ICSA Jersey Conference 2019 - Updated presentation slides
International Adviser May 2012
1. MAY 2012
For Distributors of International Fund, Life and Banking Products www.international-adviser.com
NEWS
FPI launches risk-rated
fund portfolios 5
UAE finance firms set up Cuts in QROPS
list could drive
HSBC Saudi offers
Shariah-compliant fund 5
Brazil regulator acquits
cross-sector trade body providers out
BY MARK BATTERSBY
Swim Worldwide 5 BY SIMON DANAHER Management, Allfunds
Bank, the National Bank of The removal by HM Rev-
Pain hints at next job as A group of leading finan- Abu Dhabi, The National enue & Customs of hun-
AILO adds members 7 cial institutions in the Investor, UBS AG and Invest dreds of schemes from its
Brazil almost doubles its United Arab Emirates have AD, as well as Deloitte official QROPS list on 7
number of CFPs 7 formed a trade body, the and Clifford Chance. Legal April continues to elicit
first cross-sector associa- and compliance specialist mixed reactions from key
Guernsey follows IoM and tion to be created for the Capital Advantage will act players, and it has started a
Jersey in zero-10 ruling 8 industry in the country. as company secretary. race among some providers
Oddo & Cie partners with The Financial Services Abdullah Al-Turifi, chief to find other jurisdictions in
Chinese firm 8 Association (UAE) has ini- executive of the Securities which to do business.
tially been registered in the Foustok: ‘close coordination’ and Commodities Authority In Guernsey, where more
UK residents to pay higher Dubai International Finance (SCA), a leading UAE reg- than 300 schemes were
tax on Swiss accounts 10 Centre and is undergoing Its board consists of ulatory body, said: “The removed from HMRC’s list,
Israeli banks push for registration in Abu Dhabi. several local and inter- SCA welcomes the estab- Concept Group managing
deal with US on FATCA 10 Arwa Hamdieh, co- national financial compa- lishment of the Financial director Roger Berry said
founder of the non-profit nies from Dubai and Abu Services Association (UAE) his company was “quite
Forest to run Schroder organisation, said the asso- Dhabi, including Fidelity and supports the latter’s advanced” in relocating its
Multi-Asset Fund 10 ciation has so far attracted a Worldwide Investment, determined efforts in QROPS schemes: “We have
Nikko first Asian company diverse group of companies Skandia International, boosting the performance been working on that for
to join ICI Global 13 from across the divisions of Franklin Templeton Invest- and uplifting the markets. some months. It will be in
financial services. ments, ING Investment Continued on page 5 multiple jurisdictions. There
Jersey Finance names are a number of jurisdic-
Bestwick deputy CEO 13
Convoy’s purchase of IPP falls through
tions that have not been
Allied Irish Bank closes in attacked by the Revenue.”
IoM and Jersey 15 Berry added that existing
BY HELEN BURGGRAF would acquire Singapore- Convoy chairman Wong scheme members would
State Street granted based IPP Financial Services Lee Man added: “During not be disadvantaged and
Jersey deposit licence 15 A deal that would have for HK$162.24m ($21m, the acquisition process, “if anything it is a status
Gibraltar reworks laws to expanded one of Asia’s £13m). IPP is a major Convoy has always sup- quo on benefits with a
attract fund managers 16 largest advisory companies, force in the Asian advisory ported the work of regula- slight advantage because
Hong Kong-based Convoy industry, with more than tors and is well-prepared there is no reporting.”
Zurich launches Singapore Financial Services, has 400 employees working in for uncertainties.” In Jersey, plans to let non-
insurance operation 19 fallen through because it Singapore and Hong Kong, In reply to requests for Jersey residents move their
was not completed quickly according to its website. comments, a spokesman UK pensions to the island
Sanlam debuts UK with
distinctive bond 19 enough. According to IPP, the for the Singaporean regula- remain on hold pending
Convoy, which employs “proposed transaction... tor, the Monetary Authority clarification from HMRC,
Neptune’s Lester hints more than 1,000 advisers lapsed unconditionally as of Singapore, said: “As especially regarding QROPs
at start-ups ambitions 56 and which has been listed it did not meet the self- a matter of policy, MAS held outside the EU.
