Collins Stewart Wealth Management and Pinsent Masons have become Official Partners to British Handball, and both the Great Britain (GB) men’s and women’s handball teams will carry the Collins Stewart Wealth Management and Pinsent Masons logos on their shirts in all competitions and training matches in the build-up to the Olympics.

In addition to the sponsorship, Collins Stewart Wealth Management has also launched an initiative, which will see the company donating £10.00 for every goal scored, by both the men’s and women’s teams in the run up to the Olympics in August, to a Fund designed to assist the players who are making big sacrifices, to compete on the global stage.

Since London was awarded the 2012 Olympic Games in 2005, British Handball has been focussed on building two teams to mount a competitive challenge to the handball competition which will be played at the specially created handball arena at the Olympic Park.

Neil Darke, Head of Collins Stewart Wealth Management commented: “Handball is an exciting and dynamic sport to watch, and has great potential to grow in popularity throughout this Olympic year. We look forward to working alongside Pinsent Masons and the talented team at British Handball, to support the athletes who work so hard to help raise the sport’s profile in the UK, particularly during this exciting year.”

“We were attracted to British Handball as an organisation as, despite the sport being relatively unknown, their approach to building the game’s familiarity chimed with us. We were also very pleased as an anchor partner, to help bring Pinsent Masons to the partnership. Like Collins Stewart Wealth Management, Pinsent Masons’ business is built around its clients, which has given us a shared vision when looking to get involved with a sports organisation.”

Trevor Watkins, Head of Sport and a Partner at Pinsent Masons, said: “The sports sector is a key part of our firm's business. We are delighted to take this opportunity to invest back into sport and make a real difference in doing so. It gives our staff across all of our offices a tremendous opportunity to be part of the GB Handball journey as the teams prepare for what will be one of the greatest sporting events in this country in our lifetime and to play their part by volunteering, supporting and helping to create a strong foundation for the sport beyond 2012."

Paul Goodwin, Chief Executive Officer at British Handball, commented: “We are thrilled that the sport has attracted two high profile, award-winning companies as major partners; it demonstrates that British Handball is in a strong position in the build-up to the Olympics and we look forward to working closely with Collins Stewart Wealth Management and Pinsent Masons throughout the year to further develop the popularity of the sport into the future.”

The sponsorship will give a major boost to British Handball’s plans to make handball more popular in Britain. Handball is already one of the fastest growing sports in the country following its inclusion in the Change 4 Life programme, which has seen the sport introduced in more than 400 schools across the country. As a result of this, handball has seen a six-fold increase in the number of young people being introduced to the sport.

Neil Darke, Chief Executive of CSWM commented, "We are very proud to receive this accolade not least because it was, in part, voted for by our clients. This is a great way to start the year and comes soon after being named Asset Manager of the Year and Best Advisory Stockbroker by Spear's and Shares Magazine respectively."

The Citywealth Offshore Awards have been established to highlight the excellence of the advisors and managers in the major offshore jurisdictions in what has been a period of extreme turbulence for clients. The awards were judged by an international panel of highly respected practitioners from all sectors with experience of working with advisors in all the jurisdictions covered. The winners were those judged to have excelled in achievement, innovation, expertise and service.

His wide-ranging experience has included working with a leading London broker and a year managing a bookmaker’s office. His varied career has also included running a retail and property company and setting up his own arbitrage business – experiences that he says have given an appreciation of ‘the bigger picture’ and help him relate better to clients.

Born in England, Robert moved to Jersey with his family when he was six and attended Victoria College where he showed an aptitude for maths. As further study at university didn’t appeal he applied to work for a betting chain in the Island, becoming their youngest relief manager at 18 and mastering the mysteries of fractional odds. He then spent a decade in retail management before an offer came to move to London and join ICAP on their South African bond desk.

Returning to Jersey nearly ten years ago he created and operated his own successful arbitrage business.

He has now picked up a new challenge and is delighted to be working for Collins Stewart under Head of Treasury Iain MacKenzie, who said: ‘The addition of Robert to the Treasury Team is of significant benefit as we continue to grow this important part of the CSWM business.’

‘We are a team of four on the front desk,’ added Robert, ‘so it’s a personalised service, linking in with our colleagues to allow clients access to most asset classes via one account.’

Robert is married to Sandy and has two stepchildren, Jessica (16) and Harry (14). He likes to travel and is a fan of most sports, particularly golf, table tennis and snooker, for which he represented the Island as a teenager.

Despite the challenging economic conditions the investment management and stockbroking business has seen significant growth in 2011, including, for the first time, winning an investment mandate from the Isle of Man government.

The local performance has contributed to strong group results. In a four month interim management statement to the end of October, parent company Collins Stewart Hawkpoint reported continued growth with current assets under management and administration of £7.8bn. The Isle of Man operation, one of the fastest growing units within the group, has been a key contributor to this growth and success.

And this positive news comes as Collins Stewart celebrates its 15th anniversary in the island.

The firm, which had been formed five years earlier in the Channel Islands, was first established in the Isle of Man in 1996, through the acquisition of Grieg Middleton, with offices on Auckland Terrace, Ramsey, and three members of staff, two of whom, Richard Bellwood and Chris Wilson, are still with the firm.

Five further employees joined the business in 2002 when the Douglas office of Tilney & Co was acquired and the two offices were merged in 2004. In 2006 Collins Stewart acquired the Insinger de Beaufort business on the island and with it came Dermott Hamill who took over as Head of Wealth Management. The company now employs 12 people, of which six are portfolio managers and four are dealers, managing the wealth of individuals both on the island and further afield.

Mr Hamill said: “It is incredible how far the team has come in 15 years. We are an award-winning investment management and stockbroking firm and this is down to our focus on traditional client services and delivering a highly personal service. The winning of a government mandate endorsed the strength and expertise of our local investment offering.

"As well as employing a highly qualified team we are constantly investing in the latest market information systems and dealing technology. As a result the business has grown and we have attracted new capital to the Isle of Man which we see as a vital part of our long term strategy.

"Importantly, we are part of one of the largest investment teams in the British Isles and a 700-strong team globally. We can draw on enormous strength in depth from the wider group. The Isle of Man has been good to Collins Stewart and we believe Collins Stewart is good for the Isle of Man."

This is the eighth Financial Times and Investor Chronicle Investment award that Collins Stewart Wealth Management has won; yet the first win in this particular category.

This recognition further acknowledges CSWM’s ongoing excellence in the private client stockbroking industry, having already been named Best Advisory Stockbroker by Shares Magazine for 2011 on top of winning Asset Manager of the Year for High-net Worth’s at the Spear’s Wealth Management Awards.

Positive net inflows during the period of £104m contributed to assets under management and administration of £7.8bn as at 31 October 2011.

Neil Darke, Head of CSWM commented, "Against the market backdrop our AUM have been particularly resilient which is testimony to our focus on providing quality service and advice for our clients. This focus was recently underscored by our clients who voted to help us win two important industry awards."

"As part of our ongoing commitment to client service we have also made some significant hires including a Head of Charities and a three person Advisory Stockbroking team from Barclays Wealth."

Neil Darke, Chief Executive of CSWM commented, "It is always pleasing to win awards, like the Shares Awards, that are decided by the most important group of voters – our clients."

Shares magazine, launched in September 1999, has become a leading weekly investment title for private investors in the UK, who are actively trading or investing on the UK equity market.

The Shares Awards, launched in 2001, are a major event in the private investor market. Now in its Tenth year the 2011 awards will continue to set standards for others to follow, providing the traders and investors a voice through which to clearly exclaim who are the best in the business.

The aim of the Shares awards is to recognise the innovative and high quality of service and products from companies in the world of retail investment.

The fifth Spear’s Wealth Management Awards, co-hosted by One Sandy Lane, Barbados, were held at Phillips de Pury in London. The awards - described as ‘the Oscars of the private banking world’ (Evening Standard) - celebrate high net worth individuals and wealth managers for their successes, innovations and acumen.

The award judges were looking for a firm that has demonstrated outstanding returns and services to High Net Worth clients in the UK, specialising in managing investable assets between £500,000 and £10 million. Attention was paid to factors including changes in client-facing head count, retention of top staff, changes in assets under management and investment performance, as well as client feedback.

CSWM based the submission on the recently re-branded 360° Service. The 360° Service provides effective wealth management for high net worth individuals and their families as well as for Trusts and Corporate Structures. This requires coordinated thinking and planning of the client’s financial affairs as well as the pulling together of the soft and hard facts around their current lifestyle goals, with the primary focus being on formulating an integrated wealth management strategy.

Will Lamond is one of only a small number of equity analysts operating in Jersey and as part of his new role within Collins Stewart’s local portfolio management team he uses his analytical skills to determine suitable stocks for investment.

‘At Collins Stewart, individuals in all areas of the business are involved in the decision making process, so investors in Jersey have the opportunity to speak to and meet the people that actually make the decisions,’ said Will (35).

He sits on the firm’s European and US Stock Selection Committee with colleagues from Guernsey, the Isle of Man, London and Geneva.

‘I very much enjoy analysing companies and valuing them because of the increased depth of knowledge it brings,’ he said. ‘I like to know them back to front.’

Will is currently specialising in the oil and gas sector, a market he describes as ‘fascinating’.

He previously worked for the Esplanade-based company for nearly ten years, initially as an equity analyst and assistant fund manager and then as part of a small team running a specialist European fund. It was his first full-time job after finishing university and marked a return to the Island where his family have always had strong connections.

