http://www.barristermagazine.com/Lifestyle%20supplement%202009 by Barrister Magazine

the barrister

LifeStyle Supplement 2009

A First Class Service

By Gerry Callaghan, Sales & Marketing Director Aon Limited

4 6

Glorious Goodwood

By Rob Widdows

The Jamaica Experience By Linda Hudson

London Clubs - Bleasure is the new buzz word in travel By Shelley-Anne Claircourt

Making best use of the tax concessions applied to savings

By Anne Gregory-Jones

Living off capital: understanding drawdown By Stuart Fowler

Passing it on while the going is rough

By Peter Scott and Clare Savory

A Guide: Investing in Traded Life Policies

By Jeremy Leach, MD, Managing Partners Limited

Financial and tax planning tips in the current climate

Mike Fosberry and Frank Akers-Douglas

10 12

The ‘Me’ Generation

Sailing with a Gulet in Croatia

Handel House Museum: Handel’s Legacy250th Anniversary Year

Escape the rat race

Sweeping between the traditional gateposts and rounding the corner

Safari Styles

Michael Amherst and David Maddock

16 By Tom Owen

By Claire Barton

By In2Sail Ltd

By Emma Holifield, Indigo PR

By Cleopatra Gichuki

Life style Editor: Nicholas Jones Assistant Editor: Linda Hudson

A first class service… A first class service is one of the most important things that a company can offer you. To know that your needs are being taken care of, without hassle, is something that sets apart the business that you want to deal with from those that you do not. This is because your time is important and you want to spend it enjoying your lifestyle. Whilst arranging insurance to protect your assets is necessary, it should not take away from the time you spend experiencing them. That is why Aon offer you a dedicated Client Manager, who will understand your needs, manage your insurance portfolio and has a wealth of experience in the high net worth insurance market. Your Client Manager could offer you an insurance portfolio that covers:

Home and overseas property insurance Whether you own a summer retreat in the south of France or a ski lodge in the Swiss Alps, it’s important to take care of your overseas property needs with an experienced broker who speaks your language. Insuring a property overseas and its contents is rarely as straightforward as arranging cover for your UK home, and often involves language barriers, local legislation, different currencies and large distances. All these issues and more can make it hard to be sure that you’ve got all the cover you need. So whether your home is in the UK or abroad, we could offer you an insurance policy that gives you the cover that you need.

Specialist motor insurance As a specialist car owner you already recognise that quality, design and handling are what matters when choosing your car. At Aon, we believe you should expect the same from your chosen insurance provider. Our extensive experience in providing specialised car insurance means we understand your passion and appreciate your needs. So whether you own a high performance vehicle, a classic or vintage car, a family fleet or even a car collection, we’ll work together to arrange a solution that’s right for you.

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Yacht and motorboat insurance Aon offers specialist insurance for private clients looking to protect their yacht, motorboat or pleasure craft. Owning a yacht or motorboat gives you an enormous amount of freedom, and we want to help you make sure that nothing gets in the way of your adventures. Having the right insurance will allow you to explore, confident that you’re properly covered. This policy could include cover for a wide range of situations, such as loss or damage to your vessel and personal possessions, public and employers’ liability and personal accident cover. We’ll tailor a policy that’s right for you and your vessel, so you’ll have the cover that you need.

And more… We could also offer you solutions for your travel insurance requirements, fine art, antiques, jewellery and collectables. By placing your personal insurance with Aon you will have one point of contact should you have any questions about your policies. Aon has a global presence, giving us the strength to get you the best possible deal. We use our size to access a panel of high net worth insurers, ensuring that you get the cover that is right for you. Want to take your car across to Europe for a weekend break? How about flying to an exotic location for a surprise family holiday? Maybe you would like to start renting out your overseas property early in the season when you rarely use it? A quick call to your Client Manager could offer you an insurance solution for your situation. If you believe that service really is the most important part of doing business, deal with someone who shares your view. To find out what we can do for you call us today on 0845 671 1069. Aon Limited is authorised and regulated by the Financial Services Authority in respect of insurance mediation only. Aon Limited’s FSA number is 310451. Aon Limited, 8 Devonshire Square, London EC2M 4PL. Registered in London no. 210725. Telephone calls may be monitored and recorded. FP5452-BARADV-0209

