Nationalisation
scuppers Fortis
Guernsey/ABN
Amro link-up
Fortis Guernsey has been
forced to scrap plans to
merge with ABN Amro’s
Jersey-based offshore operations
in the wake of its
partial nationalisation by
the Benelux governments.
Days before Fortis was
to have been given the
keys to ABN’s Jersey offices
– as part of its parent
company’s participation in
a takeover and break-up
of its larger Dutch rival –
it was announced that
Fortis would sell on its ABN
shareholding as a result of
the package put together to
rescue it from collapse in
the global financial crisis.
Up to 70 employees at
ABN Amro’s Jersey operation
were facing an uncertain
future for the second
time in less than two years
as Fortis negotiated to sell
the Dutch lender.
“We have had to change
our plans but this does
not affect our longerterm
ambitions for a
dual Channel Islands capability,”
said Rick Denton,
commercial director at
Fortis Guernsey.
Arch seals deal to buy 48%
slice of Financial Partners
Skandia, FPI, ZIL fall foul of Russia pension scam
Crosby closes Forsyth funds as redemptions gain pace
BY HELEN BURGGRAF
Crosby Asset Management,
the London-based, AIMlisted
financial services
company, is to close seven
of the Forsyth funds it
acquired this year.
In a statement to the
London Stock Exchange,
Crosby said it was closing
the sub-funds in response
CLOSING
■ Global Thematic
■ North America
■ Global Emerging Markets
■ Global Balanced
■ Global Bond
■ Greater Europe
■ Lodsworth Global
Emerging Market Debt
BY DANIEL JUDGE
Financial Partners, an advisory
business operating in
the Far and Middle East,
has sold a 48% stake in
the firm to Arch Financial
Products, the fund manager
that runs some of its
investment offerings.
Arch said the deal will
enable Financial Partners
(FP) to deliver a strategy
that will see it evolve from
a wealth manager to providing
a full service offering,
including banking, asset
management, financial and
specialist legal advice. It also
plans to double the number
of advisers from 200 to 400
over the “medium term”.
Arch’s investment for an
undisclosed sum will also
Continued from page 1
According to the sources
who spoke to IA, when
Royal Skandia’s attempts
to contact the IFA and
the security firm failed
after premiums stopped,
senior staff were sent
to Russia. They found an
to redemption requests that
represented more than 80%
of their total net asset value,
and a belief that “current
turbulent market conditions”
meant it was unlikely
they would generate greater
subscriptions than redemptions
anytime soon.
“In the view of the fund
board, [this made it] no
longer economically viable
to operate them,” Crosby
said. Crosby COO Steve
Fletcher did not return calls
for comment.
The largest of the two
funds to close are Global
Thematic with a fund size
of $46m and Greater Europe
at $119m (see graph).
Crosby said its strategy
“remains based around
Farrell: ‘strategic partnership’
bankroll the acquisition of
new advisory businesses,
fund the upgrading of
technology and back office
systems, facilitate moves
into new markets and help
change the business model
to one where revenue is
based on fees and ongoing
commission rather than
upfront hits.
empty building where on a
previous visit the security
company had a bustling
office. Royal Skandia has
been unable to track down
the adviser, despite using a
private investigator.
Royal Skandia and ZIL
refused to comment but FPI
Forsyth’s largest funds to close
%
40
30
20
10
0
Crosby Forsyth
Greater Europe
Crosby Forsyth Global Thematic
-10
Sep ’05 Mar ’06 Sep
Mar ’07 Sep
Mar ’08
Source: Financial Express Analytics
OCTOBER 2008 [www.international-adviser.com] INTERNATIONAL ADVISER 11 7
restructuring the Forsyth
Managed Strategy Fund
into a multi-asset investment
fund and restructuring
the Forsyth range of
funds of hedge funds into
Robin Farrell, managing
partner of Arch, described
the venture as a ‘long-term
strategic partnership’ that
would result in significant
growth for FP as well as
becoming a rewarding
investment for Arch.
He added the advisory
firm’s presence and contacts
in emerging centres of
wealth and global growth,
primarily the Middle and
Far East, gave it access to
investment opportunities
that others do not possess.
“There are a lot of deals
Financial Partners sees
every day that they cannot
do. With our backing they
will be able to,” he said.
“For the first time, the company
has a balance sheet it
can do something with.”
said its anti-fraud measures
had been strengthened following
the case.
“We became concerned
about the legitimacy of the
business in question at an
early stage and due to our
vigilance were able to limit
our exposure,” FPI said.
a consolidated multi-strategy
FoHFs”.
Steve Coxshall, Crosby
managing director, is
believed to have departed,
though it is unknown why.
NEWS
Sep
NEWS
Headline over two please
Head
over two
IN BRIEF
Synergy’s new sales
team targets Europe
Fund manager the
Synergy Partnership
has expanded its
distribution beyond
the Middle and Far East
with the appointment
of a European sales
team. It is headed
by Phil Clark, who has
worked for a number
of international life
offices and specialist
fund groups.
Net outflows set to
continue says report
The European fund
industry has seen net
outflows of $115bn
so far this year, and
‘little improvement’ is
expected before 2010,
according to a report
by Morgan Stanley’s
European research
team. It said: “We see
continued outflows as
banks cannibalise retail
funds to help plug [the]
$4trn funding gap.”
Killik & Co gets the
green light in Dubai
The Dubai International
Financial Centre branch
of UK wealth manager
and stock broker Killik
& Co has been given
regulatory approval
by Dubai regulators to
handle the investment
needs of private clients.
Nationwide IoM
temporary reshuffle
Isle of Manbased
Nationwide
International has
appointed Philip
Dunne as interim
managing director.
He is filling in for
Carl Gandy, who is
temporarily overseeing
a Nationwide Building
Society expansion in
the Republic of Ireland.
For the current and all
previous editions, with
full news archive, go to
www.international-adviser.com
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