3D Global In Touch

SERVICE•

INDEPENDENCE•

PERFORMANCE

Issue 30 • Spring/ Summer 2008

SESES RVRVICICCEE••

INDEDEPEPENDNDENENCECE• •

PEPERFRFORORMAMANCNNCEE

In this Issue:

Making Sense of UK Pensions with VISTA•

Is the sky falling? - Investing themes•

Fairbairn Private Bank - exclusive Focus Account•

Property Corner - Egypt •

Insurance for Jointly owned Properties•

3D Global Expansion •

Secure Combination - Solid Returns with Tax Saving •

3D Global Expansion3D Global has entered into an agreement with Vista

Financial Management (a UK Independent Financial

Advisor) to provide UK pension advice (see page

2). 3D and Vista have appointed a dedicated FSA-

approved UK pensions specialist to advise clients and

lead them through the often very confusing number

of pension options. If you have UK pension funds or

are approaching your retirement date, contact us for a

free consultation.

Since our last newsletter, 3D has grown: we have

opened a new company (3D Global International) for

business that falls outside the existing two entities. In

the past few months, 4 new advisors have joined the

group from the UK – Alan Cook, Leon Matossian,

John Hilton and Richard Miller.

(Continued on page 4)

2

Egypt is the latest property hot spot for investors. The main interest is for holiday homes as a buy-to-let. Tourism, which is already the country’s second most important source of foreign exchange, is set to

double in the next 5 years according to government targets. And linked to this is the growing residential tourism market.The main development areas are Sharm al-Sheikh, The Red Sea and the North Coast. New developments include 5 star hotels, golf courses, health spas, and all within walking distance of beaches at very affordable prices.Recent changes in Egyptian law have simplifi ed buying procedures and contracts are now presented in both

English and Arabic. Main Reasons Why Egypt is a Desirable Investment Location:• Low property prices from around only £15,000 • Potential capital appreciation of 15-30% • Beautiful and well established recreational and cultural centres• Strong economic growth and increased investment in infrastructure• Warm climate for year-round tourism • Tourism up 20% in 2007

• Politically stable country • Increased inward investment, creating a rich investment climate • Easy air access from many European destinations• Low cost of living and maintenance costs

For further information please [email protected]

If you are trying to make sense of UK pensions and retirement options, read on…

There is much confusion amongst holders of UK pensions about their plans and options: SIPPs, annuities, draw-downs and even QROPS. What do they all mean? What options do you have and what are the pros and cons? Do you have access to capital? Could you enhance your pension by switching to another provider? What are the costs? Is your spouse

protected should anything happen to you? These are typical questions that we, as IFAs, are asked about pensions.

UK pensions and retirement options are a highly specialised fi eld of fi nancial advice and it is therefore prudent to consult an advisor who is qualifi ed and authorised under the UK’s Financial Services Authority (the ‘FSA’). The FSA has strict rules on the conduct of IFAs and, it is under these conditions, that you can be assured of receiving proper advice. To check to see if your advisor is authorised, you can do a search through the FSA via the following link: http://www.fsa.gov.uk/register/home.do.

3D Global and the UK’s Vista Financial

Management have recently a p p o i n t e d their own UK pensions s p e c i a l i s t , John Hilton. John has retained his UK FSA registration and Retirement Options Specialist status through Vista; he is still regulated by the FSA and works under the same high standards of business conduct as he did in the UK.

John is used to the expat life, having spent time in Hong Kong, the UAE and Spain. For the past 7 years, he has built up his pensions advisory practice in the UK.

Not only is it important to appoint a regulated IFA for UK pensions advice, but the advisor must be able demonstrate and

obtain the best available quotes and options on the market. This means access to specialist industry tools for searches and analyses. So, for example, if you are looking for the best annuity on the market, ask us and we will do the search for you.

If you have UK pension funds or are approaching your retirement date and wish to consider the options available to you (including access to capital and various types of annuities, income drawdown schemes or other options), contact John Hilton for a free consultation.

MAKING SENSE OF UK PENSIONS

PROPERTY CORNER

3

The Sky Is Falling!- or is it?

