Welcome INSIDE THIS ISSUE S E R V I C E SECURITY.

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1 ISSU E c c Welcome FollowingtheacquisitionofCareyPensionsandBenefits(CPBL)byOverseasTrustandPension(OTAP),wewouldliketo extendaverywarmwelcometotheteam,clientsandprofessionalcontactsofournewlyenhancedcompany. ThecombinedbusinesswilloperateundertheOverseasTrustandPensionnameandbringstogethertwohighlyrespected Guernseyfirmswhoshareanethosforclientserviceandproductinnovation.Wecanassureyouthatservicelevelsandour rangeofproductswillcontinueuninterruptedandwillbeenhancedovertime. Consolidated Position OTAPservicesover10,000clientsandoffersaverybroadrangeofpersonalandcorporateplanswithcircaUSD2.5billion ofassetsunderadministration(otappreviouslyacquiredkleinwortbenson sguernsey-basedpensionsbusinessin2012). ThescaleofthecombinedbusinessmakesusoneoftheleadingprovidersintheChannelIslands. Withourcombinedstrengthwelookforwardtoannouncingserviceand productenhancementsinthenearfuture. With kind regards David, Simon and Rex Founders of Overseas Trust & Pension INSIDE THIS ISSUE CrEaTINg a WorlD of opportunity for EmployErS WHaT DoES THE acquisition mean for you? question and answers CorporaTE and private SCHEmES NEW DIvErSIfICaTIoN BrExIT ImplICaTIoNS for guernsey meet robert SHIpmaN WHaT makes guernsey a premier financial SErvICE CENTrE? CoNTaCTINg US S E R V I C E SECURITY SUPPORT

2 2 CreatingaWorldofOpportunity foremployers Two new names, Overseas Pension and Benefits and Overseas Pension Administration, now form part of the groupofcompanieswithintheoverseastrustandpension business. TheformerCareyGroupcompaniesbringawiderangeof servicesspecificallyforcorporateclients.thismeansotap isnowinanevenbetterpositiontoservicecorporateclients by providing an innovative range of employee sponsored pensions,retirementplansandemployeebenefitsolutions. The acquisition achieves one of the business s strategic objectives,whichistoprovidevaluable,robustandreliable retirementsolutionstobothindividualsandcompaniesalike. ItbringsanumberofbenefitstotheclientsofOTAPandthe former Carey businesses, in particular, a greater pool of expertiseandexperiencetodrawupon. Importantlytheacquisitionseesthemarryingoftwosimilar yetverydistinctbusinesseswhichwhencombinedcreatea significant platform to develop our client offering and enhanceourcapacity. For our readers who are not familiar with corporate employeebenefitsolutionsthesecanbedefinedaspension, retirementandexecutiveshareplansthataresetupand administeredforcompaniesandtheiremployees. Nowadaysemployeebenefitsolutionsarekeyinattracting andretainingtalentedpeopleandformavitalelementina company shumanresourceortalentmanagementstrategy. However, contrary to popular belief these solutions are equallyaccessibletosmallandmediumsizefirmsasthey aretolargeorganisations. Theycanofferaveryflexibleenvironmenttotailorbespoke solutionsthatcanmeetspecificneedsofboththeemployee andemployer. Ifyouworkforafirmorareabusinessownerandyouwould liketoexplorehowtheseservicesmaybeofbenefittoyou andyourfirm,pleasedonothesitatetocontactustodiscuss the many different options available and the commercial advantagesoftheseincreasinglyimportantstructures. PRIvATECLIENTPRODUCTRANGE CORPORATEPRODUCTRANGE COPia Pension Plans OPeS Retirement & Savings Plan International Company Pensions TRUSTS LOCaL PenSiOnS Guernsey Retirement Annuity Trusts Company Pensions Local Residents Share Option Schemes