on the Hong Kong Stock imposed deadline and con- does not comment on our In Europe, chairman of
Features – page 4 Exchange since 2010, had ditions stipulated” in the dealings with individual the Malta Financial Services
announced last July that it July 2011 sales agreement. parties.” Continued on page 7
News analysis 20-22 Country profile 28-29 Intermediary profile 31-32
Global regulation Malaysia Mondial Dubai
Regulators around Having proved its Chief executive
the world are resilience surviving Sean Kelleher
looking for new multiple crises, the explains how his
ways to protect region’s financial team-building
investors from poor services industry skills have kept the
financial advice has much to offer business profitable
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i d t n a n n r w
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4. contents
ANALYSIS PROFILES TECHNICAL PORTFOLIO
News analysis: Global Country profile: Briefing: Fund selector:
regulations 20-22 Malaysia 28-29 Probate costs 34-35 Global equities 37-39
Following the global financial Having survived both the Asian When a client dies leaving an Global equity investors have
crisis, regulators around the currency crisis and the global offshore bond that is not held enjoyed the best start to the year
world have been prompted to financial downturn, Malaysia in trust, probate will need to be this century, but this level of
look for new ways to protect has demonstrated its resilience obtained in the legal jurisdiction return is unlikely to be sustained
investors from poor and and ability to bounce back from where the investment is held. The going forward, says OBSR
misleading financial advice. adversity. With a booming expat process can be onerous, but with investment research analyst
Some at the front lines of this community and a burgeoning careful planning there are ways of Oliver Kettlewell
process say the business of financial services industry, the avoiding the situation
financial advice is on its way to region has much to recommend STATISTICS
becoming a full-blown profession it and offers many opportunities
The IA Quality Funds
Life trends: Generali Intermediary profile: 41-45
International 25-26 Mondial Dubai 31-32 A list of the blue chips
of the offshore fund world
Generali International has been Sean Kelleher (left) could be
voted best online proposition described as a veteran of the
by International Adviser for the international finance industry Banking deposits 46
past two years. Head of sales who has seen many ups and The top-paying offshore accounts
Nick Griffin discusses the factors downs over the years. The chief
that have contributed to its executive of Mondial Dubai CLASSIFIEDS
success throughout the year, explains how an established
and describes how the spirit of multicultural team has been Life listings 47-49 Recruitment 50-51
cooperation within the major essential to keeping his business Find the job that suits you in IFA
regions is essential profitable in turbulent times Service listings 49 firms operating around the globe
IA Intermediary Panel IA Tax Panel
Aidan Bailey Tony Shah Paul Stanfield Margaret Jago Rachael Griffin
Director, Associate director, Chief executive, International Head of product
international Christchurch FEIFA technical law and financial
division, Investment Mgt, manager, planning, Skandia
The Fry Group, UK UK Aegon Ireland International
Glen Cochrane Tim Searle Sean Kelleher Gerry Brown Mark Green
Investment Chairman, CEO, Mondial, Head of trusts Head of estate
director, Globaleye, Dubai Dubai and taxation, and tax planning,
Creechurch Prudential Legal & General
Capital, IoM International
David Bellingham Gary Boal Robert Parker Brendan Harper Julie Hutchison
CEO, Professional Managing Chief executive, Technical Head of
Investment director, Holborn Assets, services international
Advisory Services, Boal & Co, Dubai manager, FPI technical insight,
Singapore Isle of Man Standard Life Int’l
Mark Rawson Rex Cowley Mahmoud Brian Murphy Neil Chadwick
CEO, The Henley Principal, Nodjoumi Senior financial Technical
Group, Hong Kong Newdawn Chairman and planning manager, Royal
Consultancy & chief exec, Nexus manager, London 360º
Research, Jersey Group, Dubai Axa Sun Life
Ernest Chan Sam Instone Mike Coady Glenn McIlroy Sandra Hogg
Chief commercial CEO, AES Director, deVere Technical services Senior tax
officer, Convoy International, UK Group, Western manager, Generali manager, Scottish
Financial Services, Europe International Widows
Hong Kong
Bill Blevins Sarah Lord Rainbow Pan Chris Allatt Anthony Rothwell
Managing Wealth planning CEO, ipac, Hong Senior tax Technical
director, Blevins director, Killik Kong consultant, consultant,
Franks, & Co, Middle Sanlam UK Canada Life
pan-Europe East & Asia International
4 INTERNATIONAL ADVISER [www.international-adviser.com] MAY 2012
5. NEWS
NEWS
Brazil regulator
acquits Swim
FPI and Morningstar launch IN BRIEF
Worldwide of five risk-rated fund portfolios Rogers reappears
in Kuala Lumpur
licence breach BY SIMON DANAHER ware provider Distribution
Technology. OBSR select-
Richard Rogers,
formerly of Skandia
South America-based Swim Friends Provident Inter- ed the portfolios from FPI’s International, has
Worldwide Financial has national and Morningstar global mirror fund range. joined The Synergy
been cleared of breaking OBSR have launched five Jim Henning, funds Partnership, a promoter
the terms of its licence, risk-rated model fund marketing and research of alternative funds
eight months after the portfolios. The new Asset manager at FPI said: “The based in Kuala Lumpur.