Discerning. Insurance: from your property portfolio to your fine wine collection Aon’s exclusive Private Clients division offers tailored insurance solutions to match your personal lifestyle. So whether you enjoy a collection of fine wines, have homes in the UK or abroad or own a prized classic car, your dedicated Client Manager will look after your insurance needs. What’s more, Aon’s unrivalled resources as the world’s largest insurance broker allows us to use our global coverage and negotiating power to deliver the best policy for you. For more information call the Aon Private Clients on

0845 671 1069 or for more information visit

www.privateclients.aon.co.uk

Aon Limited is authorised and regulated by the Financial Services Authority in respect of insurance mediation activities only. Registered office: Aon Limited, 8 Devonshire Square, London, EC2M 4PL. Telephone calls may be monitored and recorded for training purposes. No. 1 global insurance broker by brokerage revenues for 2006 and 2007 (Best’s Insurance News, March 2007; July 2008) FP 5458-BAR-0209

Financial and tax planning tips in the current climate Mike Fosberry and Frank Akers-Douglas of Smith & Williamson provide a round-up of practical investment and tax planning ideas Given the dramatic falls in share and property values and interest rates, it is difficult to find a safe and acceptable home for your money. We highlight below some possible investment options and combine this with timely tax and financial planning tips in these uncertain times. Corporate bonds

These are effectively loans to a company on which a fixed rate of interest is paid, with the original investment returned on a set date. How much income the bond pays depends largely on the strength of the company. While we can expect default levels to rise, investors can secure high rates of interest. Many investment grade bonds are paying a yield (interest) of 7% or more, which clearly compares well with current bank interest rates although they do of course carry more risk. These rates are also much higher than those available from government bonds and if the yield differential should narrow there is also the possibility of capital appreciation.

Government securities (gilts)

These bonds are a way of ‘lending’ money to the government in return for a fixed rate of interest over a set period. This type of investment is intended to provide a regular, reliable income. At present, these offer reasonable value with yields of circa 4% on 10 year UK Government bonds.

Index linked Gilts

These are also worth looking at. Assuming that the government pursues its policy of quantitative easing, this will lead to an increase in the money supply which normally results in a rise in inflation – although this is unlikely to occur before the latter part of 2010 as it will take some time for current deflationary pressures to work through. While there is no immediate rush to get into these type of bonds, they are something to consider because markets look 12 – 18 months ahead and prices move accordingly. Both capital and income are index linked. Gains on Government bonds are free from capital gains tax (CGT).

Structured products

These can provide capital security and so they will be popular with investors who are seeking equity style returns whilst protecting the downside risk. However, the key issue surrounding these products is counter-party risk since they typically run for four to five years or more. Investors must therefore be happy that the underwriting institution provides capital security and that it will be able to meet its future obligations. Some structured products link returns to the FTSE’s total return index (which includes dividend income thereby helping to give a better return). These are complex products and professional advice is essential.

Pension planning Pension investment is highly tax efficient for higher earners since for every £60 put in, the government adds £40. The maximum contribution

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on which tax relief is available is the lower of your earnings or the annual allowance of £235,000*. Depending upon your circumstances, it can be possible to use two annual allowances in one year. Furthermore, anyone approaching retirement should be aware that in the year when they start to draw their pension benefits, tax relievable contributions are only limited by earnings. Pension contributions of up to £3,600 (gross) in each tax year can also be made on behalf of a non-earning spouse, children or grandchildren, representing a useful way to make tax-efficient investments on their behalf. Barristers in chambers could also consider setting up a practice SIPP whereby their pension investments are combined with other members of their chambers. These arrangements are very flexible and allow investment in commercial property - including the chamber’s own office. As tax relief of up to 40% is allowed on contributions this potentially makes it a highly efficient means to acquire office accommodation, not least since property prices are currently relatively low. Moreover, if property is bought, the fund can obtain a loan of up to 50% of its value. Groups need a minimum of £200,000 to set up a practice SIPP, with a minimum contribution of £3,000 per member * The current Statutory Lifetime Allowance on pension investment rises to £1.75m in 2009/10, and to £1.8m in 2010/11, remaining at this level until 2015/16.

