1. SEPTEMBER 2011
For Distributors of International Fund, Life and Banking Products www.international-adviser.com
NEWS
Advisers more optimistic
about local economies 3
FEIFA launches service Australia, NZ,
Guernsey top
Dominion unveils QROPS
for US-bound workers 3
Zero-10 regimes come
for Europe-bound IFAs QROPS market:
HMRC data
under scrutiny 3 BY SIMON DANAHER rising prices in both ary impact on the econ-
regions, particularly Asia, omy, food, non-alcoholic Around eight out of every
UK and Switzerland sign Rising numbers of advis- have hit the headlines. beverage and transport ten pensions transferred
‘historic’ tax deal 5 ers relocating from Asia In January, internation- costs have risen at an out of the UK into QROPS
Boal & Co launches and the Middle East to al property adviser Savills annual rate of almost 7%. have gone to Australia,
spousal bypass trust 5 Europe have prompted the said that financial hub Meade, whose com- New Zealand or Guernsey,
Federation of European Hong Kong had become pany has been sourc- according to never-before-
Platform One unveils IFAs (FEIFA) to form a the most expensive city ing and placing advis- seen HMRC data obtained
new wrap offering 6 partnership with Sterling internationally in which to ers to and from Asia, the by the Concept Group and
Skandia Ireland Associates, a firm which buy property, after proper- Middle East and Australia revealed exclusively by
launches trust products 6 specialises in the global ties doubled in value in for more than ten years, International Adviser.
placement of financial the previous five years. said: “Europe has never Until now, the pen-
Skinner named CEO services workers. Asian economies have been more attractive.” sions industry has been in
of Aegon Ireland 9 According to Joe Meade, also struggled with rising FEIFA’s partnership with total darkness about which
SFC aggressively the principle of Sterling prices more generally, and Sterling Associates allows countries were receiving
pursues insider traders 9 Associates, the trend has China’s year-on-year infla- advisers using the service the bulk of UK pension
gathered pace over the tion is running at more to advertise jobs to those transfers.
Sanlam EB calls for past year and has been than 6%, according to based in Asia or the Middle This information,
rethink on pensions 10 driven by increasing living data published last month. East, and who are looking obtained via a Freedom
L&G enjoys growth and working costs in Meanwhile in Dubai, to come back to Europe, of Information Act request,
in offshore bonds 10 Asia and the Middle East. while the property market while IFAs in those regions is therefore expected to
During this period, has had a disinflation- can use it to find work. cause a sensation, even if
Yorkshire BS to fold it largely confirms some
Guernsey business 13 experts’ suspicions.
Barclays Wealth ‘Next gen’ life settlement fund unveiled The figures
Australia is the market
show
appoints Asia director 13
BY HELEN BURGGRAF FUND FACTS Selection, the new fund’s that has received the most
Castlestone ‘mirror’ adviser. transfers of any jurisdiction
funds come under fire 14 An established life settle- Min investment: $25,000 The fund has already since 2007, the first year
Julius Baer launches ments fund provider this Annual charge: 1.25% attracted $10m and is for which the HMRC pro-
month is participating in (institutional share class) aiming to raise $50m to vided data.
China A-share fund 14
the launch of a new fund $100m of investment by According to the data,
Launch date: 1 Oct ’11
Van Der Wielen replaces that it says will benefit August 2012, with a target- it has received 47% of the
Sepe at Friends Life 17 from the life settlement Manager: Ironshore Group ed annual return to inves- transfers, as measured by
industry’s growing sophis- Target: yield of 12% pa tors of 12% a year, Walters number, more than twice
Taiwan ‘criminalises’ sale
of offshore life policies 17 tication and skill, as well said. as many as its nearest rival,
as from the currently soft investors, and has already It is expected to sell New Zealand, with 23%,
Spain remains top market for second-hand received a number of particularly well among which in turn took more
spot for UK retirees 56 life insurance policies. inquiries, according to investors in South America, than twice as many as the
Life Fund is being pro- Andrew Walters, a director he added, where the appe- third-placed jurisdiction,
Features – page 2 moted to international of the fund, who is also tite for life settlement prod- Guernsey (10%).