Investment Themes for our time...You cannot turn on the news or look at a newspaper without hearing about how the credit crunch is hitting hard, how bad the investment markets are, property prices falling, food prices rocketing, oil hitting record levels etc. etc. So what should we all make of this? Do we believe the ‘Chicken-Lickens’ of the world that the sky really is falling, or is there a more pragmatic approach we should adopt? It is not surprising that so many people lined up outside the Northern Rock banks to withdraw their money; fear is a primary motivation for people to do most things – you only need to look at adverts for investment seminars drilling the message that ‘the taxman’ is to be feared!Our message this month is that, whilst there are problems to be faced, there are positives too. Not all investments work in the same way – just as property prices vary from region to region, different investment areas vary in their performance. Indeed, the current global problems, in themselves, present investment opportunities!

As an example we highlight two ‘thematic’ investment areas that we think are worth looking at:

One theme in recent news has been the rapid rise of basic foods in recent months and the short supply of basic staples such as rice & wheat. This has led to the development of a number of Global Agribusiness or ‘soft commodities’ funds. These are funds investing into promising companies involved in land and plantation, seed and fertilizer, planting, harvesting, irrigation and food processing, offering investors the opportunity to capture value at various points along the “food chain”. With the prices of basic commodities such as wheat and rice rocketing, this is seen as a good medium to long term investment. One such fund from investment managers DWS has given an impressive return of over 20% in the last 12 months.Another area that has been in the press now for a long time and continues to make headlines is Global Warming. Climate change is set to drive an industrial transformation. Many investment managers believe this will be one of the single biggest investment themes of the next 20 years. An indication of what industry leaders think of this area was given by

General Electric’s CEO, Jeff Immelt, in June 2005 “We think green means green. This is a time period where environmental improvement is going to lead toward profi tability.

This is not a hobby to make people feel good.”

Across the globe, governments and world agencies are making huge investments to tackle climate change. It is estimated that globally $20 trillion will need to be spent on

new power generation infrastructure by 2030. The opportunities and pressures created by efforts to tackle climate change are set to change the global corporate landscape. Some of today’s companies will survive but they will be joined by new names and innovations. By spotting tomorrow’s winners today, opportunities exist for investors to reap the rewards.

These are just two themes which can help your investments ‘buck’ the trend. Maybe these changes, poor interest rates due to the credit crisis, rising costs and market volatility are with us for the long term. If this is the case, how long do you wait before looking how to make your hard earned capital work for you, and help you cope with your rising costs? At 3D Global we help clients develop their fi nancial strategies to be fl exible enough to adapt to the changing investment world in which we live. If you would like to fi nd out how 3D can show you the ‘sky isn’t really falling’ contact us today.

More information is available from [email protected]

4

3D Global Expansion

There were two companies - Umbrella Ltd and Suntan Ltd. The sun shone and Suntan’s shares went up. When it rained, Umbrella’s went up. Simple really. However, during one hot summer, market experts stated that the climate had changed and that the summer would last all year. Suntan shares soared and everyone, even cautious clients, piled in, boasting about

how they were making hay while the sun was shining! But the climate, like the market, is hard to predict and, before long, it began to rain. This analogy represents investor sentiment and stock-market movement in 1999 when it seemed you just couldn’t go wrong with stocks and people were making a lot of hay! People piled into equities, especially technology funds, even cautious investors. Commentators predicted more of the same. Some even preached the gospel of productivity miracles, eternal growth and bowed to the “new paradigm”. Then, in 2000, it started to rain or rather pour! But whilst many were seduced by the headlong rush into tech stocks, one or two sages (notably

Warren Buffet) didn’t buy it. While others were riding the crest of a wave, these investors were looking for long-term value, confi dent that markets do go down as well as up. They took a different path, became cautious, sold at a profi t and looked for value elsewhere. So it was with Prudential’s fl agship fund. Their aim is and always has been

to smooth out the returns over the long-term. Yes, one or two investors will

always make a fortune when the markets fl y high. But the fact is that, when they turnaround as they always do, many many more people will lose.

