This Digital Edition requires Flash 9.0.115 or above to activate some rich media components.

Please click the following link to download and install: Get Adobe Flash player
When you are finished installing, please return to this window and PRESS F5 to view this edition.


OCTOBER 2014 ISSUE 31 JERSEY S BUSINESS MAGAZINE Inside HEADS UP CRACKING THE EXPORT MARKET FROM JERSEY VIEW ONLINE AT BAILIWICKEXPRESS.COM E IS FOR EASY CAN TECH CUT STATES RED TAPE PLEASE TAKE ONE The HOW TO GET YOUR TEAM WORKING TOGETHER PEOPLE SKILLS TICKET CHANGES Stressed out by Gatwick Arrive relaxed in the heart of the capital FREE London City Airport O2 Arena DLR Tube Canary Wharf 12 mins The Shard 19 mins Bank 22 mins Waterloo 23 mins Westminster 25 mins 10 mins 10 miles 5 miles Terms and conditions apply. Graduate & A Level Opportunities 2015 A chance to beat the rush Deloitte recruits graduates and A Level students each year into our Audit and Tax areas. This is a fantastic starting point for a career in business and gives you the chance to study for a professional qualification and gain valuable commercial and technical experience that will help you go further with your career. The application process for 2015 entry to the graduate and A Level schemes are now open giving you the chance to beat the crowds and apply prior to returning to school or university. For further information please email Julie Whiteway HR Manager jwhiteway 2014 Deloitte LLP. All rights reserved. WELCOME FURTHER INFORMATION PUBLISHERS If you would like to appear in Connect have a story to tell or simply want to receive a copy then please get in touch with the publishers Size matters. How do you grow your business when the local market in Jersey is small and finite Simple. You sell overseas. And there you have at its most basic level the growth strategy for the finance industry which brings millions of pounds of investment into the island every year. On a lower level it s the same with the tourism industry it s an exporter in the sense of giving people outside of Jersey a compelling reason to spend their money inside Jersey. Which brings me to the digital sector to win its spurs it needs to export...and so this month in Connect we profile one of the Jersey digital businesses that is doing just that the Total Solutions Group. See page 48 if you want to follow in their footsteps. There is another solution though. On page 71 we take a look at Lucas Brothers a country business which has come to town and gone online in a bid to diversify away from its traditional model. The link between the two is technology creating opportunities and efficiencies by using the kit we have (often permanently) at our fingertips. As some of the election candidates will tell you that s also the future for government services in Jersey. That word technology squares the circle that has vexed senior politicians for the last decade how do you reduce public expenditure (essential to balance the books) without reducing public services (not good for re-election prospects) Genius We use technology to get more efficient but as Mike King explains on page 20 there is rather more to it than that. It s also about providing better services by changing the way they are delivered. Also in Connect this month Viewpoint considers the future of Funds in Jersey four industry experts discuss the one change they would make to this vital sector. Turn to page 54 to see how they would like to see the future unfold. And in a chastening moment of self-realisation the Fool discovers the true meaning of the word idiot and then realises it applies to most of us. There is one thing you can do though to shed the heavy cloak of idiocy and that s vote on 15 October find out why on page 58. So there you have it. From exports through technology with a brief stop at efficiency on the way. It s all in a month s work at Connect. Remember if you have reached the stage when another election poster or another smiling politician promising you solutions in return for a tiny x on a piece of paper will make you clamber onto the barricades next to your compadre the Fool - there is only one thing you need to remember Keep Calm and Read Connect. OCTOBER S ISSUE Bailiwick Publishing (LCI) Fox Building Second Floor Suite La Rue des Pres St. Saviour JE1 3UP Telephone 01534 887740 CONNECT ONLINE For all the latest news and classifieds straight to your inbox visit and subscribe to our daily news service. EDITOR James Filleul Email editor WRITERS Ben Qu r e Email ben Gwyn Garfield Bennett Email gwyn Paula Thelwell Email paula ADVERTISING Lisa Barnes Telephone 01534 510309 Email lisa SUBSCRIPTIONS Email info DESIGN AND PRODUCTION Mark Jackson Email mark Artwork under 10Mb in size may be sent to this address. This magazine can also be read online at Copyright Bailiwick Publishing LCI. All rights reserved. Reproduction in whole or in part without written permission is strictly prohibited. Views expressed by our contributors are their own. Editorial opinions expressed in this magazine are not necessarily those of Bailiwick Publishing. Bailiwick Publishing does not accept responsibility for the advertising content. While every effort is made to achieve total accuracy Bailiwick Publishing cannot be held responsible for any errors or omissions. James Filleul Editor Please recycle this magazine. Like Bailiwick Express on Facebook Follow us on twitter connectjersey OCTOBER CONNECT 03 ON THE COVER NO ORDINARY DAY JOB Harvey Biljon . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60 REGULARS LOCAL NEWS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 06 APPOINTMENTS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18 TECHNOLOGY Julian Box . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46 UNPLUGGED Danny Bannister . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48 VIEWPOINT. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 54 WHO S THE FOOL . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 58 iSPY . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 65 GLASS HALF FULL Brighter Futures. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 66 HERE S THE THING... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 68 FEATURE Online retail with Lucas Brothers . . . . . . . . . . . . . . . . . . . . . . . 70 DEADLY DIARY . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 77 MUSINGS OF A MARKETER Sam Watts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 78 THE ADVISER Olaf Blakeley . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 80 20 10 18 39 30 SPECIAL REPORT A small Baltic state. Your tax form. Cutting wasteful practices that cost taxpayers millions to sustain every year. How do these three things come together It s all in the new buzzword which is now lingua franca for any self-respecting democracy (yes that s us folks) e-government. And that s about much more than just getting us all filling in more States forms online it s also about changing the way States departments work. Ben Qu r e went to meet the man with his finger on the mouse. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20 FEATURES TELECOMS JT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39 BUSINESS START-UPS Jersey Business . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42 RETIREMENT Skipton International . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44 FUNDS & INVESTMENTS Ashburton Investments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26 Barclays . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28 Canaccord Genuity Wealth Management . . . . . . . . . . . . . . 30 GoldMoney . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32 RBS International . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34 Saffery Champness . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36 04 CONNECT OCTOBER 65 CONTENTS 60 42 CONTENTS OCTOBER 2014. ISSUE 31. 54 70 48 WANT THE LATEST BUSINESS NEWS TO COME TO YOU Scan the QR code and click to send us your email address. OCTOBER CONNECT 05 NEWS Want this magazine delivered to your home or office Visit to subscribe Awards celebrate ten years of Jersey Construction Council The Jersey Construction Council awards ceremony celebrated the quality and commitment of individuals and companies that have excelled in the past year. The Lifetime Achievement Award recognised Brian Blandin for a lifetime dedicated to the continual improvement of construction in Jersey. Those embarking on a career in construction were also recognised with Marc Godel of Camerons receiving the Hepburns Industry Achiever of the Year Award and Troy Rees-Davies of T & G Limited winning the Skills Jersey Young Achiever of the Year Award. David Morris Chairman of the Jersey Construction Council Awards 2014 said One of the council s key aims when it was formed ten years ago was to ensure that the industry never became complacent and always strives to be better. I believe that the quality of submissions for the awards shows that the industry is doing just that by always aiming for higher standards. Speaking on behalf of Appleby Global Head of Private Client & Trusts Carlos de Serpa Pimentel said Attaining this type of recognition for the work that our Private Client & Trusts team does is excellent and real testament to their hard work and commitment to delivering market-leading advice and services to our clients. It is also a public demonstration of our Contractor selected for new Police Headquarters The States have selected Rok-Regal Construction Limited as the preferred contractor to build the new Police station. The Assistant Treasury and Resources Minister Eddie Noel said This is another important step that brings the development of the first purpose built Police HQ in Jersey s history closer to reality. I am delighted we have selected a local contractor to undertake these works. The Rok-Regal team will The awards also marked the Construction Council s tenth anniversary. This year two new categories of award the Normans Health and Safety leading reputation for being a go-to adviser in the private client sector. And speaking of RBC s win the Chair of the Presiding Judges Paul Stibbard TEP said This was perhaps the hardest award category to judge this year but RBC Wealth Management s nomination revealed a separation between decision-making and execution of duties as well as a high risk be undertaking the vast majority of the work through local subcontractors which will provide a much-needed boost to the local construction industry. Whilst there is still considerable work to do to finalise arrangements including close liaison with the project team and the Transport and Technical Services Department I expect this to be completed by mid-October with the contractor taking occupancy of the site shortly afterwards. It is anticipated that construction work will begin on 20 October 2014 and that the building will be completed by the end of 2016. Award (won by Jersey Electricity) and the Ronez Building Regeneration of the Year Award (Homestead Lowe & Co) were included for the first time. business committee to act as a sounding board for trustees both of which impressed the Presiding Judges. As a global business the importance RBC Wealth Management places on the impacts of cultural conventions on client needs was also clear and show they are a proactive company looking to do the best possible job for their clients worldwide. Appleby and RBC scoop STEP awards Offshore law firm Appleby became International Legal Team of the Year at the recent STEP awards in London. At the same event RBC Wealth Management won the Trust Company of the Year . 06 CONNECT OCTOBER LO C A L LY F O C U S E D . G LO B A L LY C O N N E C T E D . I N D I V I D U A L LY TA I LO R E D. D E L I V E R I N G A W A R D - W I N N I N G W E A LT H M A N A G E M E N T S O L U T I O N S FROM HERE IN JERSEY FOR OVER 50 YEARS. RBC Wealth Management Best Private Banking Services Overall Jersey FOR MORE INFORMATION PLEASE CONTACT ADAM NORRIS AT 44 (0) 1534 283496 ADAM.NORRIS RBC.COM OR RBCWEALTHMANAGEMENT.COM JERSEY VISIT There s Wealth in Our Approach.TM BANKING CREDIT INVESTMENTS TRUST TAX CONSULTANCY CUSTODY FUNDS EMPLOYEE BENEFITS The value of investments may fall as well as rise. You may not get back the full amount that you originally invested. This advertisement is issued by Royal Bank of Canada (Channel Islands) Limited ( the Bank ) on behalf of RBC companies that comprise RBC Wealth Management in the British Isles. The Bank is regulated by the Guernsey Financial Services Commission in the conduct of deposit taking and investment business and to act as a custodian trustee of collective investment schemes in Guernsey and is also regulated by the Jersey Financial Services Commission in the conduct of deposit taking fund services and investment business in Jersey. The Bank s General Terms and Conditions are updated from time to time and can be found at terms-and-conditions-British-Isles.html. Registered Office Canada Court St Peter Port Guernsey Channel Islands GY1 3BQ registered company number 3295. Deposits made with the offices of the Bank in Guernsey and Jersey are not covered by the UK Financial Services Compensation Scheme however the Bank is a participant in the respective Deposit Compensation Schemes in Jersey and Guernsey ( the CI Schemes ). Links to the official websites which provide details of the respective CI Schemes are available on the Jersey and Guernsey pages of our website Copies of the latest audited accounts are available upon request from either the registered office or the Jersey Branch 19-21 Broad St St. Helier Jersey JE1 8PB. TM Trademark(s) of Royal Bank of Canada. Used under licence CA1939 AUG15 NEWS Follow us on Twitter connectjersey Funds value passes 200 billion mark The value of the Island s funds business has exceeded the 200 billion mark for the first time since June last year. The latest statistics collated and prepared by the Jersey Financial Services Commission for the threemonth period ending 30 June 2014 show stability and signs of new growth led by the funds sector. Although bank deposits fell slightly they remain stable. Geoff Cook Chief Executive at Jersey Finance Limited described the picture overall as showing clear signs of recovery. He said The increase in funds business is due to the general improvement in market conditions specifically in property fund valuations. The increase also takes into account a number of new fund launches established in the last few quarters reporting for the first time while the reduction in the number of regulated funds relates to relinquished certificates for funds which have become inactive. The small decrease in bank deposits is mainly due to the significant strengthening of sterling which decreased the sterling value of foreign denominated deposits by around 2.2 billion. Headline figures for the second quarter of the year include Thetotalvalueofbanking deposits held in Jersey decreased by 0.3 billion from 139.2billionto 138.9billionduringthe secondquarterof2014. Thenetassetvalueof fundsunderadministration increased by 5.1 billion from 195.3billionto 200.4billionduringQ2 2014.Thetotalnumberof regulatedcollective investmentfundsdecreased by54from1 337to1 283 overthesameperiod. Consentwasgrantedin respectof27COBOonly PrivatePlacementfundswith areportedtotalNAVof 593 million. Thetotalnumberof unregulatedfundsincreased bythreefrom199to202 duringthesecondquarter. Thevalueoftotalfunds underinvestment managementdecreased slightlyby 0.4billionfrom 22.2billionto 21.8billion duringthesecondquarterof 2014. Thetotalnumberoflive companies increased by 506 to33 207attheendofQ2 2014. Go ahead for new restaurant on Gorey Pier An old boatyard on Gorey pier that has been derelict for more than 20 years will be transformed into a new restaurant and delicatessen which should be open by the end of next year. Despite hundreds of objections from parishioners and a campaign on social media to try to stop any further development on the pier the owner of the site has had her plans to build a second restaurant approved. Owner Laurraine Falle said We are delighted that our project has now been approved by the Planning Applications Panel. Their support confirms that the new restaurant and delicatessen will add to the public good and in particular the quality of life both commercial and residential in Gorey and its surroundings. For us this represents a major family commitment to the transformation of a site which has been derelict for many years. We are confident that we can make a significant contribution to the tourist amenities in a place that is at the heart of our Island s history. We hope that a place that we shall now call The Yard will become loved as a social and community centre and take its place beside the other attractions on the pier. We are also confident that we shall be able to provide high quality employment which will not only be fulfilling for those who work there but also help to give a really satisfying experience to those they will serve. Mrs Falle also owns Feast on Gorey pier. The increase in funds business is due to the general improvement in market conditions... Geoff Cook Chief Executive at Jersey Finance Limited 08 CONNECT OCTOBER NEWS For news stories every day visit to sign up to our daily email news service Hotel invests in new spa and gym Longueville Manor has shown confidence in the local tourism industry by introducing a new boutique spa and gym to the Island. The proprietor of Longueville Manor Patricia Lewis said We are delighted to launch The Cottage Garden. It s a long realised vision for the entire team at Longueville Manor and a welcome addition to our luxurious portfolio. Taking its name from the surrounding gardens and famous kitchen garden it embodies the purity of the location the unique setting and the philosophy of all that is Longueville Manor. The Cottage Garden mini spa caters principally to hotel residents but also to Islanders with Natasha Young heading up a team of Islanders. We will keep our customers closely informed as the works progress and have taken all measures we can to ensure work is completed where possible out of hours or at low traffic times. We would hope that two therapists. It boasts an outdoor heated spa pool set in a tranquil garden setting with a dedicated butler service. A new residents gym has also been introduced providing a small range of state-of-the-art fitness equipment with media centres Internet access and digital television facilities. the benefits of this new network will far outweigh any disruption caused whilst we install in. We will be publishing daily information on our website and would encourage customers to look there for the latest news. programme that has recently seen the refurbishment of the White Horse at the Dicq and the transformation of Dix Neuf in St Helier into Hugo s a contemporary bar and diner. The company has also recently acquired the historic Old Court House Inn on St Aubin s bulwarks. Liberation Group Chief Executive Mark Crowther said This is a really exciting day for Liberation Group. We are delighted to be working with Comprop on such a prestigious new development in such a busy and high profile area. We are proud of our portfolio of pubs bars and eateries in the Channel Islands and this is evidence once again of our commitment to investing in both existing and new venues. Installation of super fast network gets underway Work to install telecoms provider JT s new 4G mobile network has begun now the key components of the new system have arrived in the Island. Following the CICRA announcement of 4G spectrum allocation to the local telecoms provider they are now just awaiting the final green light from Ofcom and official licenses. In the meantime installation work is already taking place as JT prepares to replace the existing mobile network with the new version that will not only enable superfast 4G speeds but will also improve the existing mobile data service. JT says the new network will greatly improve mobile phones tablets and dongles connectivity inside buildings or in areas where the signal is currently not as strong. There will be brief disruption to the existing mobile service when equipment on the individual phone masts is changed. Engineers have planned the works so that the signal will only be switched off for short periods wherever possible and in one location at a time. JT also say they are carefully planning the works to coincide with periods when usage is at its lowest and the company will be publishing regular updates about exactly where and when the breaks in service will take place. JT s Chief Technical Officer Dave Newbold said As with any upgrade of this scale there will inevitably be some disruption JT are working closely with our supplier to minimise any impacts on Liberation Group to open new venue at the Weighbridge The Liberation Group has agreed terms with local property developers Comprop which will see the opening of a new venue on the site of the former Southampton Hotel. Plans for the new venue - Weighbridge House - are being finalised but it will contain a bar and restaurant and four floors of office accommodation. The historic fa ade has been preserved and will be restored as part of the development The Liberation Group is the largest Channel Islands bar eaterie and drinks distribution business and this latest deal is part of an investment 10 CONNECT OCTOBER The Precious Metals Professionals We don t just deal in gold. We re trusted to protect and preserve your wealth. GoldMoney is a market leading precious metals trading company trusted by more than 22 000 private individuals and wealth advisers around the world. We ve forged long-lasting relationships with wealth advisers and their clients by providing a convenient online platform and dedicated relationship managers to help you buy sell and store gold silver platinum and palladium. Our storage rates are among the lowest in the industry and we protect the integrity of the precious metals we store by regularly providing independent vault reports and audits comprehensive insurance and ultrasonic scanning of gold bars. Telephone 01534 633933 or visit Private vault facilities in CANADA HONG KONG SINGAPORE SWITZERLAND UNITED KINGDOM Regulated by the Jersey Financial Services Commission NEWS Want this magazine delivered to your home or office Visit to subscribe Jersey property company looks overseas A set of town centre properties has been sold for 3.3 million as one of the Island s biggest commercial property companies continues to shift its focus to the UK and Europe. C Le Masurier Ltd have confirmed the sale of 59 61 King Street (the site of Restaurant de la Poste and Jersey Pottery Caf ) and 18 Broad Street (the site of the Town Jewellers). They have also sold the former Motor Museum now trading as Morton and Morton and Alexandra Court in St Peter. Group property director Ben Ludlam said that the proceeds would be invested in projects outside of the Island. He said These disposals form part of our strategy of divestment from non-core investments in Jersey with proceeds being reinvested in commercial property in the UK and Continental Europe and we are hoping to complete a further couple of acquisitions there before the end of this year. At the start of 2012 the group sold the Odeon cinema to Freedom Church Jersey for 1 million. At around the same time they secured Planning permission for a 300 000 square foot office scheme in Broad Street which would be one of the biggest buildings in the Channel Islands if it goes ahead. Jersey Innovation Fund supports Island firm An Island company has secured investment from the Jersey Innovation Fund (JIF) to help it build an international market for one of its products. Total Solutions Group will use the JIF investment to expand UK and international sales activity and research and development of its medical billing product Medibooks. Medibooks is used by healthcare professionals to calculate manage and control their income and is already used by primary care practices in the Channel Islands and by the States of Jersey. Danny Bannister Total Solutions Group s Chief Executive Officer said that they believed that the healthcare IT market was significant and that growth would enable the company to generate skilled jobs for Islanders and contribute additional value to the economy while offering enhanced services to the group s existing local clients. We have entered a partnership with EMIS the largest clinical software supplier to the NHS and through this accreditation and partnership we have highlighted the huge opportunities that exist in the UK and elsewhere Mr Bannister said. The JIF Advisory Board have been fully engaged and incredibly helpful throughout the application process and we have also received invaluable advice and support from both Digital Jersey and Jersey Business. The support received from these States organisations has enabled us to access the finances we need to grow while also offering advice on a strategic level. For a full interview with Mr Bannister please see page 48 of this edition. 