The Glanmore Property Fund
Expats chasing quality of life
not just weather, says survey
BY HELEN BURGGRAF
A survey has found that
“the pursuit of a better
quality of life, rather than a
better climate, is the main
reason” Brits buy properties
abroad.
An average of eight
out of ten respondents to
the Hargreaves Lansdown
questionnaire cited ‘quality
of life’ when asked to rank
the importance of a choice
of reasons why they had
bought overseas properties,
beating ‘climate’ into
second place.
In another survey,
Singapore was rated as the
best location in which to be
an expat. According to the
HSBC Bank International
Expat Explorer Survey, the
Asian buyers accounted for
90% of the net sales of
international Ucits funds
marketed by 28 major fund
groups in 2007, according
to a survey by the European
Fund and Asset Management
Association (EFAMA).
The trend has continued
this year, along with a continuation
of net outflows
from Europe, Brusselsbased
EFAMA said. Fidelity,
BlackRock, Schroders,
Franklin Templeton,
Pioneer Investments and
Raiffeisen Capital
48
www.glanmore.com
United Arab Emirates and
US ranked second and third
respectively of the preferred
destinations.
HSBC asked 2,155
expats across four continents
to rate such vari-
Salary above £100k: top 3 resident countries
30
%
20
50
40
10
0
Hong Kong
India
Singapore
Source: HSBC Bank International Expat Explorer Survey ’08
EC delivers proposal on Ucits IV funds,
as study reveals Asia is main market
Management were among
the 28 companies – with
combined assets invested in
international Ucits of around
€770bn – that participated
in the EFAMA survey.
As a result of this rise in
the take-up by Asian and
Latin American buyers and
decline in Europeans, Ucits
sourced from Asia and Latin
America have reached
14.3% and 3.1%, respectively,
of total international
Ucits assets managed by
the participating fund managers,
EFAMA said.
www.international-adviser.com
ables as living standards,
their ability to earn and
save, and the length of time
they had lived there. In
terms of earnings, expats in
Hong Kong had the highest
wages (see bar chart).
� The survey came as a
long-awaited proposal for
updating the Ucits framework
was unveiled by the
European Commission.
As expected, the package
of proposed measures
for improving the functioning
of the single market for
funds, known as Ucits IV,
did not contain any provisions
for a so-called ‘management
passport’. But it
did provide a framework
for enabling Ucits managers
to further develop their
cross-border activities.
Tried and tested performance in the world of commercial property funds
Tel: +44 (0) 20 7491 4662 Email: michelle.uberti@tilney.com
The Glanmore Property Fund and The British Real Estate Fund are authorised and regulated by the Guernsey Financial Services Commission.
Issued by Tilney Investment management Limited, authorised and regulated by the Financial Services Authority. Head Office: Royal Liver Building, Pier Head, Liverpool L3 1NY
INTERNATIONAL ADVISER [www.international-adviser.com] AUGUST 2008
OPINION
Providers must stop letting
distributors lead expansion
How do retail product providers
– fund managers
and life companies – really
make decisions about
going into a new market?
For a number of reasons,
mainly regulatory, entry
tends to hinge on finding a
distributor. In some cases,
the availability of a distribution
partner kicks off
the consideration to enter
a market.
It may be a pragmatic
approach to expansion, but
the result is that the distributor
leads the product
provider on development,
positioning, pricing, market
segmentation and regulatory
compliance. But why can
the product provider not
contribute to issues which,
in its home market, it would
regard as essential?
Quite simply, because
it does not know enough
about the market and has,
in effect, abrogated responsibility
to the distribution
partner. It then bemoans the
fact that its products have
become commoditised.
Let us consider a different
approach to market
entry. Before it does anything
else, the provider
The British Real Estate Fund
www.britishrealestate.com
Mike Hemming,
chairman of Spence
Johnson, says retail
product providers
should do their own
research and not rely
on distribution partners
goes into the market
and carries out consumer
research. Zurich has
recently done just that in
Singapore. Based on the
results, it matches products
to market segments,
assesses the potential and
then identifies a distributor
that can maximise expo-
“ “
It abrogates
responsibility to the
distribution partner
and then bemoans the
fact its products are
commoditised
sure to the chosen segments.
It knows why it is
there, and what it wants to
achieve.
Does this undermine
the position of the distributor?
Not at all. It has
a business partner that
understands the issues it
faces, recognises what is
necessary to achieve success,
delivers the products
and services it needs, and
does not regard it simply
as a goose expected to lay
golden eggs.
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