Managed properly, with investment freedom and fi nancial strength, the Pru delivers what clients want: consistency, appropriately blended assets, and clarity. The Prudential has delivered

a consistent 7-10% a year in their fl agship fund.

Come rain or shine, if you are looking for an investment to perform in all weather c o n d i t i o n s ,

stick with a name you can trust.

“ Long hot summers, don’t forget the umbrella ” A look at Prudential’s

Flagship Fund

(continued from front page)One of the most signifi cant changes to legislation in the European Union came into force on November 1st last year. The new Markets in Financial Instruments Directive (“MiFID”) affects every investor who holds fi nancial instruments (such as direct stocks and collective investment schemes). In addition it affects every Investment Firm or Advisor offering fi nancial instruments. The legislation aims to promote EU cross-border services and enhance investor protection. Along with our competitors in private banking and stock-broking, 3D’s Investment Firm has fully adopted MiFID. To accompany the introduction of MiFID, 3D has produced a Business Practices booklet.Also on the European front, 3D’s insurance advisory

company pass-ported its activities to all EU states, allowing the company to freely offer its services throughout the EU.In May, 3D’s Investment Firm held its AGM and the existing board was re-appointed, including former government minister, Frixos Savvides, and former Hellenic Bank chairman, Panos Ghalanos. In addition, the company’s internal and external auditors (PwC and BDO) were re-appointed.Other new developments include: 3D enters an agreement with Fairbairn Private Bank (“FPB”) for FPB to provide custodial, dealing and reporting services to 3D clients. 3D has signed terms of business with Skandia Ireland, Irish Life and is looking to develop its relationship with Prudential International and Friends Provident.

5

Value, Income & Tax Savings

£0

£50,000

£100,000

£150,000

£200,000

5 10 15 20YearsValue Income Tax Savings

Secure Combination - Solid returns with tax savings

Roy Martin (Inheritance Tax specialist)

3D Global have previously pointed out the benefi ts of Prudential’s fl agship fund which smoothes out investment returns and has delivered consistently strong growth of 7% - 10% over many years.

We have now decided to combine this with an inheritance tax plan designed to give access to capital and income whilst reducing inheritance tax at 40%.

The winning combination of solid growth and tax reduction is ideal for people wishing tax-effi cient income, access to capital and more money to pass on to their loved ones.

We show two examples, one for Income and one for Growth based on an initial investment of £100,000*.

Secure Combination for INCOMEThe table shows the capital value after 5,10, 15 and 20 years along with the Income taken and the Inheritance Tax savings.

Years Value Income Tax Savings

5 £111,501 £25,000 £14,60110 £127,633 £50,000 £31,05315 £150,258 £75,000 £50,10320 £181,991 £100,000 £72,796

Secure Combination for GROWTH (compared to the bank)This example is based on a real case study of a couple with 3 children – Stephen, David and Michele. It compares bank deposits against Secure Combination and shows the disparity in inheritance tax and the amounts the children may receive in inheritance.

Bank

£53,066£53,066

£53,066£106,132

ChancellorStephenDavidMichele

Leaving the money in the bank for 20 years, the children each receive £53,066 from their parents but are dismayed to see that Alistair Darling (the Chancellor) gets a massive £106,132 – more than them!Secure Combination

£40,000

£115,656

£115,656

£115,656

ChancellorStephenDavidMichele

With Secure Combination, the children each receive £115,656 and the chancellor gets £40,000. Much fairer!

Who would you rather leave your money to?

Q&A about Secure CombinationQ1: Do I still have access to my money? A: Yes, you can take an ‘income’ or the capital.

Q2: Is my money locked away or tied up?A: No, you have access to the initial capital investment at any time.For more information on this and other aspects of Inheritance Tax planning, contact Roy Martin ([email protected]).

*(Examples are based on non-UK resident, British-domiciled, over the NIL-rate band (£312,000), income of £5,000 per year over 20 years (no income in the Growth examples). Prudential net growth is 7%, and bank interest is 5%. Amounts can be higher or lower than £100,000 and in currencies other than Sterling. secure combination is available to UK and Non-UK residents).