Tax efficient products Remember that some National Savings products generate tax-free returns so that they are attractive particularly for higher rate taxpayers and that investments in ISAs are tax free. The annual £7,200 ISA subscription can be invested wholly into stocks and shares, with a maximum of £3,600 invested in cash. A cash ISA could also be considered for children aged over 16 years. It’s worth bearing in mind that ISAs can, if appropriate, be passed to other members of the family, unlike traditional pensions. Similarly funds can be cashed in at any time, making them very flexible investments. For those with larger sums to invest and who are prepared to consider a higher element of risk, enterprise investment schemes (EISs) and venture capital trusts (VCTs) provide an option. Typically involving investment of sums in excess of £20,000 these products offer the potential for capital growth. EISs and VCTs offer the potential to defer a CGT charge or to benefit from income tax relief. The ability to defer CGT could be extremely valuable for those who have suffered CGT at a rate of up to 40% on a gain realised in the last three years, as by investing in an EIS this gain can be brought into the 18% tax regime.

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Enterprise Investment Schemes offer 20% income tax relief on investments of up to £500,000. Inheritance tax (IHT) protection is triggered after two years and there is unlimited CGT deferral.

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Venture Capital Trusts provide 30% income tax relief on investments up to £200,000, dividends can be paid tax-free and there is no CGT on sale providing the investment is held for five years.

Estate planning : taking advantage of the downturn With property and stock market values severely depressed, there may be

a distinctive

choice

Distinctive range of wealth management services for legal professionals and their clients Smith & Williamson has been looking after the financial affairs of private clients, their families and business interests for more than a century. Our specialist private client team provides fully co-ordinated tax, trust, investment management, pensions and personal financial services. These services include: • • • • • •

Long-term tax planning Tax-efficient investments Creation, administration and winding up of trusts Personal financial planning and pensions, including SIPPs Discretionary and advisory investment services – £7.8 billion of funds under management and advice* Private banking

For further information contact:

Personal tax & trusts Frank Akers-Douglas 020 7131 4232 frank.akers-douglas@smith.williamson.co.uk

Investment & banking David Cobb 020 7131 4681 david.cobb@smith.williamson.co.uk

Personal financial planning Mike Fosberry 020 7131 4250 mike.fosberry@smith.williamson.co.uk

www.smith.williamson.co.uk Offices: London, Belfast, Birmingham, Bristol, Dublin, Glasgow, Guildford, Maidstone, North London, Salisbury, Southampton and Worcester Smith & Williamson Limited • Smith & Williamson Investment Management Limited • Smith & Williamson Financial Services Limited *as at 31/10/08

accountancy

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financial services

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investment

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private banking

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tax

opportunities for more tax-efficient estate planning than a year or two ago. If an individual is considering gifting assets to the next generation, then this may be a good time as IHT liabilities can potentially be reduced by gifting say, an investment property or shares at their current values. A capital gains charge may be still triggered, but it is likely to be significantly less than if it had been made a couple of years ago. Clearly, each person’s situation is different, but this may be one area where the cloud of economic uncertainty has a silver lining.

Second or holiday homes

Faced with falling house prices and rising household bills, people with a second home may consider selling their property to release a cash lump sum and reduce outgoings. Although individuals and married couples (or civil partners) can only have one main home at any time for the purposes of the principal private residence (PPR) exemption, gains attributable to the last three years of ownership are ignored if the property has been the main residence at any time during ownership. So if you have a second home be sure to nominate one of your properties as your PPR – if you don’t the taxman decides for you. It can be possible to claim this relief for both properties by making an election stating that one of the properties is the main one and subsequently nominating the other property. HMRC’s own CGT manual states that you can switch the election from one property to the other after just one week thereby securing the three year exemption on both properties. The ‘election’ process simply means writing to the taxman stating which property is your main home. The nomination can be backdated by up to two years and even made after one of the properties has been sold.

Investment techniques Pound cost averaging is an investment approach which means that money is invested at regular intervals rather than as an occasional lump sum. So, if shares are being bought, more can be acquired when prices are low, and similarly fewer are bought when prices are high. It is generally accepted that investors are better off using this approach in falling or volatile markets, such as we are facing today. Suppose you invest £1000 into equities each month and the market swings down every other month. On each downturn you get more shares or units for your £1000, which would be worth yet more on each upturn. In a bear market, pound cost averaging means you can build up an investment which can then benefit from a recovery without having to worry about finding the bottom of the market which is of course impossible to predict! Asset allocation refers to the spread of investment across different types of assets (eg stocks, bonds, property, commodities or collectibles). All too often, people are concerned about which specific fund or stock to invest in, but arguably they should be more focused on a good mix of investments. While one property fund, for example, may perform better than others, all funds in the sector are likely to rise and fall in response to external events. For that reason, rather than concentrating on picking

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the ‘best’ (which is very difficult to do) it’s better to aim for a satisfactory range of investments which gives exposure to a broad set of assets. Put simply, avoid putting all your eggs in one basket. Investment studies have determined that the major driver of investment performance is asset allocation rather than stock or fund selection.