3 3 Whatdoestheacquisitionmeanforyou? QuestionandAnswers CorporateandPrivateSchemes Q. Why was Carey Pensions and Benefits sold? a. After many successful years Carey Group made the strategic decision to withdraw from the International PensionMarket.CareyGrouptookthedecisiontosell their international businesses Carey Pensions and BenefitsLimited(CPBL)andCareyPensionsAdministration Limited(CPAL). Q. Who is the purchaser? a. The acquiring firm was Overseas Trust and Pension (OTAP),theawardwinningpensionandtrustprovider thatisregulatedandbasedinguernsey.it simportant tonotethatotaphasworkedtogetherwithcpblforthe past3yearsandwasoneofcpbl slargestclients;this familiaritybringswithitmanybenefits.theseincludeno changestotheguernseyclientservicesteam,thesystems remainthesameasdoesourwealthoftechnicalexpertise. Q. Will CPBL change its name? a. CPBLhaschangednametobecomeOverseasPensions Benefits Limited (OPBL) and CPAL has changed to OverseasPensionsAdministrationLimited(OPAL).Allthe companies will trade under the name Overseas Trust and Pension. You will see the new name appear on correspondenceandmarketingmaterial. Q. Will there be any other changes? a. Weintendtomaintainstabilityandcontinuityduringthe transitional period. Your client services contacts will remainthesame.theclientrelationshipandadministrative teams with their experience and existing client relationshipsarehighlyvaluedbyotap.overtimewe aimtoimprovethesystemswithnewtechnologyand introduceproductenhancements. BeforeCareyGroupsoldCPBLandCPALtheyreluctantly closed the Alderney office in order to centralise their operationsandimproveclientservices. Q. Who will manage scheme investments? a. Therewillbenochangetohowmoniesareinvestedand theywillcontinuetobemanagedastheywereinthe past.however,intimeweexpecttoprovideadditional investment choice which bodes well for employers, membersandadvisers. Q. What happens to my or the plan s financial adviser? a. Anyappointedadviserremainsunchanged. Q. What happens to existing contributions and benefit payments? a. Theseremainunchangedandwillcontinueuninterrupted. Q. Will there be any changes to my account or plan reference numbers? a. Theseremainunchangedandwillcontinueasbefore. Q. Where online access is available, will this continue? a. Yes,allexistingserviceswillcontinueuninterrupted. Q. Will contact details change? a. New addressesandtelephonenumbershavebeen issued to the team. However, all the old telephone numbers and old addresses will continue for a short period of time to ensure uninterrupted communications. Please use the new contact details fromnowon. If you have any questions please contact your usual representativeorvisit Q. Does the acquisition affect the protection offered under Guernsey legislation in any way? a. OTAP is a fully licenced Guernsey based fiduciary business with the same regulatory standing as CPBL. This means that OTAP is subject to the exact same prudential requirements and other necessities to safeguardbothcorporateandprivateclientsandtheir funds.itshouldbenotedthattheguernseyfinancial Services Commission had to be informed of the acquisitionbeforeitwasallowedtotakeplace.aswith OTAP,OPBLisalsoregulatedbytheGuernseyFinancial ServicesCommission,wewillcontinuetooperatetothe higheststandardsexpectedofusbyourregulator.