Brazilian regulator put a Builder Portfolios are combination of DPPi’s Rogers, who takes
“block” on it conducting available through FPI’s sophisticated asset alloca- up his role as non-
certain investment activity. Dynamic Portfolio Planner tion guidance with the new executive director on
In August last year, the International (DPPi) tool, fund-blending expertise 1 May, left Skandia
Brazilian securities regu- which was launched in Henning: ‘compelling concept’ from Morningstar OBSR last summer. He had
lator, the Comissão de 2008 to provide advisers means that FPI’s online been a director in its
Valores Mobiliários (CVM), with risk profiling, finan- allocation targets for identi- portfolio construction international sales team,
released a statement via cial planning and target fied client risk profiles”. A service really is a most where he had worked
its own publication, Diario asset allocation models. stochastic model provides compelling proposition for since 1998.
Oficial, which said Swim FPI said the application probability assessments professional advisers. We
WW was not authorised uses historical and forward- in meeting client specific are offering the right tool Ireland in talks with
to “exercise any activities looking analysis of core financial goals. Both these set for advisers to navi- US on adopting FATCA
in the securities market of asset classes to develop tools have been devel- gate their client portfolios
Irish tax authorities
Brazil” and did not “meet “efficiently balanced asset oped by UK-based soft- through uncertain times.”
are discussing with
the requirements of CVM their US counterparts
regulation”.
However, the announce-
ment was contested at the
HSBC Saudi offers Shariah-compliant fund the possibility of
entering into a
“model agreement”
time by Swim WW man- HSBC Saudi Arabia has tries, although there are no Shariah-compliant equiva- for implementing the
aging director Paul Scott, launched its first sukuk geographical constraints. lent of bonds” and “repre- US’s Foreign Account
who said the company had fund, a Shariah-compliant HSBC said the fund would sent the credit obligation Tax Compliance Act
never dealt directly in secu- fixed-income product, for aim to have an average of the underlying issuer”. (FATCA). A statement
rities and was not in breach the country’s retail market. duration of five years or The Shariah nature of issued by the Irish
of its licence. Described as having less, with an average risk the product places cer- Funds Industry Assoc-
Scott has now informed a “medium to high” risk rating of A-. tain limitations on the fund iation said the Irish
International Adviser that profile, the HSBC Amanah The portfolio will be manager. These restric- Revenue Commissioners
the CVM gave its “final res- Sukuk Fund, which drawn from an invest- tions include bans on had “confirmed they
olution” on the case on 11 launched last month, is ment universe of sukuks “conventional” leveraging are in contact with the
Jan this year and decided the first open-ended sukuk approved by the Shariah or hedging, short-selling, US Treasury”.
in favour of Swim WW. The fund to be offered by Supervisory Committee of securities lending and the
intermediary firm is now HSBC Group. HSBC Saudi Arabia, money use of investment deriva- TMF hires for launch
awaiting a final letter from Managed by the asset market funds approved tives such as CDS.
the CVM confirming the management division of by Saudi Arabia’s Capital The fund has a mini- of int’l pension plans
closure of the matter and HSBC Saudi Arabia, the Markets Authority and mum initial investment TMF International
detailing a fine imposed on fund will invest in a concen- Islamic Certificates of $25,000 (£15,000, Pensions has appointed
Swim WW, which Scott said trated portfolio of between approved by the Shariah AED92,000) and charges an international employee
was “for the pleasure of 15 to 20 sukuks primarily Supervisory Committee. annual management fee of benefit expert
being investigated”. At the issued from within Gulf HSBC said a sukuk 0.75%, which is reinvested Grant Armstrong,
time of going to press, the Cooperation Council coun- “can be classified as the into the fund. as it prepares to
letter had not arrived. launch a range of
Scott added that CVM offshore pension
will also publicly announce,
in the Diario Oficial, that
UAE finance firms set up cross-sector trade body products. Armstrong
joins from March &
the company has been Continued from page 1 affect the financial services ments to the UAE and bring McLennan’s European
cleared of any wrongdoing “We see the activity of this sector. The association said the market “closer to inter- pensions and benefits
in relation to the matter. association as a significant it has one “active” policy national best practice”. consultancy, where he
As a result of the inves- initiative that will further working group which is “The association will was responsible for
enrich the country’s finan- engaged with the SCA. coordinate closely with developing a global
tigation, Swim WW moved
pension and employee
its head office from Brazil cial sector. It also reflects Speaking on behalf of other associations in the
benefits strategy for
to Montevideo in Uruguay. the development achieved the board, Farah Foustok, market,” added Foustok. “It
EMEA, working with
Scott said the firm has by UAE financial institutions chairwoman of the asso- represents the opinions of
many major insurers.