Smith & Williamson runs seminars on the Practice SIPP and other tax and financial planning topics. For details contact kate.harrison@smith. williamson.co.uk or Tel 020 7131 4228

For further information: Mike Fosberry and Frank Akers-Douglas are both directors at Smith & Williamson and are part of the firm’s multi-disciplinary Family Office service. The firm provides a broad range of services including investment management, financial advisory services, tax, private banking and accountancy to private clients, professional practices, companies and nonprofit organisations. Mike.fosberry@smith.williamson.co.uk Tel. 020 7131 4250 Frank Akers-Douglas Frank.akers-douglas@smith.williamson.co.uk Tel 020 7131 4232

www.smith.williamson.co.uk Smith & Williamson Limited

Regulated by the Institute of Chartered Accountants in England and Wales for a range of investment business activities. A member of Nexia International Smith & Williamson Financial Services Limited Authorised and regulated by the Financial Services Authority Smith & Williamson Personal Financial Planning A division of Smith & Williamson Financial Services Limited which is authorised and regulated by the Financial Services Authority

Disclaimer By necessity, this briefing can only provide a short overview and it is essential to seek professional advice before applying the contents of this article. No responsibility can be taken for any loss arising from action taken or refrained from on the basis of this publication. Details correct at time of writing. Note to editors Smith & Williamson is an independent professional and financial services group employing over 1,500 people. The group is a leading provider of investment management, financial advisory and accountancy services to private clients, professional practices and mid-to-large corporates. The group operates from offices in London, Belfast, Birmingham, Bristol, Dublin, Glasgow, Guildford, Maidstone, North London, Salisbury, Southampton, and Worcester.

G O O DWO O D Mixing business and pleasure in a way no one else can

Imagine spending a day on the motor circuit, followed by dinner in Goodwood House, a night in the Hotel, a conference the next morning before a round of golf and an evening of horseracing. For all hospitality, golf days, meeting venue or conference enquiries, please call 01243 755042 or email houseevents@goodwood.co.uk

www.goodwood.co.uk

Glorious Goodwood By Rob Widdows

When the Earl of March launched the Goodwood Festival of Speed in 1993 grown men were in tears. At last a chance for Dads to show their sons their boyhood heroes and the mighty machines that made them famous. This passion for motor sport at

Goodwood is as true today as it was when the famous motor circuit opened back in 1948. Goodwood is a place where passion pulls the generations together. And it’s not just the racing cars. In summer, up on the Sussex Downs above Goodwood House, the famous racecourse is the setting for the biggest party on the sporting and social calendar. As King Edward V11 once remarked, this is so much more than horse racing, it is a garden party with racing tacked on. As true today as it was a century ago. Out of these unique sporting events has grown one of the most dynamic businesses in the UK. Every year more than half a million people go to Goodwood to have fun, to soak up the intoxicating atmosphere. Increasingly, Goodwood is also a place to do business. A place to ‘do business’ should, in theory, be so much more than just another date in the office diary. It should also be an experience, a pleasure even. And that is why Goodwood has become the number one destination for those who want a little glamour and style with their business.

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Why do so many companies, both great and small, want to gather in this beautiful place between the South Downs and the sea? They could, after all, book into any old hotel or conference centre with its free pens, pads and plates of dry biscuits. Above all else, the attractions of Goodwood are its extraordinary attention to detail, the unique range of activities and its understanding of what it takes to provide a service to business people. For more than three centuries the home of the Dukes of Richmond has been a place of entertainment, one of the great English country estates. Known throughout the world for its beautiful racecourse, there is so much more to the modern Goodwood estate and its dynamic spread of activities. At the heart of the estate is Goodwood House, with its magnificent collection of paintings and furniture, all of which make this a most interesting and inspiring place. Many of the world’s finest companies choose to meet at the House itself, using the Regency ballroom for meetings or conferences while dining in the mysterious Egyptian dining room. This is a unique experience and one of the many reasons why Rolls Royce elected to build their new assembly plant on the edge of the Goodwood estate. But there is also the privately owned Goodwood Hotel, less than a mile from the House, and recently renovated in the style to which Goodwood clients have become accustomed. The hotel, originally the Richmond Arms coaching inn, offers smart and functional conference rooms with 4-star accommodation as well as a health spa, indoor swimming pool and two restaurants serving organic food from the Goodwood farm.