Born in Hong Kong, Will attended boarding school in the UK and has sampled life around the world, including spells living in New York and London. His family also returned to Jersey for holidays, so as a youngster Will got to enjoy the delights of boogie boarding at St Ouen.

‘But it was my wife, Kirsty, who opened my eyes to Jersey as a place to stay,’ he said.

A knee injury has forced the once keen sportsman to restrict activities to golf these days, but he also enjoys collecting fine wine and has an interest in military history.

‘My family have a strong military background – in fact, I always wanted to join the army,’ added Will.

He added, however, that he is more than satisfied with the cut and thrust of the investment world and delighted to be back working with Collins Stewart Wealth Management.

Grahame Lovett, CEO of Collins Stewart Wealth Management Offshore, said: ‘We are delighted to welcome Will back to our team where his skill and experience in stock analysis will be a great asset.

‘His appointment underlines our commitment to providing a superior level of service to our clients and helps us maintain our position as one of the Channel Islands’ leading stockbrokers and portfolio managers.’

Mr Pickford obtained a first class honours degree in Economics from the University of Nottingham. He went on to join the graduate trainee scheme at Collins Stewart becoming their youngest Chartered Fellow of the Chartered Institute of Securities and Investment.

He appears on the list alongside young professionals from Sarasin and Partners, Ruffer, Coutts&Co and Morgan Stanley.

Charlie Roger, Head of Collins Stewart in Guernsey, was pleased to see Mr Pickford achieve the accolade.

“Rob has been impressing us since he joined the graduate trainee scheme and so it is no surprise that he should be recognised nationally. We are very proud of all he has achieved so far in his career, to be listed alongside peers from such well respected institutions is fantastic.”, he said.

In response to questions that made up part of his nomination, Mr Pickford identified Bonnie Tyler’s ‘Holding out for a Hero’ as the song that best represented current market conditions. He said that if he wasn’t in wealth management he would be a freeride skier. The questionnaire also gave him space to explain how much he values the client facing aspect of his role and why he had been drawn to Collins Stewart initially.

The questionnaire asked about his greatest professional achievement and his ambitions for the future.

“Professionally my key aim is to continue growing assets under management through strong performance and excellent client servicing. Longer term I would like to have a wider influence in the company though I would always wish to run at least some client portfolios and maintain involvement with investment markets,” he said.

The three, who have been at Barclays Wealth for 5, 6 and 7 years respectively, will join CSWM’s London advisory desk and report into Symon Hawken, Head of Wealth Management in London, who commented, “In welcoming Tony, Andrew and Turon to the firm and to the team, we look forward to significantly enhancing our ability to service our growing advisory client base.”

Neil Darke, Chief Executive of CSWM, commented:

“One of the recent industry themes is the growing demand for advisory services from clients who want to take a more active involvement in the management of their assets, so growing our capabilities is a natural next step."

“A strong advisory offering has long been a core element of CSWM’s client-centric proposition and we are pleased the team felt we offered a supportive and engaging environment for them and their clients.”

Reporting into Phil Simmonds, Head of Intermediary and Charity sales, Chris will assume the role of Head of Charities, working alongside Mike Robertson MC. He will be responsible for overseeing our two Common Investment Funds as well as growing our client base across the Charity sector.

Prior to joining CSWM, Chris spent over 17 years working in the Charity sector for BlackRock, formerly Merrill Lynch and Mercury Asset Management.

Phil Simmonds commented, “having someone of Chris’ experience to head up our charities team will help us focus our efforts within the sector. With our specialist CIFs and our experience in managing bespoke Discretionary Portfolios alongside our Cash Management capabilities, we are well placed to provide Charities with very specific solutions to their investment needs."

Collins Stewart Wealth Management’s advertising sponsorship of three London-style taxis will enable the scheme to continue to provide supervision for the late night taxi queues at the Weighbridge, ensuring that they are orderly and that queue-jumping and associated disorder are minimised.

Set up at the end of 2007, the Q-Safe scheme – developed by the Safer St Helier Community Partnership working closely with the Jersey Taxi Drivers Association, the Home Affairs Department and Transport & Technical Services – has been a great success. An evaluation carried out for Safer St Helier showed that both the taxi drivers and their passengers feel safer at the Weighbridge than they had before and that taxi drivers are now more likely to use the rank.

Official statistics from the States of Jersey Police (to September 2010) showed that they only had to deal with six assaults at the taxi rank during the first three years of the scheme compared to 19 during the previous three years. Public order and drunkenness reports around the rank have also been reduced.

Thanking Collins Stewart Wealth Management for helping to keep the taxi marshals in place, Colin Russell, Chair of the Safer St Helier Community Partnership, said the advertising sponsorship was great news.

‘We welcome this new partnership between ourselves and Collins Stewart Wealth Management,’ he said. ‘As a community group our concern is for the safety of people in St Helier and the Q-Safe Taxi Marshal Scheme meets that aim.

‘There can be little doubt that it has been hugely successful, not only in reducing anti-social behaviour but, perhaps more importantly, in improving the quality of life of those living, working and using the area.’

‘We are very pleased to support this important initiative,’ said Grahame Lovett, Chief Executive Officer of Collins Stewart Wealth Management Offshore. ‘It ensures that people can go out, have a good night and get home safely thanks to the taxi marshals patrolling the Weighbridge rank.’

Total assets under management and administration rose to £8.1bn as at 30 June 2011, an increase of 20% since 30 June 2010 and 3% since 31 December 2010. Net organic inflows in H1 2011 were £126m (H1 2010 £66m) of which £110m were Discretionary assets. A further £40m transferred into Discretionary Services internally, representing a total increase in Discretionary AUM of 16% from June 2010.

Revenues in H1 2011 rose 22% in aggregate, with 8% of the increase from core activities and the rest the impact of last year’s two acquisitions, which have now been fully integrated and rebranded. Profits rose 18% with margins affected by increased regulatory overhead and investment in infrastructure.

Neil Darke, Head of CSWM commented, “Following the rebrand and integration of the two businesses we acquired in 2010 the inflows are very satisfying, particularly across our discretionary services. Of particular note was our first significant public sector mandate win where our rigorous institutional-quality investment process was endorsed during a rigorous selection process.

“Coupled with buoyant transactional revenues and some major client wins for our Corporate Share Plan team, whose clients now number 20 Corporates, the first half of the year leaves us well positioned to achieve our goal of £10bn AUM by the end of 2012.”

With Pointon York’s sophisticated on-line capabilities this low-cost SIPP solution is designed to remove the administrative burden from the SIPP transfer market, whilst offering a range of seven risk-adjusted investment portfolios from CSWM. For all portfolios over £100,000 (subject to a minimum fee level), CSWM will rebate the annual fee - thereby providing a free SIPP for clients of intermediaries.

Phil Simmonds, Head of Intermediary Sales for CSWM commented, “teaming up with Pointon York to offer this free SIPP underlines our commitment to bringing our disciplined discretionary investment management services to our intermediary clients. With seven risk-adjusted portfolios and Pointon York’s excellent on-line account opening procedures, we expect this innovative product which provides a free SIPP to the underlying client, to be uppermost in the contemplation of all IFAs when considering SIPP transfers.”

Jo French, Managing Director of Pointon York said, “Our partnership with CSWM demonstrates the flexibility of our e-SIPP discretionary portfolio service. Pointon York is very passionate about working closely with preferred partners to ensure they have a business model that generates revenue post-RDR. We want to help the IFA community succeed and feel this is demonstrated through the alliance with CSWM. Our e-SIPP is a cost-effective technology enabled tax wrapper that can provide a direct client proposition for IFAs.”

Chris joins from Equiom Trust (IOM) where he was Business Development Director. Previously Chris was an Investment Director at Kleinwort Benson (Jersey). Rob joins from Towry Law where he was a Wealth Adviser and Jasper joins from Anglo Irish Bank where he was a Private Banker.

Neil Darke, Chief Executive of CSWM commented, “We are delighted to have recruited three high quality professionals in Chris, Rob and Jasper who will undoubtedly be tremendous assets to us as we look to expand the 360° Service team, following its successful rebranding and integration into Collins Stewart Wealth Management.”

The 360° Service is designed to provide clients with an all-encompassing approach to managing their wealth, backed by a long-term strategy tailored to personal lifestyle goals.

Bringing together a team of experienced planning and investment professionals the 360° Service aims to provide more clarity and control over personal finances and puts clients in the driving seat of their financial future and lifestyle.

Neil Darke, Chief Executive of CSWM said, “The rebrand has been communicated in advanced to our existing clients and coming a full year after the acquisition is an appropriate and symbolic date to end one chapter in the Andersen Charnley story and begin another.”

Full details are available at our website: www.collinsstewartwealth.com/360

The Collins Stewart Sterling Fixed Interest Fund is based on a central model created in 1998. Since this time it has returned 110% which equates to an annualised performance of 6% per annum. Lee Morris, a Senior Fixed Interest Investment Manager said, ‘This recognition is a great example of Collins Stewart’s local excellence and international expertise, and clearly differentiates us from our local competitors.”

Richard Pemberton, co-manager of the fund, explains, ‘The returns have been achieved with very low volatility. The central philosophy of the Fixed Interest Fund is to generate longer term value whilst preserving capital with a diversified portfolio of fixed interest instruments.’

Chris Huelin, Lead Manager and Head of Fixed Interest, explains, ‘The Collins Stewart Fixed Interest strategies are suited to investors who are seeking stability combined with income and capital protection. This is achieved through active portfolio management. The four star rating recognises our consistent approach of achieving solid returns coupled with minimum risk for over a decade”.

