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Expat Investor : September 2007
September 2007 EXPAT INVESTOR 11 INVESTMENT NEWS Enjoy the world of international private banking. Open an account with RBC and you will enjoy the benefits of a dedicated Private Banker to understand and manage your financial requirements and aspirations. Ideal for people who live or work overseas, or those who have investments, personal or business interests in more than one country. Choose from a range of currency options and online access offers you flexibility and control, while a VisaTM Gold debit card provides worldwide access to your funds. As a client of RBC you gain access to the RBC Financial Group network of offices and services including international banking solutions, credit solutions, a wide range of investment solutions and integrated wealth management solutions. The Executive Plus Account is a complete international banking solution. It's an account that will take you wherever you want to go. To fi n d out more, please contact Emma Adam or Scott Grant on: +44 (0)1534 283838 email email@example.com or log on to www.rbcprivatebanking.com/international-banking.html BANKING • CREDIT • INVESTMENTS • TRUST • TAX CONSULTANCY FOR THOSE WITH WIDER HORIZONS. BANKING SOLUTIONS THAT TRAVEL WITH YOU. Understanding life, understanding you. INTERNATIONAL BANKING FOR GLOBAL LIFESTYLES. This advertisement is issued by Royal Bank of Canada (Channel Islands) Limited ("RBC"). RBC is incorporated in Guernsey and is regulated by the Guernsey Financial Services Commission in Guernsey and by the Jersey Financial Services Commission in Jersey. RBC is registered under the Banking Business (Jersey) Law 1991, and the Banking Supervision (Bailiwick of Guernsey) Law 1994, to conduct deposit taking business and regulated under the Financial Services (Jersey) Law 1998 and the Protection of Investors (Bailiwick of Guernsey) Law 1987, to carry on investment business in Guernsey and Jersey. A copy of RBC's General Terms and Conditions are available upon request. As at 31 October 2006, RBC paid up capital and reserves were £269,582,000 and deposits are accepted in all major currencies. Deposits made with the offices of RBC in Guernsey and Jersey are not covered by the UK Financial Services Compensation Scheme. Copies of the latest audited accounts are available upon request from either the registered office: PO Box 48, Canada Court, St Peter Port, Guernsey, GY1 3BQ or the Jersey Branch: PO Box 194, 19/21 Broad St, St. Helier, Jersey JE4 8RR. ® Registered trademark of Royal Bank of Canada. Used under licence. VisaTM Registered trademark of Visa International Service Association, used under licence. You should note that depending on your citizenship, residency and financial status, some services may not be available to you and are only provided by certain sister companies of RBC. JSY/BKI/07/243 Fidelity FundsNetwork believes it is challenging the conventions of the international investment bond market with the launch of its International Bond. The investment management company reports that by stripping away the complexities and hidden charges usually associated with offshore investment, FundsNetwork has designed the new International Bond to be "competitively priced, with a clear and simple charging structure plus full commission flexibility." The company goes on to stress that, "Transparency is at the heart of the new wrapper, which is the first truly open-architecture international bond. Platform mutual funds are typically sold at Net Asset Value (NAV), there is no limit on switching and no fee applied when switching between funds. Advisers are also able to see a single view of client holdings on the platform through Oneview." David Dalton-Brown, Head of FundsNetwork, tells Expat Investor, "The international investment bond market is growing rapidly as advisers focus increasingly on the many benefits of investing internationally Fidelity's groundbreaking international bond Fast Facts 77009 Fast Facts 77198 Fast Facts 77195 Fast Facts 77196 Bored of bonds? Try convertibles for their clients. But historically, hidden charges and product complexities have stood in the way of many investors being able to benefit fully. "The demand from advisers for a solution to investing simply and tax- efficiently offshore has driven the development of our International Bond, which we believe is part of a new breed of modern, competitively and transparently priced wrappers. We 've broken new ground with its design and features - the combination of lower and transparent charges, investment choice and flexibility, is geared towards making offshore investment more accessible than ever before." continues annually at about 10% and this provides a supportive backdrop for individual companies. The property market in China/Hong Kong, in common with much of the rest of South East Asia, appears reasonable value compared to wages and the development of urban centres provides interesting investment opportunities. Among individual stocks held by New Star's fund in China/Hong Kong, Shenzhen Investment posted strong gains while PYI Corp benefited from increased government spending on infrastructure. Other growth markets in South East Asia include Vietnam and the According to Anja Eijking of F&C Management, convertible bonds have been one of the best-kept secrets of the investment world in recent years. Ms Eijking believes that convertibles can offer investors an attractive half-way house between bonds and equities. Ms Eijking says, "Ten year UK bond yields have increased from 4.9% at the end of March to around 5.5% today. At the same time equity markets have come under increasing pressure from the slowdown in US growth. "With bond yields rising and convertibles offering on average a yield of just 1-2% on issuance, companies across Europe are turning to convertibles to raise finance," explains Ms Eijking. "The truth is that no one can predict what will happen in six months' time. Convertible bonds offer investors peace of mind by giving them security of income through regular bond coupons whilst at the same time offering exposure to equity market returns with the option to convert the bonds to shares on maturity. They will also pay the fixed face value of the bond at the redemption date regardless of any fall in the equity option." The F&C Global Convertible Bond Fund has consistently outperformed its benchmark, the UBS Global Focus Convertible Index, over 2, 3 and 4 years and earlier this year won the accolade of best fund in the Lipper Germany awards Global Convertibles category. Equity markets in Asia (excluding Japan) recovered from the correction to finish the first quarter of the year in what New Star mangers call "positive territory". Managers point out that the Chinese stock market was partly responsible for triggering the global market wobble, although concerns about the US economy also played a significant part. From New Star's macroeconomic viewpoint, markets in South East Asia currently look better placed than their counterparts in North East Asia, where growth is more closely tied to US consumer trends. The China/Hong Kong region remains a firm favourite. Gross domestic product growth in China Positive outlook on South East Asia equities for expat investors Philippines. New Star reports that its fund has benefited from an overweight position in Vietnam in recent years and took some profits as valuations began to look overstretched. The Philippines could be another attractive market. Economic stability and reform are being pushed up the political agenda, making the market increasingly attractive to foreign investors. The fund's holdings in the Philippines, including Banco de Oro and SM Investments, contributed strongly to performance over the first quarter of 2007. Tw o other favoured stocks are Rexcapital and Heng Tai.
July August 2007