opened a further Uruguay locally and internationally.” ciation, said it will open its member firms and there-
office in Punta Del Este, One of the main aims of a dialogue between regu- fore participation by finan- For the current and all
and plans to open offic- the association will be to lators and member firms cial services companies is previous editions, with
es in Santiago, Lima and engage with regulators and to advance the regulato- encouraged, to ensure rep- full news archive, go to
Miami this year. It is already law makers in the UAE on ry framework needed to resentation of all critical www.international-adviser.com
recruiting for these offices. issues and policies that will attract long-term invest- aspects of the industry.”
MAY 2012 [www.international-adviser.com] INTERNATIONAL ADVISER 5
6. T R U S T E D H E R I T A G E A D V A N C E D T H I N K I N G
Go up a gear with
Asian bonds
There are powerful reasons to invest in Asian bonds:
– Exposure to diverse investments across fast growing, fiscally
strong economies
– A better risk/return ratio over ten years than many other major
asset classes*
– 10 year annualised returns of 8.4% p.a. with lower volatility than
emerging market equities and emerging market debt*.
There are equally powerful reasons to select Schroders for this
compelling opportunity.
Schroder ISF Asian Bond Absolute Return and Schroder ISF
Asian Local Currency Bond are managed by Singapore-based
Head of Asian Fixed Income, Rajeev De Mello. A 25 year veteran
of Asian bond markets, he is supported by local on-the-ground
specialists integrated within a global team of over 100 fixed
income professionals.**
Now’s the time to put your foot down on the pedal.
Schroders’ Asian Bonds
www.schroders.com
For professional investors or advisers only. Schroder International Selection Fund is referred to as ‘Schroder ISF’. *Source: Bloomberg, Schroders, as at 30 March 2012. Asset classes
are represented by the following indices: Asian Local Bonds – HSBC Asian Local Bond Index, Asian USD Bonds – JPMorgan Asia Credit Index (chain-linked from 01/08/2006 to old JACI
index), US Treasuries – Citigroup Treasury/Agency Index, Emerging Market Debt – JPMorgan Emerging Market Debt Index, Global Government Bonds – Citigroup World Government
Bond Index, Emerging Market Equities – MSCI Emerging Market Index, Asia ex Japan Equities – MSCI AC Asia ex Japan Index, Global Equities – MSCI World Index, European Equities
– MSCI AC Europe Index. Asian Local Bonds have delivered 10 year annualised returns of 8.4% p.a. **Source: Schroders, as at March 2012. Past performance is not a reliable indicator
of future results, prices of shares and the income from them may fall as well as rise and investors may not get back the amount originally invested. Issued in April 2012 by Schroder
Investment Management Limited, 31 Gresham Street, London EC2V 7QA. Registered number 1893220 England. Authorised and regulated by the Financial Services Authority. w41480
7. NEWS
NEWS
Offshore bonds
‘still attractive’
Pain hints at his next job as IN BRIEF
despite Budget AILO broadens membership deVere to open two
new offices in UK
clampdown BY MARK BATTERSBY said: “I am confident I will
have a new position before
The deVere Group
plans to open two
BY HELEN BURGGRAF The Association of Inter- my official leaving date more offices in the UK
national Life Offices is with Friends so I hope to and recruit an extra 50
Offshore bonds remain recruiting associate mem- continue as deputy chair.” UK-based IFAs. Mike
a tax-efficient investment bers for the first time in an AILO is conducting a Coady, group director,
strategy, life insurance effort to strengthen the mix member satisfaction survey said the company will
product providers say, within the organisation. and engaging with exist- relocate its London
despite the Government’s Associate members ing and potential mem- office and open a
removal of some favoured could be management con- bers through a series of second base in the
tax-avoidance options in sultants, reinsurers, actuar- evening presentations. The north of England in a
the latest Budget. ial consultants, investment Pain: Spearheading the initiative first of these took place in few months, followed
The Budget effectively platforms or third-party Luxembourg on 18 April by a third in early 2013.