Huelin goes on to explain: ‘Our approach encompasses an international mindset. We utilise a measured exposure to global bonds and currencies alongside selected developed market issuers and alternative strategy funds. This allows us to maximise the returns available from an asset class that currently delivers relatively low yields’.

‘The fund structure allows investors of all sizes to participate in our successful strategy which is ideal for those seeking a local yet internationally recognised investment manager in Jersey. Our key achievement over the years has been vigilance in protecting the capital entrusted to us by our clients. This successful formula will enable us to provide consistent and stable returns in varying market conditions’.

The Manches Cup, now in its 21st year, is one of the leading social and sporting events in the legal world’s calendar. Now established as one of the largest sailing regattas in the country, it is open to all levels of entrant from within the legal industry, with the participants for 2011 coming from law firms across the UK and offshore jurisdictions.

Phil Simmonds, Solicitor and Head of Intermediary Sales for CSWM commented, "We are very excited to be participating in this long-standing event again and to be able to develop further our relationships with law firms. Following on from last year’s successful event we hope to see some exciting racing and a fun weekend."

The event, which is now in its 45th year, has been renamed the Collins Stewart Sark to Jersey as a result. It is the most prestigious race in the Channel Islands’ rowing calendar and has become a hotly-contested inter-insular.

The race organising committee, which is part of the Jersey Rowing Club, is delighted at the news. Tina Tidy, JRC Captain said: ‘This is excellent for the sport and for the Sark to Jersey tradition. We were concerned when our previous sponsor had to pull out last year but this new partnership means we are back on a firm footing. We aim to encourage more and more young people to take up the sport and try the race, which has become one of the great sporting challenges in the islands.’

Grahame Lovett, Chief Executive, Collins Stewart Wealth Management Offshore said: ‘Collins Stewart Wealth Management is delighted to be sponsoring the 2011 Sark to Jersey rowing race, an event that has truly become the Channel Islands’ “maritime muratti”.

‘The independent and forward-thinking approach that has enabled us to become an award winning investment manager and stockbroker is not dissimilar to that needed to win the Sark to Jersey Rowing Race – along with a little luck, of course! We wish all the competitors the very best of luck on the day and look forward to a great event combining rivalry on the water with friendship on the shore.’

The race takes place at 2pm on Saturday 30 July this year. Organisers are hoping that records might be broken if conditions are good because there is a large tide of 35 foot, which may give rowers extra help on their way from Sark.

• A 34% increase in assets under management and administration (AUM) to £7.9bn during 2010, boosted by the acquisitions of Corazon Capital and Andersen Charnley.
• A 59% increase in Discretionary AUM to £2.7bn during 2010.
• Net organic inflows of £354m, equating to an organic growth rate of 6.0%. There were inflows both from direct private clients and intermediaries, both in the UK and internationally, demonstrating the breadth of the business.
• An increase in revenues of 11% to £48.3m. Recurring revenues, including management fees, now account for 53% of overall revenues (up from 48% in 2009).
• An increase in underlying operating profit of 10% to £11.1m, an operating margin of 23.0%. The profit increase reflects a positive part-year contribution from both acquired businesses and a continued tight rein on controllable costs. However, profits were affected by the increased costs of regulation.
• The acquisition of Corazon has been largely integrated and the integration of Andersen Charnley is progressing well. Both acquisitions are expected to enhance earnings and shareholder value from 2011 onwards as planned.
• CSWM continued to receive external recognition of its independent, client-focused services, winning industry awards based on client votes for discretionary portfolio management and advisory stockbroking.

Neil Darke, Head of CSWM commented:

"2010 was a busy year for both CSWM and the wealth management industry. We expect 2011 to be no different, with many challenges and opportunities ahead. We look forward to making continued progress towards our strategic target of '10 by 12' – the achievement of £10bn of AUM by the end of 2012 – having grown assets from £5.9bn to £7.9bn in 2010."

"Our forward thinking approach to wealth management ideally positions us to take advantage of the opportunities that present themselves in the run up to the implementation of RDR. We will continue to provide the solutions and services that support intermediaries and their clients and is built around their needs."

London, Guernsey, Isle of Man, Jersey and Geneva – 4th January 2011:

Commenting on the outlook for the UK stockmarket, Ryan Harrison, Chairman of Stock Selection Committee at Collins Stewart Wealth Management commented:

The summer was a difficult period – a slowdown in macro growth momentum culminated in a very real prospect of a double dip. The market was quick to price this prospect. From mid September, the macro started to surprise on the upside and the market was quick to react too. That said various measures of market implied medium term growth are still very low indeed and clearly much value remains in the UK equity market in particular.

Our central case did not subscribe to the double dip theory, and, throughout 2010, we have taken a cautiously cyclical sector position in line with the prevailing loose monetary conditions. Our overweights in General Industrials, Basic Materials and Technology have delivered impressive market relative returns and we have been right to underweight the banking and real estate sectors.

As macroeconomic sentiment begins to edge higher once more, the outperformance of cyclical sectors relative to defensive areas of the market should also resume. Indeed, cyclical forward earnings revisions are already beginning to outpace defensive estimates. Moreover, despite a strong year, PE multiples based on forward earnings are far from overstretched.

The underweight to financials, and the banking sector in particular has been based on our pessimism for returns in the face of ever increasing regulation, deleveraging, and the cyclical pressures in real estate. Broadly speaking that position has been correct over the past few years, and those banks that have outperformed their sector have tended to be the under leveraged. Standard Chartered stands out in this regard, and has clearly outperformed the rest, largely because of its almost total exposure to Asia, which of course was well protected from the credit crunch. Elements of this story are now beginning to change, however. The cyclical pressures are beginning to ease, and the regulatory positions, although not yet concluded, are becoming clearer.

That may leave the way for a slight change in leadership within the bank sector, and an opportunity for HSBC. It is a relatively low‐leveraged institution, with a strong Asian focus, but with 55% of revenues sourced from Europe and the US. Given the relative underperformance next to Standard Chartered in 2010, we see plenty of room for catch‐up through 2011, but without the risks of a more precarious recovery story.

Experian may be another beneficiary of easier macro. It is a leading global information services company, helping businesses to manage credit risk, and prevent fraud amongst other things. Credit Services and Marketing are geared to a recovery in consumer lending and business confidence, and that may already be visible with organic revenue growth in the six months ended 30 September 2010 up 7%.

Our overweight in basic materials has largely centred on a positive view of the oil price, and the ability of the majors to key into that ‐ Shell seems to be the obvious way to play that theme in the UK. It has clear growth in Oil sands, US deepwater exploration and gas; and is growing cash flows such that the first three quarters of 2010, already nearly match the full year 2009 total. That all means that the dividend yield of 5% is well covered, and that the prospects for dividend growth are realistic.

Staying with the cyclical theme, WPP group, the largest company in the advertising sector, is of interest. Although UK listed, its revenues are truly global with just 12% coming from the UK. Its aggressive cost cutting programme is now starting to pay dividends, with its latest quarterly results recording a sharp rebound in profitability. WPP is a stock to watch through 2011 as the global economic recovery continues to mature.

London, Guernsey, Isle of Man, Jersey and Geneva – 20 December 2010:

Nigel Cuming, Chief Investment Officer, Collins Stewart Wealth Management, comments on his outlook for 2011:

• Very good chance that 2011, at least for the first half, will provide the third consecutive year of positive returns
• We remain positive in our outlook for risk assets, certainly in the first half of 2011
• Equities remain the most attractive asset class being relatively cheaply valued and to a certain extent still relatively unloved and under owned
• Real bond yields in most markets are not attractive and the inflation outlook in the West appears to be worsening

“We remain positive in our outlook for risk assets, certainly in the first half of 2011, feeling that equities remain the most attractive asset class being relatively cheaply valued and to a certain extent still relatively unloved and under owned. Increasing evidence of economic recovery could very well prompt more participants to climb on board the rally which we have enjoyed since March 2008 which may serve to push valuations well past fair value into an accelerating environment fuelled by liquidity. The resilience of equity markets over the last few weeks has been impressive. They showed no significant signs of weakness despite a news backdrop of soaring bond yields, EU contagion fears as the woes of Greece and Ireland looked as though they would embroil Spain and Italy and the uncertainty of North Korea. Such resilience is indicative of a fundamentally strong technical position and suggests higher levels in 2011.

The global economic backdrop should be supportive and growth next year should be well above its long term average of 3.25%. Asian and Emerging Markets will continue to lead the way and will account for well over half the world’s growth. China should continue to grow at a rate approaching double digits with India not far behind. The West, as expected will be considerably more subdued with the US managing 2.5% and the Eurozone 1.5%.

There has been rather too much growth in Asia, hence the recent Chinese measures to put the brakes on. Inflation in Asia is becoming a problem fuelled by rising commodity prices and higher labour costs and this is likely to persist for the foreseeable future. Although many commodities appear overbought, there is sufficient global demand to sustain the cyclical uptrend in prices. Appalling weather will continue to underpin wheat prices and food price inflation will continue to be a problem in 2011. Oil prices also look likely to rise and we expect to see US$100 per barrel next year. Inventories have fallen recently, notably in the US where cold weather has increased demand.