12 CONNECT OCTOBER Investment Outcome Preparing them for the World United Kingdom N51 31 45 W0 7 38 Where will your investments take you Your world isn t confined to a single set of geographic coordinates. Neither should your investments be. Our experts have access to investment ideas around the globe wherever they happen to be. Contact us to learn about the wealth management services we offer. 44 (0)1534 708090 Investments can fall in value and you might get back less than you invested. To us there are no foreign markets.TM Canaccord Genuity Wealth Management is a trading name of Canaccord Genuity Wealth (International) Limited ( CGWI ) which is licensed and regulated by the Guernsey Financial Services Commission the Isle of Man Financial Supervision Commission and the Jersey Financial Services Commission and is a member of the London Stock Exchange and the Channel Islands Securities Exchange. CGWI is registered in Guernsey no. 22761 and is a wholly owned subsidiary of Canaccord Genuity Group Inc. Registered office 2 Grange Place The Grange St. Peter Port Guernsey GY1 2QA. NEWS For news stories every day visit to sign up to our daily email news service ADVERTORIAL Jersey International Centre of Advanced Studies launches The Jersey International Centre of Advanced Studies (JICAS) has launched to promote and facilitate post-graduate research and teaching in the Island. The institution is the first step in establishing a university in Jersey and is an independent non-profit facility for international scholars and students. JICAS is the brainchild of John Lawton and Sir Nigel Broomfield. Mr Lawton has been working on this for several years and has brought together a group of highly respected academics and creators. One of our aims is to help diversify the local economy and provide opportunities for local people. Research deepens understanding fosters innovation and drives people to fulfill their potential that s the philosophy of JICAS. We will look to recruit support staff locally and hope to encourage local academics to stay or return to the Island. As with universities and colleges throughout the world we will diversify the economy by bringing a small controlled number of academics and students to Jersey. Director of JICAS Sean Dettman said it s important we do more to celebrate the research already going on in the Island The amount of quality research being done here needs to highlighted within the international academic community. Jersey should be getting the credit for this showcasing to the rest of the world what we are bringing to the table. JICAS is being funded by philanthropy and tuition fees legacies endowments and research grants. It is not seeking any States funding. There is no need for a large campus facility it will have an administration office and is looking to set up a postgraduate centre or common room for the benefit of the Island s postgraduate community. Tudor Watches at Hettich Have you seen the Tudor watch arrivals at Hettich Designed as a retro chic alternative to their parent brand Rolex Tudor watches reinvent iconic designs into an accessible range of modern classics. See these cult timepieces for yourself - they re now available at VAT-free prices at Hettich Jewellers. The Tudor collection available at Hettich with VAT-free prices starting at 1 700. Hettich Jewellers 1 King Street St Helier. Tel 734491 14 CONNECT OCTOBER Just like you we re open for business. And just like you we understand the importance of funding and finance for your business. If you re looking to take your business to the next level expanding or taking on a new venture our specialist Relationship Managers are here to support you with all your business banking requirements. Talk to your Relationship Manager or Russell Dutch Head of Business and Commercial Banking Jersey 44 (0) 1534 286581 russelldutch business The Royal Bank of Scotland International Limited trading as NatWest (NatWest). Registered Office P.O. Box 64 Royal Bank House 71 Bath Street St. Helier Jersey JE4 8PJ. Regulated by the Jersey Financial Services Commission. Over 18 s only. (Security may be required.) Internet e-mails are not necessarily secure as information might be intercepted lost or destroyed. Please do not e-mail any account or other confidential information. Calls may be recorded. NEWS NEWS Up to 68 jobs to go at the Co-op in Jersey The Co-op has announced that up to 68 staff could lose their jobs following a decision to move its warehouse to the UK and review its Total Sport brand. The news affects staff at both the Jersey food warehouse and the society s head office in Don Street as well as the Total Sport shop at Beaumont. The Co-op has said the move could be completed by next summer and there will be no disruption to the supply of goods in its stores. The new Co-op warehouse will be based at Andover in Hampshire. This has been an extremely difficult decision especially when it potentially affects our colleagues but once Andover s modern Cooperative facility opened last year we were duty bound to review our supply chain. It became very clear that there would be significant opportunities to focus on better fresh food availability increased product shelf-life and a larger range of goods for our members and customers said Colin Macleod Co-op Chief Executive. Whilst this decision has primarily been taken to focus on the customer experience and to realise some cost efficiencies we also recognise our obligation to those colleagues who are potentially affected. We are pleased to say that there will be opportunities to retrain people within the Society and we plan to redeploy wherever possible said Mr Macleod. The Co-op has received an offer to purchase its Beaumont warehouse building which is where Total Sport is based. We are obliged to inform those colleagues who work in our Total Sport business that they are also at risk of redundancy whilst we review the offer and its impact on our Total Sport brand said Mr Macleod. Committed to the Funds Sector At RBS International we are committed to the funds sector and that is why we work with our clients to build and deliver bespoke financial solutions tailored to meet their long term needs. We support our clients with the provision of transactional banking services our electronic banking platform - eQ subscription (capital call) loan facilities and bespoke leveraged solutions. With an experienced local funds team dedicated to supporting your banking requirements you will be able to concentrate on what matters most looking after your clients your business and your people. If you would like to discuss how RBS International can support your business please contact Alan Campbell Head of Funds Jersey on 44 (0) 1534 285327 email acampbell Se n O Callaghan Director - Funds on 44 (0) 1534 285403 email sean.ocallaghan The Royal Bank of Scotland International Limited (RBS International). Registered Office P.O. Box 64 Royal Bank House 71 Bath Street St. Helier Jersey JE4 8PJ. Regulated by the Jersey Financial Services Commission. eQ is a trade mark of The Royal Bank of Scotland International Limited. Calls may be recorded. Internet e-mails are not necessarily secure as information might be intercepted lost or destroyed. Please do not e-mail any account or other confidential information. 16 CONNECT OCTOBER NEWS For news stories every day visit to sign up to our daily email news service AdvertisingFeature EVENT A Mad Hatters Halloween Ball in aid of Headway Jersey Don t be late for a very important date..... The Radisson Blu Waterfront Hotel will host a spectacular Halloween Ball this year with the aim of raising money for Headway Jersey. Headway Jersey provides essential support information and services to people in Jersey who are affected by brain injury. As the charity has grown and awareness of the work they do for those who are affected by brain injuries increases they are contacted regularly for information and advice. They rely heavily on volunteers and fundraising efforts to support their cause. The Mad Hatters Halloween Ball will be hosted in Rocco Tower at Radisson Blu Hotel. Guests will be greeted with a red carpet arrival before entering the enchanted forest for an arrival glass of punch served in tea cups no less Entertainment will be provided by the talented Showstoppers Jersey girls and Radio 1 Superstar DJ Hannah Jacques until the early hours. Guests will also enjoy a delicious three course meal and a chance to bid on some generously donated auction lots throughout the evening. A donation will be made to Headway Jersey for every ticket sold for the event and all proceeds from the auction lots and raffle on the evening will also go directly to Headway Jersey. The event will take place from 7 00pm on Friday 31st October 2014 and tickets are priced at 47.50 per person. Topurchaseticketsforthis magicalevent email melissa.crowther or call01534671180. ALL I WANT FOR CHRISTMAS IS BLU HAVE THE PERFECT FESTIVE SEASON WITH RADISSON BLU WATERFRONT HOTEL JERSEY PRIVATE CHRISTMAS PARTIES - FROM 31.50 JOINER CHRISTMAS PARTIES - FROM 16.95 CHRISTMAS DAY LUNCH - 75.00 NEW YEAR S EVE DINNER - 65.00 ACCOMMODATION RATES - FROM 55.00 TO BOOK OR FOR MORE INFORMATION CONTACT EVENTS.JERSEY RADISSONBLU.COM 01534 671 172 OCTOBER CONNECT 17 Find the latest jobs online at Airtel-Vodafone appoints Chief Technical Officer Airtel-Vodafone has appointed David Fowler as its Chief Technical Officer with responsibility for introducing the Channel Islands 4G network as well as maintaining and developing the network in general. During his 30 years in the industry he has worked in Europe and the USA and has been responsible for establishing country-wide 4G and other networks. Airtel-Vodafone s CEO Ian Campbell said I am delighted that we have someone of David s calibre in this important role. It is vital to our customers that the network is reliable and he has huge experience in establishing networks that do just that. Mr Fowler has worked in the industry for many major firms including British Telecom in Belgium for Proximus Belgacom and in Poland for Polkomtel. He spent three years at Huawei as European Chief Technical Officer. He also worked for Vodafone in D sseldorf and California. In 2010 he joined Sure and was chief operating officer with responsibility for operations in the Channel Islands and Isle of Man. Mr Fowler said It is great to be working for a global organisation which has technology experience and support that I can call on. I know the Channel Islands very well and am looking forward to introducing something that will really transform the way that people access the internet. New director for Deloitte in Jersey graduate trainee. During that time he completed a secondment as a financial controller in a bank in Jersey as well as a secondment to the Treasury at the States of Jersey. Greg Branch Managing Partner of Deloitte Offshore commented As a firm we are committed to investing in and developing our own talent as we believe it is a vital way to achieve sustainable success for both our clients and ourselves. Marc s promotion further strengthens our offshore practice and our ability to serve our clients as well as helping our team achieve their ambitions. Across the three offshore offices Deloitte employs more than 160 professionals and over 14 000 in the UK. Marc Cleeve has recently been promoted to become a director at Deloitte in Jersey. Marc has been with Deloitte for over 12 years and he will focus on leading the organisation s banking and debt fund offering across the offshore group. In addition Marc is responsible for the recruitment of experienced staff in the Jersey office. Following the completion of his degree in Business Economics Mr Cleeve joined Deloitte s Jersey office as a Management changes at C5 The C5 Alliance Group has announced that Gary Stewart has been promoted to Team Leader of its Business Intelligence team. Mr Stewart who has worked at C5 for over three years managing a wide range of business solutions projects replaces company director Dan Hare who will be leaving to provide a new virtual information strategy service to clients. Mr Hare said While I have immensely enjoyed the last ten years at C5 building the Business Intelligence team I am excited to have an opportunity to specialise in an area that I am passionate Appointment to support Asian business opportunities Fiduciary investment provider Enhance has appointed Dr Ruzhen Li as Head of Research to support the firm s growing interests in Asia Based in London Dr Li will be focusing on Enhance s high value consultancy clients and also assisting in the business development strategy in Asia. Dr Li said I am very excited to join Enhance and I am very much looking forward to the new opportunities the business has to offer particularly through broadening relationships with key clients in Asian Markets. Dr Li was previously the Head of Research and one of the founders of investment advisory firm LJ Athene Investment Advisors Limited. She is fluent in Mandarin and has a strong understanding of the business network in China due to her long-standing entrepreneurial interests in the region. The Managing Director of Enhance James Painter said We are delighted that Ruzhen has chosen to join Enhance at such an important time for our business. She brings extensive skills intellectual capability and contacts which will contribute significantly to our growth and add further to the quality of investment consultancy proposition. about namely data and information strategy. This is becoming an area of increasing importance for many clients and I look forward to working with them to provide outsourced support in this area. Mr Stewart said I am delighted to have the opportunity to extend my role and experience within our Business Intelligence team. We have worked on some fantastic projects over the last few years in particular in the area of FATCA reporting and data warehousing and I have really enjoyed working with Dan. I am looking forward to supporting the team s growth and innovation in new areas such as data visualisation and automated regulatory reporting. 18 CONNECT OCTOBER APPOINTMENTS First Names Group makes key appointment in the UK First Names Group has appointed Tariq Husain as UK Managing Director and Global Head of Outsourced Business Services (OBS). Mr Husain will be based in the group s new London office in the heart of Covent Garden. His new appointment with First Names Group will see him take on two fundamental positions in the growing organisation. As UK Managing Director he will be responsible for establishing managing and growing the overall corporate and institutional services in the United Kingdom. I am delighted to be joining First Names Group and I am looking forward to applying my skills in a way that I hope will directly contribute to business growth. This is an exciting opportunity that will allow me to strengthen existing First Names Group affiliations and build new client relationships in key markets he said. Armin Kirchner Group Managing Director of Corporate and Institutional Services for First Names Group added I am very pleased that Tariq has joined First Names Group. I am confident he will be a great asset to the team and I am sure that he will make an immediate positive impact. He brings a significant skill-set and Tariq Husain and Armin Kirchner senior experience that will improve our offering and further support our approach to driving our corporate services line. I am very much looking forward to working closely with him as we build and develop the corporate service line. theoffshorecloud 2014 theo shorecloud 20th November 2014 The Royal Yacht Hotel Discover the business advantages of cloud services at The O shore Cloud Conference 2014. Personalise your itinerary and drop in for the sessions of your choice from a selection of topics including Security & Compliance IT as a Service and Mobility. Presente d by Register free at register ch at iW be & o 6 rs t ne he n ho c o iP vou w OCTOBER CONNECT 19 SPECIAL REPORT e asy government A small Baltic state. Your tax form. Cutting wasteful practices that cost taxpayers millions to sustain every year. How do these three things come together It s all in the new buzzword which is now lingua franca for any self-respecting democracy (yes that s us folks) e-government. And that s about much more than just getting us all filling in more States forms online it s also about changing the way States departments work. Ben Qu r e went to meet the man with his finger on the mouse. It is an unsettling experience to sit across a desk from a big Welshman who is enthusiastically banging on about his dream that one day soon you ll be able to file your tax form in your pants at two in the morning while sat on your sofa. But Mike King has got a dream and dammit it s about you and your tax form and your pants and your sofa and he doesn t care who knows it. The good news is that his interest isn t really in your sofa or your pants it s in the rest of the equation. Put it another way it s summed up in the devastatingly unsexy phrase e-government which is about taking all the ways that the government secondly to make life easier for the people who have to deal with the States. And that s fundamental. The one thing that you have to understand about this says Mr King is that at its absolute heart this isn t a technology project about databases information sharing unique identifiers or meta-data. At its heart it s about completely and radically changing the way that the government thinks and acts. And when he starts to describe the utter madness of life in the public sector you can see why it s a big deal Every year around 7 500 States employees fill out a form to send to the government telling them how much the government has paid them. Later in the same form they will tell the government the names dates of birth and schools that their children go to information that is all held very clearly by the government in a different place. The same is true of 13 500 pensioners who every year have to write in their tax return and tell the government what the government has paid them in the state pension. What happens now You fill in a tax return. It gets scanned in. People in the tax office sit there with the scanned image on one screen and typing the stuff on the other screen. That s how it gets into the system that calculates the tax liability and gives you the effective rate. That is a labour-intensive process that can be fully-automated. Where we want to get to for anything is that it doesn t matter what it is that you want to do you go into the system on your desktop your laptop your iPad or your phone you type in your digital ID the system fills in all of the bits of the form apart from the bits that you need to fill in that are specific to that application. Every year around 7 500 States employees fill out a form to send to the government telling them how much the government has paid them. Later in the same form they will tell the government the names dates of birth and schools that their children go to information that is all held very clearly by the government in a different place. interacts with the public and businesses and moving as many of them as possible online and away from pen and paper. There are two aims firstly to make States processes more efficient and to reduce unnecessary expense and 20 CONNECT OCTOBER OCTOBER CONNECT 21 Photography by Gary Grimshaw SPECIAL REPORT My kids are at five different schools so every time that I get a report from the schools there s five envelopes. When we establish the database there will be a relationship established within the database between me my wife and my children. So once a term or whenever I want to see it I should be able to go in electronically and be able to access that information on my kids and see the school reports. The schools do not have to send me five envelopes of very valuable information in the post it should be available to me online or on my tablet or phone. The ultimate goal is that by the time that you get to filing your tax form in your pants on your sofa at two in the morning almost all of the form is already filled in because the government knows where you live where you work who your family are and what your Income Tax Social Security history is. Your role is to update the existing information add anything new and sign off. And that s it. So far so utopian. But there s a very good reason that Mr King and others have faith in this project. And that reason is 2 500 kilometres east of here. Plucky little Estonia bordered by Russia and Latvia is one of the newest countries in Europe having achieved independence in 1991. In days of yore it was better known for Vikings cheese and limestone deposits but now its reputation is very different. Estonia is best-known today as one of the world leaders in digital connectivity and particularly digital government. The 1.3 million Estonians have been voting in elections online for a decade and each of its citizens has a personal ID code allowing them to do basic things like pay their tax online or sign legal documents with their smartphones. And it s not just about government - free Wifi covers the whole country and access to the internet has become a fundamental part of life for Estonians in a way that it hasn t across most of Europe. It was Estonians incidentally who came up with the video-calling app Skype and the file-sharing programme Kazaa. Right. Fine. Great. But that s Estonia. What does it have to do with Jersey Mr King says when they looked at the example of what can be done online and asked people in Jersey about whether they thought the example might be 22 CONNECT OCTOBER My kids are at five different schools so every time that I get a report from the schools there s five envelopes. When we establish the database there will be a relationship established within the database between me my wife and my children. followed the answer was clear. Currently only 7.5% of our transactions with our customer base whether that s members of the public or businesses are done through a digital channel he said. When we went out and asked people if they would like to be able to deal with government through digital channels 83% said they would. There is a massive base there. That said he accepts that there are limitations. Those aren t just the usual (and often completely unfair) stereotypes about older people not being able to use the internet but they re about people with special needs literacy issues or visual impairments that mean they need a bit more help. It s also about people who for whatever reason just don t want to use online services if they want to stick to the old ways of doing things that s fine. And that also applies to data sharing within the States. It might save money and make your life easier if departments can pass on what they know about you to each other but you re still fundamentally in charge. He explains Data will only be able to move around with your consent. The fundamental principle is that the data we hold is owned SPECIAL REPORT by the customer be it a