put paid to certain offshore administrators. Pain, who left Friends and the next one is in
bond products offered by AILO deputy chairman Provident International Dublin on 31 May. May decision on VAT
Aegon UK and Canada Life Bob Pain and chairman when it shifted its focus to Full membership is only charges for DFMs
International (CLI). It also Alan Morgan-Moodie will Asia, is required to leave available to international
The European Court
ended a practice whereby spearhead the initiative his position as deputy life offices; associate mem-
of Justice is expected
some non-UK tax residents to widen the membership chairman once he ceases bers cannot sit on AILO’s
to rule this month on
accrued deemed gains from its 45-strong interna- to work for an interna- management committee or
whether discretionary
which they could later tional life office base. tional life office, but he have voting rights.
management services
offset against actual gains supplied by EU
as a UK taxpayer once they
returned to the UK.
Despite this, “offshore
Brazil almost doubles its number of CFPs providers should be
exempt from VAT.
The ruling is expected
bonds remain very attrac- The Financial Planning year, despite its growth growth reflected a grow- on 8 May – less than
tive for expats, and retain Standards Board says the rate slowing to around ing understanding on the three months after HM
their gross roll-up [feature] number of individuals who 2.7% in the 12 months part of financial planners Revenue & Customs
for income tax purpos- have achieved its Certified to the end of December. of the “value in aligning issued RDR guidance
es, as well as the abil- Financial Planner designa- Unlike countries that are with a global certification calling for DFMs to start
ity to be placed in trust tion in Brazil increased by net importers of commodi- programme”. adding VAT to their
for inheritance tax,” said 47% in 2011. ties it has benefited from The FPSB is one of sev- fees. The decision is
David Russell, chief execu- A spokesman for the high food and oil prices. eral organisations that have likely to set a precedent
tive of Guardian Wealth FPSB, which is based in The FPSB said other been trying to set a global for the rest of the EU.
Management Qatar. Denver and has member countries, including India, standard for financial plan-
Spokesmen for Aegon organisations in 24 coun- China and Indonesia, had ners. The organisation’s Mashreq Bank head
and CLI, meanwhile, said tries and jurisdictions also experienced “double- executives have recently
they were dealing with around the world, said the digit growth” last year been involved with the to chair DIFC board
the effects of the removal number of CFP profession- in their numbers of CFP Madrid-based International The Dubai International
of the tax advantages of als in Brazil may reach professionals. Overall, Organisation of Securities Finance Centre has
the Aegon Ireland Wealth 1,000 this year, up from the annual growth rate in Commissions, in develop- appointed Aziz Al
Planning Account (WPA) 714 in 2011 and 485 the CFP certifications last year ing a new standard of Ghurair, head of
and CLI Accelerated Access previous year. measured 4.5% globally, principles relating to the Mashreq Bank, as
Account (AAA) in the only Brazil officially over- the organisation said. distribution by intermedi- chairman of the DIFC
way they could – by noti- took the UK as the world’s FPSB chief execu- aries of “complex financial board of directors.
fying clients as the situa- sixth largest economy this tive Noel Maye said the products”. The appointment
tion unfolds and helping was made by
them to find alternative Sheikh Maktoum bin
products.
At CLI, where the AA
QROPS cuts could trigger exodus among providers Mohammed bin Rashid
Al Maktoum, deputy
Account has been closed Continued from page 1 schemes, according to tors and a “wait-and-see” ruler of Dubai and
to new business, manag- Authority Joe Bannister, Bannister. “We are wait- approach had put the island president of the DIFC.
ing director Sean Christian expressed surprise at ing to finalise rules for our in a good position. Al Ghurair also holds
noted that the product rep- the number of Guernsey personal and occupational In Qatar a moratorium positions in his family’s
schemes struck off the list. on QROPs remains in force. business empire and is
resented “less than 2% of schemes. Hopefully, these
deputy chairman of the
our sales” in 2011, which On a possible surge in will be in place soon.” A spokesman for the Qatar
board of directors of
“was a record year for us”. Malta’s QROPS business, On the Isle of Man, Financial Centre Regulatory
the DIFC, a position he
A spokesman at Aegon Bannister said: “It is early schemes transferred to the Authority said: “The author-
assumed last August.
said the company had writ- days, but Malta has been island under its new 50C ity has quite rightly contin-
ten to intermediaries and processing schemes from regime were struck off ued to assess the QROPS For the current and all
the 245 WPA policyhold- various administrators for HMRC’s list. But the island’s landscape by taking into previous editions, with
ers themselves, “explaining quite some time.” pension association said account the significant full news archive, go to
the impact of the proposed Malta’s future pension close cooperation between changes that have been www.international-adviser.com
legislation”. legislation will mirror UK its public and private sec- occurring in the sector.”