As regards the UK, we are of the view that 2011 may surprise to the upside. Firstly the currency has depreciated to levels at which it can be regarded as cheap. Sterling is likely to rally against the US Dollar where the determination in the US to continue quantitative easing should result in a weaker currency. We also expect Sterling to rally against the Euro where it is difficult to be anything but cautious in the short term as the EU struggles to manage the implications of a straightjacket currency which is destroying the weaker European nations. UK gilts would appear more attractively priced than their US or German counterparts and the size of the fiscal consolidation that the UK government is embarking upon has maintained the country’s AAA rated status and ensured the UK bond market benefits from the inevitable bouts of flights to safety.

UK Equities are also cheaply priced and are underpinned by the yield cushion they offer. Also many of the UK listed companies are well positioned to benefit from emerging market growth and hence offer stability of earnings. We regard it as a relatively easy decision to underweight bonds. We expect government bond yields to be significantly higher in the next year or two. In the immediate and short term, the bond markets are heavily oversold and may recoup some of the recent losses; a rout is not likely until central banks start raising interest rates. This we believe, is still some time off because in addition to fears of choking a recovery, Western central banks have something of a vested interest in tolerating inflation given the present levels of indebtedness in both the private and public sectors. For the last 35 years, central banks have regarded inflation as the biggest threat to the global financial system and bonds have been in a bull market. All market participants have a deep rooted belief that the authorities are committed to low inflation and that sovereign debt is an ultra safe place for investors. Recent events call both these views into question. We believe that the lows for yields are now history and that the sell that accompanied the recent Obama extension of the Bush tax cuts highlights mounting investor nervousness. Real bond yields in most markets are not attractive and the inflation outlook in the West appears to be worsening. Given our relatively optimistic view for growth in 2011, and a belief that bond yields have been driven to artificially low levels by the effects of quantitative easing, we are concerned that the authorities may struggle to control all the liquidity that has been injected into the system and inflation could start to get out of control. Clearly, this is not the ideal backdrop for bonds and this is before any consideration is given to the deep rooted, structural problems that will continue to unsettle global sentiment in the Euro zone peripheral debt markets.

In conclusion, we believe that there is a very good chance that 2011, at least for the first half, will provide the third consecutive year of positive returns. Indeed there is every possibility that we will see an acceleration in the equity bull market adjusting valuations from their present value to levels we might even deem expensive. Dangers obviously remain and investors have to accept that volatility is likely to remain very high for the foreseeable future. However by modestly overweighting equities and ensuring that the remainder of the portfolio offers a degree of diversification and protection we are confident that we are well positioned for most eventualities.

CSWM was named Best Discretionary Service at the Daily Telegraph Wealth Management Awards, at a ceremony at the Mansion House. This follows success in the same category last year and in 2007, meaning CSWM have triumphed in three of the four years since these awards were launched.

This was followed by being named Advisory Stockbroker of the Year at the annual Financial Times & Investors Chronicle Investment Awards dinner — for the third year in a row.

Neil Darke, Head of Collins Stewart Wealth Management; said:

"To win two awards in a week is very satisfying, but to win both awards in consecutive years is a tremendous achievement, of which we are very proud. We are particularly pleased to win these awards because they are decided by the most important group of voters — our clients.

"These two awards are testament to the broad range of services that we offer our clients and our unstinting focus on delivering a quality investment proposition without compromising the high level of service we aim to provide our clients."

Neil Darke, Head of Wealth Management commented:

"This increase represents both market movement and an increase in organic net inflows from a combination of our core Discretionary Portfolio Management proposition and some of our more recently launched services, such as the Corporate Executive and Employee Trading desk and the Bespoke Cash Management Service. The integration of our two recent acquisitions, Corazon Capital and Andersen Charnley, is also proceeding according to plan.

Our focus remains on growing the business both organically and inorganically with our medium-term target of "10 x 12", £10bn of assets by the end of 2012."

The bespoke service is aimed at both onshore and offshore investors such as private clients, trustees and other intermediaries, corporates, pension funds and charities and is tailored to individual requirements according to risk appetite, preferred yield, diversification and investment duration.

The service also offers the benefit of ease of administration with one account providing access to a panel of over 25 banking institutions providing the ability to tailor clients' cash investments according to their specific risk/return expectations. CSWM's Treasury team currently has £600 million of cash under management.

Iain MacKenzie, Head of CSWM's Treasury function, commented:

"Our approach is to view cash as an independent asset class that should be managed in the same way as other asset classes, i.e. through the application of the principles of diversification and viewing returns balanced against risks. This service aims to do exactly that and we've been very encouraged by our clients' response in this first year."

Neil Courtney, Jersey's representative on the Channel Islands Music Council, which organises the series, is 'absolutely delighted' that Collins Stewart are continuing their association with the series.

'We were so pleased when they stepped in. Their commitment has enabled us to plan and we are already working on the 2011 line-up.' he said, explaining that the inter-island concerts are 'quite difficult to arrange and often expensive'.

The World Music Series is described as 'a jewel in the crown' of the CIMC's programme. 'They are always among the best attended events,' said Mr Courtney, adding that the school workshops were sometimes over-subscribed.

This year's series of concerts, which is drawing to a close this week with performances by the Quebec band Le Vent du Nord, has also featured music and culture from Africa, South America and Cuba, delighting audiences of adults and children in Jersey and the other Channel Islands.

'It's been brilliant, as always,' said Mr Courtney, head of the Jersey Instrumental Service. 'We enjoyed a whole variety of music from across the world – a surfeit of riches.'

With lively performances and varied instruments – this year including panpipes, the hurdy-gurdy and the charango, a key string instrument in Andean music – the daytime concerts create a real buzz among the young audiences.

'If it is the first concert children have attended, the look on their faces is spellbinding,' said Mr Courtney.

The concerts also provide an opportunity to learn about the traditional music, history and culture of different countries. It is this combination of entertainment and education that appeals to Collins Stewart Wealth Management, whose global presence puts them in touch with people from around the world.

Grahame Lovett, chief executive of Collins Stewart Wealth Management Offshore, said that they were pleased to continue supporting an event that has become such a firm fixture on the islands’ musical calendars.

'It's a great opportunity for us to get involved with the island communities, both young and old,' he said, 'and the concerts also provide us with a very pleasant way of entertaining clients and associates.

'Making music is all about having fun and you only have to see the smiles on the faces of the youngsters at the school concerts to know that the World Music Series achieves exactly that.'

Patrick, previously of UBS, will focus on providing execution and advisory services primarily to Intermediary clients, while Anthony, who joins CSWM from Standard Bank Offshore, has joined the Stockbroking team to provide Fixed Interest trading services and advice. Both new joiners will report into Steve Glover, Head of Jersey Stockbroking for CSWM.

Grahame Lovett, CEO of CSWM Offshore said:
"We are delighted to welcome two high calibre recruits to our stockbroking team, where we continually strive to be at the forefront of investment advice and dealing. Bolstering the team underlines our commitment to providing a superior level of service to our clients and helps us maintain our position as one of the Channel Island’s leading stockbrokers and portfolio managers."

Previously of Kleinwort Benson (CI) Ltd, Murray spent the last 13 years with them and held positions of Head of Business Development, Head of Product Development and Senior Private Banker during his time there. Based in Jersey, he was responsible for growing the private client franchise as well as managing client portfolios.

Grahame Lovett, CEO of CSWM Offshore, said:
"We are delighted to welcome Murray to our growing team. We look forward to benefiting from his experience and industry contacts as we look to broaden the reach of our Portfolio Management, Stockbroking and specialist Cash Management capabilities to private clients, either directly, or via their trust and corporate vehicles."

• "Based on implied equity risk premia, UK equities today are cheaper than they were in March 2009 and represent the bargain of the decade"
• "despite ongoing economic uncertainty, the corporate sector is in rude health
• ... we should see earnings growth of 30%+ this year"
• "the tremendous growth in corporate earnings combined with ever thinner bond yields has seen equity risk premiums rise once again"
• "however, until some clarity is achieved in the economic outlook it is premature to switch wholesale into equities but it is clear to us that the markets are now entering a bottoming phase and that the next move is higher

"It is said that an economist is an expert who will know tomorrow why the things he predicted yesterday didn’t happen today. 2010 may have been a drab year so far for investment returns but it must be a record year for the column inches that economists have devoted to the global economic outlook. However, as yet, despite all the effort and hot air, it is hard to determine the exact outcome.

To read more view the PDF

Mr Sherwell has extensive business and board room experience, holding NED positions on a number of investment related companies offshore. In a wide-ranging career, Mr Sherwell has worked as a journalist for the Financial Times and spent time in London and Hong Kong as Far East Regional Strategist with Smith New Court Securities before joining Schroders in 1993.

Mr Sherwell became Managing Director of Schroders (CI) Limited in 2000 and after stepping down in 2004 continued as an NED until 2008. Mr Sherwell’s current NEDs include Chairmanship of Goldman Sachs Dynamic Opportunities Limited, a fund of hedge funds, and of Hermes Commodities Umbrella Fund Limited.

Mr Sherwell commented:
"I'm delighted to be joining the Board of Collins Stewart in the Channel Islands. CSWM has its roots locally and, through its recent acquisition of Corazon Capital in Guernsey, demonstrated its ambitions in wealth management and its commitment to the Island. I’m looking forward to working with the many talented professionals within the business."

Martin Bralsford, the offshore Chairman of CSCI, added:
Chris' appointment will significantly add to the depth of expertise currently held on the CSCI Board. His extensive knowledge of the industry and regulatory environment, both locally and internationally, will provide strong guidance and support in developing CSWM’s local governance structure and in implementing our strategy."