resident or a business. Therefore the customer has to give their consent for the data to be shared. Once that consent has been given the responsibility for ensuring that data is secure and is only shared in a way that the customer has consented to stays with us. There will be multiple layers of data security that will be put in place as part of the model. We have been working with the Data Protection Commissioner who has been helping us to define some processes that will guide data sharing and data security within the model. But if you don t want that data to be shared then it s not shared because it s owned by you not by the government. At any time we should be able to go and say what information government holds on you and who has accessed it. Because you will have given permissions to say who can and cannot see it. If this is all sounding dangerously close to actual practical proposals then hold on to your hats. By the end of this month the States will award a contract to design and build an e-government portal to a lead partner from the private sector. That leadpartner will be given between six and nine months to design the system and then 12-18 months to implement it. Let us do the maths for you that means that at some point between April 2016 and January 2017 the new e-government portal will go online. That system will have to involve a unique identifier to allow you to authenticate your identity when you re using the system and it will have to involve several layers of security because we re talking about literally the most sensitive personal data about you and your life. Mr King concedes that there aren t a huge number of local companies who could handle a project like this but he s confident about the target of having 75% of all government services on the new e-government portal by 1 January 2018. He said We are going to contract with a single lead partner to effectively design the system and build the capacity and capability to allow everything to happen. We hope that it will be a local firm to design the system working across the organisation. It is something that we are going to do with departments not to them. At the end of that there will be a fully-designed workedup and costed system with the capacity to do it. Then we get final Council of Ministers approval and then we implement. OCTOBER CONNECT 23 SPECIAL REPORT They said look we ve worked with the States before and unless you put in place a business management change management capability into this project then it won t work . They said that they could build a fantastic platform but without that change management component the return on your investment will be impaired. We made the point to them all this is not purely a technical project it s as much about business and cultural change and facilitating helping and driving that throughout the organisation. They need to have within the consortium the technology expertise to build things new data management and enterprise architecture. But they also need to have a very strong business change capability to work with us to help this organisation change its processes and practices. Mr King is also clear that although there hasn t been much talk about the whole issue in public that there s support from the outgoing Council of Ministers and the Corporate Management Board which is made up of chief officers. A 7 million budget has been agreed and he s preparing to spend more of his time on the project and less at the helm of the Economic Development department. He said The objective is so compelling that people bought into it and people from across the organisation were involved in developing the vision. It s not just about central government we want to make sure that we better integrate and give the parishes the ability to work in their customer base and make the service available through the parish for the people. We see the Parish Halls as a phenomenal capacity to be information resources for people. The ability for people to do all of this when they want where they want is underlined by the fact that we have got ubiquitous fast broadband connectivity the infrastructure is there. We presented this to ministers in the context of public sector reform and we got very enthusiastic and universal support. It will deliver better customer services and it is a more efficient and effective way of doing that. We have a very strong political mandate. And ultimately what government wants to do is provide better services to customers. Then we will have an e-government platform that allows all of the systems in all departments to talk to each other in an environment that is very secure. We have been working with the Data Protection Commissioner on this and she has given us very good advice and we have been working with the Law Officers department to ensure that we are aware of all of the legislative changes that may be required. It is a tremendous opportunity for the digital sector. We have a total budget of around 7 million. But we have also been very clear about the ongoing element. You don t build a house if you don t have the money to keep it heated so there s a long-term revenue component to keep it updated and ultimately that will be a job for the internal guys. An interesting point in all of this is that the States started the process of talking to potentially interested firms some time ago to get some expert insight into designing the brief. And when they did a clear message came back make sure that you build in a change management element to the work to make sure that all of the departments and all of the staff buy into the idea and don t feel threatened by it. Long experience of working with States departments has told these firms that it s one thing for ministers and chief officers to say that they want something to happen but you ve also got to win the hearts and minds of the people who are actually doing the work if you want to succeed. Digital Jersey have helped to reach out to those guys to help to build the spec of what we want to do he said. 24 CONNECT OCTOBER A more direct approach to optimal cash management If the pinnacle is optimum efficiency we recommend taking the direct route. Equipped with a range of leading integrated cash management solutions fitted to your unique specifications we can facilitate the control of money throughout your organisation. To keep on top simply call 0207 574 3247 or speak to your Relationship Manager. Alternatively you can find out more by visiting us at wealth cash Wealth and Investment Management Barclays offers wealth and investment management products and services to its clients through Barclays Bank PLC and its subsidiary companies. Barclays Private Clients International Limited part of Barclays is registered in the Isle of Man. Registered Number 005619C. Registered Office Barclays House Victoria Street Douglas Isle of Man IM99 1AJ. Barclays Private Clients International Limited is licensed by the Isle of Man Financial Supervision Commission registered with the Insurance and Pensions Authority in respect of General Business and authorised and regulated by the Financial Conduct Authority in the UK in relation to UK regulated mortgage activities. Barclays Private Clients International Limited Jersey Branch is regulated by the Jersey Financial Services Commission. Barclays Private Clients International Limited Jersey Branch has its principal business address in Jersey at 13 Library Place St. Helier Jersey JE4 8NE Channel Islands. Barclays Bank PLC Isle of Man Branch has its principal business address in the Isle of Man at Barclays House Victoria Street Douglas Isle of Man IM99 1AJ. Barclays Private Clients International Limited Guernsey Branch is licensed by the Guernsey Financial Services Commission under the Banking Supervision (Bailiwick of Guernsey) Law 1994 as amended and the Protection of Investors (Bailiwick of Guernsey) Law 1987 as amended. Barclays Private Clients International Limited Guernsey Branch has its principal place of business at Le Marchant House St Peter Port Guernsey Channel Islands GY1 3BE. Investing across global markets Head of Asset Allocation Tristan Hanson shares some insights on Ashburton Investments approach to multi asset investing. FUNDS & INVESTMENT Q Over the long-run asset allocation is probably the biggest driver of returns for multi asset investors. How do you go about forming expectations of future returns for the various asset classes dedicated multi asset specialists with considerable experience in Jersey London and South Africa investing across asset classes in all regions both in cash and derivatives markets. We also draw on expertise across the various fund teams to form our views for individual asset classes. Strategic asset allocation plays a major role in determining long-run returns for multi asset funds although one should not underestimate the impact shorterrun tactical decisions can have. There are various ways of forming expectations of returns. Long-run historical returns can provide a guide. But a better method would also consider starting point valuations since buying an asset at an elevated or depressed price is likely to lead to lower or higher future returns respectively over the long-run. Moreover macroeconomic regimes are not static the direction of inflation interest rates and profit margins are among the factors that vary significantly from one decade to the next with considerable implications for investment returns across asset classes. We therefore place a lot of emphasis on valuations and the macro environment when assessing potential future returns. The process is necessarily both quantitative and qualitative since macro forecasting involves making judgements. Naturally it is essential that such judgement calls are based on high quality analysis and debated rigorously within the team. Equally if not more important than a point forecast is to consider the distribution of potential future returns since the future will always hold surprises and we need to be cognisant of risks to our central view scenario. At Ashburton Investments we have Q For someone thinking about investing today what are your thoughts on potential long-run returns of the major asset classes Firstly it is important to be clear about time horizon. Loosely speaking we consider the short term to be anything less than a year the medium term one to five years and the long-run anything over five years (although we understand investors perspectives on this issue vary). Secondly one must distinguish between nominal and real (after-inflation) returns. We should focus on the latter since this is what investors should really care about when deciding to spend or invest their wealth. Figure 1 provides some details of longrun historical real returns from bonds and equities. Relative to the very long-run history (1900-2013) we would expect lower returns on Treasury Bills (three months) than the historic average because interest rates are so low currently and unlikely to rise rapidly in our view. As the economic effects of the various financial crises of recent years dissipate we expect global interest rates to rise into positive territory on an inflation adjusted basis but this may take some time. Government bonds have historically paid a risk premium over treasury bills and on a time frame of longer than five years we would expect the same again. However on an initial investment today the real return from developed market government bonds is likely to be low on a five to ten year investment horizon. For example the current yield to maturity on ten-year inflationprotected government bonds in the US UK and Germany is 0.2% -0.3% and -0.2% respectively (note that UK bonds are linked to the domestic retail price index which tends to be higher than the consumer price index). For equities the outlook appears more positive. On a global basis equity valuations are not especially high relative to history largely because of low valuations in emerging markets and a secular derating in Japan. Cyclically adjusted valuations in Europe are also low. However US profits are above trend and valuation multiples above the long-run average so this poses a risk to longterm returns given that the US is the world s largest market. Putting it all together we believe global equities can deliver longrun returns close to the historic average. been negatively correlated. This is because in the earlier period real interest rates were high and inflation was the perceived macro risk. In more recent times low growth or deflation has been the greater risk so when bonds are doing well because such fears are elevated there are worries over profits growth and equities underperform as a result. Conversely bonds have performed very well during periods of significant equity weakness. Again while quantitative analysis is essential judgments are also necessary in order to determine the type of regime we are likely to experience going forwards. Acknowledging this it is helpful to determine flags to signal whether our original assumptions are on track or if the world is moving to a different highway requiring a different assumption set. In summary the portfolio construction process requires the combination of expected returns analysis with risk management. Q Are your short-term views aligned with your long-term views currently Q How do you move from a forecast of returns to constructing a portfolio Well expected returns is one element we also need to think about correlations and risk. The starting point for constructing a portfolio is to decide what the investment objective is including over what time horizon. Risk should be defined with that objective in mind as should risk tolerance. Then the analysis that contributes to forming forecasts of returns risk and correlation can be used to construct a suitable portfolio. The goal of maximising returns needs to be considered in the context of a risk budget. Building a portfolio of individual assets requires analysis of how one asset price moves in relation to another and how far an asset price might fall in an adverse scenario. These relationships are not stable and vary according to macroeconomic conditions and valuations. For example for much of the 1970s and 1980s government bonds and equities were positively correlated as long as inflation expectations and real interest rates were falling both performed well. However since the late 1990s bonds and equities have In broad terms yes although we anticipate real returns on cash to be negative in developed markets for at least another year. Similarly government bonds are likely to generate negative real returns over the next year. Within fixed income we continue to expect outperformance from corporate bonds although we acknowledge spreads have tightened a lot. Over the next year our base case scenario is that global equities will deliver returns in line with the long-run average which would mean reasonably strong relative outperformance. However equity returns are more volatile and we have to recognise there is a wide range of possible outcomes. Q Volatility is low across most asset classes and currencies currently. How does this affect multi asset portfolio construction at Ashburton Investments Volatility is low so we have to be wary that it might increase. This could arise from a number of possible catalysts. Where we think volatility is underpriced we may look to take advantage by using options either to buy cheap protection or to capture possible upside. Q What do you think is the most undervalued asset currently Patience. OCTOBER CONNECT 27 FUNDS & INVESTMENT he nature of private clients is changing. Like the societies they live in investors are constantly adapting and evolving their behaviours needs and desires in response to changes brought on by factors such as advances in technology macro-economic conditions and government policies. the fingertips of investors no matter where they are in the world or what they are doing. The internet provides them with access to investment analysis trends breaking news and advice from many different sources. So investors tend to feel more informed and knowledgeable about the market than ever before and in a way are therefore often more inclined to question or challenge the advice they receive from investment managers. It is essential then for managers to earn the trust of their clients. Making decisions on behalf of a client is a critical business and must be done in a way that the client understands appreciates and can see the value in. Today investment portfolios are often based on a discretionary mandate. But how do investment managers decide what is in the best interest of the client and what decisions the client would make themselves if they had the same levels of knowledge and expertise as the manager Many investment managers satisfy themselves with a simple risk profile asking clients to pick a level of risk they are happy to accept and assigning benchmark percentages based on this profile. Barclays own strategy features five different profiles with different ratios of nine different asset classes. However this approach may seem too simple and inflexible for the new-style entrepreneurial modern investor. At Barclays we are pioneering the dynamic approach to investing as an alternative to a fixed allocation model. This strategy is based on investors behavioural traits to establish diversity of asset spread risk management the correct level of liquidity and flexibility Today investment portfolios are often based on a discretionary mandate. But how do investment managers decide what is in the best interest of the client and what decisions the client would make themselves if they had the same levels of knowledge and expertise as the manager T The typical investor in the 21st century is younger than has traditionally been the case often entrepreneurial in the sense that they have created grown and sold businesses in a much shorter timescale than previous generations and is often much more technologically aware and able. These investors have also been affected by the global economic conditions of the last decade and as a result can be more cautious about handing over control of their money to a third party. In Jersey this is particularly true. The number of high net-worth individuals moving to the Island in recent years has been notable. In addition to this there is a considerable potential client base of UK investors and offshore corporates as well as intermediaries in the form of trust companies and other finance houses. These investors are used to having control of their businesses of their technology and of their money. When the time comes for them to invest and thereby relinquish some of that control investment managers have a job to do to convince them that they are right people for this job. With technological advances have also come an explosion in the quantity of news information and advice readily available at Sophisticated clients demand dynamic solutions In recent years private clients have become more sophisticated with increased knowledge of the investment process and increased expectation of the investment returns. Christopher Golding Portfolio Manager at Barclays Global Investments and Solutions in Jersey examines how a multi-asset class approach to investments and a behavioural finance approach to the investment cycle can help clients to manage risk in their portfolio. to make intuitive investments. The dynamic strategy is designed to be cost efficient flexible liquid and transparent reducing volatility and leaving room for entrepreneurial investors to make intuitive decisions about which asset classes to invest in. This approach requires clients to take a financial personality assessment which looks at six key variables and enables us to build an accurate picture of an investor s risk appetite their expectations of performance and their priorities over the short and long term. A dynamic strategy can then be developed. This is built on variable asset allocations and a multi-asset approach so that portfolios can be adjusted and tuned more precisely to each client s individual needs often with the focus on wealth preservation and opportunistic investment opportunities. Another cornerstone of this strategy is to focus on real returns. Investors are often caught up in the idea of performance benchmarking using relative targets linked to indexes like the FTSE. While this can give investors a good idea of how the market is performing at any one time it is not we believe the most appropriate basis for a well-considered portfolio. In many ways it encourages investors to think short term for example if the FTSE is performing well and their own portfolio is not matching it there is the urge to chop and change in an effort to catch up . This is often counterproductive and our approach is to encourage people to look long term and stick with their investments. A solid return of inflation plus two basis points for example will yield more stability and security plus a good return than something benchmarked against an index that can spend as much time falling as rising. Keeping a steady hand on investments is important if clients are to retain flexibility. A solid base allows for intuitive investments to be made in the more risky elements of the portfolio. It also balances the need for liquidity if clients want to use their portfolio for further investments in businesses or entrepreneurial activity for example. Above all investment decisions can be very personal. Successful investment management is about finding the balance between listening to a client s needs and reacting to their personal investment style and helping them develop the discipline to stick to investment strategies rejecting short-termism and acting on assumptions based on hindsight. Constant dialogue is important between the investment team and the investors not just relationship managers. In some ways it is about reassuring clients that their money is in the best hands possible and that they are playing an active role in its management. Investment should not be a one size fits all operation but tailored to investors financial behavioural traits. An investment manager s job therefore is not to tick boxes but to objectively mix together a blend of the right asset classes to meet real return targets and manage risk according to the diverse needs of each individual investor. OCTOBER CONNECT 29 FUNDS & INVESTMENT European Outlook By Nigel Cuming Chief Investment Officer Canaccord Genuity Wealth Management he modest recovery in the global economy that we have seen this year has been uneven. In the UK an impressive pre-election growth pick-up has been fuelled largely by a housing market boom which has been sustained by the continuation of the low or no interest strategy. In turn this has led to a significant increase in lending. In the US the slowdown that the economy suffered in the first quarter of 2014 proved to be merely the result of adverse weather conditions which hit consumer spending and the economy bounced back strongly in the second quarter growing at 4.2% annualised. Whilst Federal Chairwoman Janet Yellen feels that the labour market has yet to recover five years after the end of the recession the signs are encouraging and the unemployment level has fallen faster and further than expected. There is clearly some slack left in the economy but decreasing corporate profitability has recently surged and the present situation is being described by many commentators as a Goldilocks scenario. This is because whilst the economy is recovering the recovery is not sufficiently strong to lead to an increase in inflation and force central bankers to normalise policy a situation that would surely threaten the rally in risk assets that we have enjoyed for over five years. What is still required in Europe is for all European governments to support the much needed structural reforms without which no significant sustainable progress can be made. France and Italy will have to eventually accept this and act accordingly. T whilst it has used the Euro. The