private and institutional finance director of Policy ucts is strong. Continued on page 5
MD profile 19-20 Intermediary profile 23-24 Country profile 27-28
Steven Levin The Ipac Hong Kong- Cyprus After a
newly appointed based Ipac offers volatile year of
CEO of Skandia its clients more power outages
International than dim sum with and protests, the
explains how its holistic brand island remains a
determination helps of lifestyle financial top destination for
him get results planning retiring expats

2. contents
PROFILES TECHNICAL PORTFOLIO
Intermediary profile: Briefing: US non-doms Fund selector: Global
Ipac 23-24 in the UK 31-32 property shares 34-36
Hong Kong-based Ipac split with US citizens face draconian Property funds have grown
its Australian parent of the same regulations related to their in numbers in recent years
name in 2010. The company offshore finances and many UK and performance can vary
has since found success with banks have washed their hands significantly depending on the
its fee-based lifestyle planning of the sector. Solutions exist, strategy used. OBSR’s Alexander
however, writes Tony McLoughlin Prineas analyses the sector and
approach, and its advisers target
of London & Capital picks out his funds to watch
several groups, including female
clients and parents who are
Managing director concerned about the financial
STATISTICS
profile: Steven Levin habits of their children The IA Quality Funds
19-20 Country profile: 39-44
The recently-appointed chief Cyprus 27-28 A list of the blue chips
executive officer of Skandia After a turbulent few months of the offshore fund world
International discusses the which have seen the island hit
challenges facing the company with credit rating downgrades,
and the cross-border life political protests and an
Banking deposits 46
industry. He explains why explosion at its main power The top-paying offshore accounts
dogged determination is plant, Cyprus’s economy faces
sometimes needed to achieve an uncertain future. However, CLASSIFIEDS
high-quality results and why it remains a popular retirement
some companies fail in their destination and advisers based Life listings 48-50 Recruitment 52-55
efforts to implement good there are looking to expand Find the job that suits you in IFA
business strategies their businesses Service listings 50 firms operating around the globe
IA Intermediary Panel IA Tax Panel
Graham Barnes Tony Shah Simon Liew Margaret Jago Rachael Griffin
Director, Associate Investment International Head of product
international director, Christ- strategist, In technical law and financial
division, church Investment My Opinion, manager, planning, Skandia
The Fry Group, UK Mgt, UK Singapore Aegon Ireland International
Peter Sayers Tim Searle Sean Kelleher Gerry Brown Mark Green
Director, financial Chairman, Chairman, Head of trusts Head of estate
planning, Globaleye Financial Partners and taxation, and tax planning,
Horizon Financial Group, Dubai Prudential Legal & General
Services, Jersey International
Nick Cann Gary Boal Robert Parker Brendan Harper Julie Hutchison
Chief executive, Managing Chief executive, Technical Head of estate
The Institute director, Holborn Assets, services planning,
of Financial Boal & Co, Dubai manager, FPI Standard Life Int’l
Planning, UK Isle of Man
Mark Rawson David Bojan Mahmoud Brian Murphy Neil Chadwick
Business director, Managing Nodjoumi Senior financial Technical
The Henley Group, director, HFS Chairman and planning manager, Royal
Hong Kong Asset Mgt, chief exec, Nexus manager, London 360º
Hong Kong Group, Dubai Axa Sun Life
Ernest Chan Sam Instone Michael Porter Paul Kennedy Sandra Hogg
Chief commercial Director, AES Chief invest Business Senior tax
officer, Convoy International, UK officer, Harvard development manager, Scottish
Financial Services, House Investment director, Widows
Hong Kong Mgt, South Africa FundsNetwork
Bill Blevins Alan Binnington Jeremy Croysdill Chris Allatt Anthony Rothwell
Managing Private client Head of tax Senior tax Technical
director, Blevins director, services, consultant, consultant,
Franks, RBC Wealth Kleinwort Benson, Sanlam UK Canada Life
pan-Europe Mgt, Jersey UK International
2 INTERNATIONAL ADVISER [www.international-adviser.com] SEPTEMBER 2011

3. NEWS
NEWS
Life firms are
tailoring their
Advisers are more confident IN BRIEF
products to in local economic recovery IA European Investor
Forum this month
specific areas BY WILL JACKSON Skandia International.
International Adviser’s
European Investor
BY SIMON DANAHER One-third of respondents Forum will take place
Advisers are more optimistic said global contagion was on 22 Sept at the
Life companies are increas- about the outlook for their the biggest threat to their Park Plaza Victoria,
ingly launching products local economies than the local economy, while other London. The half-
tailored to the needs of global economy as a whole, concerns included inflation day conference,
consumers in specific according to Skandia Inter- (24%), unemployment (8%) which is being held
countries or regions. national’s ‘Offshore Adviser and government spending in association with
Companies such as Confidence Barometer’. cuts (7%). Some 37% said FEIFA, is sponsored by
Skandia International, The survey of 300 advis- clients had become more Baker Tilly, Cazenove
Royal London 360°, Friends ers, conducted in July, Oxenham: ‘great opportunities’ risk averse over the previ- Capital Management,
Provident International found respondents rated ous six months. Fidelity International,
(FPI), Prudential and Zurich their confidence in their turmoil in world markets, Regarding investment, Henderson Global
International Life have all local economy at an aver- there are areas of strong about a quarter of those Investors, HSBC Global
unveiled products tailored age of 6.2, on a scale of one economic activity, partic- polled said that emerg- Asset Management,
to a specific audience. to ten (ten being the high- ularly in the developing ing market equities would Irish Life International,
Examples include est). In comparison, they economies and Asia, which outperform other major Neptune and Prudential
Zurich’s launch in May gave the global economy present some great opportu- asset classes over the next International. More
of Aspire, an investment- an average of just 5.4. nities,” said Phil Oxenham, 12 months, followed by details at http://events.