Sean has over 15 years of financial services industry experience and joins CSWM from Zurich Intermediary Group, the distribution arm of Zurich’s UK Life Business, where he has spent the last 12 years marketing to IFAs, banks and other intermediaries.

Phil Simmonds, Head of UK Intermediary Sales at CSWM commented,
"We are delighted to welcome Sean to our growing intermediary distribution team. We look forward to benefitting from his experience and industry contacts as we look to broaden the reach of our discretionary portfolio management, specialist IHT and other independent investment management services to UK IFAs."

• "The odds seem stacked against a double dip this time around"
• "This continues to be a remarkably normal recovery in an abnormal cycle"
• "Economic growth should continue, equities are cheap, corporate earnings are strong"
• "... and we perceive excellent opportunities in many markets"

It's been a busy ten days for central bankers, with a blizzard of press conferences and statements. Normally such matters would not merit much attention outside of the arcane world of economists but an interesting theme began to develop as the meetings unfolded: a note of caution on the global economic outlook. Until a couple of years ago, central bankers used to speak a language all of their own which required a codebook to decipher but today they speak clearly and, on occasions, are forthright. We've heard nothing quite so explicit for a while and so it is worth taking note of their words. In reality, they told us little that we didn't already know from observing the data. And anyway, central bankers have an even more rotten record of successfully predicting economic activity than private sector economists. But the mere fact that Ben Bernanke, the Fed Chairman, discussed a slowdown of growth and Mervyn King, Bank of England Governor, announced a downgrade to UK growth forecasts is significant.

Investors had already noted that economic growth was once again softening. With a few notable exceptions, such as Germany which is now benefiting from a weaker Euro, the softness has been evident across a broad range of global statistics. To be clear, this is a deceleration in the pace of growth, not an actual contraction in the economy. However, it has led to inevitable chatter about a "double dip" in global growth.

Having been firm believers in the reflation of the global economy since mid 2009, this change of tone has caused us to prick up our ears. It's not the first time we’ve heard such talk during this cycle – there were similar concerns as recently as January this year before economies reaccelerated, and the markets with them. This time though, there is clearer evidence that the pace of growth is slackening. However, the reality is that double-dips are pretty rare phenomena in economics, even though it is entirely usual for economies to have a mid term softening. This is usually a temporary wobble as the first stage of economic recovery wanes (that first phase being triggered by the initial stimuli and the rebuilding of stocks) and the second phase (of self-sustaining growth underpinned by business investment and employment gains) takes over. A double dip is usually only triggered when this hiatus is accompanied by an external shock (such as the oil crisis of the 1970s) which is sufficient to tip the economy back over the edge.

The odds seem stacked against a double dip this time around. Not only is there no external shock, the impressive recovery we've seen is based on the massive stimuli applied globally by governments and central banks and it is clear that these authorities to stand ready to apply yet further stimuli if required – witness the introduction by the Fed in recent days of what has been dubbed "QE-lite", whereby they will recycle the Quantitative Easing to date back into further bond purchases. Further, an element of softening right now is no surprise whatsoever because one of the most effective measures taken by governments in early 2009 was to seek to "front load" the recovery by subsidising consumers to buy new cars and houses. Those subsidies have recently expired and so, understandably, consumers are catching their breath.

"This continues to be a remarkably normal recovery in an abnormal cycle."
So at the risk of sounding like a scratched record, this continues to be a remarkably normal recovery in an abnormal cycle. Our central case remains that growth is entering the self sustaining phase, that policy actions will remain successful but that interest rates will have to remain low for a long time, reflecting the fragility of the Western capital markets. Against such an outlook, equities are becoming an increasingly cheap asset class both in an historical context and against the alternatives such as bonds.

"The reality is that the central case may remain the same but the risks, having once been skewed to the upside, are now more "symmetrical"."
But what if we’re wrong? Every double dip starts with a gentle slowdown. Perhaps this time it is not an "external shock" that triggers a second recession but the deep fiscal retrenchment that some governments, like that of the UK, are starting to implement. We are not so naïve as to dismiss recent economic evidence and the statements of the central banks. The reality is that the central case may remain the same but the risks, having once been skewed to the upside, are now more "symmetrical". Some people describe this in terms of a "fan of uncertainty". As you peer into the future there is always a range of possible outcomes, a range that inevitably widens into the future. In normal circumstances it is possible to predict a relatively narrow “outer band” of outcomes around your central case. But these are not normal times. For a while we have been faced with a fan of uncertainty that is wide (i.e. the possibility of fairly extreme positive and negative outcomes is uncomfortably high). Now, however, it is both widening further and has also become quite symmetrical to the downside versus the upside. This means that careful portfolio construction is more important than ever. The job of the investment manager is to take controlled risks, and generate return as a result. I’ve never known that to be an easy job, but it really is very tricky right now. This means that it is essential to fully understand where the risks lie in portfolios, to manage these stringently and to be properly diversified. Using a gambling analogy, one of the keys to our success has been to ensure that we "don't put all the chips on red" because if black turns up you're in trouble.

"Economic growth should continue, equities are cheap, corporate earnings are strong and we perceive excellent opportunities in many markets"
It might appear surprising then that we have not simply reduced equity risk in client portfolios in light of these evolving circumstances. The reason for this is simple - our central case remains exactly the same: economic growth should continue, equities are cheap, corporate earnings are strong and we perceive excellent opportunities in many markets. Rather, our response recently has been to bolster the most efficient portfolio counterweight: the fixed interest allocation. We have done this not by allocating additional monies to bonds but by reducing credit risk and tilting towards government bonds, so ensuring that we have sufficient fixed interest duration to give us “bang for our buck” if we need it. Our credit exposure has served us well over recent months and, we believe, offers less obvious value than outright equity risk. Therefore we’re in the pleasant position that it’s painless to reduce this exposure and in so doing, our portfolio construction is purer: taking risk where it is most efficiently expressed and ensuring an adequate counterbalance if we’re wrong.
The good news is that it should become fairly apparent fairly quickly whether this growing downside economic risk is real and sustained. So our approach is tactical rather than strategic. Having been nimble we should be in the enviable position of capturing upside whilst bolstering our defences. And whether we’re right or wrong in our central case, greater clarity should soon return and the widening fan of uncertainty should narrow once again. Whoever said that markets go quiet in the summer?

Neil Darke, Head of CSWM commented:

"Clive is experienced and well connected within the sports, media and entertainment sectors and we hope to be able to help his clients with their wealth management needs.

Our business objective of achieving £10bn by 2012 has seen us acquire two independent wealth management firms this year. The focus now shifts back to organic growth and we look forward to working with Clive in achieving our objectives."

Clive Richardson commented:

"I am excited to work with Collins Stewart Wealth Management whose dedication to independence, client service, an international perspective and offshore heritage will appeal to the entrepreneurial spirit that exists within the sectors – sports, media and entertainment – where I have experience."

In line with its stated strategy, CSWM announced the acquisitions of Corazon Capital and Andersen Charnley during the first six months of the year, adding £0.7bn of discretionary assets under management. It also added organic net inflows of £0.1bn of assets, which were focused in the lower end of the risk spectrum reflecting investors continued nervousness towards markets.

As at 30 June 2010, CSWM managed and administered £6.8bn of assets, of which £2.5bn was discretionary, up 47% since 30th June 2009.

Neil Darke, Head of Collins Stewart Wealth Management commented:

"We are delighted to have completed the acquisitions of both Corazon Capital and Andersen Charnley during the first half, which puts us on track to achieve our stated ambition of growing assets to £10bn by end 2012.

The integration of both businesses is proceeding well and continuing this process will be our primary focus in the second half together with renewed efforts on organic growth. To support our organic efforts, we have invested in and diverted resources towards our intermediary distribution efforts."

• Developments in the euro region have regrettably overshadowed what has remained a generally supportive macro-economic environment
• We continue to feel that there are many better investment opportunities than lending to the UK government for an extended period
• We remain firm believers in the Asian and emerging market growth story
• Investing in technology and healthcare are now alternative ways of capitalising on the superior growth profile of Asia
• Equity market valuations are not overly demanding at current levels
• We cannot rule out a re-test of recent stockmarket lows, before further gains are made and we do not believe that a broad "double-dip" recession is the most likely outcome

London, Guernsey, Isle of Man, Jersey and Geneva – 21st July 2010:

Commenting on the current global investment outlook, Nigel Cuming, Chief Investment Officer, at Collins Stewart Wealth Management, said:

They think it's (eur)over. Financial markets were undoubtedly driven by developments in the eurozone during the second quarter, as Greece’s precarious financial position became sufficiently untenable to finally prompt policymakers to intervene in an attempt to restore some form of order. The rescue packages only provided some short-lived relief. However attention quickly shifted to the concerns over the fragility of the European banking system. Ultimately, investors are not yet convinced that Greece will not default and fear that this could trigger broader contagion throughout the region. The total sovereign debt exposure to troubled borrowers by European banks is large in absolute terms, albeit relatively moderate in the context of the previous subprime meltdown. BCA estimate that, in a worst case scenario, losses at European banks could total $400bn, a sizeable sum, but considerably less than the c.$1 trillion cost of the whole 2008/2009 crisis.

A Greek default would have far wider repercussions for financial markets and the European region as a whole than would be fundamentally justified by its 2% contribution to European GDP. Some form of default or debt rescheduling does however seem inevitable, given that even if Greece does all that is required of it under the terms of the IMF program, gross debt to GDP is expected to rise from 115% in 2009, to 149% by 2012. Even then, one must be sceptical that it will be politically possible to implement the necessary austerity measures and we have grave doubts that the Greek government will succeed in avoiding default .Ultimately, we believe that the euro will survive and it is difficult to envisage how the Greeks (let alone Spain, Portugal and Italy) might engineer a withdrawal from the euro and the adoption of some form of "new Greek drachma" given that this would inevitably lead to a collapse of the Greek banking system.