This is by no means all that awaits the business visitor who chooses Goodwood for a management seminar, a team-building session or a sales conference. Under the energetic leadership of the Earl of March, son of the present Duke of Richmond, the Goodwood group of companies has been transformed into a thriving 21st century international business. The portfolio comprises horse racing, motor racing, a private aerodrome with its own flying school, two spectacular golf courses in the parklands and rolling hills around Goodwood House, private track events at the motor racing circuit and organic food sales. What sets Goodwood apart from any other business destination is its unswerving commitment to service and its attention to the needs of its most demanding customers. The complete Goodwood ‘experience’ is delivered by its own team of business managers, chefs and event co-ordinators. Nothing is outsourced, nothing is left to chance. Goodwood is not simply another destination, it is a whole new way of doing business that inspires and energises each and every client. Away from the great House, and the hotel, are the internationally famous sporting events where the hospitality, and the fun, is as important as the business itself. A day at the races, a trackside tent at the Festival of Speed, a private day on the circuit, a relaxing round of golf followed by delicious dinner in the Egyptian dining room or an early morning shoot on the Sussex Downs – this is what Goodwood is all about. Old fashioned service, perfected over the centuries, and brought right up to date for the most discerning of global business people. To believe it, be a part of it.

the barrister ¦ Lifestyle supplement

The

‘

Me Generation’ ?

At the age of just 25 Michael Amherst, an Oxford graduate and author from Tewkesbury, decided to use the money inherited from his father to found a charity that would support education in the developing world. Now into its second year and about to embark on a second ambitious funding project, Avonbrook Projects Abroad is going from strength to strength. Michael and Avonbrook Chairman, David Maddock talk about their motivation, the charity’s journey so far and how Avonbrook Projects Abroad aims to make a real and lasting difference.

project and I was delighted to be involved. One of Michael’s key concerns was to ensure that financial contributions from the charity would have a lasting and meaningful impact and part of our challenge as trustees was to balance that objective against a realistic assessment of the projects that the charity could afford to undertake. We all felt that if Avonbrook worked through and alongside existing charities and local partners we would be able to make the best use of the charity’s funds and our own energies.

MICHAEL: One of the key reasons for setting up a new charity was that rather than giving the money and having done with it I wanted to be sure that it would make a real and lasting difference. It occurred to me that through

MICHAEL: I founded Avonbrook Projects

Abroad in 2007, following the closure of The Abbey School, Tewkesbury. My father, Miles Amherst, had founded the school in 1973, one of the only new choral foundations of the last century, and the site had been put in Trust for members of the family in the event that the school closed. At its peak the school provided education for over 120 children, including a great number whose places were part-funded by bursaries by my father. Sadly, a downturn in pupil numbers led to the school’s closure in 2006. This was never money that I expected to receive and following the securing of the choir’s future, with a transfer to Dean Close School in Cheltenham, I decided to do something that would preserve my father’s legacy in education. I had long been impressed by the work of two of my former teachers, Rosemary and Peter Diamond, in supporting schools in the developing world and that seemed to dovetail rather nicely with my other aim – so the idea of Avonbrook Projects Abroad was born! The name originates from Avonbrook House, the main school building that housed The Abbey School from 1973-2006. I then spoke to David Maddock, my solicitor, and was encouraged that far from dismissing the idea as crazy he seemed very taken with it. A small, informal band of Trustees already appeared to be forming – myself, David, Rosemary and Peter – and in February 2007 the four of us met at Strada in Cheltenham to hammer out what we might do and how it would work. David was elected as our Chairman.

DAVID: Michael’s decision to establish the

charity was characteristically generous. He was very enthusiastic about the possibilities of the

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partnerships with existing organisations we could make grants to tackle specific problems and continue the funding long-term. That way we could actually see how our money was making a difference and by maintaining a link assist with any problems as and when they arose rather than cutting and running once we felt we’d done our bit. As our work will be carried out by partner organisations and we have no staff our running costs are minimal to non-existent. All of the charity’s start-up costs, such as printed materials and the creation of the charity website, have been covered by matching donations.