French situation is at least as bad and probably worse with flat industrial production virtually no inflation or growth and with unemployment standing at in excess of 10%. Recently talk of the need for more austerity makes no sense at all. Even Germany which accounts for almost 30% of Eurozone GDP appears to be struggling posting negative growth in Q2. Although there has been some improvement in the peripheral countries such as Spain and Ireland the immediate growth outlook has started looking extremely uncertain especially as the sanctions against Russia as a result of the military conflict in the Ukraine will exact a strong deflationary force on an economy where there is virtually no growth or inflation at present. The European Central Bank (ECB) has recently revised down its inflation forecasts and it now seems likely that the inflation rate will continue to be below the 2% target for at least another couple of years. This will make it close to four years below target a highly unsatisfactory state of affairs. Against this unsettling backdrop an event has recently occurred that may be of some long-term significance. It is generally accepted that the ECB has done so much less than the Fed Bank of England and even the Bank of Japan to rejuvenate its economy and has not entertained the idea of fully fledged quantitative easing. However there are now signs that this could be changing. ECB President Mario Draghi has made another significant statement. His earlier promise to do whatever it takes to stabilise the Eurozone in August 2012 immediately improved sentiment then. This time a statement at a Central Bankers Conference One area of the world that remains problematic is Europe. Whilst growth is picking up elsewhere conditions remain very subdued here. Italy is back in recession and is still 9% below its pre-crisis peak. In fact its economy is the same size as it was in 2000 so effectively Italy has had no growth in Jackson State Wyoming that he would use all the available instruments needed to ensure price stability was greeted very favourably by financial markets as it hinted at the likelihood of quantitative easing at some stage in the future. It was generally accepted that the ECB was unlikely to implement any new measures at this time as it would wait to see what the beneficial effects of the measure announced in July (the Targeted Long-Term Refinancing Operation) were. However the deterioration in the economy has forced them to move early and the extent of the measures went much further than was expected. Interest rates were cut further although this was more a symbolic gesture as they are already extremely low and as President Draghi stated they are now unlikely to be reduced further. The more important innovation was that the ECB will now start buying asset backed securities (ABS). This is not in itself of huge significance as the size of this market in Europe is relatively modest but it does suggest that at some future stage fully fledged quantitative easing will be embarked on in the form of purchases of sovereign bonds. This would be a total change of policy. In addition to the ABS purchases the ECB will also buy covered bonds which are a safer form of ABS as they are backed by other assets and remain on the issuer s balance sheet. These measures should make it easier and cheaper for riskier borrowers to obtain loans and will help the ECB achieve its aim of rebuilding its balance sheet to its 2012 size which implies a 1 trillion expansion. These measures are a significant change of policy for the ECB and have been described as QE-lite. Obviously there is speculation as to what has prompted this move. The answer is clearly the ECB s concern at the increasingly deflationary environment and growing comparisons with Japan s last decade. However there is no guarantee that these new measures will be effective in kick-starting the European economy. The Euro has weakened significantly recently which is helpful and the authorities are now hoping that a combination of cheap loans negative interest rates and these new measures will be enough to encourage investment home buying and construction. This is by no means definite. The new measures will be deeply unpopular in Germany so the prospect of political rifts are growing. What is still required in Europe is for all European governments to support the much needed structural reforms without which no significant sustainable progress can be made. France and Italy will have to eventually accept this and act accordingly. The Bundesbank is unlikely to be happy if the ECB is eventually forced to buy up the sovereign bonds of countries whose credit rating is declining due to their failure to implement necessary reform. President Draghi has again pulled a rabbit out of a hat but against a backdrop of sluggish growth a lack of structural reform political disunity and geopolitical uncertainty not to mention the worrying longer term demographic issues of a rapidly ageing population it would appear he will continue to have his work cut out. OCTOBER CONNECT 31 FUNDS & INVESTMENT Although gold prices have dropped in the last two years after reaching a peak in 2011 and following years of successive rises it still has a valuable role in a diversified portfolio. n 30 November Swiss voters are going to the polls for a referendum on gold. They will be voting on a measure to prohibit the Swiss National Bank (SNB) from further gold sales and to repatriate Swiss-owned gold back to the country. There is also the call to mandate that gold should make up at least 20% of the SNB s assets. O The referendum has come about after a signature campaign that highlighted the sale of a large percentage of the SNB s gold stock particularly between 2001 and 2006 following the decision to drop the Swiss currency s link to the metal. The Swiss Franc was the last to be backed by gold. At present the SNB s gold reserves account for only about 10% of its balance sheet. Whether the referendum is successful or not figures from the World Gold Council s Gold Demand Trends shows that Central banks have been strong buyers of gold for 14 consecutive quarters with demand up 28% in the second quarter of this year compared to the same period last year. They are trying to buy back some of the huge reserves which were sold off in the last couple of decades. Although gold prices have dropped in the last two years after reaching a peak in 2011 and following years of successive rises it still has a valuable role in a diversified portfolio. You only need to look at the supply and demand issues to see its potential. Mining companies are currently struggling to make ends meet because the costs of digging the metal out of the ground are not leaving much if any profit once it s sold. To put our global gold stocks into perspective all the gold we have above ground in the world right now will only fill a tennis court or a swimming pool. In the last few years some of the eastern demand has been fulfilled through recycling. Vast amounts of jewelry and other items were sold during the recession as struggling western consumers responded to the cash for gold adverts that abounded but that supply of recyclable material has also started to dry up. Meanwhile since the late 1990s when China s gold market was liberalised both the government and private citizens have been frantically buying gold. Last year the Chinese overtook India as the world s largest consumers and the World Gold Council estimates that their demand will rise by another 25% over the next four years as the population gets wealthier. If Eastern demand isn t enough there is also gold s use in technical applications. The Swiss are holding a referendum at the end of November and it all revolves around gold. Peter Wright Chief Financial Officer at GoldMoney looks at why some are clamouring for the west to take notice of the gold that is slipping through our fingers to the east. Around 7% of world stocks are used in this way and although that is still a small element of the overall demand for the metal the growing number of patents being published relating to gold nanotechnology suggests many new applications are on their way. There are several ways to invest in gold you can buy into Exchange-traded funds (ETFs) which can be bought like shares and sold via stockbrokers. The downside to these is that you aren t buying the physical metal and so comes with counterparty risk as customers of MF Global found out in 2011. You could also buy into a unit trust that invests in bullion or gold mining companies but again you are relying on the judgment of the fund manager and your assets are not correlated. To have peace of mind you need to have gold bullion allocated to you and held in a secure facility. The gold must be investment grade bullion and it needs to be regularly audited. Gold is a store of value a protector of wealth it is not a quick return. Buying some gold as part of your pension provision would be a good hedge against future financial turmoil and with gold now an approved investment for Retirement Annuity Trust Schemes (RATs) in Jersey and more recently an approved asset for UK Self Invested Pensions it s clearly a respected and accepted element of pension provisions. GoldMoney provides secure storage facilities through its partner vaults in Canada Hong Kong Singapore Switzerland and the UK and manages 1.4billion of precious metals for over 22 000 customers worldwide. OCTOBER CONNECT 33 FUNDS & INVESTMENT Jersey supports a vibrant funds sector We have seen in 2014 that the funds sector has continued to expand and this trend is set to continue over the coming years. this year has been a busy year for the Jersey funds industry pick-up from where the sector left off in 2013. New regulation and more importantly a pick up in confidence within the Island s key markets has led to a rampup in activity. This local trend of upward movement in the sector is mirrored globally. T within the sector). This has now risen to over 1 trillion2 globally with this increase in available capital typically increasing competition between buyers. With quality assets as a finite resource funds will need to maintain their discipline when it comes to the price at which they pay for future assets. Institutional investors continue to see private equity private equity real estate and credit funds as the vibrant sectors for producing returns. The high returns (versus the relevant risk profiling) which these sectors have provided through the cycle ensure that institutional investors view the funds sector as a permanent and key segment of their portfolios. While the ultra low interest rate environment in the UK and US may change over the next six to 24 months all the indicators are that institutional investors will continue to seek returns via the funds sector. The Island is well placed to continue to maintain and attract new players to the funds sector. The net asset value of funds under administration in Jersey increased during Q2 2014 to GBP 200.4 billion which is spread across 1 283 regulated and 202 unregulated funds3. Jersey has a proven track record of success while also ensuring its expertise and innovation continues to maintain pace with the ever moving requirements of funds sector. While the four years preceding 2013 were one of uncertainty and worry it provided enthusiasm about current market conditions and optimism for the future. Fund raising surged in 2013 turning in its best year since 2008. For the year as a whole 902 private equity funds attracted USD 461 billion of new capital a solid increase of 21% over 20121. It was noted that UK and Western European funds returned to favour with institutional investors with funds from these regions seeing a 48% surge in new capital. We have seen in 2014 that the funds sector has continued to expand and this trend is set to continue over the coming years. The feedback we hear in the market is that funds have learned from their past successes and failures to make better deals in the future. It is worth highlighting the level of capital which funds have available to acquire new assets (or dry powder as it is known An example of this is with the Island having a unique position to offer a fully functional dual option regime under the Alternative Investment Fund Managers Directive (AIFMD). The end of the AIFMD transitional phase and the Jersey Financial Services Commission on 22 July reported a surge in the number of funds notifying them of their intention to privately place into Europe under the AIFMD rules. This is a clear endorsement of the Island s innovative regulatory regime. Our fund clients at RBS International are seeking greater connectivity across the key fund locations to create greater efficiencies within their operating models and manage their new regulatory obligations. The RBS Funds franchise has grown to over 70 professionals with specialist funds teams on the ground in the financial hubs of the Channel Islands Dublin Edinburgh London and Luxembourg. With the wider RBS bank having an on the ground presence in a further 31 countries and partner banks in additional 25 countries we are well placed to serve our funds clients ever growing global banking requirements. At RBS we provide the full suite of banking services to the funds sector. From day to day banking requirements (including rapid account opening and investor call reconciliation) market leading electronic banking platforms via eQ and Access Online depositary services FX risk management liquidity bridging lines through to long term leveraged finance. Technology is playing an ever greater role in achieving efficiencies within our client s business models. We have seen increased numbers of clients using eQ for their local electronic banking requirements while availing of Access Online to manage their global cash positions. To close the circle building an interface between eQ Access Online and our clients back office systems increases automation and simplifies the users experience. With the RBS International funds teams established in Jersey and Guernsey for over 15 years our in-depth sector expertise and knowledge allows our clients to utilise all aspects of the RBS Funds franchise to maximise their business models. We are committed to serving the funds sector and working together with our clients to assist their long term plans for success. By Se n O Callaghan Director - Funds RBS International 1. Bain Capital annual report 2014 2. Bain Capital annual report 2014 3. Jersey Finance Ltd 2014 Funds report OCTOBER CONNECT 35 Is it time to sell UK and US Government Bonds By Mark Despres investment manager Saffery Champness FUNDS & INVESTMENT lobal government bonds have surprised significantly to the upside in price terms this year. The consensus recommendation for 2014 almost without exception from the major investment banks was to sell government bonds. Many forecasted yields to rise significantly from the 2013 year-end level of 3% for US ten-year government bonds to between 3.5% and 4.5% by the end of 2014. yields back to historical lows and is clearly at odds with the consensus forecasts coming into the year. Yet whilst recent geopolitical events are deeply distressing there is no sign that they have had or will have an impact on the underlying global macroeconomic fundamentals. One key metric to watch based on the geography of the current unrest is the oil price which has remained relatively stable. A close watch needs to be kept on investor flows volatility and price action and factors such as the oil price are key indicators. However at present we believe the risks from the current geopolitical tensions are unlikely to have any significant effect on the macroeconomic fundamentals which recent data releases have shown to be very encouraging. In the US Initial Jobless Claims are close to historical lows and below the long run average the headline unemployment rate is back on the long-term trend and CEOs and businesses are in confident mood as expressed by recent surveys of both the manufacturing and services sectors of the US economy. US growth surprised significantly to the upside in Q2 2014. With positive revisions to previously published data showing that the US has solid momentum moving into the second half of the year the labour market is G Forbes concluded an article published on 27 December 2013 about where US Treasury Yields would be in 2014 by saying The path towards higher yields appears set. A long-term bottom has likely been marked and rising rates are seen ahead. The only question is how fast and how far. Some volatility is likely along the way. The consensus moving into the year that bond prices would fall was staggering. Yet bond prices have risen with yields falling back to historical lows in some cases. Negative news regarding global geopolitical tensions between Russia Ukraine Israel Palestine and Iraq ISIS has led to a general flight from risky assets such as equities into the perceived safe havens of UK and US government bonds. This move has pushed driving this growth and with both the service and manufacturing sectors in rude health the longer term picture is very encouraging for the US and consequently global growth. The Federal Reserve (Fed) is still buying assets under a Quantitative Easing (QE) programme they have however started to taper these purchases. The Fed s balance sheet has expanded exponentially since the financial crisis as they focussed on buying US Treasuries and mortgage-backed securities under various QE programmes designed to support the economy and stimulate growth and investment. The Fed has been a very big buyer of US Treasuries on a weekly basis for the last five years (the Fed has indicated that this is due to stop shortly) yet the US Treasury still needs to issue a vast amount of debt to meet the daily cost of running US Inc a factor that will start to weigh heavily on the bond market. We believe that in the long-term markets particularly government bond markets will trend towards their underlying fundamentals with yields rising from current levels and prices falling potentially significantly. It is therefore our belief that yields on UK and US government bonds remain far too low and do not reflect the underlying economic fundamentals. The focus on abundant liquidity and latterly risk aversion has pushed yields to an unsustainable level. We believe now is the time to review bond holdings particularly government bond positions and ensure that any overweight or neutral benchmark positions are moved to underweight and should mandates allow outright short positions should be considered. A close watch needs to be kept on investor flows volatility and price action and factors such as the oil price are key indicators. However at present we believe the risks from the current geopolitical tensions are unlikely to have any significant effect on the macroeconomic fundamentals which recent data releases have shown to be very encouraging. OCTOBER CONNECT 37 WITH OUR RANGE OF MORTGAGES YOU COULD MOVE IN FASTER With a same day decision in principle your new home could be closer than you think. Choose from the flexibility of fixed and variable mortgages or the ability to borrow up to 100% of the house value . Call our friendly mortgage team today who will help guide you through the home buying process and get your dream house on its way. CALL US ON 730730 PO Box 509 Fairbairn House Rohais St Peter Port Guernsey GY1 6DS Security guarantee can take the form of an interest earning deposit with Skipton International Limited (SIL) or a charge on another property. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE. Minimum age 18 years. All mortgages are subject to status and valuation. SIL requires a first charge on the property as security. SIL registered in Guernsey 30112 is a wholly owned subsidiary of Skipton Building Society (SBS). SBS established 1853 has given an undertaking agreeing to discharge the liabilities of SIL in so far as SIL is unable to discharge them out of its own assets and whilst SIL remains a subsidiary of SBS. SIL is a participant in the Guernsey Banking Deposit Compensation Scheme. The Scheme offers protection for qualifying deposits up to 50 000 subject to certain limitations. The maximum total amount of compensation is capped at 100 000 000 in any 5 year period. Full details are available on the Scheme s website or on request. SIL is licensed under the Banking Supervision (Bailiwick of Guernsey) Law 1994 as amended. To help maintain service and quality telephone calls may be recorded and monitored. SIL abides by the Jersey Code of Practice for Consumer Lending. TELECOMS Investing in 4G Dave Newbold Chief Operations and Technology Officer at JT explains how a new 4G network will deliver our need for speed. lmost every week there s news of a new development in mobile technology the latest launch of Smartwatch the next iPhone or an app that does your shopping for you. We ve reached the point that it all becomes a bit of a blur in terms of new products new services and new devices. However there s a particular development in Jersey that really stands out in terms of how it will benefit all of us the advent of 4G connections. A JT has committed to investing 12 million into delivering a state-of-the-art 4G network across the bailiwicks which means that every single bit of kit on our mobile network from the aerials on masts to the software in boxes right down to the switching equipment on the core network will need to be replaced and then built on top of our fibre network. In fact the first stage of the replacement programme has already begun That state-of-the-art line isn t marketing hyperbole JT has signed a unique fiveyear partnership deal with a world-class provider to deploy not just the standard 4G network but a new Long Term Evolution (LTE) Advanced network that is effectively a generation ahead. The reason that we have that advanced network is that the vendor that we are working with plans to use Jersey as a showcase to demonstrate their equipment in a working environment. This means we ll all benefit not only from a brand new system that is up-to-date but more importantly one that is expandable and can be regularly upgraded to ensure we can take advantages of new developments as they arise. But what does that mean for our customers The switchover to the new system is being meticulously planned with an emphasis on In a world of baffling technology and hideously confusing language this is a development that can be summed up very simply it s all about speed. A 4G connection on your mobile device and it s important to stress that this is as relevant to tablets as it is to phones will give you far faster connections much quicker loading times and better quality streaming on videocalling apps such as Facetime or Skype. For those of us using the Cloud for storage or access to systems and data for work it also means easier and better service. Now that telecoms providers across the Islands have been awarded licenses by the regulator we re already hard at work to bring 4G to our customers as soon as we possibly can. Now that telecoms providers across the C.I. have been awarded licenses by the regulator we re already hard at work to bring 4G to our customers as soon as we possibly can. TELECOMS The question has been asked as to why we would need a fixed network in the future if 4G is capable of delivering such superfast speeds. But the point is that for a device capable of picking up both 4G and Wi-Fi your connection should be seamless wherever you are in the Island. minimising any disruption to our customers. And thankfully the creation of this first-rate 4G network doesn t require road works or any new phone masts it is a case of replacing the existing aerials and equipment. In terms of speed which is the exciting bit this new network will mean that data connections will be around 100% faster Moreover the underlying network will be more robust and better able to handle periods of peak use. In addition not only will the network be more robust but you will also be able to receive a