Developments in the euro region have regrettably overshadowed what has remained a generally supportive macro-economic environment. Whilst in Europe the growth outlook was not particularly inspiring, even before the sovereign debt crisis erupted, conditions across the rest of the world continue to give little cause for concern. In terms of the former, the October 2009 World Economic Outlook produced by the IMF, forecast euro area growth of only 0.3% in 2010 and 1.3% in 2011. Whilst growth might be further negatively impacted by constraints within many of the "Club-Med" economies, the substantial decline in the value of the euro is providing an offsetting real and meaningful boost, especially to the export sensitive German economy.

Elsewhere, while some softer economic data releases have been issued of late, our central contention remains that this is likely no more than a moderation in the rate of expansion and this will ultimately allow the global economy to settle into a steadier, if somewhat slower, growth path. Certainly ISM reports in the US remain strong, household income growth is robust and consumer spending is supportive. Personal income levels in the US, minus government transfer payments (offsetting the positive effect which may have been provided simply through the government's attempts to directly support households), rose in April by the biggest margin since 2008.

Ultimately, sovereign debt concerns outweighed other supportive factors during the quarter with the consequence that most "risk assets" lost ground over the three month period as a whole. Fundamentally, we continue to find it extremely difficult to reconcile investors’ periodic risk aversion with a flight into UK government bonds, particularly given the UK's still parlous financial position. Nonetheless, such are investors' well rehearsed moves that nothing short of default will likely impact this correlation. However, we continue to feel that there are many better investment opportunities than lending to the UK government for an extended period.

We believe that China's pre-emptive and pro-active policy tightening measures, implemented in an attempt to cool the pace of expansion in one sector of a booming economy, is in reality an extremely positive development, given that it reduces both the possibility of an asset price bubble and the probability of more robust action having to be taken at a later date. However, market participants seem to have used these positive developments as an excuse to mark down prices.

We remain firm believers in the Asian and emerging market growth story, but similarly we must recognise that this is no longer as contrarian a position as it once was and particularly when we maintained this weighting at the beginning of 2009. It is entirely possible that there are now alternative ways of capitalising on the superior growth profile of Asia over and above purely maintaining a dedicated exposure to the region’s stockmarkets. Already our thoughts have turned to sectors such as technology, where our research would suggest that there is considerable pent-up demand for tech products. Also in terms of healthcare, having invested in this area in the past albeit for somewhat different reasons, we can also easily identify reasons why these stocks might also benefit from increased expenditure towards this area across the developing world. As a percentage of GDP, healthcare spending accounts for just 5% in China, but will clearly grow meaningfully as the healthcare insurance program is extended to cover 90% of the entire Chinese population by 2011, up from under 20% of urban employees in 2001.

Notwithstanding the short term volatility in share prices, we believe that the backdrop for stockmarket investment remains favourable. This confidence hinges on 3 key supporting factors. We have already touched on the first of these – continued economic expansion – and do not believe that a broad "double-dip" recession is the most likely outcome. Whilst the most dynamic phase of the expansion may have passed, there remains a palpable underlying strength to the global recovery which should support share prices moving forward.

The second and equally important factor is corporate earnings growth; companies have continued to positively surprise on the upside. Over 80% of US companies reporting first quarter results beat market expectations. Meanwhile, the US corporate sector is highly cash generative, which could support increased dividend payouts, share buybacks, M&A activity and further increases in the capital spending cycle.

Finally, it is unlikely that inflation will accelerate sharply in the near term, which will give central banks sufficient comfort in keeping interest rates at, or near, their current levels. In addition, monetary authorities will be aware that a significant level of fiscal retrenchment must take place across much of the western world in order to prevent public debt levels spiralling ever further out of control. Increased taxation and reduced government spending represent a real and appreciable fiscal drag and, as well as the deflationary impact that this will have, central banks will be wary of pushing interest rates too high too quickly lest this action induces a sharp growth slowdown.
In amalgamation, this combination of economic expansion, growth in corporate profitability and supportive liquidity, provides a powerful underpinning for equity prices and would argue for share prices moving higher over the remainder of the year.

As a consequence, we have not initiated a wholesale change in our investment strategy. Instead, we have looked to gently trim stocks, sectors and markets into strength, whilst continuing to try and identify areas and assets which have not yet moved to reflect the underlying fundamental reality.

The current market situation can be described as a case of "two steps forward, one step backward," as, we expect global growth to continue to recover, albeit at a slow pace. Equity market valuations are not overly demanding at current levels and our central contention remains that equity markets and the price of general risk assets will move higher over the remainder of this year. However, in the near term the European debt situation may continue to make its effects felt and we cannot rule out a re-test of recent stockmarket lows, before further gains are made. Over the much longer term there remains meaningful scope to generate positive returns and a satisfying number of investment opportunities at the current time.

Previously of Sun Life of Canada, Alasdair was responsible for introducing retirement income products to the IFA market. Prior to that, Alasdair has worked for Zurich and AMP NPI.

Phil Simmonds, Head of Intermediary Sales at Collins Stewart Wealth Management commented, "We are delighted Alasdair has joined us and look forward to introducing his industry contacts to our independent wealth management services."

Launched in October 2009, the fund is managed in Guernsey, by the same team who manage the Guernsey-domiciled Absolute Return Plus Fund, a fund of hedge funds, who apply their hedge fund due diligence expertise to the “newcits” universe of funds.

Andy Finch, Sales Director at CSFM commented, "we are delighted this fund has been rated by S&P, and especially pleased to be the first fund of its kind to be awarded a rating. Combined with the existing A rating for our Select Diversity Fund, this underlines our core strength as a multi-manager."

Guernsey-based Richard Hodgetts, the Fund Manager of the Alternative Strategies Fund said, "this endorsement from S&P is very satisfying and the fact that S&P highlighted the strength of our due diligence process, and particularly on the operational side, underlines the need for specialist fund selection skills when looking to invest in UCITS III absolute return funds. Using a fund of funds, managed by a team with Hedge Fund experience, can help steer investors and their advisers through the absolute return sector."

ACL is a well established, award-winning independent private client wealth manager offering both discretionary portfolio management and independent financial advice, with offices in London and Bagshot, Surrey. Focusing on the upper end of the high net worth market, its client base incorporates professional advisers and senior corporate executives. Its high-touch service proposition is based around a holistic approach to wealth management incorporating both discretionary portfolio management and financial planning.

Neil Darke, Head of CSWM, commented: "I am delighted to have completed this mutually beneficial acquisition. While ACL will provide us with critical mass and resource to our London business, with both the addition of significant discretionary assets under management and a one-off addition of a financial planning capability, Collins Stewart provides ACL with a significant enhancement to its back office, investment and corporate functional capabilities.
In addition, this deal takes our assets under management to £6.8bn, further highlighting our commitment to growing the business and achieving our stated goal of £10bn in assets under management by 2012."

Chris Wozniak, Chief Executive, Andersen Charnley, added: "When the business first discussed succession plans, various criteria were imposed upon the Board, including seeking a firm that would significantly add value to our existing proposition and would maintain that proposition for our clients. In Collins Stewart, we have been very impressed with the hands-on, practical and no nonsense approach and we firmly believe we have found the right partner to ensure that our clients continue to receive the high level of service they expect."

Collins Stewart plc was advised by its in-house Corporate Broking team and Andersen Charnley was advised by IMAS Corporate Advisers (www.imas-corporate.co.uk) who initiated the transaction.

The Collins Stewart Wealth Management Investment Conference will take place at the Old Government House Hotel on Tuesday 8 June.

There will be seven key speakers including an opening and closing address by Head of Guernsey Portfolio Management, Paul Meader.

The Investment Conference provides the opportunity to hear the latest investment views from some of the Channel Islands’ brightest commentators. Presentations will cover individual asset classes, the use of latest money management techniques and various approaches to investment risk.

Chief Investment Officer Nigel Cuming will explore the topic: 'A normal recovery in an abnormal world'. Nigel has been CIO of Collins Stewart for 3 years and is instrumental in driving the asset allocation within client portfolios.

Fixed interest manager Paul Philp will discuss: 'The Dangers of Investing Long Only in Bond Markets' whilst consultant Russell Wynn will demonstrate how our clients benefit from our sophisticated stock selection tool, Quest. Fund manager Richard Hodgetts will then discuss his latest thoughts on hedge funds and provide an insight into the complexities to consider when investing in this asset class.

Mark Piper, Chairman of the Fund Selection Committee, specialises in multi-manager investing and will focus on 'Fund selection and blending'. Finally, Global Strategist Robert Jukes will discuss portfolio risk, how we view it and how we manage it.

Head of Collins Stewart Wealth Management in Guernsey, Charlie Roger said, 'We have put together a range of speakers to provide an insight into the current investment views of our specialists across various asset classes. From the current income conundrum to the complex skill of hedge fund selection, this conference is designed to provide delegates with our latest thoughts on today's investment climate. In addition, we hope to give clients a look under the surface of the Channel Islands' largest wealth manager and demonstrate to the island’s investment community the depth of experience underpinning our portfolio management services.

The Collins Stewart Wealth Management Investment Conference will take place in The Regency Room at the Old Government House Hotel from 8.30am until 11.30am.