MAY 2012 [www.international-adviser.com] INTERNATIONAL ADVISER 7
9. The new land of opportunity is
the land of opportunity.
We will not rest
10. NEWS
Forest to run
new Schroder UK residents to pay higher Syz & Co unveils
US equity Sicav
Multi-Asset
Income Fund
tax rate on Swiss accounts for Europe and
Asian territories
BY HELEN BURGGRAF ment,” he pointed out.
BY GARY CORCORAN According to Cassidy, Syz & Co is to launch a US
A recently agreed tax deal the mechanism for raising equity proposition run by
Schroders has added to its between UK and Swiss tax the rate is already in place, Missouri-based specialist
Luxembourg-based multi- authorities to collect tax in the form of “a new pro- fund manager Scout
asset range with a new anonymously from the tocol to amend the Investments as part of its
Global Multi-Asset Income Swiss accounts of UK-based UK-Swiss deal” that was Oyster fund range.
Fund that will sit alongside individuals is about to get included in the Budget day The Luxembourg-based
its European Allocation more expensive, an expert material released last Oyster US Selection Sicav,
and Global Tactical Asset from one of the major month. which will mix top-down
Allocation propositions. UK accountancy firms spe- “This included a clause and bottom-up approaches
It will be run by Aymeric cialising in looking after Cassidy: ‘mechanism in place’ that allows the UK to ask “to anticipate changes in
Forest, senior multi-asset international clients is for higher withholding tax economic cycles”, is await-
fund manager, who will warning. John Cassidy, tax investi- rates if Germany and ing registration across
aim to generate a distribu- The UK authorities have gation and dispute resolu- Switzerland agree higher Europe and Asia. It will be
tion of 5% per annum in negotiated a rise in the tion partner at London- rates before the end of Ucits compliant.
equal quarterly or monthly withholding tax rates to based PKF (UK), said he April 2012,” Cassidy said. The fund will be man-
instalments with an expect- between 21% and 41% for was not surprised that the “Higher withholding tax aged by Patrick Dunkerley,
ed 7% total return pa over UK residents. UK tax authorities increased rates have been on the who will run it on behalf of
a full market cycle. The previous agreement their withholding tax rates agenda for some time, and institutional investors with a
Forest is co-manager envisaged that a withhold- to match the recently rene- the Treasury was bound to minimum investment of
with Johanna Kyrklund of ing tax of between 19% gotiated German levels. demand that these rates £100,000, $100,000 or
the $140m Global Tactical and 34% – depending on The German authorities are applied to Swiss €100,000.
Asset Allocation Fund that the how long the account have an almost identical accounts held by UK Scout Investments will
invests across countries, has been held – will be agreement with the Swiss residents.” run the fund in line with its
currencies and asset class- deducted from the cash Government. For those with unde- existing US strategy, aiming
es that can include syn- balances held in Swiss “The Government wants clared assets in Swiss insti- for superior long-term, risk-
thetic long and short accounts on 31, May 2013, to claw back as much tax tutions, Cassidy said, the adjusted returns by invest-
positions. to compensate the UK for as it can from this deal, in Liechtenstein disclosure ing in attractively valued,
The Schroder ISF Global revenue lost as a result of the current political facility “is almost always quality stocks expected to
Multi-Asset Income Fund previous tax evasion. and economic environ- the cheaper option”. benefit from company-spe-
will be actively managed cific or macroeconomic
across asset classes, regions catalysts.
and sectors. Its bond
investing will concentrate Worried Israeli banks push for deal The firm identifies
market cycles and invest-
with US over pending FATCA rules
on high-quality global ment themes, as well as
fixed income; equity risks attached to sectors and
investment will be in industries, to determine any
global equity securities Israel is to seek a deal with citizens are estimated to lems in some countries. allocation. Its bottom-up
with positive cash flows the US over the pending live in Israel, which has As the Haaretz.com view includes a company’s
and strong balance sheets. FATCA (Foreign Account strong ties with the US. report suggests, other ability to generate consist-
There will be a strong Tax Compliance Act) regu- The Haaretz.com report countries are considering ent free cash flow, a ten-
focus on risk management lations that are causing comes little more than two similar arrangements as the year record of strong or
at the security and portfo- growing concern to Israeli months after the US FATCA deadlines for imple- improving operating
lio level. banks, many of which Treasury Department issued mentation approach, and margin, long-term earnings
Forest said: “We are have a large number of US a joint statement on tax the US has said that it power, a strong manage-
seeing interesting opportu- clients, an Israeli media compliance with the gov- would welcome them. ment and the absence of
nities in equities in health- organisation reported. ernments of France, Awareness of FATCA is litigation risk.