4 4 Newdiversification a bright new investment idea to help guide your wealth journey through a choppy 2016, by Jonathan Sieff - ashburton investments January delivered the worst investment start to a year in stockmarkethistory.marketshavebouncedbackbutremain skittishduetoglobaleconomicandgeopoliticaluncertainty. Many investors do not understand how markets can continue to levitate higher with anaemic global growth, stretched valuation multiples and an earnings recession encompassingvastnumbersofcorporations. We currently live with policy-driven markets rather than moretraditionalfundamentally-drivenmarketsandalthough thecentralbankingnarrativehasbeenreasonablyconsistent andcoordinateduptonow,therearesignsthatthismight bebreakingdown. It is no accident that everything from exchange rates to commoditypricestoglobaltradevolumes,becamemore volatileinq3of2014.thatwasthestartofmonetarypolicy divergence as the Federal Reserve (Fed) announced an outrighttighteningbiasandtheeuropeancentralbank(ecb) wentintheoppositedirectionwithbalancesheetexpansion andnegativerates. Monetarypolicydivergenceneedstobecarefullymonitored, asthereiscurrentlynoconsensusonhowfarpoliciescan separateorhowstrongthedollarcanget.economicstrategy couldbecomeincreasinglyboundtoeachnation sdomestic politicsandcentralbankco-operationcouldshifttowards competition. Whywouldthishappen?Duringperiodsofsignificantglobal debt,theimperativesofdomesticpoliticscouldpotentially come to dominate the logic of international economic co-operation. Fortunatelyforinvestors,centralbanksdonotwanttolet theirhomemarketssufferandtheprevailingviewisthat co-operationisessentialtoensurethataglobaleconomic recoveryeventuallyemerges.solongasthefed,ecband BankofJapanworkwithChinabytalkingdownthedollar (thereby limiting global flows out of non-dollar markets) regardlessofwhatishappeningintherealworldeconomy, thenwehaveaninvestablerallyinallriskassets.doesthis meanthatmarketvolatilitycanbeheldstable? Itwilltakeaself-sustainingrecoveryintheglobaleconomy tostimulateanewbullmarket.currently,wehaveafedthat loses its nerve whenever the stock market drops, so we expectastrongmedium-termmonetarypolicywillcontinue to underpin markets until a global recovery has time to emerge.howdoinvestorshandlethesechallengesandstay ahead of inflation, in a world of low-to-negative interest rates? Many international investors have significant amounts of theirwealthheldintraditionalassetssuchasequitiesand bonds, exposing them to the potential volatility and correlationofthosemarkets.understandingriskisnowas importantasseekingreturns.inordertotrulyminimiserisk (throughexposuretodifferentandnon-correlatedsources ofreturns),investorsneedtore-thinktheiroverallapproach toportfolioconstructionandconsiderriskdiversificationin conjunctionwithassetclassdiversification. alternatives Alternativeinvestmentoptionshavetraditionallybeenseen as illiquid, non-transparent and expensive to use within portfolioconstruction.investorsbelievedthatonlyhighnet Worth/institutionalinvestorshadaccesstothesetypesof instrumentsbutthisnolongerthecase. Thelandscapeforthesetypesofinstrumentshaschanged drasticallyandthereareactuallymanyinexpensive,liquid andlessvolatilealternativeinvestmentsavailabletoprivate investors. Thesearethetypesoftoolsthatshouldbeincludedinclient portfolios,inordertoachieve newdiversification.itisa strategywhichweshouldallbeadoptingtodampenvolatility andboostreturnsinourportfoliosduringtheseuncertain times. Inthefollowingchart,itisclearthataportfolioconstructed withtheinclusionofalternativeswouldhaveperformedwell againstotherinvestmenttypesandwithlessvolatility. Alternatives have the potential to smooth returns and volatility % Annualized return Standard deviation Maximum drawdown Source: Invesco. Portfolios represented by US instruments. Maximum Drawdown Definition: The largest peak-to-trough decline in the value of a portfolio (before a new peak is achieved) Equities Fixed income Traditional 60/40 portfolio Alternative portfolio %