6

Fairbairn Private Bank is a member of the Old Mutual group of companies, and its ultimate parent company is Old Mutual, a FTSE 100 listed company formed as a Mutual in 1845. Recognised for its client service, the bank offers banking and investment services through its offi ces in the Isle of Man and Jersey.

Recently voted Best International Private Bank in the International Investment Fund and Product Awards, the key to Fairbairn Private Bank’s offering is its integrated banking and investment service, “Focus”. Combining banking, discretionary and execution only investment dealing, and settlement services into a simple, seamless package, a Focus account can save time and simplify administration. Clients with at least £50,000, or currency equivalent, in deposits and investments, can tailor a multi-currency

account to meet their own specifi c requirements.

As the client’s fi nancial needs change, so can the structure of the account, in many cases without the need to complete any further documentation. The extensive range of multi-currency banking services includes: interest bearing cheque accounts, fi xed term deposits, loan arrangements, deferred debit Gold Status Visa cards, plus structured and enhanced deposits.

When it comes to investments, the bank advocates diversifi cation and offers a cost-effective means to participate in a wide range of investment markets. The use of 3D Global’s Portfolio Management service can offer you peace of mind by passing responsibility for asset allocation and fund selection decisions to a qualifi ed and regulated investment professional, and also provides an opportunity to gain exposure to less traditional asset classes. Investment portfolios can be split across a number of major asset classes, including: cash, bonds, property, equities and alternative investments (such as

emerging markets or commodities, like gold or oil).

As well as saving time, an integrated bank account may also save money in a number of ways. It can remove the cost of transferring investment funds between bank and stockbroker and, through the use of multi-currency accounts, can avoid unnecessary foreign exchange transaction costs on overseas securities.

All elements of the Focus service are reported together within an easy to follow monthly statement that shows all of the client’s investment and banking details. Whether income or growth, domestic or global, and irrespective of a client’s country of residence, an account can be designed to suit their personal circumstances.

The fl exibility to transact over the phone makes banking and investment dealing an effortless process and, in addition, Fairbairn Private Bank’s secure web site allows clients to view their account details in real time and access a full trading history. Recent developments include the facility to view a freeze-shot of their

PRIVATE BANKING SERVICE VIA 3D GLOBAL

Please feel free to contact 3D Global or your 3D consultant with any questions or comments relating to the content of this newsletter or any other issue:

General Queries:Investment: [email protected]: [email protected]: +357 25828292Fax: +357 25873460Managing Director:David [email protected] Offi cer:Barbara [email protected]

Administration:Michelle [email protected] - Client Services:Alison [email protected] - General Insurance:Andrew [email protected] Manager - Financial Advisory Services:Mark [email protected] - Portfolio Management:Peter [email protected] [email protected] [email protected] [email protected] [email protected] [email protected] [email protected] [email protected] [email protected] [email protected] [email protected] [email protected]

SMARTERCOMMUNICATING:

3D Global Contact Point

7

complete portfolio at any specifi ed point in time, consequently removing the need to receive printed copies of the report. This enables clients to keep up to date with their fi nances at any

time, from anywhere in the world.

3D Global Financial Services offers, in conjunction with your Focus account, a discretionary managed

portfolio service with each portfolio tailored to the client’s requirements. For more information please contact us on [email protected] or alternatively on +357 25828292.

SMARTERINSURANCE:

3D Global

As part of 3D’s expansion we are pleased to welcome the following personnel who have joined since our last news letter:Michelle Aresti - AdministrationClaire Needs - Medical InsuranceLeon Matossian - Nicosia based CosnultantAlan Cook - Pissouri based Consultant and John Hilton & Richard Miller both Paphos based Consultants.

---3D Global has become one of the fi rst Cyprus registered companies to be granted permission to pass-port its services throughout all 27 member states of the European Union.

---Friends Provident has expanded the range of funds available via its Ultima Save & Ultima Bond investments, including some interesting themed funds - more details are available from your consultant or [email protected]

---3D Global’s non-executive directors - Panos Ghalanos and Frixos Savvides have both accepted re-appointment to the board for another year.

