourg) Luxembourg AA/V2 Superior Y

Pimco GIS Euro Bond Ins Acc 7.39 16.99 N/S Pimco Global Advisors (Ireland) Ireland AA Y

LGT Bond Global Inflation Linked B 6.9 18.96 1.00 LGT Capital Management Liechtenstein A/V4

Axa WF Euro Inflation Bonds IC 5.5 19.42 146,825 Axa Investment Managers Paris Luxembourg Superior

UniEuroKapital -net- 0.79 15.21 0 Union Investment Lux Luxembourg A/V2

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 33.78 24.6 14,683 Neuberger Berman Ireland AAA/V5 A Y

Cap Int Global High Income Opp A 30.9 14.12 7.3m Capital International Luxembourg AA/V5 Y

BlueBay High Yield Bond B 30.53 24.38 146,825 BlueBay Asset Management Luxembourg AAA/V5 Y

Invesco Euro Corporate Bond A Acc 22.09 19.34 N/S Invesco Global Asset Mgt Luxembourg AA/V4 AA Superior Y

BlueBay Investment Grade Bd B 18.58 16.8 146,825 BlueBay Asset Management Luxembourg AAA/V3 A Y

Schroder ISF Glbl High Yld I £ Hdg Acc 12.33 22.93 82.2m £ Schroder Investment Mgt Lux Luxembourg A/V5 Y

Allianz Euro High Yield Bond A 38.45 26.3 1.00 Allianz Global Investors Lux Luxembourg Standard Y

Aegon High Yield Global Bond A $ 37.07 15.85 100,000 $ Aegon Fund Management (UK) Ireland A Y

Muzinich Europeyield H/Y Acc 34.66 24.59 146,825 Muzinich & Co Ireland AA/V6 Y

FF - US High Yield A $ 34.6 15.36 2,500 $ Fidelity (FIL (Luxembourg)) Luxembourg AAA/V5 A Y

Invesco Global High Income A 31.51 16.42 1,500 $ Invesco Global Asset Mgt Ireland A/V6 Y

Aegon High Yield Global Bond A 27.5 26.3 146,825 Aegon Fund Management (UK) Ireland A Y

Schroder ISF Glbl Corp Bond A Acc 27.47 5.53 1,000 $ Schroder Investment Mgt Luxembourg AA/V3 Y

BlueBay Investment Grade Bd B$P 27.2 4.41 100,000 $ BlueBay Asset Management Luxembourg AAA/V3 A

HSBC GIF Euro High Yield Bond A Acc 24.25 26.51 7,341 HSBC Investment Funds (Lux) Luxembourg AA/V6 Superior Y

Janus US High Yield A 23.68 24.37 3,671 Janus Capital Funds Ireland A/V5 Y

FF - Euro High Yield A Euro 23.54 26.84 N/S Fidelity (FIL (Luxembourg)) Luxembourg AA/V6 Superior Y

Axa WF Glbl High Yield Bonds AC $ 23.3 14.25 0 $ Axa Investment Managers Paris Luxembourg Superior

Robeco High Yield Bonds DH 20.02 25.62 0 Robeco Luxembourg Luxembourg A/V5 Superior Y

Schroder ISF Glbl Corp Bd A Hdg Acc 18.32 18.44 1,468 Schroder Investment Mgt Luxembourg AA/V3 Y

WestLB Me Co Fd Euro Hi-Yld Bd A 17.72 27.32 734,125 WestLB Mellon Asset Mgt (Lux) Luxembourg A/V6 Y

Schroder ISF Euro Corporate Bond A Acc 16.65 16.99 1,468 Schroder Investment Mgt Lux Luxembourg AA/V3 Standard Y

Oyster European Corporate Bonds 14.14 17.46 0 Oyster Asset Management Luxembourg Standard Y

Standard Life Sicav Eurp Corp Bd D 13.83 17.74 1.5m Standard Life Investments Luxembourg AA/V4 Y

Axa WF Euro Credit Plus AC 13.37 17.48 0 Axa Investment Managers Paris Luxembourg Superior

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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.

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KEY BENEFITS OF THE SHEARWATER PENSION PLAN

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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

Hot investment strategies...l Which emerging frontier markets will provide the most

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MARINA MANDARIN, SINGAPORE 11 OCTOBER 2011

INTERNATIONAL

ADVISER

Singapore Expert Investor ForumSingapore Expert Investor Forum

To reserve your place for our fifth annual, one-day exclusiveTo reserve your place for our fifth annual, one-day exclusiveeducational investment forum, feeducational investment forum, featuring some of the top fundaturing some of the top fund

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CPD ACCREDITED


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 23 June, 2011All rates are shown gross. * Introductory rate for a minimum of 6 months. (P) Operated by post. (F) Fixed rate. (W) Operated by internet. (OM) On maturity. (S) Available to those aged 60 and over. All 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 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

Anglo Irish Bank Corporation (Int’l) Privilege Fixed Interest 1-year bond £5,000 3.3% F OM +44 (0)1624 698000

Alliance & Leicester International 1 Year Fixed Rate Bond 92 29 Jun ’12 £5,000 3% F OM +44 (0)1624 641888

2-YEAR FIXED RATES

Alliance & Leicester International 2 Year Fixed Rate Bond 23 28 Jun ’13 £5,000 3.7% F Yly +44 (0)1624 641888