linked annuity product only “Despite the continuing marketing manager at gold (20%). lastwordmedia.com/
available in Taiwan; Royal
London 360°’s Protected Royal London 360°
Lifestyle Lebanon; Skandia’s
Spanish Collective Invest-
Dominion unveils QROPS for US-bound workers net sales jump 37%
ment Bond; and FPI’s Optus BY HELEN BURGGRAF sions while posted in the News of the Dominion New business
Group Protection policy for country by employers, and scheme comes as a number premiums increased by
Middle East investors. Dominion Fiduciary who may be moving on to of other pension fund 37% at Royal London
Alongside the big play- Services has launched a another non-US country for administrators have begun 360° during the first
ers, smaller life insurance new Qualifying Recognised work or to retire, accord- pulling the wraps off their half of 2011, results
firms are also targeting Overseas Pension Scheme ing to James Barber-Lomax, own ‘IRS-friendly’ schemes, released in August
more esoteric markets. (QROPS), domiciled in new business team adviser as reported in International showed. The Isle of
Stephen Conway, sales Malta, which has been at Dominion. Adviser last month. Man-based life insurer
manager at group life and structured specifically to Malta’s financial serv- The trend also comes in said new business
benefits insurer Global accommodate US citizens, ices regulator is in the the wake of a double tax premiums totalled
Benefits Europe, said his non-US citizens and Green final stages of approving agreement between the US £209m ($340m) over
company has been tapping Card holders with UK pen- the new Dominion EU and Malta that took effect the six months to
into the African market. sions who are retiring to Retirement (US Qualifying) on 1 Jan, and after changes 30 June, compared
“We now have opera- the US, or moving back Plan, as it is called, Barber- in UK tax regulations have with £153m for the
tions in Zimbabwe, Angola there for good. Lomax said. A number of made some other financial equivalent period
and Mozambique, which It will also be able to be clients have committed to planning tools less attrac- last year.
have been achieved used by US citizens who transferring pensions into it, tive in comparison with a
through joint ventures with may have built up UK pen- he added. well-constructed QROPS. Creechurch plans
local firms,” he said. UK, int’l expansion
“We have taken this
path because we are not
‘premier division’ players,
Zero-10 regimes on agenda this month Isle of Man-based
investment boutique
Creechurch Capital is
and so cannot really com- The zero-10 corporate tax a zero-10 scheme. It has corporation tax, while looking to expand its
pete in markets like Hong regimes of Jersey and the already said it is willing to some industries, such as wealth management
Kong and Singapore.” Isle of Man will again be replace its scheme, which banks, pay 10%, and a few offering internationally
But according to Bryan the subject of scrutiny this is why it is not under the pay 20%. and into the UK, and
Low, director at Isle of month, as the European microscope as well, but The Conduct Group has named a new
Man-based cross-border Commission’s Code of its replacement is yet to reviewed Jersey and the head of business
financial consultancy com- Conduct Group formally be determined, according IoM’s tax regimes last development, Paul
pany Acuity, one of the big- considers steps taken ear- to officials. year, as it believed the Gregson, to oversee
gest drivers of this change lier this year by both islands “Guernsey… cannot jurisdictions’ personal the expansion. He was
is increased regulation. to begin to remove the determine its preferred taxation laws, when com- previously at Close
“In the past few elements of their tax codes direction of travel until the bined with the zero-10 tax Wealth Management.
years there has been an deemed by the Conduct outcome of the Conduct regime, were in conflict
increased pace of regula- Group to be “harmful” from Group processes are with the Code of Conduct
For the current and all
tion which has required a tax perspective. known definitely,” the on Business Taxation, laid
previous editions, with
life companies to launch Watching this activ- island’s Government said. down by Europe’s Council full news archive, go to
specific products for spe- ity with interest will be Under zero-10 schemes, of Economics and Finance www.international-adviser.com
cific markets,” he said. Guernsey, which also has most businesses pay no (ECOFIN).
SEPTEMBER 2011 [www.international-adviser.com] INTERNATIONAL ADVISER 3

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the basis of dividing the last 12 months’ dividends (to the latest available distribution date) by the current
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information supplied. The value of investments and the income from them is not guaranteed and can fall as well as rise due to stock market and currency movements. When you sell your investment you may get back less than you originally invested. Newton Asian Income Fund
is a sub-fund of BNY Mellon Investment Funds, an investment company with variable capital (ICVC) incorporated in England and Wales under registered number IC27 and authorised by the Financial Services Authority. BNY Mellon Fund Managers Limited (BNY MFM) is the
Authorised Corporate Director. The Prospectus and/or Simplified Prospectus should be read before an investment is made. This document can be obtained from www.bnymellonam.co.uk. To help us continually improve our service and in the interest of security, we may monitor
and/or record your telephone calls with us. Issued by BNYMAMI, BNY Mellon Centre, 160 Queen Victoria Street, London EC4V 4LA. Registered in England No. 1118580. Authorised and regulated by the Financial Services Authority. BNYMAMI and Newton are ultimately owned
by The Bank of New York Mellon Corporation. Newton is a member of the IMA. CP7071-22-07-2011(3m)

5. NEWS
NEWS
Boal unveils
new spousal
UK and Switzerland agree IN BRIEF
bypass trust ‘historic’ deal on taxation Frankland named for
MetLife Jersey role
to mitigate IHT BY HELEN BURGGRAF ten days after a similar
accord was struck between
held by UK taxpayers in
Switzerland will be subject
MetLife, the New
York-based insurance
BY WILL JACKSON A deal whereby Switzerland Switzerland and Germany, to what the Treasury says giant, is to start
will tax, on behalf of the and will take effect in 2013. will be “a significant” one- selling its range of
Boal & Co has launched a UK, undeclared accounts Some accounting indus- off deduction of between UK pension and life
spousal bypass trust, which held in its banks by UK try sources said the agree- 19% and 34% to settle past products in Jersey,
aims to improve the inher- citizens – while keeping ment, which the Treasury tax liabilities, leaving those and has appointed
itance tax (IHT) efficiency their identities a secret – called “historic”, was short who have already paid Paul Frankland to
of Trinity and its other has been agreed. on the detail as to how their taxes unaffected. head the initiative. The
Qualifying Recognised Sources said the agree- the process would work in In addition, the banks first product will be
Overseas Pension Schemes ment could mean as much practice, which they sug- will make an up-front pay- unveiled this month
(QROPS). as £6bn more annually in gested might have been ment to the UK of CHF500m and is expected to be
QROPS assets are revenue coming in to HM intentional, ahead of its ($629.1m), which the a guaranteed bond.