care in the UK and Japan, According to Haaretz. Germany, Italy, Spain and growing in Israel, the The combination of
consumer staples in the US com, the online website of the UK. The statement sets Haaretz.com report notes. these two approaches will
and Asia, and telecoms in the Tel Aviv-based daily out a framework for an Last month, for example, end up with Dunkerley
China and South Africa. We Haaretz, the governor of “intergovernmental Tel Aviv-based Bank Leumi holding between 60 and 80
are also finding attractive Israel’s Central Bank, approach” to international announced that all of its stocks in the fund.
yields in some US munici- Stanley Fisher, “is consider- tax compliance in general, US clients “must declare by “We believe that the US
pal bonds and high yield ing asking the cabinet to and to the implemention of the end of April that they economy is in recovery
debt, and in local currency reach a tax agreement with FATCA in particular. have reported their bank phase and is also less vola-
emerging markets with the US to calm Israeli As a result of this agree- accounts to the US tax tile than other markets.
loose monetary policies. banks” over the reporting ment, banks in those coun- authorities”. “The US market offers
“We are cautiously posi- requirements contained in tries do not have to reach Any clients that fail to opportunities to find under-
tioned within our exposure the FATCA regulations, separate agreements with do so will have their Israeli valued companies with
to financials and prefer which will begin to take the IRS, which some accounts frozen at the positive dynamics”, said
bonds issued by US and effect next year. experts have said could beginning of May, the Xavier Guillon, chief execu-
UK insurers.” More than 100,000 US cause confidentiality prob- report added. tive officer at Oyster Funds.
10 INTERNATIONAL ADVISER [www.international-adviser.com] MAY 2012
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13. NEWS
TMF’s Maltese
Melita QROPS
Nikko first Asian investment
available via
Platform One
company to join ICI Global
BY SIMON DANAHER interests between groups Monroe said: “This is an
Platform One, a relatively and “promote public important step for us, given
new UK-based investment Investment giant Nikko understanding of global our recent repositioning
platform aimed at advisers Asset Management has investment funds, their from our traditional
Bestwick: expanded role
with high net worth clients, become the first represent- managers and investors”. Japanese heritage to a more
has agreed a deal with ative from the Asian invest- Members of ICI and their broadly Asia-based asset
TMF Group, whereby its
clients may access TMF’s
ment industry to join the
newly formed global trade
affiliates manage globally at
least $16.38trn of Ucits and
management company.
Given what is happening
Jersey Finance’s
Melita QROPS offering,
administered out of Malta.
organisation, ICI Global.
The new initiative was
mutual funds, or 62% of the
$26.6trn in global mutual
with investors and regula-
tors in many markets, we
Bestwick named
Although based in the
UK, Platform One offers
formed by the Investment
Company Institute and
fund and ETF assets.
As part of Nikko’s mem-
believe it is a crucial time to
be contributing to the
as deputy CEO
advisers both UK and inter- aims to be the global bership, the company’s debate, to ensure managers BY HELEN BURGGRAF
national platform capabili- “voice of the fund indus- chief legal officer, David and their investors have all
ties. The Melita scheme is try”. Its stated purpose is to Monroe, will join the ICI the facts and can gain a Jersey Finance has given its
provided to Platform One advance the common Global Steering Committee. long-term perspective.” technical director, Heather
through TMF’s Malta-based Bestwick, the additional
Custom House Global title and duties of deputy
Fund Services operation. chief executive, a new role
The announcement of at the organisation.
the deal comes as advisers Bestwick continues as
are reported to be piling technical director but will
into Maltese QROPS in the take responsibility for sev-
wake of the publication by eral operational functions,
HMRC of a revised list of We’re not here including human resources,
approved qualifying recog- finance and IT, as the
nised overseas pension to make waves. organisation expands.