much better 3G service. At present the frequency that 3G is transmitted on doesn t allow the signal to travel very far however our new system will allow 3G to use the same frequency band currently used by 2G. To put that in simple terms the 3G signal will travel much further than before - wherever 2G works now 3G will work in the future. The question has been asked as to why we would need a fixed network in the future if 4G is capable of delivering such super-fast speeds. But the point is that for a device capable of picking up both 4G and Wi-Fi your connection should be seamless wherever you are in the Island. This is because together both our 4G network and our Gigabit Jersey fibre programme which unlocks effectively unlimited broadband speeds will soon mean that our coverage is almost universal. Furthermore in a world where connected devices such as Smartwatches Smart TV s games consoles and household appliances controllable through Smartphone apps are less of a futuristic pipedream and more of a reality that connectivity is going to be increasingly important and in-demand. Jersey s mobile data speeds are already ahead of UK averages but the new network is going to widen that gap even further given that 4G take-up in the UK has been quicker than any other technology we re confident that the increasingly tech-savvy Channel Island users will be keen to embrace it. At JT we have consistently offered data speeds that are significantly faster than the nearest rival. This is why we re so keen to bring this opportunity to our customers as soon as it becomes available which takes us one step closer to achieving our vision to become the partner of choice for global telecommunications innovation. Understanding your local Channel Islands business landscape. It s in our nature. The qualities you need in a local law firm come naturally to us. We provide a broad range of integrated pan-island legal services with a pragmatic commercial approach and we are focused on delivering outstanding client service. To find out how we can assist your business please contact Jersey Jonathan Hughes T 44 1534 504336 E Guernsey Caroline Chan T 44 1481 752215 E caroline.chan cilegal Information on Ogier Legal and details of its regulators can be accessed via our website B U S I N E S S S TA R T U P S We believe that developing a robust business plan gives you the best chance of effectively delivering your product or service and sound financial planning allows you to understand your potential financial returns uncover any pitfalls and build a healthy cash flow. So you wanna be a boxer Since the financial downturn more people have started their own business than ever before. The States recognised the need for a dedicated organisation that could support and nurture enterprises on every step of their commercial journey. Jersey Business is an independent body staffed by a team of skilled professionals delivering a range of products and services to help business in Jersey succeed. It all starts with sound planning and Business Manager Alexia McClure explains why preparation is key to winning. here s a scene in Alan Parker s all time classic Bugsy Malone when the eponymous hero takes Leroy to Slugger s Gym to see if he can become a boxing champ it s Bugsy s great idea to make some quick cash. In the scene the gym owner Cagey Joe says there s no such thing as easy money and lays out the criteria for success in the ring in one of the best songs of the film So You Wanna be a Boxer T right at the start is crucial to the successful development of your business career whether you are starting out improving an existing offering or looking to grow. Our Business and Financial Plan Development service is just one of a range of facilities we offer and as with all our services it is completely free confidential and independent. When you come in to Jersey Business we will work with you to identify your needs and whilst we are not going to write the plan for you we will share our expertise and knowledge with you to support you through the process. We believe that developing a robust business plan gives you the best chance of effectively delivering your product or service and sound financial planning allows you to understand your potential financial returns uncover any pitfalls and build a healthy cash flow. Our Planning Service includes help with writing business and marketing plans conducting effective competitor analysis how to incorporate a company and advice on the different types of trading entities that might be appropriate for you. Handin-glove with this we can also help you develop a sound financial plan identify your funding requirements build cash-flow In it Cagey sings So you wanna be a boxer Can you pass the test I can tell you ve got it in you I ve trained the best. There s nothing cagey about the team at Jersey Business but just like Joe we re experts in helping people achieve their goals and dreams and of course Joe is absolutely right when he warns Leroy that becoming successful takes careful planning and hard work. Business is a bit like boxing the market is your ring you have competitors to spar with and you have to be mentally as well as physically prepared for the contest that lies ahead if you are to win the prize. In the world of business getting your planning Our experts are ring-side throughout the process ensuring your assessment of the risks and requirements is founded on real data and that your projections for growth or start-up are realistic and viable. Getting fit for business is a two-way relationship you have to be prepared to share your ideas with us and answer detailed questions about your business how it will operate and what your target is. Unless you are feeling lucky you wouldn t step into a boxing ring without proper training and nor should you leap into starting or growing your business without calculating the risks considering all of the potential moves you might have to make or setting out your criteria for success. Our team of business specialists are there to set you up with the best chance of winning ultimately of course it s your own performance determination and self-belief that will have the most impact but we believe that if you have a solid and well-planned footing that has identified your goals and how you are going to get there you can then focus on achieving them. We work with Jersey businesses at all stages of their commercial journey and offer free independent and confidential advice. You can find out about all of our services at and of course we d be delighted to welcome you at our offices in the Parade for an informal chat about your needs. And we promise you won t feel like you ve gone ten rounds when you re working with us. Calli de la Haye has been practicing yoga since 2001 and has been teaching since 2010 in Jersey. The owner of Yoga Box Calli came to Jersey Business to seek advice on expanding her business as she wanted to open Yoga Box Studio in St Helier. She wanted to create a central space suitable for yoga to share with fellow Yoga Teachers and create a full schedule of classes available to all levels of yogi. The Business Challenge The business challenge was to expand Yoga Box from working as a self-employed yoga teacher to running Yoga Box Studio in St Helier. The process Jersey Business gave general business advice and assisted with the development of the business plan. Lease negotiation set up costs profit and loss forecasts and marketing plans were also discussed. Calli worked with Jersey Business Senior Business Adviser Daniel Ireland throughout. At the first meeting Daniel went through the business plan at length identifying a number of areas to assist Calli in making her goal a reality. They discussed premises and the pros and cons for each location in town and spent quite some time discussing the figures and costs of running a Yoga Studio including minimum income required to cover costs and personal income and security. Subsequent meetings considered the lease on a potential studio going through it in detail and making notes on points to go back on or negotiate with the landlord. The outcome Yoga Box Studio is now open with a lease and contracts in place a clear business plan including marketing and finances and a plan to expand further in the future. Calli says It was great to have support from Jersey Business they have a client-centered professional approach. It was invaluable to have a contact for business advice through a challenging time of expansion for my business and their services are free of charge. OCTOBER CONNECT 43 CASE STUDY forecasts and understand profit and loss reports. Yoga Box RETIREMENT It has been difficult for Channel Island residents to obtain buy-tolet mortgages on UK properties and so Skipton International has launched a range of mortgages to do just that. he historic low interest rates have led to difficult times for those who were relying on an income from their savings. Whilst there is plenty of talk that an interest rate hike is imminent the fact that inflation fell back in August to 1.5% a five-year low has taken the pressure off the Bank of England. They have also intimated that in order to protect the economic recovery any rises will be small and considered. For those with loans and mortgages that s good news but if you have savings and want an income from them it s not such a positive prospect. T people now face in being able to afford to get on the property ladder and it s not such a rosy retirement picture for the children and grandchildren of today s pensioners. Of course this doesn t mean that everyone who is retired is doing well financially there s no doubt that there are significant numbers of pensioners who struggle to make ends meet and if they have savings and are relying on an income from them then that has only got tougher during the last few years. So how can you make the most of the low rates if you have money to save The first thing to do is decide on your savings goal. Different types of product are more suitable for different circumstances. If you need to access your money quickly then an easy access account will allow you to do that but will offer a lower rate. If you have other funds available that can be tied up for a longer period then open two accounts so that the bulk of your money earns the higher rate. For example Skipton International offers International Investor accounts with increasing returns for longer notice periods. For those who haven t yet retired and are still looking to build up a pension pot buyto-let properties have become increasingly popular. Whilst Jersey is limited with Recent research by the UK Institute of Fiscal Studies (IFS) has shown that eight out of ten baby boomer couples (those born between 1946 and 1964) are better off in retirement than they were whilst working. The reasons are that they have enjoyed generous occupational pensions soaring house values and in the UK the support of the welfare state. Compared with today s working adults who have had their occupational pensions cut back are expected to work until they are much older and are facing increasing contributions for their pension costs then they had it relatively good. Add to this the problems that young The last few years have been tough financially for a lot of people including pensioners. However Jim Coupe Managing Director of Skipton International looks at the latest research which says that today s pensioners are in fact for the most part far better off than their children or grandchildren. regards to its supply of houses many are looking to the UK. There booming house prices up 11.7% in the year to July are pricing many out of the housing market thus driving rental demand. A recent report by Sequence which analysed the prices of hundreds of lettings from estate agents including Barnard Marcus and William H Brown said there are now seven tenants chasing every new property on the market. This increased rental property demand means that the average UK private home rent rose by 8.2% over the year to August 2014. The average rent in the UK now stands at 921 a month compared to 851 a year ago according to the HomeLet Rental Index. It has been difficult for Channel Island residents to obtain buy-to-let mortgages on UK properties and so Skipton International has launched a range of mortgages to do just that. The Skipton International UK mortgage range includes a variety of products including fixed rate and variable rate mortgages starting from 3.99%. If you live in the Channel Islands and are looking to invest in a residential property in the UK in your personal name then these mortgages could be ideal. A second important aspect to the package will allow Jersey residents owning UK property to release equity in that UK holding to help fund house purchases in the island. This will particularly help those who have moved or returned to Jersey and are now wishing to purchase a home locally but maintain their original property as a buy-to-let investment. Whether retired or still saving for retirement having a balanced portfolio is now more important than it ever was. OCTOBER CONNECT 45 Technology. Cyber Security What constitutes an attack and how many pose a real threat By Connect s technology columnist the CEO and founder of Calligo Julian Box. his month I am looking at cyber security and the threats that we face as organisations and individuals. The facts within this article are based on a report publish by IBM in 2014 in relation to data researched and collated for 2013. This annual report known as Cyber Security Intelligence Index report is a well researched document and encompasses 3 700 businesses from 130 different countries. T have expected. The following shows the breakdown as a percentage by industry vertical of all attacks manufacturing 26.5% finance&insurance 20.9% information&communications 18.7% health&socialservices 7.3% retail&wholesale 6.6%. Over the last few years we are hearing about security breaches on a nearly weekly basis and these are only the big names. Like so many other areas of security businesses need to keep on top of protecting their systems and ultimately the data held within them because the criminals only need to break through your safe guards once - and they are quite happy to fail hundreds if not thousands of times to be successful. To put this into prospective the average organisation will have 1 400 attacks on its security per week. These attacks are looking for vulnerabilities in your defence. Of these around 1.7 would be deemed worthy of full review and investigation by a person (the rest would have been dealt with by the technology put in place to protect your organisation). How often are you being told about attacks on your infrastructure and systems What may surprise you is that the type of business you are has an impact on the likelihood of being attacked and that likelihood isn t what you would 46 CONNECT OCTOBER There are many forms of attack but the two most common types combined to make over 60% of all attacks Maliciouscode 35% Thiscoversanysoftware that has been created for malicious use. It is normally designed to disrupt systems gain unauthorised access and collect data about the users of the system that could then be used for other purposes including identity theft. Sustainedprobe scan 28% Thistype is used to look for chinks in the defences of a organisation with the purpose to then use this area of vulnerability to gain access to data. The probe scan approach is more about an opportunistic attack there are computer systems dotted around the world with the sole purpose of scanning the millions of addresses that exist looking for an area missed by whoever configured it. So what are the reasons for the attacks Well by far the largest area is opportunistic at 49% followed by industrial espionage terrorism financial crime TECHNOLOGY and general data theft which makes up 23%. This is followed by dissatisfaction with employer job at 15%. The last two areas are social activism civil disobedience at 7% and 6% of others. What s behind the mistakes that allow these breaches to happen Most people want to blame technology but by far the greatest area for breaches is the human factor which still accounts for 80% of all recorded breaches. These are broken down in the following categories poorlyconfiguredsystemsorapplications 42% end-usererror 31% undetermined 31% vulnerablecode 6% targetedattacks exploited 6%. All organisations can implement the first recommendation effectively for a relatively low cost as long as the senior management are fully behind the initiative. The second recommendation is far more difficult to implement and achieve internally unless the business is of a certain size with an appropriate budget. For small to medium size organisations (SMB) the most cost effective approach is to either outsource their security needs to a special supplier or look at the growing trend of using a complete IT as a service (ITaaS) offering where all aspects of security are normally built into the service price for delivering the overall IT requirements. ITaaS is rapidly becoming the IT option of choice for the SMB market as it allows the business to focus on using its systems and its core services rather than running and protecting its IT services. As you can see the threat of cyber crime is real and growing at a rapid rate. It can t and shouldn t be ignored ensure you not only have technology in place but also you have a culture where the importance of the data your business holds is held at the highest level everyone understand this and you reduce the human factor by ensuring risk is kept to an absolute minimum. For most organisations especially in Jersey you are unlikely to be able to keep pace with the rapidly changing types of attacks that are increasing in number by the day - so look to specialists to help ensure your defences are fit for purpose maintained and monitored. OCTOBER CONNECT 47 So what can be done to help reduce the chances of a breach There are as you would expect many but the top two areas an organisation can focus on are Buildarisk-awareculture changethe culture to have zero tolerance at all levels of the organisation when employees are careless towards security. This takes time to achieve and in fact never stops and requires management to be pushing this agenda continuously tools should be deployed to effectively track progress audit and monitor Manageincidentsandeffectivelyrespond this requires tools processes automated system responses and personnel with the appropriate skills. It s a big world out there You might argue that the measure of a sector s success is the scale of its exports. Both financial services and tourism put Jersey in front of millions of customers across the world and ask them to feed their money into the Island. The fact that they do in very significant numbers is what supports our economy to an extent that could never be achieved by just 100 000 local customers. So how does the nascent digital sector repeat the trick Well one company has just secured investment from the Innovation Fund to enable it to do just that. James Filleul met Danny Bannister CEO of the Total Solutions Group and a former Entrepreneur of the Year and asked him for his route off the rock Danny Bannister Well we applied to the Innovation Fund to really achieve growth through export markets for initially our medical billing product. We actually have two main products that derive income from overseas but we chose Medibooks as the first one. We applied because we were looking for funding we tried the venture capital route we tried various sources and we couldn t find the funding we needed and it was an opportunity that needed and required funding to invest into to try and capture the market overseas. James Filleul How important is the export side of your business DB Well we ve got an established business here. It s a great business it s been going for a number of years and we re very happy with it and we ve built it up so we could have just maintained the status quo with that but we looked at the opportunity overseas. We had a medical billing product which we d developed for the Island essentially but after some research we discovered that the NHS market in the UK was changing. It s in a state of flux. More and more GPs are charging for services such as travel vaccinations and private medicals and they don t really have a standard medical billing system in the UK. We integrate with the largest supplier of clinical systems to the NHS so it just kind of made sense really to look at the opportunities to export the software we had developed in Jersey overseas. JF How hard was it to develop the opportunity DB Well we had our medical billing product it s a very comprehensive product which really was overengineered for the UK. We found half a dozen or so NHS surgeries who were willing to work with us. We installed the software into those pilot sites and we learnt and tried to understand what the product did and didn t do for them. We left it with them for a number of months and then we went back to see them and we just spent a lot of time working with these surgeries to really understand what they wanted the system to do. As it transpired the system we had in Jersey was probably 70% over-engineered for what they wanted it to do so what we did was we stripped out a lot of the functionality that the Channel Islands use and we were just left with a fairly simple but slick medical billing system that the NHS would find really easy to use. JF What do you think the keys are to try and unlock some of the export markets for Jersey businesses DB Well for us really it was just common sense. We had a product that was suitable for the Channel Islands. We looked at it we integrated with a UK organisation and it just made sense to go and explore the opportunities to export the software. We know there is a UK market so why wouldn t we go and have a look at those opportunities so that s what we did. What we did to understand that was spent a lot of time on the ground at exhibitions at conferences. Really understanding what business Unplugged. 