exempt from IHT on a Revenue & Customs. formal ratification. Treasury described as “a
scheme member’s death. The deal was unveiled Under the terms of the gesture of good faith” on FPI strengthens its
However, when death ben- on 24 Aug, fewer than agreement, existing funds their part. Global Term product
efits are paid to a member’s
Friends Provident
spouse, they can create
additional IHT liability
on the eventual death of
Convoy rebuffs accusations over its IPP takeover International has
strengthened Global
Term, an insurance
the spouse, if their assets Convoy Financial Services reported in July, Hong accusations and that all
product it offers
exceed the combined IHT last month sought to reas- Kong-based Convoy’s necessary legal and regula- exclusively in
threshold. sure investors that its pro- acquisition of IPP is tory approvals had been Singapore. The product
By using a spousal posed takeover of IPP expected to create one of obtained. now offers protection
bypass trust, a member can Financial Services does not the largest financial advi- It added: “Entering into for family, mortgages,
ensure QROPS death bene- contravene Singaporean sory firms in Asia. of the sale and purchase loans and businesses
fits are paid to the trust and law. Convoy has over 1,000 agreement by the purchas- from the consequences
kept outside the spouse’s The firm published a IFAs, while IPP, founded er did not violate Singapore of death, terminal
estate. Boal’s Trinity scheme clarification statement in 1983, has more than 400 laws, and the company illness, critical illness
is able to pay members a on the news website of employees. has made and would or disability.
retirement lump sum above Hong Kong Exchanges and According to the state- make disclosure(s) and
the 30% level to which Clearing, in response to ment, allegations concern- announcement(s) in rela-
other QROPS are restrict- accusations reported by ing the deal were made tion to the transaction(s)
Clarification
ed, and the same spousal the Apple Daily newspaper. in “anonymous letters”. in compliance with the list- The lead story
bypass trust can also be As International Adviser Convoy said it denied the ing rules.” on the front page
used for this benefit. of last month’s
“The result can be highly International Adviser
tax-efficient in many cases,
as it reduces future income
Top destinations for transfers into QROPS – ‘Overseas pensions
face compensation
tax liability on pension Continued from page 1 jeopardy’ – contained
payments,” said Boal sales A look at the transfers
Transfers out of the UK into QROPS an inaccuracy. The
director Paul Forman. that were made in the first article stated that the
Jurisdiction % total transfers* % total transfers* Guernsey depositor
“For any Trinity clients part of this year, however, ’07 to 31 Jun ’11 first part of ’11
compensation scheme
concerned about their shows a different picture, Australia 47% 20% does not cover
future IHT situation, the use with Guernsey in the lead
New Zealand 23% 28% deposits on behalf of
of the spousal bypass trust with 32% of the total, fol-
Guernsey 10% 32% trusts or retirement
allows them to pay not just lowed by New Zealand
schemes. This was
their death benefits but also (28%), Australia (20%) and Isle of Man 2% 5%
incorrect – Guernsey
some or all of their retire- Isle of Man (5%). Hong Kong 1% <1% QROPS are covered
ment lump sum benefit into Importantly, Guernsey Malta <1% <1% by the Guernsey
the bypass trust, so keeping differs from Australia, and Banking Deposit
Others combined 17% 15%
it outside of the IHT net as in part from New Zealand, Compensation Scheme.
* By numbers transferred. Percentages add up to slightly more than 100% due to rounding.
well,” he added. in that it is primarily a Source: HMRC, via FOI Act request by Concept Group. But the maximum
Boal launched Trinity, a “third-country” QROPS compensation payable
QROPS approved under the destination, meaning that son, “Australia’s QROPS data showed that “prudent is £50,000 ($81,473)
Isle of Man’s 50c legislation, most of the QROPS trans- market is [comprised] jurisdictions are the win- per scheme, not per
last November. According ferred there are for people almost totally of people ning business model and individual scheme
to the firm, it is a trustee or who have left the UK to going to Australia to live, should continue to thrive”. member.
administrator to more than live elsewhere, such as in while New Zealand is more For more on the
£400m ($652m) of offshore Europe or Asia. of a mixture of both” third- Concept Group data, and For the current and all
pension scheme assets. Roger Berry, managing country QROPS and those Berry’s analysis, see page 8 previous editions, with
Further details of the director of Guernsey-based of people moving there of the QROPS supplement full news archive, go to
spousal bypass trust are QROPS specialist Concept permanently from the UK. contained in this issue of www.international-adviser.com
available at www.trinity.im. Group, said by compari- Berry added that the International Adviser.