DAVID: We formally launched the charity in

October last year with an event at the House of Lords, kindly hosted by our patrons Baroness Neuberger and Baroness Thomas of Winchester.

In terms of our respective ages, experiences and professional backgrounds the make up of the board of trustees is diverse and the charity benefits enormously from the breadth that this brings to our discussions about the function of the charity and the assessment of applications for grants.

MICHAEL: We were granted charitable status in July 2007 and since then have provided funding for the salaries of two teachers for four years and for an extension to the pre-school facility at a children’s home in Madagascar. Akany Avoko was established in 1963 and is home to over 120 abandoned, orphaned, abused, impoverished or troubled children aged between six months and 21 years old. Centres such as this providing residential care and education for destitute children are exceedingly rare in Madagascar. Almost none of the children arriving at the centre have received any form of education or participated in any form of educational play, the funding that Avonbrook has provided means that the children no longer have to be cramped in one classroom or taught in the living room.

Avonbrook continues to evolve as a charity, in December 2008 we narrowed our focus to two specific areas: improving the standard of teaching in the developing world, through the recruitment, training and retention of professional teachers; and improving vocational and post-school education and training to increase opportunities for children in the real economy and world of work. Both of these are often overlooked as they lack the visible signs of progress achieved by building projects and both fall outside of the UN’s Millennium Development goals, which place a premium on enrolment, without tackling the issue of who will teach these children or what they will do beyond primary education.

DAVID: The project in Madagascar has been fascinating and has vindicated our targeted approach to making grants: The school is an existing educational project with an excellent and proven track record which means that as trustees we can be confident that our donation will have an immediate and long lasting impact in that community. One of the teachers

at the project came to speak at the launch of the charity at the House of Lords. It was very rewarding to learn what a significant difference our donations had made to the school and to the lives of the school children.

MICHAEL: Moving forward, we expect to

make grants to around two projects a year. These will either be sourced by ourselves and matched to a partner organisation, or will be a project that has been selected by an organisation as suitable for a grant from Avonbrook. We are always interested in hearing from people who would like to work with us and are, of course, immensely grateful for any donations. Demand always outstrips supply!

blow it on perhaps the more obvious choice of fast cars, property and partying. The article suggested that a new generation is developing – one with a social conscience and a new sense of philanthropy. For Michael it’s simple, he liked the idea that the sale of his father’s school could spawn a new generation of schools around the world. Michael should be very proud indeed of what his generosity has already achieved and will continue to achieve in the future.

Avonbrook Projects Abroad has launched a new website. Please visit

www.avonbrook.org.uk

DAVID: The Times newspaper interviewed Michael at the end of 2008 – the journalist was captured by the fact that at 25 Michael had decided to invest thousands of pounds of his inheritance money in a charity rather than

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The Jamaica Experience By Linda Hudson

Great Houses The great house of Rose Hall, Montego Bay, Jamaica Overlooking the Caribbean sea, on the hills of the former Rose Hall Sugar Estate, approximately 10km, from Montego Bay, St. James is the imposing Rose Hall Great House. With the many stories about its former owner, Annie Palmer and the cruelty she meted out to her slaves, Rose Hall Great House is a very popular visitor attraction. In the 1700s Annie Palmer moved to Jamaica as the wife of John Palmer, the owner of Rose Hall. She is thought to have murdered her husband and enjoyed torturing her slaves. After the death of her husband, Annie took up voodoo and became known as the “White Witch of Jamaica” with a reputation for ruthlessness and magic powers. Eventually though, Annie met her match and was murdered by one of her slaves who practiced voodoo. The spirit of Annie Palmer, the White Witch, and other spirits - presumably her victims, are thought to haunt Rose Hall. According to stories, she can still be seen at night riding Rose Hall and Ironshire estates on a large black horse, wearing a velvet green dress. Her footsteps can be heard in the main hall of the Great House and whispers have been heard in the dungeon. Lights are turned on and off and babies can be heard crying. The Rose Hall Great House was left in ruins for many years. It was then purchased by a developer who converted it into a museum. Since it re-opened a number of visitors have reported strange phenomena such as images appearing in their developed photographs.