48 CONNECT OCTOBER Photography by Gary Grimshaw 50 CONNECT OCTOBER UNPLUGGED partners we had that we could engage with understanding the clients. So there was quite a lot of investigative work up front before we actually took the step into the UK. Probably in the region of about two years really just understanding the market and understanding the opportunity and then it was just a case of going for it. JF So why aren t more people doing it DB I think that it s a fairly comfortable life in Jersey. I think the technical organisations probably have nearing as much work as they can comfortably handle. I think everybody does reasonably well. I think that businesses over here are profitable and you know there s a mental barrier as well. When you live in Jersey you are on the Island servicing the Island but then you don t necessarily always think about the bigger world and the bigger picture and overseas - so you ve got to really broaden your own mind set to really kind of say okay well look we do have a product in the Islands and there are opportunities overseas let s go and investigate them . But it does take time it does take money. You ve got to stop what you re doing as a day-to-day business and invest that same time into going overseas and understanding the opportunities which means it s a long-term view. It s a long-term gain. So if you re sitting here in Jersey and you re on a daily basis generating revenue you kind of almost have to stop that to a degree to go overseas to understand the bigger opportunities. So you take a hit short-term to build for the future and not everybody is willing to do that. When we first started out on this journey we were engaged with what was Jersey Enterprise and they did actually have some schemes that were very useful. One was called the JEDI scheme (Jersey Export Development Initiative) and that contributed up to 50% of costs for businesses looking to explore overseas export markets. That for us was great because you could claim back up to 10k a year and then they increased that to 20k with some additional funding. So that scheme for us at that particular time was pivotal and I think that schemes like that are essential. But they don t seem to be there at the moment in the Island and I think they need to be. You need to have clear and transparent ways of accessing funding grants so if you are going to explore an overseas market you re going to need help to do that. You re going to need funding you re going to need those costs covered to be able to go and explore. JF Where do you go next DB Well from here we re looking at ramping up our exports. We ve already started that. We ve got about 14 exhibitions booked between now and the end of next year. We ve got a telesales operation in full swing. The Innovation Fund money came online about four weeks ago. We ve employed four new members of staff. A lot of time has gone into business development and business planning so between now and the end of next year we re hoping to have a good few hundred extra end-users of our product. JF How do you think the digital sector is developing generally in Jersey DB Well the Innovation Fund was essential to us. Getting that funding was everything because we d already built to a medium-sized business. We were very happy with that but to go to the step where you can step into what is a very big market in a meaningful way you ve got to have significant investment behind you. You can t continue to just dabble around at it otherwise you re not taken seriously so the Innovation Fund has enabled us to do that. I think we need to work with Digital Jersey to open up opportunities so mainly around the exhibitions and market awareness and brand awareness so for example we ve got as I say about 14 exhibitions lined up between now and the end of next year. I think we need to be working with Digital Jersey to either attend those with us or to co-brand with Digital Jersey alongside our own branding. The Island is going down a fantastic path because we do have Jersey Business we do have Digital Jersey we do have the Jersey Innovation Fund so a lot of effort has been made in to trying to diversify the economy to help small business become medium-sized business and medium-sized business become large business. The help and support is there. Strategic support is there. What extra can be done There needs to be additional funding and additional grants. There needs to be clear and transparent schemes to apply for so co-funding for exhibitions or exploration of export markets. Digital Jersey needs to work with businesses such as ours so that when we are working overseas we can work with them on a co- You ve got to stop what you re doing as a day-to-day business and invest that same time into going overseas and understanding the opportunities which means it s a long-term view. It s a long-term gain. OCTOBER CONNECT 51 UNPLUGGED branding and a co-funding exercise. JF Cast your mind forward five years. What is the longer-term vision for the digital businesses in Jersey DB Well the problem we ve got is that everywhere is trying to set itself up as a digital sector so you know the question that keeps coming back time and time and time again is ...what is it we do in Jersey that is different to everywhere else because every small to mediumsized provincial town is setting up a digital forum of some description. Most cities have got digital hubs. What are we doing in Jersey that is different to anywhere else So we re going to have to try and understand what it is we re offering. We re working now with Bitcoin and trying to explore the Bitcoin opportunity but again we re just one of many jurisdictions taking this opportunity and trying to grow that so we re not unique what I would be interested in is how we can use Jersey s financial expertise to design and develop tech that makes us unique. My understanding is we re not currently What are we doing in Jersey that is different to anywhere else So we re going to have to try and understand what it is we re offering. We re working now with Bitcoin and trying to explore the Bitcoin opportunity but again we re just one of many jurisdictions taking this opportunity for Bitcoin and trying to grow that so we re not unique. 52 CONNECT OCTOBER doing anything different technically around crypto that nobody else is. Generally speaking the thing we need to do is thoroughly understand what it is we offer as a digital community already there are quite a number of local digital businesses such as ours that have unique products unique services so let s really understand what they do locally and let s help them grow. That will organically grow the sector as opposed to trying to find something that is alien to the economy that we re already working in. Viewpoint. If you could make one change to Jersey s funds regime what would it be Viewpoint puts forward a key question facing one of the Island s main industry sectors and then a group of leading practitioners will give their take on the answer and what it means for the Island. If you would like to be included in a future panel of experts just e-mail editor This month Viewpoint poses the question If you could make one change to Jersey s funds regime what would it be Four industry experts give their views. Tim Morgan Partner Ogier and Vice-Chairman of the Jersey Funds Association It has been a complicated five years for all major fund centres. A torrent of international pressures and standards from AIFMD to FATCA has required jurisdictions to balance increasing (and costly) compliance against competitiveness in core areas. It is encouraging that recent statistics show funds in Jersey performing steadily with recent indications of funds being administered or managed in Jersey standing positively at around 200 billion. One question often asked is what is the asset mix that this overall number represents There is a market perception that Jersey is quite rightly highly regarded for its expertise in real estate and private equity asset classes and this niche has reinforced itself over a period where the substance and governance requirements for GPs have played well to AIFMD requirements. A key challenge now is to ensure that Jersey has the correct regimes to cover not only these illiquid closed-ended asset classes but also to build capability in openended structures. We have seen signs of a renewed interest in hedge funds which have traditionally gravitated to Caribbean jurisdictions being established in Jersey. NEXT MONTH... Nextmonthwe ll beaskingthe question What are the three mainissuesfacing thebankingsector in the next year Answers on ane-mailto editor bailiwick 54 CONNECT OCTOBER VIEWPOINT What it would be useful to see (and there are encouraging signs of momentum between the Jersey Fiancial Services Commission (JFSC) industry (through the Jersey Funds Association) and government for simplifying the regimes) is that the improved regimes can fully cater for liquid funds. This may mean significantly altering or indeed replacing the current outsourcing and delegation policies. This will enable Jersey to offer a truly breadth of product offering and experience - based on strong diversification across the asset classes. Mark Rawlins Partner Collas Crill Group Jersey s fund regime is a cornerstone to its financial services sector a load-bearing pillar of the economy. It underpins an industry that services in one way or another an asset value that now stands in excess of 200 million. The industry itself is considered well regulated well regarded and comes in first place against its offshore competitors (see the Global Financial Centres Index where Jersey lies 28th being the only offshore centre in the top 30). It operates within a well-understood legal framework has top-notch service providers delivering excellence and is robustly flexible in its approach. Like a well-honed golf swing it provides consistency and accuracy. And any golf coach will tell you not to make too many changes to interfere with a good golf swing. So what one element of our existing regime should we change to cut down the handicap and put us ahead on the leader board There s a good number of options to select from from ease of authorisation simplicity of regulation better professional service provision to a regulator that is willing and able at all stages of the process to side with the industry s legitimate need for expansion and a risk-based approach. And I am proud to say that perhaps from a standing start ten years ago in 2004 Jersey has been progressing and evolving on all these fronts. It is now bang up to date with all eyes focused on the government-led industry backed initiative born out of the McKinsey review to provide a regime that is simple to understand fresh easy to use well led by government and the regulator and well serviced by competent professionals. So the one thing I would change to our current regime would be to implement the changes that will soon come out of this initiative and do so as quickly as possible. Daniel O Connor Partner Carey Olsen Jersey is one of the world s major international finance centres and a prime domicile for new funds. Our multi-category approach provides appropriate levels of regulation for an array of funds based on the number and level of sophistication of the investors. And OCTOBER CONNECT 55 VIEWPOINT our multi-option AIFMD regulation provides maximum flexibility allowing for private placement access (reducing costs for non-EU funds with a Jersey manager marketing into the EU) the lighter regime for sub-threshold managers or full passport-level compliance as well as allowing funds which do not raise capital in the EU to be unaffected by AIFMD. However we must constantly adapt to remain competitive especially now as we move through the AIFMD timetable stages. The time has come for a thorough review to simplify our regime and minimise any delay in launching a new fund. The existing supervision regime is generally sound but authorisations need to be faster. Over recent years due diligence and confirmations given to the Jersey Fiancial Services Commission have played an increasing role reducing the commission s workload and shortening processing times. We need a system where the Commission can rely entirely on the Jersey service providers it regulates doing away with pre-launch personal questionnaires and prospectus reviews. Speed to market is critical. The Commission understands the importance of winning new funds and we need a regime that helps them to help us. It has to be simple to explain and flexible enough to handle retail funds professional investor funds and everything in between. And for reputable promoters we must be able to launch any class of fund within hours not weeks. Ben Robins Partner Mourant Ozannes and Chairman of the Jersey Funds Association Streamline the regime fewer products and less paper. Jersey s regime is constituted by over half a dozen regulatory products offered in parallel each with particular features which may or may not appeal to a particular promoter and its investor base. They are constructed across three fund product laws the financial services law which regulates the service providers three sets of Jersey Fiancial Services Commission codes of practice numerous JFSC product guides numerous orders dealing with prospectus contents etc and standalone JFSC policies in areas such as licensing and outsourcing. And don t forget the AML handbook and the companies law trusts law and partnership laws which govern the constitution of the underlying fund vehicles Whilst this paper mountain affords the flexibility of offering a broad range of products the price is complexity which is increasingly burdensome for local service providers and the JFSC and increasingly difficult for our clients to understand. My preference is to reduce the number of fund products on offer (probably no more than three products four at a push each sufficiently flexible to appeal across our core global asset management markets) and to document them using as few pieces of legislation and related paper as possible one fund product law our financial services law and then a single JFSC codes policy document containing the applicable underlying rules for the funds and their service providers under the new regimes. NEXT MONTH... Whatarethethreemainissuesfacingthebankingsectorinthenextyear In a previous edition of Connect we incorrectly used the title BakerPlatt in place of the correct Baker & Partners. The error is regretted and we would like to sincerely apologise for any embarrassment caused. 56 CONNECT OCTOBER YOUR BUSINESS PARTNER. (WITHOUT THE HAGGLE OVER EQUITY.) Managing a business can have its rewards. But it can be stressful and lonely too. So imagine the perfect business partner one that can offer the right kind of advice when you need it. Jersey Business does just that. We are a team of skilled professionals who provide free independent confidential advice and support to businesses in Jersey. From business plan development to operational considerations finance to customer engagement we help our clients achieve their goals faster maximizing the potential for success. Get in touch today - and find out how our expertise can benefit your business. YOUR COMMERCIAL JOURNEY OUR EXPERTISE START-UP IMPROVE GROW EXIT PLANNING FINANCE OPERATIONS CUSTOMERS EXPERTISE. SHARED. info (01534) 610300 31 The Parade St Helier Jersey JE2 3QQ SIGN UP TO OUR E-SHOTS INSPIRATION. SHARED. Bite-sized business updates and inspiration selected by the Jersey Business team delivered straight to your inbox inspiration Connect s insider in the finance industry sits at a desk somewhere near you. He s unspinnable unbiddable and very strictly anonymous. Don t expect marketing speak don t expect a rosy feeling inside and don t expect to like him (we re not entirely sure about him ourselves). Only expect this every month he ll bring you his strong opinions from the heart of the finance industry... Yossarian looked at him soberly and tried another approach. Is Orr crazy Hesureis Doc Daneeka said. Canyougroundhim Isurecan butfirsthehastoaskmeto.That spartoftherule. Andthenyoucangroundhim Yossarian asked. No thenIcan tgroundhim.Anyonewhowantstogetoutof combatdutyisn treallycrazy. Joseph Heller Catch 22 Here s an interesting little snippet from the Fool s meandering around the interweb this month the word idiot apparently derives from the Greek idiotes a definition for somebody who refused to take part in public life and didn t engage with democratic government. Idiocy democracy an upcoming general election With my reputation Well it would be rude not to wouldn t it Let s start with the big picture. In an island where voting is something even the most psychotically optimistic spin doctor suckling greedily at the public teat would struggle to describe as anything but a minority sport are we engaging with democracy Given that historically only around 35% of eligible voters actually exercise their right to do so we would appear to be living with what those pesky Athenians would describe as a significant idiot majority. Or to put it another way most of us are idiots. But while we all share certain positive traits which distinguish us as sentient social animals we all have our distinctive values and beliefs which guide our particular choice of those we would like to represent us. The founders of Google go with Don t be Evil I go with don t waste my taxes on useless frippery and for God s sake don t do anything that will devalue my house. As diverse and strange as some of our peccadilloes may be I think we can all join hands and agree that if you want us to elect you it would really help if you weren t in the Classical Greek meaning of the word an idiot. Now it s neither big nor clever to cast aspersions behind a cloak of anonymity. And criticising politicians is as I read somewhere this week akin to hunting cows with a sniper s rifle. But in the immortal words of one of the Fool s personal heroes Spike Milligan there s a lot of it about. If you profess to care deeply about the success of Island s finance industry and then you choose to support a rally demonstrating against offshore finance centres I think you re an idiot. If you post deeply insulting comments on social media about another candidate and then don t take the chance immediately to apologise and remove those comments then again I think you re an idiot. If you care so little about public finances that you vote to give away taxpayers money DEFINITION The Fool A privileged position held at an ancient king or queen s court the fool was not taken seriously by the high and mighty but was the only person able to speak the truth to power. The Greater Fool Theory The belief held by one who makes a questionable investment with the assumption that they will be able to sell it later to a greater fool . 58 CONNECT OCTOBER to a private landowner and don t ask for any share in the ownership or control of that land on behalf of those same taxpayers...then yes in the Fool s humble opinion you re an idiot. If you help to send the Island into debt by telling wealthy investors about the rude financial health of the government and then shortly afterwards reveal a surprise projected budget deficit then I m afraid that once again falls within this columnist s critieria for idiocy. If you get the States at great expense to spend a whole day debating a no-confidence vote a month before a general election then you care more about cheap political pointscoring than you do about wasting public money which I think makes you an idiot. Of course logically if you decide to stand as one of 18 candidates for eight Senatorial seats subjecting yourself to the ignominy of 12 individual hustings meetings while somebody gets elected unopposed as Deputy with equal standing and reward in government in your home parish your political radar is way off...and that makes you an idiot. And last but certainly not least if the public take time out of their busy lives to vote in a referendum and you choose to ignore the wishes of the people by refusing to enact the result of that referendum you are truly an idiot in both the not playing with a full deck but more importantly the refusing to engage with democracy sense of the word. All of which if I were of a mind to conduct some sort of complicated regression analysis I m pretty sure makes me want to tick the not even if my life depended on it box on my ballot paper for any existing States Member who seeks re-election. Which begs the question does serving in our government make you an idiot or do you have to be an idiot in the first place to stand And am I an idiot for not engaging with the democratic process or does voting for idiots make me an idiot as well It seems the only logical thing to do is only vote for those who refuse to stand. Joseph Heller would be proud. Photography by Gary Grimshaw N O O R D I N A R Y DAY J O B No Ordinary Day Job. Staying up Last season for Jersey Rugby Football Club ended in jubilation a late try in a tough away match on the final day secured survival after a relegation battle that had been going on for months. This year will be the first full season for coach Harvey Biljon as the leader of the side and he says that his squad are ready and raring to go. But how does he go about building a winning team Are there any lessons in motivation that would cross the try-line from the rugby field to the boardroom Ben Qu r e went to management school rugby-style.... In my career as a player and a coach I had not been through anything like the Bedford game that last game of the season. Nerve wracking exciting elation relief... all at the same time. I have been part of teams that have won competitions but nothing like that. We were almost celebrating but we hadn t won anything says Harvey Biljon. It s worth a quick recap Harvey had taken over the reins at the club with ten games to go and with the Jersey Rugby Football Club languishing at the wrong end of the Championship table. The team got a bump from the new coach and took ten points from the next four games but a crunch game with another team in the relegation melee went wrong and that knocked the wind out of the players sails all over again they lost form they lost confidence and they started leaking points. And then something happened. London Scottish came to St Peter s for the penultimate game of the season and came away with a 17-26 win despite a late comeback from the reds. The loss set up a nail-biting conclusion with either Ealing or Jersey facing the drop and there weren t too many people who would have been prepared to stake their house on Jersey getting an away win on the final day of the season. But while everyone else was moping around and thinking the unthinkable as far as Harvey was concerned things were looking up The game before against Scottish we had put the new plan in place he said. We lost by eight points and a lot of people were focused on the result but in the camp the players had a real belief. They knew the system was going to work and that made all of the difference. The foundations for that last day s performance come from the plan that we put in place last time. And that takes us to the final game away at Bedford. Things were either going to be in our control or not. If we won the game we were going to secure survival if we had a bonus point we were guaranteed it whether the other team won or lost. I said to Tom [Innes JRFC s press officer] I don t want any information barring the score and points difference until halftime and then once we hit halftime I want an update as soon as anything is happening . And then instead of telling the whole squad I went to Alex Rae the captain and we went through the permutations so we were communicating every time we got a penalty. We could have been losing by eight points or four points but all we needed was a losing bonus point and we would have secured survival or it was hold on we need a try . We had our moment with 11 minutes to go it was 31-31 we got a penalty in front of the poles and automatically you go kick the points but Bedford could have scored a try. It was at that moment that he looked at me and I said If we score a try we get a bonus point victory . It was that moment that he got the communication and he looked at the players and said does everyone know the score OCTOBER CONNECT 61 N O O R D I N A R Y DAY J O B We put the ball in the corner got the maul stuck to task everyone focused in that moment and got through and scored the try. It was huge. We left no stone unturned. We had planned for every situation and every scenario and I have really got to commend the players because the pressure must have been immense. I was feeling it and I wasn t even out there on the park having to deliver. But that s all ancient history now. Having secured their Championship status for another season the team now have to do it all over again. When Harvey talks about the focus leading up to this season what s interesting is that he s not talking about tactics or signings or the style of play he s talking about putting together a team that believes in themselves and each other. Get that right the logic goes and the results on the pitch will improve. We have to represent JRFC ourselves and Jersey as an island with pride and passion and that s going back to that tradition of what rugby is all about he said. We want to build a culture and environment that we can be proud of and one that people want to be part of and to achieve positive development throughout the season both as players and as a team. Those are our aims. That s not to do with how many games we win if you get these things right then everything else will take care of itself. Things are not always going to go our way but we have got to keep the squad in a good place. If the squad and the team push each other to be competitive and the coaches challenge the players and the players challenge the coaches then things can only improve. We want to change the perception of how we are viewed we don t want big egos