SEPTEMBER 2011 [www.international-adviser.com] INTERNATIONAL ADVISER 5

6. NEWS
Wraps come off new wrap AAM receives
dressing down
offering from Platform One from Singapore
BY HELEN BURGGRAF ers saw as a neglected area
regulatory body
in the fledgling, but rapidly The Monetary Authority of
Platform One, a wrap plat- growing, platform market. Singapore (MAS) has “rep-
Leggate: building expert team form aimed at advisers Like most new markets rimanded” AAM Advisory
with high net worth clients he says, it has been char- and one of its executives
and multiple family offices, acterised by a “land-grab” for giving financial advice
Russell brings was unveiled last month. approach, as most entrants – in a monthly bulletin
An international ver- rush to take advantage of to clients – without the
Leggate on sion of the platform for being so-called first-movers. required licences.
expatriates makes use of As is customary in the In a ruling that could
board Middle the administration facilities
and services of Moventum,
platform world, Platform
One charges its clients Fordham: ‘land-grab approach’
have implications for other
advisory firms which pro-
East operation a Luxembourg offshore
fund platform provider
based on a percentage of
the total value of assets manual trades. International
duce investment materials
for clients, the MAS found
BY SIMON DANAHER owned by US-based LPL held, and also when they fees are slightly different, that AAM and one of its
Financial. Its custodian is buy or sell assets – typi- starting at 0.45% of assets executives, Andrew Gordon
Russell Investments will Banque de Luxembourg, cally shares and collective and again, declining as McKay, contravened “sec-
expand its operations in according to Michael Ford- investment funds. more assets are added. tion 6(1)...[and] the then-
the Middle East and has ham, managing director of In the UK, the percent- Transaction fees for col- section 7(1) of the FAA
appointed Jim Leggate Platform One. age starts at 0.3% of assets lective investments range [Financial Advisers Act]” in
to build and lead a team Fordham says Platform and declines to 0.03% on from €5 ($7.20) to €25 if a monthly newsletter that
based there. One’s high-end approach assets of £5m ($8.2m) or they are done electronically the firm said was designed
Leggate, who has been was taken in response to more; transaction fees are and €25 to €50 if manual, to help its clients to become
appointed to the newly- what the company’s found- £15 if automatic and £25 for according to the company. more knowledgeable on
created role of managing investment matters.
director, Middle East, joins The FAA sections state
from MSCI, where he held
the position of executive
Skandia Ireland unveils trust products that no person “shall act
as a financial adviser in
director and head of EMEA Skandia Ireland has launc- discounted against the gift, Singapore” unless author-
asset owners and invest- hed a discounted gift trust which has the effect of ised to do so, nor “act
ment consulting. (DGT) and loan trust, in reducing the amount of as or hold himself out to
He reports to Pascal response to demand from IHT that might eventually be a representative of a
Duval, president of EMEA financial advisers. have to be paid. licensed financial advis-
at Russell Investments, and The company, which is The loan trust, mean- er” without the necessary
will be based in Dubai. the Dublin-based hub of while, offers an individu- licence, the regulator said
Russell said Leggate’s Skandia International, part al the ability to make an in a statement.
arrival in the region will of Old Mutual, said a poll it interest-free loan repayable Nick Anderson, one of
signal the start of “an conducted of 330 advisers on demand, the proceeds AAM’s directors, said the
additional expansion in globally, indicated that the of which are placed in a “advice” in question was
the number of people on most important element Griffin: ‘powerful financial tools’ single premium investment contained in a newsletter
the ground to support the of trust arrangements was bond written in trust for called Global View, which
Russell businesses”. the mitigation of poten- have witnessed a growing the chosen beneficiaries. was written by McKay, an
He added that one of tial inheritance tax (IHT) demand for IHT solutions Any growth in the Australia-based fund man-
Leggate’s first responsibili- liabilities for clients. over the recent years.” value of the loan would ager and AAM shareholder,
ties will be to build a team. Rachael Griffin, head The DGT arrangement fall immediately outside and which did not involve
The company has had of product law and finan- provides UK-domiciled the individual’s estate, so specific advice to any indi-
operations in the Middle cial planning at Skandia individuals with the ability would not become liable vidual clients.
East for more than 30 International, said: “Trusts to make a gift into a trust to IHT. The newsletter was dis-
years and, at the end of are very powerful financial but retain a life-long right Unlimited and limited continued towards the end
March this year, it had planning tools. The feed- to draw an income stream liability loan trust options of last year, when the MAS
assets under management back received from advis- from that gift. The value are being made available first revealed its concerns,
of about $161bn. ers is not surprising, as we of this income stream is by Skandia. he added.
Dylan Emery Editorial director Giles Whittingham Sales executive Keeley Parsons Circulation manager SUBSCRIPTIONS
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E simon.danaher@lastwordmedia.com E ben.wiseman@lastwordmedia.com E vicky.parker@lastwordmedia.com E rod.boulogne@lastwordmedia.com 10,097 July ’10 – June ’11
6 INTERNATIONAL ADVISER [www.international-adviser.com] SEPTEMBER 2011

7. T R U S T E D H E R I TA G E A D VA N C E D T H I N K I N G
Tuned into local knowledge
The faster the pace of change, the more important it is to keep an ear to
the ground at the local level.
