JPMorgan faces
charges of gross
negligence against
Saudi family
A wealthy Saudi Arabian
family is suing JPMorgan
(Jersey) Trust Co for £120m,
citing a raft of allegations,
including gross negligence.
JPMorgan Trust and
other defendants deny the
charges, which are being
heard in a civil court. Other
claims against them include
breach of trust, conflict of
interest and lack of communication
between the
trustees and beneficiaries.
A lawyer involved in the
case described it as “incredibly
complicated” and said
it will drag on until May or
June 2009 at least.
Sheikh Mohamed Ali M
Alhamrani, a Saudi industrialist,
and four of his brothers
are bringing the action,
while another brother,
Sheikh Abdullah Ali
Alhamrani, protector of the
trusts in question, is among
the defendants. There are
also claims against a local
trust company called Russa
Management. Among the
Alhamrani family’s interests
is the distribution rights
for Jaguar and Land Rover
in Saudi Arabia.
It has been reported
that since proceedings
began, JPMorgan Trust has
decided to move its Jersey
operations as part of a
global consolidation of the
business. The company
refused to comment on
these plans or any aspect
of the case.
Legal proceedings in connection
with the case have
been ongoing since 2003,
with “numerous appeals to
the Jersey Court of Appeal
and the Privy Council in
London”, a statement from
the family said.
Several law firms are
involved in the case on
both sides, including
Bedell Cristin representing
the plaintiffs and Mourant
du Feau and Jeune, Crill
Canavan and Carey Olsen
in Jersey and Clifford
Chance, Speechley Bircham
and Farrers in London for
the defendants.
Jersey Finance opens Hong
Kong office and eyes India
by Helen burGGraf
Jersey Finance, which represents
the Island of Jersey’s
finance industry, is to open
an office in Hong Kong at
the end of March and may
establish premises in India.
Officials flew to Mumbai
in November on a weeklong
expedition that included
three nights in Delhi.
Jersey Finance chief
executive, Geoff Cook, said
Jersey is primarily looking
to attract Asian companies
interested in establishing
a financial base in Europe
from which they could
list shares on the London
Stock Exchange.
He said: “Over the longer
term, we also believe there
will be more wealth management
business [coming
from China and India],
as wealthy entrepreneurs
who will have created
businesses outside of their
home countries, and who
will have become more
Artemis forced to close UK Equity Fund
after failing to attract European investors
by Daniel JuDGe
London-based fund manager
Artemis has closed
its Luxembourg-domiciled
UK Equity Fund following
Artemis’s remaining Sicav funds
% -15
30
15
-30
-45
0
-60
Jan ’07 May
Sep
Jan ’08
1 Jan ’07 – 1 Nov ’08. Source: Lipper
Artemis Int’l Pan European Equity A € Acc
Cook: appeal to asian investors
Pre-Budget report leads to offshore anxieties over scapegoating
Continued from page 1
lender of last resort would
be the UK taxpayer. This is
about working with them
to assess such risks.”
But the Treasury has
stressed the review will
not take in the constitu-
tional relationships of the
Crown Dependencies with
the UK. An interim report
will be produced by the
2009 Budget, he added.
Offshore centres are
facing growing pressures
for increased transparency.
disappointing sales.
As of the end of
September this year, it had
only £1.8m under management
despite being
launched two years’ ago.
Artemis Int’l Global Equity A € Acc
December 2008 [www.international-adviser.com] INTerNATIONAL ADVISer 11 5
May
Sep
international themselves,
will want some of their
wealth managed [offshore]
as well.”
In the case of India,
Cook said there were other
potential market sectors to
consider, such as Indian
information technology
businesses interested in
setting up in Jersey to
cater to its financial services
industry.
Guernsey opened its
own full-time marketing
office in Shanghai earlier
this year, while the Irish
financial regulator recently
signed an agreement to
enable Chinese investment
in Dublin-domiciled products
for the first time.
In October the OECD highlighted
the role of such
jurisdictions in the current
financial turmoil by allowing
banks to hide losses in
offshore subsidiaries, and
announced plans for additional
supervision.
Managed by Mark
Tyndall and Jacob de
Tusch-Lec, the fund had
dropped in value by more
than 30% since launch to
the end of September, while
over a year to that date it
had fallen more than 32%.
Tyndall and de Tusch-Lec
will continue to manage the
£460m UK onshore Artemis
Capital Fund.
But it was a lack of
investor interest rather than
poor performance that led
to its closure.
Nick Wells, product
and communications director
for Artemis, said: “We
expected people in the UK
to put their offshore clients
into an offshore UK fund
but it has not worked.”
NEWS
NEWS
IN BRIEF
Peter Lucas leaves
Ashburton to join RBC
Peter Lucas, the
Ashburton director
and global investment
strategist, is leaving
the Jersey-based
investment arm of
FirstRand to take up
a position with RBC
Wealth Management,
which also has offices
on the island.
Pharos establishes
office in Dubai
Pharos Financial
Advisors, part of
the Pharos Financial
Group of companies,
has opened an
office in the Dubai
International Financial
Centre. It specialises in
investments in Russia
and the former USSR.
Jersey funds grow but
asset values weaken
The number of funds
in Jersey grew by 45,
or about 3%, to 1,452
in the third quarter
of 2008, but the total
net asset value slid
by 1.8% to £239.9bn,
Jersey Finance said.
Bank deposits held
at “virtually the same
level” as the previous
quarter.
FPI launches five high
risk ‘mirror funds’
Friends Provident
International has
launched five mirror
funds focusing on
higher-risk emerging
market investments,
such as infrastructure,
agriculture, renewable
energy, natural
resources, livestock
and commodities. They
mirror the mutual funds
of DWS, Sarasin and
Castlestone in which
they are invested.
For the current and all
previous editions, with
full news archive, go to
www.international-adviser.com
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