we don t want to be flash. We just want to work hard get the job done and make sure that we take time out for people. That s the theme of what Harvey Biljon s club looks like although the only point in the interview at which he bristles is at the idea of Harvey Biljon s club he says it isn t that the team comes first ahead of any individual him included. That said there s no doubt that he puts in a shift of work. He admits that his wife tries to hide his phone when he gets a rare day off and that his match days involve talking to supporters about the game for a few hours after and then rewatching it up to three or four times to analyse the action. Cool analysis he says is one of the key attributes you need as a coach and he s quick to highlight the work of forwards coach Steve Boden and strength and conditioning coach Jake Aliker. Yes there will be times that you get frustrated but over time you have to learn to be composed. It s only if you re composed that you can give clear messages across. It s one thing to be caught up in the moment of the game but you have really got to make sure that you don t. You have to listen to the players and what they are saying and feeling out on the park and give 62 CONNECT OCTOBER them accurate information that is going to make a difference through the game and affect the game. We want that pace and evasion that skill set but we don t want to give up power and strength at the same time. We need to build that right through the season. And we ve got a new addition to the team which is something that Jersey did not have in the past we ve brought a performance analyst in. There is no longer a hiding place for the players. We will be measuring everything that you can imagine. How many tackles how many effective passes how many times they kick the ball so the players know they are being monitored and they know what they are doing. We can film certain aspects of training. Players will have a facility to go into that and see it and suddenly they can start to see the decisions that they make. Besides the analyst there has also been an influx of new players Argentinian international Ignacio Lancuba is one of the new recruits the fourth international in the squad alongside another Argentinian Martin Velga Tongan Paula Kaho and Kingsley Lang from Zimbabwe. All of that sounds positive but Harvey isn t dodging the reality of life in a tough league JRFC have had two seasons in the championship in both of them they ve finished 11th out of 12 teams missing out on relegation by just one point last season and eight the season before. I have had this question about expectations a few times said Harvey. I think that right now after last year s relegation battle I just want to make sure that we are not in a relegation fight. It is a very very tough league make no mistake. This season everyone is going to be a fully professional outfit. Teams are becoming more and more professional with regard to backroom staff. It comes down to first and foremost stabilising as a Championship team. So the last two years we have been in a relegation battle let s stabilise. Once we have achieved that we can look at being a top-six outfit. And only then we ll be really challenging the play-offs. Until that point let s focus on being a stable championship outfit that performs well works hard plays with out hearts on our sleeves and cares about what we re doing. There wasn t a game where we had less than 2 000 people here pre-season with Bath we had 3 000. It was one of the reasons that influenced my decision to come here when I had been here with Cornish Pirates [his previous team] the crowd really got behind the team it was a fantastic atmosphere. That sought-after stability is going to come if it comes by building consistency one game at a time and there s a story from a half-time team talk towards the end of last season that Harvey says shows that the team are already thinking differently. The backs in particular had been trying this move all week and they had been doing it in the game in the first half and they were just running into a brick wall he said. OCTOBER CONNECT 63 N O O R D I N A R Y DAY J O B decision to be made I make it but you have to listen to different perspectives and points of view. Being a professional rugby player is not about 80 minutes during the match. It s about preparation maturity how you conduct yourself and how you act as a role model. There is such a huge emphasis on how you conduct yourself I believe that small things make a difference. So that means going to see the youngsters at the Academy and spending time talking to the supporters remembering their pleases and thank yous not leaving cups and saucers lying around and sweeping up the changing rooms. We don t believe in big egos. It s not about look at me I m a professional rugby player . We ve all heard the line about how football is a gentleman s game played by thugs and rugby s a thugs game played by gentlemen. It s pretty physical out there it s a bit of a battle at times but the guys can get together after the game. That feeds into planning training sessions we plan every session to make sure that every player is getting something. How do we challenge the players How do we make this week better than the week before That is the only way that the players will improve to be challenged and tested. As for success it s the players that achieve it. You get your reward watching their success. I was lucky enough when I was a player to have been a part of squads that won competitions. We won the B&I cup and I ve been in play-off finals. My coaching philosophy is pretty simple no one cares how much you know until they know how much you care. The players know where they are they know where they stand sometimes as a player if you re brave enough to ask the question you ve got to be brave enough to hear the answer. We got in at half-time and I said what s going on They said the moves weren t working but they were doing what they were supposed to do. And this young kid who had just been put in the team said have you seen the way that they re defending they re just defending that narrow channel so why are you running the same thing into the defence. So they went out took the first opportunity in the second-half to move the ball away from where they had been going and they went and scored. They were stuck on the ways of doing what they were doing rather than reading the picture in front of them and reacting to it. That was the place that they were in. They were not looking at how to change things at all they were stuck in that same world that same old system and wanting to be told what they had to do instead of working it out for themselves. Half-time normally you get there and you re supposed to tell the players everything they need to go and do. But sometimes you have got to find out what s going on out on the field. Quite often at half-time you ask a few questions what are you seeing How is this going how is that going So you get a little bit of insight. It s a team effort it s a contact sport. You need people around you. Yes you make decisions as a coach and yes if there s a final 64 CONNECT OCTOBER iSPY Welcome to iSpy a new columnist whose role is to observe and comment on those who normally do all the observation and commentary the media. Nothing is sacred from their seat in a local newsroom iSpy will be turning skeptically through the pages of Connect and Bailiwick Express too as well as the work of agencies and the chatter on social media. BBC IN A WORLD OF THEIR OWN TOO MANY TWEETS MAKE A... It was David Cameron who famously appeared on national radio to proclaim ...too many tweets make a tw t. Nick Le Cornu tweets a lot. The comedian John Bishop performed at Fort Regent last month just after that famous faking it tweet which good old Nick sent out to insinuate that a seriously ill politician was faking her recovery to get re-elected. There was lots of analysis of this in the pages of the paper on the radio online and on the TV news programmes but it was John Bishop who summed it up as follows at the start of the second half of his gig he walked onto stage and said Nick Le Cornu. What a c ck. Cue loud applause. Good old Nick has since apologised. The attack dog that is the States committee which considers complaints has determined he did breach the Code of Conduct rules. Its conclusion Nick s apology is enough. Well that s him told. When a journalist on twitter asked all media outlets if they could agree a single hashtag to use through the General Election campaign and suggested Jsy2014 as something short and simple all agreed it would work and would be used. Except that is BBC Jersey who confirmed they d unilaterally decided months and months back to go with a much longer hashtag. We think it was something like BBCJerseyAreInTheirOwnWorldAndHilariouslyStubborn. It s fine they do their own thing but if they d had the courtesy to do a quick ask around in the first place they wouldn t be in a situation where their own stubbornness is putting them at odds with the media election candidates and the vast majority online who are ploughing a different furrow. Aah well. ...too many tweets make a tw t. TREASURER S TREASURE When Jersey s former Treasurer Laura Rowley quit her job just days before the 2015 budget was published it raised a few eyebrows. Oh nothing to worry about said the Treasury Minister. Nothing to see here. Move along. And then it emerged the figures in them were not good news at all. That forecasts had been revised and revised. That Jersey was on the brink of a rather unfortunate 100 million black hole. Hey. These things happen. Easily done. Then a Scrutiny panel released a report where independent experts observed they couldn t think of another instance in the western world where a Treasurer had hit the road just before their big day. Smell a rat You re not the only one. iSPY originally heard a rumour that her pay off was in the 150 000 ball park. We ve now heard another saying it s nearer a quarter of a million (in return for a vow of silence of course). Jersey gets Freedom of Information legislation that s due to kick in from next January. If the Treasury & Resources Department wants to pre-empt a request from this column and give us an actual answer you know where we are. WHAT A LOAD OF BALLOTS Hello. Welcome to Jersey. A small island off the coast of France. A Crown Dependency. In the British Isles. Not in Great Britain. A proud advanced democracy with a world-class finance industry. Er...kind of. Welcome to Jersey where democracy is dying a slow death. Where the first full General Election in the Island s history sees parish Constables walk back into their cushy gigs unopposed. Where a number of Deputies continue to rake in a good 46K a year for doing as much or as little as they want because they - too - can get back in unopposed. Yes here we are in 2014 where whole swathes of the election intentionally or otherwise have the net effect of appearing to be fiefdoms or dictatorships (depending on your view of life). There are some competitive battles. It s game on in St Helier and St Brelade among other places. But it s hardly going to set the world on fire. The pressure is on the Island s media to cover this campaign fairly and critically but - perhaps even more importantly - to keep a close close eye on those who swanned back in without anybody breathing down their necks. If you re a journalist iSpy wants titbits from your newsroom if you re in the headlines iSpy wants the inside track of your media encounter if you re a reader viewer or listener let iSpy know if you ve stumbled across something that s worth sharing. Email in confidence to ispyjersey OCTOBER CONNECT 65 GLASS HALF FULL Glass half full with... BRIGHTER FUTURES a level playing field in our community. Early intervention focuses on addressing the root causes of social disadvantage and works towards ensuring that all of us are able to realise our full potential. This is achieved by providing effective and timely interventions to children young people and families who need them and allowing them to develop the range of skills that allows them to thrive and there is strong evidence to show higher levels of educational attainment and labour market success. This in turn has positive social and economic benefits to the wider community which can include a decreased reliance on social welfare a fall in crime rates and reduction in the demand placed on health and social services. In short Early Intervention saves money In Jersey Brighter Futures are at the forefront of early intervention and our programmes provide a unique approach which challenges disadvantage in our community. We believe that support should always be available to children young people and families living on our island to allow them to be safe healthy happy and aspirational. It costs us 3 500 to work with one family for a year and we currently work with 150 families. In Jersey the public spend on early intervention is far outweighed by that of the spend on later intervention such as criminal rehabilitation even though empirical evidence (and our experience at Brighter Futures) shows that investment in early intervention yields a far greater return. At Brighter Futures we strive to highlight the long term benefits of early intervention as we believe it to be one of the most cost effective ways of creating a more inclusive community. We focus on evidenced based programmes and we invest heavily in the training of our staff and we do this to ensure the integrity and efficacy of our service. It is imperative for the stability of early interventions that the work is well planned and sustained. We recognise that it is sometimes difficult to see the long term vision when there is an immediate need but if we are to attain successful outcomes then we need to be capable of delivering our service to every single one of those who need it. We believe that everyone on this island is entitled to a fair shot at life. An investment in early intervention results in cumulative gains over the life-cycle. It is a cost-effective policy option to reduce long-term inequalities. It provides a long-run rate of return that compares favourably to more intensive and costly alternatives and so we feel that it is an investment worth making for our community. Helping children and their families as early as possible is the right thing to do both socially and economically writes Dr Kevin Kelly CEO Brighter Futures. The early years of our lives are an extremely sensitive part of our developmental process. These years lay the foundations for our pathway through life and it is a critical period for the development of behavioural social and self- regulatory capacities cognitive function and physical health. During this time virtually every aspect of our development is affected by the experiences we encounter and the environments that we are exposed to. These experiences and environments will differ according to circumstance and parental ability and so not all of us will start life on an equal footing which in many cases means that our potential for achievement will differ. It is often the case that those of us who have had a difficult start to life have more trouble with learning and social skills or are less likely to succeed at school or in gaining meaningful employment. A difficult start to life can find even the most capable person at a disadvantage when it comes to their life chances and this is why early intervention can be crucial to providing 66 CONNECT OCTOBER Would you work with this business TWITTER FACEBOOK LINKEDIN Put a face to your business. We all know the importance of creating a good first impression. At Photoreportage we bring fresh photography to the world of advertising and PR. Working with many of the Channel Islands top corporate companies to produce high quality images that not only support their communication and creative teams but enhance the perception of their business. If you re looking to raise your profile... Contact Gary Grimshaw on info or call 01534 858 571 CO RPORATE C OMM ER C IAL WEDDING JOURNALISTIC P O L I T I C S 16% want more tax and more spending. Essentially the single solitary thing that the States have got right all these years is going to have to change. But that s just the economy and it s just the start of the issues facing the next set of States Members. That list of topics also includes the population issue which the Chief Minister managed to get past last time around by kicking it on to the next term. Nice move but it only works once. Start with a population utterly opposed to immigration throw in businesses who want to bring in more staff add in a creaking infrastructure and ludicrouslyhigh house prices and try to keep everybody happy sound straight-forward enough Then there s a new one education reform. A new minister a new chief officer the end (presumably) of all the reviews that were going on a while ago this is a subject that s been in the long grass for a while now and it s probably time someone took it seriously. The problem with it is that it s one of very few things that people here really care about in a very immediate and personal way the last time a minister tried to mess with it they got shot down in flames and basically lost their job. The other item listed for debate that week the small matter of raising GST from 3% to 5% - barely got a look-in. On top of all of that the next group of ministers is the one that s going to have to face up to the fact that literally absolutely everyone else in the Island seems to have cottoned on to already the Waterfront development isn t really going anywhere. Nice idea good people running it but while politicians have been running around talking about visions and architecture and world-leading this and cutting-edge that the rest of the construction industry has been well... constructing offices and filling them with people to the point that the need for the Waterfront development is now far from certain. OK that all sounds a little bleak. It doesn t have to if you re the kind of politician who prefers to try to spin your way out of problems if you reach for ideology on either side of the political spectrum rather than facts to solve problems if your method of dealing with inconvenient facts is simply to ignore them then... well obviously you re fine. For the rest of them this isn t going to be an easy three-and-a-half years. On the one hand you could argue that standing at all at a time like this demonstrates a startling lack of political insight on the other (and here s a cheery final thought to lead in to the election) fair play to them for putting their hands up and taking responsibility for a pretty tough pretty thankless and pretty difficult job. ore than a third. Not a handful. Not a few. Not a little fringe not a minor fraction not a few exceptions to the rule but a little over one-in-three. That s 17 out of 49 politicians who strolled into the States uncontested last month walking into a 46k per year job for the next three-and-a-half years running a government because they filled in a form. Total total rubbish. M Here s the thing. Actually you can t blame people for not standing this is an absolutely terrible time to be a politician. Actually scrap that it s an absolutely terrible time to be a good politician it s always always a great time to be a bad politician. Consider the standing of politicians generally which has plummeted from low to appalling to positively subterranean a recent JEP poll said 70% thought that the Council of Ministers were terrible the Jersey Annual Social Survey found that 49% of people did not have confidence in the States compared to just 25% who did. But that s just public opinion. Here s the big reason why it s not the best time to be a (good) politician its the economy stupid. Economic activity has dropped for the last five years the overall level is 16% lower than it was in 2007. The unconvincing protestations aside it s looking more and more as though the deficit around 95 million over three years at the last count is not a temporary one caused by a blip in tax receipts but a deepseated structural gap between the amount raised in tax and the amount spent on services. That s not good news for two reasons firstly you can t fix a deficit without cutting spending or raising taxes or both and people tend to have quite strong views about things like that. Secondly because amid all of the various things that people don t like about the States there is one thing just one thing that the public agree that politicians have got absolutely perfectly right. Can you guess what it is Yep the balance between tax and spending twothirds think we ve got it right while exactly 16% want less tax and less spending and exactly Connect s political columnist Ben Qu r e spent far far too long covering the States during his 13 years as a noted news reporter and commentator. In Here s The Thing... he takes on a key subject each month drawing on his experience knowledge and contacts to lift the lid and stir things up Ifyouwantto contact Ben Qu r e pleaseemail ben bailiwick 68 CONNECT OCTOBER Entertainment and Leisure Insurance Services (Jersey) Ltd (E&L ) offers Jersey residents a choice of competitively priced products with comprehensive benefit s backed by a high level of customer service. E&L is a well-known and established provider of personal lines niche cover and has over 75 years experience in the insurance market. We provide a wide range of insurance plans to cater for the needs of our customers with products available for most budgets whilst maintaining comprehensive cover. We provide insurance cover for Weddings Pet s Horses Touring and Static Caravans Photography Boats Cycle s Student Possessions And Premium discounts on most plans from 10% up to 50% Competitively priced policies with a wide range of benefits Cover options to suit most budgets Quick quotes online or by phone UK call centre Pet Insurance for Dogs Cats and Birds. Essential vet s fees cover up to 6 000. Marine Insurance offering comprehensive low cost cover for many types of vessels. Horse Insurance providing vet s fees cover up to 5 750 per incident. To find out how E&L can help you with your insurance needs and provide peace of mind at an affordable price please contact us today. Visit bex or Call 08448 547 614 Entertainment & Leisure Insurance Services (Jersey) Ltd is authorised by the Jersey Financial Services Commission to carry out General Insurance Mediation Business (reg. no. 111681) and is an appointed representative of The Equine & Livestock Insurance Company Limited which is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority (reg. no. 202748). On the farm online on the plate - simple Jersey s agricultural industry has had to adapt to survive and not just in the face of cheap foreign competition. The demise of mass-market tourism since the 1990 s combined with the convenience of supermarket shopping has also taken its toll. Which means one traditional St Brelade business Lucas Brothers has both opened a shop in town and moved onto the internet in order to grow more customers. Paula Thelwell found out how new technology is once again changing the face of local farming. The stretch of road between St Aubin and the Beaumont roundabout may be short in distance but it can be a slow journey at peak traffic times. Fortunately there is the panorama of St Aubin s Bay to one side and the the fields of La Haule Farm on the other usually filled with an array of colourful crops to provide a welcome distraction from the back of the vehicle in front. One of those open fields was once packed with tents occupied by happy tourists enjoying a break in the most southerly of the British Isles when foreign travel was the exotic preserve of the well-heeled. The campsite was founded by Brian Lucas farmer and one-time parish Deputy who was also a member of the old Agriculture and Fisheries and Tourism committees. Having grown up at the top of La Haule Hill on the family farm Les Monts Brian moved down to La Haule