With a team of 36 emerging market investment specialists based in 8
countries1, spanning the world from São Paolo to Shanghai, Schroders
has the global reach and local perspective to uncover the most exciting
opportunities in emerging markets, wherever they are.
If you’re looking to capture the full diversity and potential of the world’s
most dynamic economies, Schroder ISF* Global Emerging Market
Opportunities is the ideal fund.
Schroder ISF Global Emerging Market Opportunities
www.schroders.com
1 Source: Schroders, as at July 2011. *Schroder International Selection Fund is referred to as Schroder ISF. Morningstar rating as at 31 July 2011, rating is for A accumulation share class.
For Professional Investors or Advisers Only. Past performance is not a reliable indicator of future results, prices of shares and the income from them may fall as well as rise. Issued in August 2011
by Schroder Investment Management Limited, 31 Gresham Street, London EC2V 7QA. Registered number 2015527 England. Authorised and regulated by the Financial Services Authority. w40269

8. For professional advisers only
Henderson Horizon
Fund
The Henderson Horizon China Fund, managed by Andrew Cumulative performance Fund MSCI Golden
Mattock and Caroline Maurer provides investors with access to a
Dragon Index
focused portfolio of Chinese companies that is constantly adjusted
Year to date +5.1% -0.2%
with the aim of delivering attractive performance through the
economic cycle. Supported by the significant research capabilities 6 months +4.9% -1.3%
of the wider Henderson team, the fund also employs sophisticated 1 year +21.0% +15.5%
short selling techniques that potentially allow it to deliver positive
Since inception* +45.4% +7.8%
performance in challenging market conditions.
Source: Morningstar, bid-bid, gross income reinvested, net of fees, based in USD, at 29 July 2011.
The Henderson Horizon China Fund is available through a number *Inception 25 January 2008. †Standard & Poor’s, July 2011.
of international distribution partners and life companies. The fund may
also be available via open architecture links through other international
distributors, please contact your preferred distributor for more information.
†
+44 (0)20 7818 4411 support@henderson.com www.henderson.com
The Henderson Horizon Fund (the “Fund”) is a Luxembourg SICAV incorporated on 30 May 1985. This document is intended solely for the use of professionals and is not for general public distribution. Any investment application will be made solely on the basis of the information contained in the Fund’s full prospectus (including all relevant covering documents),
which will contain investment restrictions. This document is intended as a summary only and potential investors must read the Fund’s full prospectus before investing. A copy of the Fund’s full and simplified prospectuses can be obtained from Henderson Global Investors Limited in its capacity as Investment Manager and Distributor.Issued in the UK by Henderson
Global Investors. Henderson Global Investors is the name under which Henderson Global Investors Limited (reg. no. 906355) (incorporated and registered in England and Wales with registered office at 201 Bishopsgate, London EC2M 3AE and authorised and regulated by the Financial Services Authority) provide investment products and services. Telephone calls
may be recorded and monitored.Past performance is not a guide to future performance. The performance data does not take into account the commissions and costs incurred on the issue and redemption of units. The value of an investment and the income from it can fall as well as rise and may increase or decrease as a result of changes in exchange rates between
currencies. Investors may not get back the amount originally invested. Tax assumptions and reliefs depend upon an investor’s particular circumstances and may change if those circumstances or the law change. If you invest through a third party provider you are advised to consult them directly as charges, performance and terms and conditions may differ materially.
The securities included in this document are not registered in the Foreign Securities Registry of the Superintendencia de Valores y Seguros for public offering and, therefore, the use of this document is only for general information purposes. Nothing in this document is intended to or should be construed as advice. This document is not a recommendation to sell or
purchase any investment. It does not form part of any contract for the sale or purchase of any investment. The Fund is a recognised collective investment scheme for the purpose of promotion into the United Kingdom. Potential investors in the United Kingdom are advised that all, or most, of the protections afforded by the United Kingdom regulatory system will not
apply to an investment in the Fund and that compensation will not be available under the United Kingdom Financial Services Compensation Scheme. A copy of the Fund’s full and simplified prospectuses, articles of incorporation, annual and semi-annual reports can be obtained free of cost from the Fund’s: Austrian Paying Agent Raiffeisen Zentralbank Österreich
AG, Am Stadtpark 9, A-1030 Vienna; French Paying Agent BNP Paribas Securities Services, 3, rue d’Antin, F-75002 Paris; German Information Agent Marcard, Stein & Co, Ballindamm 36, 20095 Hamburg; Belgian Financial Service Provider Dresdner Van Moer Courtens S.A./N.V. Société de bourse, Drève du Prieuré 19, 1160 Bruxelles; Spanish Representative
Allfunds Bank S.A. Estafeta, 6 Complejo Plaza de la Fuente, La Moraleja, Alcobendas 28109 Madrid; or Swiss Representative BNP Paribas Securities Services, Paris, succursale de Zurich, Selnaustrasse 16, 8002 Zurich who are also the Swiss Paying Agent. HGI41877/0811

9. NEWS
Hong Kong fund
sales rocket in
Skinner fills Aegon Ireland Standard Life
(Asia) rebrands
first half of ’11 CEO vacancy left by Healy as it plans HK
BY SIMON DANAHER
BY WILL JACKSON Aegon UK, noted that the
sales expansion
Net sales of funds in Hong Aegon Ireland operation BY HELEN BURGGRAF
Kong hit a record high in Aegon Ireland has appoint- now headed by Skinner
the first half of this year, up ed Simon Skinner as its was “well positioned to Standard Life (Asia), the
by 188% compared with chief executive officer. capitalise on the substantial Hong Kong arm of
the second half of 2010, He replaces David growth opportunities for Edinburgh-based Standard
according to the HK Healy, who left the compa- variable annuities, both in Life, has repositioned its
Investment Funds Assoc- ny last month after 14 years the UK and across Europe”. brand, following “exten-
iation (HKIFA). as managing director. Variable annuities were sive customer research”.