schemes, which saw hun- Geoff Cook, CEO of
dreds of schemes dropped We’re here to Jersey Finance, said the
as changes to the rules
governing how pensions
navigate you appointment “reflects the
growing remit of Jersey
may be transferred abroad safely through them. Finance and, in particular,
– unveiled by HM Revenue our strategy to support the
& Customs in December – industry in expanding into
took effect on 6 April. high-growth emerging
Asset management for institutions
The Melita QROPS economies, such as China,
and private clients. tminvestment.com
accessed via Platform One India and the Gulf region,
gives clients, through their while maintaining our
advisers, a choice of more strong position and market
than 3,000 UK and interna- share closer to home”.
tional funds, equities and An English solicitor and
ETFs, as well as offshore former managing partner
bonds, international pen- of the Jersey office of inter-
sion schemes and Section national law firm Walkers,
615s, Platform One said. Sir Robin Knox-Johnston. Bestwick joined Jersey
Its managing director, The first man to sail single-handedly around the globe, non-stop. Finance in 2010, when she
Michael Fordham, said the Thomas Miller Investment Ltd is authorised and regulated by the Financial Services Authority No 189829. succeeded Robert Kirkby,
availability of the Melita Calls may be recorded. Clients are advised that the value of investments can go down as well as up. who left to join KPMG as
QROPS on the company’s director of advisory servic-
international service would es in its Jersey office.
give advisers “the benefits
of a compliant QROPS
GAM launches its first in-house GEM fund She qualified as a solici-
tor with Norton Rose in
solution, an English lan- GAM has launched its first of 100 to 150 stocks, chosen bottom-up stock analysis. London in 1993 and joined
guage international plat- in-house global emerging through a valuation-driven The manager of the Irish Walkers in the Cayman
form to manage the under- market equity fund, availa- approach. The fund will listed fund is Matt Linsey at Islands in 1999, where she
lying assets and the ability ble in ten currencies. initially be authorised for North of South Capital. worked in corporate and
to manage their clients’ The Ucits-compliant sale in Ireland, Luxembourg The GAM Star Emerging international finance, even-
other investments”. GAM Star Emerging Equity and the UK. Equity Fund is an Irish- tually becoming a Cayman
Platform One was Fund is a daily dealing, GAM runs the $81.3m domiciled Ucits with a base Islands attorney and Notary
launched last August, in long-only fund. Tim Love GAM Star North of South currency in dollars and an Public. She moved to
response to a neglected and Joaquim Nogueira, EM Equity Fund, which also annual management charge Jersey when Walkers
area in the rapidly growing who will actively manage it, combines top-down macr- of 0.9% (institutional) or opened an office in St.
platform market. will invest across a portfolio oeconomic themes with 1.5% (ordinary share class). Helier in 2007.
MAY 2012 [www.international-adviser.com] INTERNATIONAL ADVISER 13
14. A challenging journey
needs an expert guide.
Our Multi Asset Funds are managed
by specialists who know the territory.
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flourish in an adverse climate, finding shelter when it’s needed and
making the most of any opportunities that present themselves.
Multi Asset Funds. Welcome to our territory.
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Ashburton’s Multi Asset Investment Style 2008 1400
4
2005 Lehmans
Lehmans Bros
a 30 year track record Global C
Collapse
Credit
1200
2
% Growth Bubble
200
001 1000
0
9/11
1
2007
Global
1994
Liquidity
uid 800
Bond
Crunch
Crisis
2010
1987 1999
99 EU debt 600
1990 Dot.com
t
Black Recession crisis
Monday Bubble
400
1997
199 China becomes
19
1992 Asian
Asi No.2 Economy
UK leaves Crisis 200
ERM
0
81
11
83
85
87
89
91
93
95
97
99
01
03
05
07
09
*The Replica Sterling Asset Management Fund was launched in February 1992. The Fund’s investment policy
and portfolio content replicated the existing Ashburton Sterling Asset Management Personal Portfolio. The
above graph details average performance of the Sterling Asset Management Personal Portfolio (Jan 1981 -
Jan 1992) continued by the Replica Sterling Asset Management Fund from its launch to end February 2012.
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A member of the FirstRand Group Active Investment Managers
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out more. Find us This advertisement is for professional financial advisors only and should not be relied upon by private investors. Issued by Ashburton (Jersey)
on Linkedin. Search Limited, PO Box 239, 17 Hilary Street, St Helier, Jersey JE4 8SJ, Channel Islands. Regulated by the Jersey Financial Services Commission. The value of
‘Ashburton (Jersey)’. investments and the income from them can go down as well as up and you may not recover the amount of your original investment. Past performance
is not necessarily a guide to future returns. Where an investment involves exposure to a currency other than that in which it is denominated, changes in
exchange rates may cause the value to go up or down.