Farm in 1947 later founding Lucas Brothers with his brother Donald and mainly growing cauliflowers tomatoes and flowers for export. The business began to expand in 1975 when Norman Brian s eldest son took over the business and diversified into wholesale. His younger brother Andrew came into the business in 1989 to run the wholesale business and the shop. He never set out to work in agriculture and his mother was determined he would not follow in the family tradition. I started out building boats at St Aubin s Boatyard when I left school and did six years there then I went to work at Pallot Glass for three years as a window fitter. Then my brother asked me to join the business. My dad started the camp site across the road in the 1950s. Dad said to me before he died that is was probably they most profitable part of his business life. We still call it the camp field. Only last weekend we had a couple come into the yard on Sunday and ask if the campsite was still going. They said they used to come here when they were fairly young and bring their children. We still have the sinks in the sheds where the wash room was. I came into the business to expand the wholesale part which used to supply fresh veg to hotels and restaurants from around here. It first started when chefs in the area approached Norman to supply them direct. It was expanding so that was the part of the business I looked after. Today the wholesale business is run from the top of the hill in a warehouse next to what was the original family home. The Lucas family began to diversify from growing long before the loss of the lucrative tomato and other export markets forced local farmers and growers to change or quit the agricultural industry. The shop and wholesale business meant they were better placed to survive than others when the crunch came. The flower business has grown and earlier this year they opened a second flower shop in Liberty Wharf. Ifyouknow someonewho shouldfeature here pleasee-mail editor bailiwick OCTOBER CONNECT 71 Andrew admits to a liking for dabbling with technology even if he isn t an expert. He also exhibits the same eye for opportunities that led his father and brother to diversify the business long before necessity forced change on the farming community. Lucas Brothers is one of the first farming business to open an online shop something which he immensely enjoyed setting up. Not only is it bringing in business it s also broadened the customer base and appeals to a younger market. Moreover it is educating Islanders about seasonality and there s nothing better health and taste-wise than eating fresh produce when it s in season. It is also attracting more business for the farm shop. One of the challenges about running a small farm shop is that while we have always had a long-standing customer base if you look at them they are from my brother s generation. The challenge for farm shops is that in the past supermarkets were not very good at doing fruit and veg and people would shop at a butcher and a fruit and veg shop and a supermarket. But over the past 20 years supermarkets have changed and their quality has improved. Lucas Brothers also upped its game and today business is good - well as good as any business that depends on the weather crop yields and cheaper competition transport and freight costs fuel prices putting in long hours in all weather all-year-round and keeping pigeons at bay (more of that problem later). The land under production covers 40 verg es all in 72 CONNECT OCTOBER St Brelade. While 60 to 70% of the produce sold is grown on the farm fruit is imported - as is produce that can t be grown locally or is in short supply. There are 30 members of staff. The first online shop Flowerbox was set up two years ago and the online veg and fruit shop started last November aimed at people especially the young who like the convenience of shopping online. Young people are at home on their iPads watching TV or making a coffee and they can put in their order. They know what they get they automatically get an invoice and they know what they have spent. Busy people can shop at home online for convenience they can see what we do and it has made a huge difference to our customer base as we have reached the youngsters. They haven t got the time to come to the farm so if they cannot come to us we can take it to them. It is the future of our business as it s about quality and freshness coming right to your door. Our customers are changing as more people are shopping online. There are currently more than 300 customers online at Lucas Brothers and the website is also attracting Islanders to the shops as it shows what is available that very day. So instead of buying online they pop along to shop. Andrew also sends out a quarterly newsletter to the online customers about what s happening at the farm growing wise and seasonality. In the farm shops customers can see what is local and what has been imported as Jersey produce is clearly labelled as such. It isn t just about emphasising seasonality it is as much a part of educating shoppers to help them make an The challenge for farm shops is that in the past supermarkets were not very good at doing fruit and veg and people would shop at a butcher and a fruit and veg shop and a supermarket. But over the past 20 years supermarkets have changed and their quality has improved of scale provided by industrial farming and the supermarkets drive hard bargains to be able to sell produce as cheaply as they do. If comparisons are to be made then make them across the Island and not with a supermarket somewhere in the UK is all he asks. People moan about the price of buying local produce and it is not very helpful when the media compares prices to the UK. There are lots of reasons for the costs of produce he said citing freight transport and shipping costs fuel levies labour and land rent and like Dick Dasterdly in Wacky Races he also has to stop those pigeons. Now the majority of the land in the Island is made over to growing only one crop the Jersey Royal pickings for the wild pigeon population are in much shorter supply in the countryside. When they see Andrew s fields blooming with colourful crops they swoop in Now there are fewer vegetables grown in the Island there is not much for the birds to eat so we have to cover everything and it costs around 4 000 to cover four verg es he said. You would be wrong to file Andrew in the drawer of moaning agriculturalists. That is one cap that most certainly doesn t fit. What he is though is a Jerseyman from an old local family that cares about what he does his parish and the Island and educating people about the benefits of quality fresh produce for which the Island is famous. It is nice to be able to produce stuff cut it and send it out to the customers fresh and on the same day to their door. That is what we try to achieve. informed choice to support local business and keep the local pound in circulation. If the spring is celebrated for the arrival of fresh crops and fruit after the barren winter months then autumn is the time to celebrate nature s abundance. You can have strawberries and asparagus all year round but like all crops they taste best when grown fresh and in season. But Andrew is a businessman and if his customers want strawberries at Christmas he ll import them. At this time of year we are selling all the produce we grow with the exception of cauliflowers about 60% to 70% of the produce we sell is grown on the farm. Obviously we don t grow fruit and we sell what we can buy locally. It is always good in September as the farm is fully functional. We have had a couple of good years but the year before the majority of the crops were lost due to the heavy rainfall. It was always going to take a couple of years to make that up. It is nice to be able to produce stuff cut it and send it out to the customers fresh and on the same day to their door. That is what we try to achieve. Each month we try to look at what we should be doing and to come up with news ideas because that is what the customer wants and we don t want to loose the custom that we have. Like everyone in the agricultural industry Andrew wishes the general public and the media would appreciate exactly what goes into growing the food they eat. And before they start comparing local prices to those in the UK they should stop and think. There is no way he can compete with the economies OCTOBER CONNECT 73 D E A D LY D I A R Y 1 October GVA figures Ye Gods Run to the hills Someone somewhere has foolishly displeased the all-powerful Numbertron mighty God of Statistics and he has decreed that he take his bloody vengeance on the filthy sinners in the General Election Actually this is great timing all the political spin and bravado about the economy will either be exposed as outright lies or justified as visionary insight as the Stats Unit finally publish delayed GVA figures measuring economic performance just a fortnight before the polls. The numbers were delayed because of the whole population-stats-don t-work-anyone fiasco but the data is now ready. That means anyone making unwise pronouncements about growth recovery or even perhaps the accuracy of various Budget forecasts should prepare to be impaled upon Mighty Numbertron s trusty blade as he slakes his bloodthirst on Senatorial candidates. Worth remembering that provisional figures show that in comparable terms the size of Jersey s economy remains 16% smaller than it was in 2007 and has been falling for five years. Apparently it s all down to those pesky low interest rates. 8 October Labour Market figures Flee Flee Mighty Numbertron has returned to lay waste to the hustings trail as he follows his initial salvo with a devastating followup of employment data Doomed We re all doomed Ahem. A year ago politicians were delightedly reporting that more people were employed than ever before ever-so-carefully glossing over the fact that the public sector was growing three-times faster than the private sector and that there were still 410 fewer people working in finance than there were in 2007. These figures will tell us a lot about a) actual economic conditions in terms of private sector employment and b) whether the public sector is controlling staff expenditure or not. 15 October Election day Here it is. For 12 hours every three years they re not in charge we are. DD wouldn t presume to tell you how to think or how to vote or even that you could be swayed from your views by a page in a magazine but it would be wrong not to underline how important your democratic rights are. If DD could offer one thought for you to hold on to at the ballot box it would be this don t judge these people on what they say or even what they claim to have achieved judge them only on what they ve actually done. 1 October Chamber of Commerce lunch Good news It s not a politician Instead it s someone who knows what they re talking about now that the new Discrimination Law is in force the Chamber have lined up Sharon Peacock the Technical Director of Law at Work to give the lunchtime speech. With the debate about family-friendly legislation going on and with various politicians talking about exemptions for small employers this is neatly timed. 17 October RPI As (presumably) a handful of political types contemplate unemployment and start blaming the media (who else ) for their downfall the rest of us will be casting a half-interested glance in the direction of the latest RPI figures. The last figures showed that inflation had dipped slightly to 1.6%. Minor increases in the costs of household services alcohol travel and housing contributed to the quarterly figures with the drop in prices of food household goods and domestic heating oil reducing the rate slightly overall the inflation level has been under the 2% mark for the last 18 months. 1 October 13 October Pre-poll voting in St Paul s Centre DD is shocked. DD doesn t know how to describe this but here goes this is a genuinely good idea that might actually do some good and which will help people to vote. The pre-poll station is open between 8 am and 6 pm on weekdays from 1-10 October there s also a special pre-poll voting station at Communicare in St Brelade from 9 am to 2 pm on Saturday 4 October. Deadly Diary - every month Connect will be flicking carefully through the future calendar of political and business events ...and chewing over what it finds there. OCTOBER CONNECT 77 MUSINGS OF A MARKETER Pick Me Connect s marketing columnist Sam Watts has been committed to all things marketing and brand for more than 20 years. Founder and director of Channel Islands communications agency Orchid she is passionate about the power of communication. It s silly season and I love it. As I write election fever is bubbling and already the Twittersphere has gone into overdrive (and potentially seen the first candidate tweet himself out of the race). On 15 October a percentage of us will troop to the polls to place a carefully thought out cross against our chosen candidate s name. How many of us make the effort will be influenced by many factors the candidate s performance in the election race but also frustration over previous broken promises referendum cock-ups if the candidate is a family member and whether or not it is raining on the day Elections ARE marketing - a brand candidate communicates a promise to convince and convert a customer voter to retain loyalty to that brand person over a period of time. You throw in factors that any given candidate can t control (aforementioned weather family connections and so on) and it s a case of making the very best job of the bits you can influence. What can we learn from the election marketing bubble In the US the last presidential election was the most expensive on earth an eye watering 6 billion over two years of campaigning and electioneering. The end result United Republic a non-partisan not-for-profit organisation argues that money wins congressional races 91% of the time. This reflects the norm of our marketing world brands are pretty much free to spend as much as they like on campaigns running for as long as they see fit. So yes often you see the one that shouts loudest enjoy the bigger flow of customers. Of course level of spend will attract customers (you re in their face far more than your competitors so you force them to pay attention) but you then have to deliver. But often the ones with the biggest budgets see an exodus of customers supporters when they realise what you offered was a hollow promise. For me the beauty (and benefit) of the campaign trail in many countries including our fair island is that the playing field is made level short time frame and a limit on spend. In Jersey that means one month campaigning with a budget of 2 800 for Senators and 1 700 for Deputy or Constable. This is when things get interesting. No longer is it about puffing out your chest and throwing oodles of cash at the challenge. Now you have to get really smart. It s about knowing your customer. What matters to them What keeps them awake at night How can you solve their biggest fears and make their dreams a reality Finding that out and creating a proposition that resonates with them creates a solid foundation for any campaign. This is where you need to consider humour carefully. Thank Name It s Friday and Name like Darth Vadar Only Prettier may work in a school election but won t wash with an older electorate. Who else is in the race Know the enemy so you can position yourself to allow your uniqueness and brilliance to shine through. Focusing energy on your campaign rather than dissing the competition is a strategic decision. When you knock the competition you sound petty you imply you ve got nothing better to offer you come across as desperate and you put customers of the enemy on the defensive. So it s a risky strategy and one that can destroy your own credibility. But sometimes the opportunities are too great to overlook. Think 1978 Conservative Party poster that showed a long queue outside an unemployment office with the powerful Labour Isn t Working tagline. That campaign worked. Take it online. It s never been easier to convince and convert by backing up online what you have declared in public. Social media was a game changer in the recent Indian elections which saw Narendra Modi or NaMo to his followers elected Prime Minister. These elections were fought in cyberspace using social technologies. NaMo is arguably one of the most tech-savvy politicians in the world and he successfully engaged India s Gen Y to boost his following. With a massive 21.5 million Facebook and 6.4 million Twitter followers he continues to use social media to reach the 814 million Indian voters. John Lennon is reported to have once said that in Britain the difference between Labour and the Conservatives was miniscule. But Lennon immediately added that this tiny tiny difference was also the space where most of us live our lives. The same is true for mainstream marketing. The difference between brands is often miniscule. Knowing what and how we make the difference that one core thing makes us stand out from our competitors and resonate with our target customers is the key to success. If you have a question for Sam please e-mail sam bailiwick Simply a better system. The only system you need for wealth management. NavOne is the world-leading wealth management system delivered by Touchstone and powered by Microsoft Dynamics NAV technology. Used by small to large trust and fund administration companies family offices private equity firms and specialist legal and accounting practices across 20 global jurisdictions NavOne helps increase operational efficiencies and reduces administration costs. For more information call 01534 818900 or visit Delivered by Powered by THE ADVISOR Trespassers will be Prosecuted There has been a considerable amount of media attention recently concerning the lack of a trespass law in Jersey. It all stemmed from an incident in which an elderly lady discovered to her shock and understandable distress - an uninvited male guest in her home. It was revealed that he had not committed an offence (punishable by law) and this sparked many people to express different views on the topic of whether Jersey should have some sort of offence by which trespass could be prosecuted. For my part I think we have a considerable number of laws which are outdated and some which are unnecessary. We also lack legislation in certain areas. The aim is to strike the right balance to have legislation that we really do need and do away with the superfluous. I see all too often courts (especially the lower courts) trundling along at a frustratingly slow pace when matters in my opinion could be dealt with more swiftly. Perhaps that is an issue to do with procedure rather than substance. But do we need to introduce yet another piece of legislation to combat what must be very rare occurrence Would the introduction of a trespass law deter commission of the offence Really To reach a decision on whether or not such a law should make its appearance some points should be borne in mind. Firstly if your home is securely locked up it will be almost impossible for someone entering it not to be committing an offence forced entry into a property is punishable. So if it s secure there can never really be an issue of plain trespass because any person entering is going to have to force their entry. Secondly entering into an open property with the intention of committing an offence will also be punishable if can be shown that that person is attempting a crime. In some circumstances that may be difficult to prove to the required criminal standard but difficulty in proving the commission of an offence is nothing new. In areas in which security is an issue there will be specific legislation to govern and control access. I imagine (I haven t researched the point) that entry airside at Jersey Airport without authorisation is prosecutable. Which means that specific legislation can be used for specific situations. Of course the lack of a trespass law does mean that people can wander over gardens farmers fields roam down so-called private roads meander across estates and people s yards without fear of prosecution. But how often does it happen Enough to warrant another piece of legislation Compare all of this to the freedom to roam in Scotland where ancient rights of roaming were codified by the Land Reform (Scotland) Act 2003. Do we really want to be quite so knee-jerk because of an isolated incident I am not for one moment playing down the effect that the sight of an intruder may have upon an elderly person living alone (or many other people young and old) but I do wonder if it produces the need for immediate control as if somehow that would bring to a sudden stop a spate of trespassing that in reality doesn t exist. Whenever I see a sign saying Trespassers will be Prosecuted (and there are a fair few around the Island) it reminds me of Oscar Wilde s children s story The Selfish Giant in which the giant surrounded his garden with a large stone wall and displayed prominently a notice to would-be trespassers only to discover his garden was forever frozen in winter. So is there any good reason for bringing into force a trespass law Maybe one. One of my favourite pastimes is skydiving and not so long ago I was brave enough (and perhaps stupid enough) to BASE jump. BASE jumping is the name given to jumping off Buildings Antennae bridges (Spans) and cliffs mountains (Earth) B-A-S-E. There is nothing illegal about jumping per se but in most cases it involves trespass. I should add that I did NOT trespass I was in Norway jumping over fjords in a location that actively encourages human lemmings. But in the UK the US and other parts of the world most BASE jumpers who end up being prosecuted are prosecuted for trespass. Olaf Blakeley is an Advocate specialising in litigation and commercial law Ifyouhavea legal question you wouldliketoputto AdvocateBlakeley pleaseemail editor bailiwick 80 CONNECT OCTOBER Ambitious Prepared What an international business should be John Carroll Head of International Santander UK Connected International trade can unlock significant growth but is often complex. So whatever your sector our Trade Portal has been developed to help you identify the largest markets understand local regulations and connect with potential customers and suppliers on the ground. And with access to Trade Club an exclusive online community for international businesses we could give you the best chance of success overseas. To see how far your business could go visit tradeportal email Stephen.OBrien or call Simple Personal Fair What a bank should be Helping Businesses go Further GET CONNECTED WITH MORE THAN ANY OTHER INTERNATIONAL BANK 5 million customer source Santander Group internal data. You need to be an online banking customer of Santander Corporate & Commercial to gain full access to the Trade Portal and Trade Club. Santander Trade Portal is provided and managed by Export Entreprises S.A. Santander provides access to its client companies but is totally unrelated to the database contents which are the responsibility of Export Entreprises S.A. Santander Corporate & Commercial is a trading name of Santander UK plc registered in England company number 2294747. Registered o ce at 2 Triton Square Regent s Place London NW1 3AN. Santander UK plc Jersey Branch is regulated to carry on deposit taking business under the Banking Business (Jersey) Law 1991 by the Jersey Financial Services Commission. Its principal place of business in Jersey is at Third Floor 19-21 Commercial Street St. Helier Jersey JE2 3RU. Santander UK plc is a participant in the Jersey Bank Depositors Compensation Scheme. The Scheme o ers protection for eligible deposits of up to 50 000. The maximum total amount of compensation is capped at 100 000 000 in any five year period. Full details of the Scheme and banking groups covered are available on the States of Jersey website dcs or on request. Santander and the flame logo are registered trademarks. CCBB OCT HT