It said the robust sales Skinner previously one of the strengths of The firm also revealed
for the fund industry, which served as the chief operat- Aegon Ireland that Healy that it is targeting a 30%
included net sales of $5.1bn ing officer of life and pen- cited in an interview earlier Skinner: moving from Aegon UK increase in sales of invest-
over the six-month period, sions at Aegon UK. Since this year with International ment-linked insurance
reflected investors’ desire to joining Aegon as customer Adviser, which appeared in Healy joined Scottish products in Hong Kong
put their money to work in services director in 2009, he the April issue. Equitable International this year.
the “extremely low interest has been responsible for Its range of variable (later rebranded Aegon Details of a new
rate environment and the the firm’s UK customer annuity products, Healy Ireland) in 1995, and Standard Life product for
threat of inflation”. services strategy and cost told IA, were an important became its managing direc- the Hong Kong market,
Monthly gross inflows reduction programme. factor in helping to differ- tor two years later. He which had been expected
were between $2.5bn and Before this, he held senior entiate the company from previously worked with J to be unveiled at the same
$3.9bn, with all months positions with Scottish its rivals, and he noted that Rothschild, when it was time as the rebranding,
registering positive fund Widows, Equitable Life and enhancing and expanding the first cross-border life were not revealed, and are
flows. But the HKIFA said the Automobile Association. this range was among company to set up in understood to be still
net sales dropped gradual- In a statement, Adrian Aegon Ireland’s current Dublin’s International under wraps, pending reg-
ly after a strong start in Grace, chief executive of projects. Financial Centre. ulatory approval.
January and only started to But an expansion of
pick up again in May. Standard Life’s online facili-
Despite this, gross and net
sales in Q2 were still higher
SFC aggressively chases insider traders ties for both financial advis-
ers and their clients was
than in Q1, reaching The Hong Kong regulator, Securities (Asia Pacific), CITIC Pacific, of selling presented alongside news
$11.2bn and $3.1bn respec- the Securities and Futures and another party engaged 81,000 shares in September of the rebranding.
tively, up 14% and 52%. Commission (SFC), last in insider dealing with 2008, while in possession Among other things, cli-
But Desmond Ng, chair- month concluded one respect to China Overseas of “confidential, price sensi- ents and advisers may
man of the HKIFA, was insider trading action and Land and Investment tive information” about the now peruse and tweak
cautious about his outlook opened another. shares. firm’s foreign exchange their Standard Life invest-
for the remainder of 2011. According to the SFC, it As a result, Luk’s licence losses – avoiding a notional ment portfolios from their
“The markets have been has concluded proceedings was revoked in 2006 loss of HK$1.36m. iPhones and iPads as well
plagued by a lot of uncer- against Steve Luk Ka and the SFC imposed a Chui appeared in the as online, thanks to
tainties: the eurozone sov- Cheung, a former vice- ten-year industry ban in Eastern Magistracy last new apps.
ereign crisis; the worsening president and fund manag- April 2010. month, where he pleaded The rebranding of
US fiscal position; the er at JF Asset Management. The new case relates to not guilty to two counts of Standard Life’s Asian sub-
anaemic global economic The Market Misconduct alleged insider trading in insider dealing. David sidiary followed a decision
growth; and the inflation- Tribunal, an independent CITIC Pacific shares. Dufton, the acting princi- by its parent to change its
ary pressure in the emerg- government body, found The SFC has accused pal magistrate, fixed a pre- “visual identity” to reflect
ing markets all served to that Luk, along with David Chui Wing Nin, a former trial review for 20 Oct and “the investment being
dampen investment senti- Tsien, a former equity assistant director of the Chui was released on made in the business now
ment,” he said. salesman at JPMorgan finance department at HK$50,000 ($6,400) bail. and in the future”.
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SEPTEMBER 2011 [www.international-adviser.com] INTERNATIONAL ADVISER 9

10. NEWS
Sanlam EB urges rethink on PCP planning
major global
pension needs of consumers sales strategy
BY SIMON DANAHER Dawie de Villiers, chief sibility for their own retire- BY HELEN BURGGRAF
executive officer of Sanlam ment savings – and many
South African pension pro- Structured Solutions, a divi- members are not actually PCP International Market-
vider Sanlam Employee sion of SEB, said: “While aware they carry the risk.” ing, a Cyprus-based compa-
Crist: promoted to Asia CEO Benefits (SEB) is calling we do not challenge the The research indicates ny, is investing more than
for a “sea change” in how rationale behind the move that, of the one in five €1m ($1.4m) to expand a
Crist to head the pension industry meets
consumer needs.
away from the defined ben-
efits system, the research
respondents who resigned
or switched jobs over the
sales presence into Asia,
Europe, the Middle East
Ageas Asia as SEB made the call fol-
lowing the completion of
shows that members are
still not accepting respon-
past year, more than 70%
cashed in their retirement
and Latin America, as it
seeks to reach institutional
Ziengs moves its 2011 Benchmark survey.