Insurance for Jointly Owned Properties in CyprusThe law regarding jointly owned property – apartment blocks or individual units in a complex – states the Management committee must insure, and always keep insured, the jointly owned building against fi re, lightning and earthquake for the sum which the committee consider is its replacement value. Most contents insurance policies are only valid if the building is properly insured.For other risks such as common areas insurance is compulsory when over 50% of the owners deem it necessary.Common areas include staircases, lifts, the roof, hallways, and the spaces or the installations intended to serve all or some of the owners, such as swimming pools. We have found that many apartment blocks are only insured for the minimum as required by law and that there is no public liability cover for the common areas. This does not make sense! The potential risk situations are endless:

• Somebody has an accident by the swimming pool.

• A gas bottle explodes in a storeroom damaging the building

• In a storm (not as a result of lightning) a satellite dish is blown off the roof and damages cars

• Because there is now a hole in the roof water fl oods the building

The answer in all of these scenarios is the management committee. If there is inadequate or no insurance in place then there is a problem.3D Global Insurance Advisors are promoting an international insurance company with offi ces in Cyprus who

provide comprehensive insurance policies at very competitive rates.

The Administration Committee Combined Insurance policy (basic)Includes:Insured perils: Fire, earthquake and lightningPublic Liability: Of the administration committee (as a legal entity) for bodily injury or property damage to third parties (€170,000 per event - please note, per event not policy year.)Personal Liability: For the members of the Administration committee (€8,500 limit).

The Administration Committee Combined Insurance policy (comprehensive)Insured Perils: Fire, Earthquake, Lightning, Explosion, Aircraft, Riot, Civil Commotion, Strikes, Storm or Flood, Escape of water, Impact Malicious damage and Subterranean FirePublic Liability: Of the administration committee (as a legal entity) for bodily injury or property damage to third parties (€170,000 per event)Personal Liability: For the members of the administration committee due to the committee performing a wrongful act or error, omission, misleading statement, misleading conduct, neglect or breach of duty (€8,500 limit)Glass: Cover for accidental damage for the selected amount

To see how we can help you contact [email protected] today.

Investors should be aware that the price of investments and assets can go down as well as up and that past performance is no guarantee of future returns. Investors are further advised to read all key features, prospectuses and brochures before entering into any investment and should consult an authorised and regulated fi nancial

advisor.3D Global is an Independent International Financial Services Group serving clients in 53 Countries. The Group provides a broad range of fi rst-class, innovative,

fi nancial solutions to individuals, corporations and provident/ pension funds.

3D Global Financial Services Ltd is an Investment Firm regulated by the Cyprus Securities & Exchange Commission (reg no: 063/06)

3D Global Insurance Advisors, Agents and Sub-Agents Ltd is an insurance mediation company regulated by the Cyprus Insurance Companies Control Service (reg no: 1941, FOS4 and FSA471059).

3D Global Holdings LtdFirst Floor, Toumazis Linopetra Center

St. Athanasios StreetP.O. Box 53720, Limassol, Cyprus

Tel: +357 25828292, Fax: +357 [email protected], [email protected] - www.3dglobal.com

As part of our implimentation of the new MiFID

(Markets in Financial Instruments Directive) which

is now a legal requirement for all fi rms offering

regulated investment services within or from the

Republic of Cyprus, we have produced a new

‘Business Practices’ booklet. This booklet clearly

sets out the terms under which 3D operates. If you

have not received your copy, please contact us at

[email protected]

New Business Practices Booklet

ware that the price of investments and assets can go down as well as up and that past performance is no guarantee of future returnth t th i f i t t d t d ll d th t t f i t f f t t

@ g , @ g g

A very diffi cult competition in this issue - we are talking technical!

In order to get your name into the draw for a marvellous prize (we are keeping it a secret this time!) simply send an email to

[email protected] or fax to +357 25873460 with your name &

contact details along with your answer to this question (you shouldn’t have to look too far...):

What does MiFID stand for?