In one of the most innovative advertising campaigns at Guernsey Airport, two suspended boxes boast clocks displaying the times of five key financial centres across the globe: New York, Guernsey, Geneva, Hong Kong and Tokyo.

The two boxes, each approximately two metres long, are suspended from the ceiling in the main terminal, making them highly distinctive and a key area of Collins Stewart's brand awareness campaign.

The advertisements, which are illuminated and made of Perspex, were designed locally and built in the UK. Believed to be the first advertising installation at Guernsey Airport, they took five hours to install with the use of a cherry picker.

Head of Collins Stewart in Guernsey, Charlie Roger said 'Our wealth management roots are firmly entrenched in the Channel Islands, however, our investment resources and experience are global in nature. As the largest local wealth manager, Collins Stewart is ideally placed to provide clients with appropriate investment advice without compromising our dedication to traditional customer service values.

I'm very proud to be associated with this original advertising campaign, which, as well as demonstrating our innovative approach to everything we do, will also provide more prominence to the island’s financial services industry to Guernsey's international visitors.'

Collins Stewart Wealth Management also has significant advertising campaigns running at two of their other key offshore jurisdictions; the Isle of Man and Jersey.

The year has started satisfactorily. Total revenues in the first four months of 2010, at £63.6 million, were 12% ahead of the same period a year ago in spite of a fall in the value of the dollar. Revenues for businesses outside the US were 19% ahead.

In the US, dollar revenues were comparable to the same period last year, which is a marked improvement on the 2009 second half run-rate, and the business has made progress this year in line with expectations.

The Wealth Management division, which has the largest investment team in the Channel Islands, has started the year solidly and assets under management at 30 April 2010 were £6.7 billion, up from £5.9 billion at the end of 2009. The integration of Corazon Capital, which was acquired in March, is proceeding well and other wealth management acquisition opportunities are under review.

Hawkpoint – Collins Stewart's finance advisory arm which advises corporates, financial institutions, private equity houses, governments and quasi-governmental bodies on mergers and acquisitions, capital markets, debt and restructuring – has also had a good start to the year with 12 deals already announced, compared to five at the same stage last year.

Launched in March 2000 the Select Diversity and Select Affinity funds form part of the range of multi-manager, multi-asset funds, leveraging off Collins Stewart's long term expertise in fund selection. In addition the Select Opportunity Fund has just celebrated its ninth anniversary.

Collins Stewart's 10 strong multi manager team is one of the largest and most experienced fund selection teams in the UK. Its multi-manager and multi-asset approach was established in 1996 and is responsible for £1.1bn in discretionary Multi-manager assets.

Mark Piper, who has managed these funds since launch, commented:

'It's a significant milestone to have reached but we are most proud of the Funds' performance over this period. Both these funds have significantly out performed their benchmarks since launch thanks in part to our early use of alternative investments. We can also attribute our success to our open architecture fund selection process, only possible due to our independence and well defined investment process and methodology.'

As named fund manager, Mark has the final say over the funds, however, he runs the funds with co-manager Justin Oliver and is backed up by a 10-strong fund selection committee, which in turn takes direction from the firm's asset allocation committee.

Commenting on key investment themes, Mark Piper added:

'Our three key investment themes are healthcare, Japan and technology. The Japanese stock market is undeniably cheap on many valuation measures. Japanese equities have historically outperformed their global peers during the early stages of an economic recovery, even though the market has been in a secular downtrend. Furthermore, the Bank of Japan is likely to expand its balance sheet to target the strength of the yen and the deflationary pressures that it is exerting on the Japanese economy proving a boost to Japanese exporters

'Healthcare stocks trade at a steep discount to the rest of the defensive sectors largely due to the regulatory overhang, underscoring that a sizeable amount of policy risk has already been priced in and, thus, downside risks are limited.

'We still like the tech sector as few players in the technology sector are saddled with debt, thus tech profits were able to ride out the credit crunch. These companies continue to have the lowest debt/equity ratio of the ten S&P sectors with substantial cash on their balance sheets.'

Islanders of all ages will be moving to the beat of sounds influenced by Africa, the Andes, Quebec and Cuba thanks to continued sponsorship by the wealth management specialists.

Audiences in Guernsey, Alderney and Sark will be treated to unique sounds and visual performances unlike any other heard or seen before.

Bailiwick school children will be invited to special daytime performances as part of the programme, which is organised by the Channel Islands Music Council (CIMC).

The series begins in May with Rafiki Jazz playing ambitious contemporary world music featuring a mix of star international singers and music makers. This diverse family of African diaspora musicians is fronted by the fiery Swahili taarab singing of Zanzibari Real World recording artist Mim Suleiman and brings together influences from their individual origins and cultures.

Band members are from Gambia, Zimbabwe, Senegal and the UK and produce a rich colourful sound using a combination of iconic cultural instruments including kora, marimba, tabla, steel drums, atabaque and riti.

Rafiki Jazz will be playing at the Island Hall in Alderney on Monday 10 May, at St James in Guernsey on Tuesday 11 May and Sark's Island Hall on Wednesday 12 May.

Head of Collins Stewart Wealth Management in Guernsey, Charlie Roger, said there was no other event like the World Music Series in the Channel Islands.

'The reason the World Music Series is such a success each year is that it provides a chance for all ages to be involved in music from around the world.

'It is a pleasure to see the school children’s faces light up in the workshops with the performers and we believe this is a fantastic opportunity to bring education and entertainment together,' said Mr Roger.

The second act to perform in this year's series is a group who draw their inspiration from Cuba. Asere is seven young musicians who came together in the 1990s to create music with a contemporary edge and have developed a fresh sound with inventive song writing and a soulful groove.

From traditional son and guaguanco to salsa and the contemporary ballard Asere, renowned for their powerful live shows, have continued to experiment and evolve and are proof that the future of Cuban music is in very safe hands. The atmosphere created is pure downtown Havana, an expression of young urban Cuba.

Asere will perform at St James in Guernsey on Tuesday 8 June, Alderney on Wednesday 9 June at the Island Hall and Sark on Thursday 10 June at the Island Hall.

In the same month audiences across the Bailiwick will be treated to the South American sounds of Caliche taking listeners on a unique musical journey through Chile, Peru, Bolivia and Ecuador. Caliche has been promoting South American music and culture in Britain since 1986 and play instruments such as panpipes, flutes, charangos and mandolins.

Performances by Caliche, expressing the joys and sufferings of the campesinos of the Andes and the shanty-town dwellers of the great Latin American cities, will take place in Guernsey at St James on Monday 28 June, at the Island Hall in Alderney on Wednesday 30th June and in Sark at the Island Hall on Friday 2 July.

Last, but by no means least, quartet Le Vent Du Nord will be performing in the Bailiwick in October. The four talented singers and instrumentalists will be presenting their repertoire of music and French songs from Quebec. With their high-quality renditions the group have performed across Canada, in over 40 US states, and in over 15 European countries.

The group will go on stage at Alderney’s Island Hall on Tuesday 12 October, at St James on Wednesday 13 October and the Island Hall in Sark on Thursday 14 October.

Mervyn Grand, Head of the Schools Music Service and Channel Islands Music Council member, said: ‘It is really important that youngsters have the chance to experience music from different cultures as it not only provides them with the opportunity to appreciate different styles of music but different life styles too.'

'What is terrific about the way in which the Channel Islands Music Council organises the World Music Series is that children can come and experience it during the day and hopefully go home to their parents and encourage them to come and see the performers in the evening. We are very grateful to Collins Stewart Wealth Management because without their sponsorship this would not be possible,’ said Mr Grand.

The Manches Cup, now in its 20th year, is one of the leading social and sporting events in the legal world’s calendar. Now established as one of the largest sailing regattas in the country, it is open to all levels of entrant from within the legal industry, with the participants for 2010 coming from law firms across the UK and offshore jurisdictions.

Phil Simmonds, Solicitor and Head of Intermediary Sales for CSWM commented, "We are very excited to be participating in this long-standing event and to be able to develop further our relationships with law firms. We have entered two yachts into the regatta, one to represent our onshore business, the other offshore and we expect the racing will be competitive and fun."

For many these stellar returns were not without reason: the vivacious EM economic fundamentals stood in stark contrast to much of the developed world. Indeed the hammering taken by emerging market stocks through the credit crunch was much more about historic beta than fair value, and much of the price recovery last year was about beta too. That is unlikely to continue in 2010/11 and asset allocators will need to be more judicious in their country selection to accrue similar outperformance.

The EM leadership has now changed, and stock market fundamentals are now coming back to the fore. Year to date performance suggests that EM countries with the best earnings revisions are now most likely to outperform. In our eyes, the stand out markets in this cycle will likely be China, Malaysia and Chile. Not only do these markets thrive on staunch economic foundations, they have demonstrated either lower volatility and/or correlation with developed markets (China A shares only 4% correlation with S&P). Accessing these regions, therefore, requires a lower proportion of one’s risk budget relative to other EM and so makes them a natural selection for our efficient portfolios.

Stock market and economic fundamentals are much more than earnings expectations and EM countries with strong fundamentals typically have savings and current account surpluses. Indeed Asian current accounts are in rude health, giving their governments' unrivalled flexibility with which to build the capital stock, encourage their citizens to consume and increase both potential and coincident GDP (and corporate earnings). In the late 1990s, these nations’ savings were woefully insufficient to finance investment activities so that when foreign portfolio flows dried up, economic growth collapsed. Today couldn't be more different – at the end of 2009, Malaysia, China and Taiwan have current account surpluses of over 9% of their GDP.