5 5 At Ashburton Investments, we manage global Multi Asset Strategy (MAS) portfolios with a significant allocation to alternatives(approximately60%ofourportfolios).thisincludesaconsiderableallocationto realassets i.e.assetsthatare nominallyinflation-sensitive,suchasinfrastructure.wetargetinflation-beatingreturnswhilsttakingthelowestpossiblerisk atthelowestpossiblecost. MAS focusses on strategic asset allocation which is then enhanced and designed by us for an investor s specific requirements.thismethodbuildsonthetriedandtestedapproachusedbyusuniversityendowmentssuchasyale andharvard. Asubstantialelementofinvestorreturnsresultfromaccurateassetclassallocation.Toachievethis,wecarefullyanalyse theoptimalglobalstrategicassetallocationforaclient sinflation-plusbenchmarkinacurrencyoftheirchoosing.wethen leveragethepowerfulquantitativetechniquesusedwithinthefirstrandgroup,africa slargestfinancialservicescompany bymarketcapitalisation. Genuinediversificationisanessentialtoolforinvestorstocapturebroadmarketforceswhilereducinguncompensatedrisk associatedwithindividualsecuritiesorassetclasses.ourmasofferingprovidesinvestorswithadiversifiedportfolioin termsofgeography,assetclass,currencyandrisk. Ifyoufeelitistimetotakeyourfirststepdownthe newdiversification pathandembracethenewgenerationwayofwealth creationandpreservation,pleasecontactyourfinancialadvisertodiscussaccessingashbuton sinvestmentsolutions. Jonathan Sieff Senior Portfolio Manager S E R V I C E SECURITY SUPPORT

6 6 BrexitImplicationsforGuernsey WhilsttheUK sdecisiontoleavetheeuropeanunioncauses ripples (and some waves) around the World s equity and currency markets we thought we should address the question: What are the implications for Guernsey and GuernseybasedbusinesseslikeOTAP? Guernseyisanindependentself-governingjurisdictionwhich isneitheramemberoftheeuropeanunionnorpartofthe UK.GuernseyhasaveryhighrateofGDPpercapita,low unemploymentandverylowlevelsofdebt. Guernseyhasitsownparliament,lawsandformsitsown policyonmatterssuchastaxation,education,healthand immigration.mattersofdefenseandcertainforeignrelations arehandledbythebritishgovernment.financialservices relationshipsareensuredbytheisland sthirdcountrystatus, whichdoesnotchange. ThemostsignificantimpactfromtheUKexitwillbecurrency andmarketvolatilityforaperiodoftime.incommonwith previoussignificanteventsinworldmarketsweknowthat the extremes of volatility are caused by overreaction to uncertaintimes. Soinconclusion,aUKexitfromtheEuropeanUnionhaslittle immediateimplicationforfinancialservicesinguernseywith muchgreaterissuesmanifestingnowwithintheeuitselfas toitsfuture. Importantly all our products and services allow multi-currency holdings of investments and cash. Clientswishingtochangetheirbaseinvestmentcurrencycan dosoeasily. Brexit haslittlebearingonthestandingof Guernsey,ourcompanyortheproductsweoffer. FromthedatewhentheUKgivesnoticeofitsintentionto leave the EU there will be a 2-year negotiation period. PresidentoftheEuropeanCommissionJean-ClaudeJuncker saidofnegotiationsgoingforward:"wehopetohavetheuk asaclosepartneroftheeuropeanunioninfuture."

7 7 MeetRobertShipman We are delighted to announce the appointment of Rob Shipman as OTAP s new managingdirector. Robstartedon13thJuneandtogetherwiththemanagementteamheaimstodrivethe businessforwardonalllevels.robisideallyqualifiedandexperiencedtoleadthe companyinwhatpromisestobeanexcitingphaseofdevelopment.hehasexperience inbothpublicandprivatesectorsdrivingchange,increasingefficienciesandproviding afullrangeofsupportfunctions.heisafullmemberofstep,charteredmanagement InstituteandtheCharteredInstituteforSecuritiesandInvestments. RobwaspreviouslymanagingdirectoratSovereignTrustinGuernseyhavingpreviously beenresponsibleforproductandbusinessdevelopmentfromtheirgibraltaroffice. HehasalsobeenaDirectorofConceptGroupinGuernseywherehehelpedlaunchnew pensionproductsintonewmarkets. RobisalsoatrusteeofaCharityfortheKailoFoundationwhichprovideeducationon infectioncontrolinafrica.inhissparetimerobcanbefoundonthewaterinsummer andtheskislopesinwinter. WhatmakesGuernseyaPremier FinancialServiceCentre? The highest reputation and standards -Guernsey,along withjerseyandtheisleofman,werethefirstjurisdictionsto financiallyregulatefiduciarybusinessandarestillaleader inthissector.guernseyisalsoamemberofmoneyval,an associatememberofthefinancialactiontaskforce,and wasrecentlyvisitedin2014bymoneyvalwhereguernsey s legal framework and regulatory system was described as matureandcomprehensive. innovative legislation -Modernlegislationremainsadvanced through continuous improvement, allowing practitioners accesstothemostcomprehensiverangeofproductswhen offering client solutions. A new Trust Law was enacted in 2008,world-firstimagerightslegislationwasestablishedat theendof2012andtheguernseyfoundationwasintroduced inearly2013.anewcompanieslawwasintroducedin2008 andrevisionsaremadeasnecessarytoensureitremains appropriateforthecurrentbusinessworld. Competitive tax environment -Non-Guernseyincome(and Guernsey bank interest) accruing to trusts that have no GuernseybeneficiaryisnotsubjecttoGuernseyincometax andthereisazerorateforcorporateentities.thereisno withholdingtaxondividendspaid,nocapitalgainstax,no deathdutiesorinheritancetaxesandnovat. Pragmatic regulation - The Guernsey Financial Services Commission promotes a robust yet pragmatic regulatory regimeandisrenownedforbeingapproachable,accessible andopentonewideas. Conveniently located -GuernseyformspartoftheChannel Islands which are situated in the Bay of St Malo/English Channel/northwestCoastofFrance/EnglishChanneloffthe coastofnormandy/butarethesametimezoneastheuk. Highly developed business support infrastructure -Carrying out business in Guernsey is quick and easy because the Island has high quality infrastructure, including a newly upgradedfirstclasstelecommunicationsnetwork. Stability -ContinuitywithinGuernsey'sdemocraticgovernment offerspoliticalandeconomicstabilityandtherebyasafeand secureenvironmentonwhichbusinesscanrely. independence -Legislativeandfiscalindependenceallows theislandtorespondquicklytotheneedsofbusiness.

8 PointsofContact In order to deal with your enquiry efficiently please use the appropriate contact below. If you are unsure of which area you should be dealing with, please contact us on: +44 (0) Overseas Trust & Pension, 2nd Floor, Elizabeth House, Les Ruettes Brayes, St Peter Port, Guernsey, GY1 1EW. PRiVaTe CLienTS enquiries all enquiries or actions relating to existing individual plans or trusts need to be directed to our administration area using the details below. Thisincludesupgrades,valuations,loans,updating clientdetails,benefitpayments,distributions, withdrawalsetc Anyamendmentsorchangeofappointedadvisor arealsodealtwithinthisarea investment ReQUeSTS all requests relating to investments, including in-specie transfers, switches, purchases and sales need to be sent to the dealing area using the details below. Dealsreceivedbefore09:00amGuernseytime, onaworkingdayinguernsey,willbedealtwith thatdayotherwiseitwillbedealtwith onthenextguernseybusinessday applications and additional COnTRiBUTiOnS all new applications, and top-up s should be submitted to our new business area using the details below. applications@trustandpension.com CORPORaTe CLienTS all enquiries or actions relating to international Company Pensions, Local Company Pensions and Share Option Schemes should be sent to the below: operations@trustandpension.com Online TheOTAPwebsiteofferseasyaccesstoessential informationonourfirmandservices,includingforms, termsofbusiness,privateclientcashandinvestment policies. Clientsthatuseouronlinevaluationservicecanview theirplaninformationviaourclientareaaccessiblefrom thehomepage. Keepuptodatewithterms,conditionsandchargesin thedocumentssection. visit if you have any questions when accessing this service please contact us. Dowehaveyour current address? Please advise us as soon as possible with any changes to your personal or contact details including . Overseas Trust and Pension (OTAP) is the trading name of Overseas Trust and Pension Limited, Overseas Pensions and Benefits Limited and Overseas Pensions Administration Limited, (the Companies). The Companies are licensed by the Guernsey Financial Services Commission under the regulation of Fiduciaries, Administration Businesses and company Directors, etc (Bailiwick of Guernsey) law, Overseas Trust and Pension Limited and Overseas Pensions and Benefits Limited are registered in Guernsey numbers: and respectively. Their registered office is 2nd Floor, Elizabeth House, Les Ruettes Brayes, St Peter Port, Guernsey, GY1 1EW. Overseas Pensions Administration Limited is registered in Alderney number: 1427 and its registered office is Millennium House, Ollivier Street, St Anne, Alderney, GY9 3TD.