The Co-operative Bank Fixed Term Deposit 2-year bond £5,000 3.5% F OM +44 (0)1481 710527

Nationwide International L’time Guarantee 2 – Iss 2 2-year bond £50,000 3.35% F Yly +44 (0)1624 696000

3-YEAR FIXED RATES

Alliance & Leicester International 3 Yr Fixed Rate Bond Iss 5 30 Jun ’14 £5,000 4.01% F Yly +44 (0)1624 641888

Nationwide International L’time Guarantee 3 – Iss 5 3-year bond £50,000 3.8% F Yly +44 (0)1624 696000

The Co-operative Bank Fixed Term Deposit 3-year bond £5,000 3.75% F OM +44 (0)1481 710527

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 Easy Access Savings None $100,000 0.75% Qly +44 (0)1624 684316

Barclays Wealth Reward Saver None $75,000 0.55% Mly +44 (0)1624 684316

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 Tracker Premium None 50,000 1.35%* Yly +44 (0)1624 696000

No-notice accounts

50

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: 23 Lime Tree Bay Avenue Governors Square, Bldg 4 FL 2, 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. 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)17233 311611

UK email: [email protected]

Website: www.fpinternational.com

Friends Provident International (FPI) is part of the Friends Provident group of companies, which has more than 2.5 million customers worldwide. 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 group protection policies 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

RECRUITMENT


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RECRUITMENT


RECRUITMENT


Singapore has jumped three places to become the sixth most expensive city and third most expensive country in Asia in which to live, according to ECA International’s latest Cost of Living Survey.

Globally, it is now the 36th most expensive city, while Hong Kong has fallen to 45th position.

The high cost of living in Singapore was explained by the continued strength of the Singapore dollar against many of the

BY MARYROSE FISON

Financial advisers and wealth management firms cannot afford to ignore the growing percentage of female and under-45 high-net worth individuals.

This was among the key findings in the annual ‘Merrill Lynch Wealth Management/Capgemini World Wealth Report’, now in its 15th year and one of the best-known barom-eters of the state of the world’s population of the seriously rich.

The percentage of young (under 45) HNWIs globally rose to 17% in 2010 from 13% in 2009,

The word is already out that advising Americans is not for the faint of heart. Indeed, many advisers who do not have any US clients, or who do not have many, are quietly announcing that such clients are not or will no longer be welcome.

For some, though, there is no question of turn-ing away an extended family and all its business just because one family member happened to take a Yankee for his or her spouse, or because a wee sprog was born in the US.

While such advisers may be admired for their bravery, they are also to be urged to learn the US tax rules sooner rather than later – and to brush up on them, if for example, they do not know what an FBAR (Report of Foreign Bank and Financial Accounts) is.

Likewise, any adviser surprised to learn that in addition to filing US tax returns, all Americans not

resident in the US must also report to the IRS about every non-US bank account they have, may wish to consider taking some pro-fessional advice himself.

Advising Americans has never been easy. But with the IRS commissioner talk-ing about “ferreting out” Americans overseas, and threatening clients with financial penalties equal to 50% of any financial assets, it is easy to see why fewer advisers are keen to talk to Americans.

And the pressure is only going to intensify. From January 2013, the IRS will be conscripting the help of every bank and finan-cial institution around the globe to become a tax col-lector, increasing the com-pliance burden.

Another way to look at all of this, however, is as an opportunity. A well-pre-pared adviser who under-stands US tax law stands to gain clients from his rivals.

The perils of looking after American clients increase

Percentage of female and young global HNWIs grows

David Treitel, tax director at US Tax & Financial Services, says that now the IRS is playing hardball, advisers with American clients need to take care

OPINION


other major currencies.As a result, Singapore

is now more expensive for expatriates to live in than New York, Amsterdam, Frankfurt and Shanghai, the survey reveals.

The list of the most expensive cities in the world continues to be dominated by Japanese and Swiss cities, both of which have four in the global top 11.

“Goods and servic-es commonly purchased by international assign-

Singapore rises in expensive city league

while the proportion of female HNWIs climbed to 27% from 24% during the same period, the data showed.

In certain regions, these two trends were more pronounced, with 41% of HNWIs in the Asia Pacific ex Japan region just 45 years old or younger, for example, and women accounting for 37% of HNWIs in North America.

The researchers define HNWIs as those having investable assets of $1m or more, excluding such assets as their primary resi-dences, collectables and consumer durables; they consider ultra-HNWIs to

be anyone with investable assets of $30m or more, not counting their main home and other exclud-able assets.

The number of HNWIs and their total wealth final-ly surpassed pre-financial crisis levels in nearly every region last year, with the total population of HNWIs climbing 8.3% to 10.9 mil-lion globally. Their col-lective wealth increased just under 10% to reach $42.7trn.

The global popula-tion of ultra-HNWIs grew by 10.2% in 2010, and its wealth by 11.5%.The survey can be found at www.capgemini.com

ees now cost almost 3% more in Singapore than in Hong Kong,” according to a summary of the report’s findings. “Just a year ago, they cost 5% more in Hong Kong.”

Lee Quane, region-al director for Asia and ECA International, said the increase in currency value had already begun to result in multinational firms changing the way they pay employees posted to Singapore, to reflect the higher living costs.

The only QROPS provider that is part of a FTSE100 Group Company

+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


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