This year the compa-
funds, and only 18% pre-
served their funds.
and retail investors with
products offered by PCP-
into new role ny surveyed over 1,300
retirement fund trustees,
Other findings were that
53% of respondents say
related entities.
The company, which
International life insurer principal officers, retire- they are on track for retire- was formed in 1996 by
Ageas has promoted Gary ment fund members and ment, yet nearly one-third Kevin Mudd, said sales in
Crist to CEO in Asia. He pensioners. One of the key do not know how their each region will be headed
replaces Dennis Ziengs, findings was that a shift retirement savings have by a regional director, who
who has been appointed away from defined benefits been invested, and 29% of will be a full shareholder
executive adviser to the to defined contributions respondents do not know in a joint business with,
company’s group CEO, in the ’90s has left many that they have a choice in and financed by, PCP.
Bart de Smet, and to Crist employees worse off. de Villiers: ‘responsibility’ how they are invested. “The objective is for
in Asia. each regional partner to
The appointments took build their own distribu-
effect on 1 Aug.
Crist joined Belgium-
European asset managers turning to private banks tion business, through
their own efforts and by
based Ageas, which con- European asset manag- their use of private banks in “The rise in private bank recruiting their own team,”
centrates its business in ers expect to place great- the next 12 months (up by distribution channels sug- said Mudd, who is also a
Europe and Asia, in 2002 er emphasis on private 14% from 2010), and 34.3% gests some asset managers principal of KMG Capital
and has been responsible banks and direct sales for expected to focus more on are increasingly targeting Markets Luxembourg, a
for overseeing its entry into fund distribution, accord- direct sales. high net worth individuals Luxembourg-based funds
new markets in Asia. In ing to research by KNEIP, “Implementation of new as the recovery from the company he founded
2006 he became managing an independent service regulation, such as Ucits financial crisis stabilises.” in 2007.
director, commercial devel- provider. IV, is pushing asset man- Some 94% of respond- He said the firm was
opment and support. A survey of 47 European agers to forge closer rela- ents expected Ucits IV to aiming for annual sales in
Ziengs also joined the asset managers, admini- tionships with investors, as have the greatest impact each region of $60m within
company in 2002. In his strators and promoters indicated by the increased on fund management in three years, for a company-
new role, he will advise on revealed that 42.9% of resp- focus on direct sales,” said the next 12 months, up wide turnover of $240m
specific projects and will ondents planned to increase CEO Bob Kneip. from 83% in 2010. to $300m.
work to raise the profile of
Ageas in the Asian insur-
ance industry.
Ageas is ranked among
Legal & General Int’l enjoys growth in offshore bonds
the top 20 insurance com- BY WILL JACKSON Offshore bond sales at L&G International pensions, offshore bonds
panies in Europe and has are increasingly seen as a
annual inflows of nearly Legal & General Inter- 300 useful vehicle for both tax
€13bn ($19bn). It operates national (LGI) saw a 65% mitigation and retirement
partnerships in Belgium, increase in its offshore 250 planning,” said Legal &
China, Italy, India, Luxem- bond sales in the first half General executive director
bourg, Malaysia, Portugal, of 2011, compared with 200 of savings Mark Gregory.
Thailand and the UK, and the same period last year. “Our international busi-
£m
150
has subsidiaries in France, The firm revealed the ness is seeing an increase
Germany, Hong Kong and rise in August, as its parent 100
in the use of offshore
the UK. company announced its investment plans as sup-
Ageas last month half-year results to the 50 plementary asset accumu-
reported a group net loss London Stock Exchange. lation vehicles for retire-
of €59m for the first half of Offshore bond sales hit 0 ment by higher net worth
2011. The firm’s net profits £280m ($460m) in the first H1 ’10 H2 ’10 H1 ’11 clients.”
of €111m for its insurance six months of this year – Source: Legal & General International The Legal & General
operations were offset by up from £170m in 2010. group announced a 4%
an impairment charge of The increase continued the full-year offshore bond “For UK investors faced rise in total global sales,
€150m related to Greek strong growth seen last sales of £450m, compared with limitations on tax- to £920m, in the first half
sovereign exposure. year, when LGI recorded with £80m in 2009. advantaged savings via of 2011.
10 INTERNATIONAL ADVISER [www.international-adviser.com] SEPTEMBER 2011

11. FOR ADVISER USE ONLY –
NOT APPROVED FOR USE WITH CLIENTS.
OFFSHORE
INVESTMENTS
WITH GUARANTEES
TO FIT YOUR CLIENT’S
TIMETABLE.
Not ours
The International Prudence Bond
now comes with a choice of
6, 7, 8, 9 or 10 year spot guarantee.
Find out more at
www.pruadviser.co.uk/ipb
The registered office of Prudential International is in Ireland at Montague House, Adelaide Road, Dublin 2.