Indeed the latest Chinese export data adds much weight to the argument that global trade is recovering. Although we wish to leverage this theme in our portfolios, our favoured emerging market picks plug into domestic demand stories that are even more compelling. As a nation develops, it should reduce its dependence on exports as income rises and the export share of GDP should cede to domestic consumption. Contrary to popular perception, China’s gross exports, calculated as a percentage of nominal GDP, average just 27% over the last ten years with a visible trade balance of just 4%. This compares to respective figures of 96% and 18% in Malaysia and 33% and 6% in Germany. Since 1990, China’s trade balance, on average, has contributed just 10% of total nominal GDP growth; in Germany trade contributes c.20%. In China, capital formation and the private consumption expenditure have been driving growth, with the former trending up in recent years. Remembering the mountain of household savings, this is great news, especially when we consider the surge in state welfare expenditure initiated last year as a way to encourage consumers to spend.

It's these kinds of fundamentals that attract us as investors to the China growth story, but if that weren't enough, investors may soon enjoy an added Asian currency kicker. China does not want to constrain growth by importing inflation but catalysing a transfer of wealth to the consumer would further cement its dominant position in the global economy, and ensure domestic demand. In the absence of an overwhelming competitive disadvantage, we suggest that appreciation is likely and, furthermore, a domino effect will occur throughout the region.

Paul Stone will be working mainly on the firm's fixed interest bond desk, executing orders and advising private clients, banks and trust companies on new issues and innovations in the market.

'These are interesting times, with concerns about the Pound, the UK election and a hung parliament,' said Paul, a dedicated follower of financial news and world events.

He sees his role as ensuring investors get the best return, whether their money is part of a trust company portfolio or a more modest nest egg, low bank interest rates having resulted in a greater demand for alternative investments.

Client liaison is an important part of the business and Paul and his colleagues are readily available to answer individual queries about the market, drawing on the considerable resources of Collins Stewart's London-based research department.

A Fellow Member of the Securities Institute, Paul has worked with a range of top financial houses in the Island, helping to build investment teams and deliver quality services. For the last three years he was investment advisor with HSBC Private Bank in Jersey.

However, were it not for the long hot summer of 1976 he might never have found his way into a successful career in finance. After leaving school in Bournemouth he was enjoying an interesting job as a stage director, touring at one time with the late Coronation Street star Pat Phoenix.

'My parents moved to Jersey – mum was a nurse – and they loved it here. I came over to visit and the summer of '76 was so unbelievable I didn't want to go back, so I moved straight into a bank, taking a big pay cut to do so!' he recalled.

He discovered a flair for dealing and developed this working with stockbroking firms in the Island, including James Capel where he was appointed as director. During the 1990s he helped to set up Greig Middleton, a private client business that was later acquired by the firm that subsequently became Collins Stewart.

Teamwork and a personal approach are both very important to Paul who said that the opportunity to be part of a close-knit office is one of the things that made him keen to join Collins Stewart.

Married to Anne, he is a father of four and relaxes by playing golf with friends, both at La Moye Golf Club and also on courses in France during the summer.

Corazon is an independent Guernsey-based investment manager with assets under management of £382m (£368m of which is discretionary). The intention is to integrate Corazon’s 16 staff across its two offices in Guernsey and Geneva into the Collins Stewart team, taking the number of investment professionals in CSWM’s Channel Island offices to more than 60.

Charlie Roger, Head of CSWM in Guernsey, commented,

"We have made clear that one of the ways in which we would further grow our business was through seeking out like-minded organisations to join our team.

"Corazon is a particularly good fit and we welcome their clients and staff to Collins Stewart. This acquisition bolsters our resources and assets in our Channel Island heartland, whilst also strengthening our presence in Geneva, and helping us to cement our position as the Channel Islands’ leading wealth manager."

Paul Meader, Chief Executive of Corazon, who has become Head of Guernsey Portfolio Management at CSWM, added,

"I firmly believe that by partnering with Collins Stewart Wealth Management we can offer our clients greater opportunities and enhanced service levels. The commonalities between our businesses have always been in evidence and my colleagues and I are looking forward to joining the team at CSWM."

CSWM also released their annual results today. Net inflows for the year of over £330m represented strong organic growth of 6.8% with assets under management and administration climbing to £5.9bn.

Charlie Roger commented, "We set out to grow the business via a three-pronged approach: organic, recruitment and acquisition and I’m delighted that all three approaches have led to such a strong set of results for our Wealth Management business."

Robert Jukes, Global Strategist at CSWM said, "While we remain bullish on the global recovery, we do not see a sustainable push in core inflation necessitating premature interest rate rises for the remainder of this year."

As with CPI inflation, asset prices (e.g. House prices, Oil) are determined by more than just interest rates. Other forms of monetary stimulus are also important – such as exchange rates.  There are three key points to note: 1) both the level of interest rates and the value of the currency usually fall during a recession, in order to stimulate growth; 2) interest rates may have fallen to historic lows, but they have fallen by less than they did during the last recession; 3) at no other time during the last 30 years have interest rates and Sterling been so far below the average together.

Robert Jukes, continued, "This last point is very important, as interest rates and exchange rates together form the basis of what many economists call monetary conditions and we believe these conditions are, relative to historical levels, extremely loose. Loose conditions not only stimulate prospective growth, they also fuel risk assets; specifically cyclical rather than defensive stocks and small as opposed to large stocks.

"So while interest rates remain low, we suggest that the medium term goal for clients should be to sell risk premia and buy risk assets."

This deal is the largest sponsorship arrangement secured by Jersey Airport and reflects the growing commercial drive of a management team determined to invest in new route networks and improved services.

"This deal helps us cement our position as a leading Wealth Management business in the Channel Islands and gives more prominence to the island's financial services industry to our international visitors," said Grahame Lovett, CEO of CSWM's Offshore business.

Chris, who will report into Symon Hawken, Head of Wealth Management for CSWM in London, had responsibility for the management of over £450m on behalf of private clients, across multiple asset classes.  Chris had been at Gerrard (now part of Barclays Wealth) since 1986, where he was a senior investment manager and Divisional Director.  During his time at Barclays, he also worked as the product specialist in Private Equity.

"We are very excited to welcome Chris as a senior member of our team in London.  His 23 years of industry experience and network will be hugely beneficial to us as we seek to develop our private client business further," commented Symon Hawken.

Chris stated: "As an award winning wealth manager, I am delighted to be joining Collins Stewart Wealth Management. With their unrivalled dedication to traditional client servicing coupled with the latest money management techniques, I am looking forward to delivering outstanding client experience and contributing to the long term success of the business."

Despite a number of leading commentators declaring an end to the Alternative Investment Market (‘AIM’) following the significant decline in 2008, AIM has delivered impressive returns over the past 12 months; the AIM Index increased by 66% in 2009, significantly outperforming the FTSE 100, making it one of the best performing markets in Europe.

The recovery in 2009 was driven by an improvement in sentiment following a return to global growth and recognition that smaller companies typically have a higher degree of operational gearing. Added to this was the increase in secondary fundraisings and corporate activity prompting investors to ask the question, has it gone too far too quickly?

The answer, according to Paul Parker, manager of the CSWM Inheritance Tax Mitigation Service, appears to be no:

"The AIM Index is trading at 50% of the July 2007 peak and when an index halves it needs to increase by 100% simply to return to the initial value. We have seen the ‘dash for trash’ just after the turn in the market where highly financially and operationally geared companies benefited from an increased appetite for risk. The second half of 2009 saw good quality companies, whose share prices were unfairly affected in the panic to exit small cap stocks, benefit from an increased appetite for risk.  Companies such as May Gurney, James Halstead, Nichols and Albemarle & Bond have made significant progress since their recent lows as they continued to produce record turnover and profits. Cash generation remains key, with a focus on continued progressive dividends. Although these companies have seen their share prices recover, they still remain off their peaks and should have further to go when you factor in their leading market positions, track records and solid balance sheets."

In the US, the private sector investment in equipment and software as a percentage of GDP is at an all time low. As shown below (Figure 1), investment throughout the boom years of the last cycle was considerably lower than the expenditure during the preceding one. Indeed, many companies overspent on IT in the late 1990s and much of the resultant hardware and software is still incumbent and nearing obsolescence.

Richard joins Collins Stewart from Credit Suisse where he worked with Michael Smith, who heads up the CEET desk for Collins Stewart.

The CEET desk services include:

• Custody, monitoring and execution of tradeable and restricted shares and stock options
• Comprehensive capabilities including: multi-currency dealing, electronic trading, warehousing, cross- border transactions
• Spousal Transfers
• Access to CSWM’s Financial Planning, Portfolio Management and Advisory Stockbroking services

Neil Darke, Head of Collins Stewart Wealth Management; said:

"We are delighted to welcome Richard to Collins Stewart, where he joins his former colleague Michael Smith on our new Corporate Executive and Employee Trading (CEET) broking desk.

"Our fiduciary and corporate clients have significant needs for specialist brokerage solutions on employee-related share trading issues which we hope our award-winning customer service and execution can help them with."

• Global Investment Review and Outlook – Q1 views for 2010.
• Bonds – A cautious strategy entering 2010.
• Risk: Exposure to the chance of...efficient portfolio development.
• Progress through technology: A new capex cycle, long overdue.
• The Chinese A-share market: Sweet or sour?
• Collins Stewart Select Opportunity: An opportunity not to be missed...
• Plus many more articles.

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