Firefly - Noel Coward’s home Firefly is the home of the late Sir Noel Coward, which was given to the people of Jamaica by Graham Payne. Located outside Port Maria, it is administered on behalf of the Jamaican National Heritage Trust by Island Outpost. Nearly a thousand years ago the site was declared a sacred burial ground by the Taino indians, the original inhabitants of Jamaica. Several centuries later the property was associated with the pirate Captain Henry Morgan (later Governor of Jamaica) who placed a lookout and dug a secret escape tunnel to Port Maria. In 1948 Sir Noel bought the property from the Lindo family and built his house here. During the 50’s and 60’s Firefly became the winter retreat for his friends and admirers such as Errol Flynn, Sean Connery, Laurence Olivier, Elizabeth Taylor and Queen Elizabeth II.

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Greenwood Great House

Greenwood Great House was built during an era of elegance and brutality. Now renowned as an antiques museum, it has continued to capture the imagination of its visitors with its authentic collection. Greenwood has the largest collection of musical instruments on the island. The house once belonged to the Barretts of Wimpole Street London. Fodor’s Caribbean Ports of Cass (7th ed.) describes Greenwood Great House as best “at evoking life on sugar plantation.”

Golden Eye

Ian Fleming wrote the James Bond novels in his house in Jamaica’s Goldeneye. It was transformed in 1992 by entertainment entrepreneur Chris Blackwell into an elegant and luxurious resort.

Strawberry Hill

50-acre mountain top, Strawberry Hill is a mystical retreat that boasts sweeping views of the majestic Blue Mountains and the Caribbean Sea, sooths all senses with dramatic sunsets, panoramic views, and occasional Reggae rhythms. Located 3,100 feet above the Caribbean Sea in Jamaica’s picturesque Blue Mountain range, SH features 12 beautifully designed Georgian cottages. Nature walks, sharing knowledge in coffee growing, birdwatching, tropical flora and fauna, world famous Aveda spa, SH is the perfect escape. Caribtours (0207 751 0660: www.caribtours.co.uk) offers 7 nights at Strawberry Hill, Jamaica from £1,535 per person, saving £206, staying in One Bedroom Suite on a room only basis during Easter 2009. Price includes return flights with British Airways and Private Transfers

The resort is nestled on a seaside bluff, surrounded by forest. Fleming loved the outdoors indoors feel of the property, being surrounded by the sounds and colours of nature, blazing sunshine, and the lifestyle which came with living by the sea. He always faced the wall when he was writing though, so views from the property wouldn’t distract him from his 2,000 words a day. www.goldeneyehotel.com

Rafting on the Rio Grande

Over the years, rafting on the Rio Grande River has been a major attraction for locals and visitors to Portland The experience provides patrons with a glimpse of what the parish has to offer in terms of natural beauty and allows them to enjoy the exquisiteness of the one of a kind attraction. Rafting on the Rio Grande dates as far back as 1911, when banana farmers in the Rio Grande Valley developed the practise as a means of transporting their bananas to the town of St. Margaret’s Bay where the river ends, and from there it could be easily taken to the Boundbrook Wharf in Port Antonio for export. However, several stories have been told of people rafting on the Rio Grande for the sheer pleasure of the experience. One such story tells of a visitor to the Rio Grande Valley who decided to take the trip to St. Margaret’s Bay on one of the rafts transporting bananas, after being lost and unable to find his way to Port Antonio. As the story goes, the visitor found the experience to be a thoroughly enjoyable one and worked extensively to influence other persons to follow his lead and take the trip. Assuming that the tale is true, that effort has borne fruit significantly since that time, because over the years, rafting on the Rio Grande has become not only a major attraction for the parish of Portland, but also one of the major pillars on which Jamaica is marketed as a tourist destination. www.visitjamaica.com or contact tlewis@visitjamaica.com

the barrister ¦ Lifestyle supplement

Diary of Social Events

May - December 2009

MAY

(May 7-10) (May 1) (May 2) (May 7-9) (May 13-17) (May 15) (May 16-17) (May 9-23) (May 21-Aug 30) (May 19-23) (May 22-June 6) (May 21-24) (May 21-May 31) (May 24) (May 25 – June 27) (May 27-May 30) (May 29-May 31)

JUNE

(June 5) (June 3-July 5) (June 3-July 14) (June 4-6) (June 11-13) (June 11-14) (June 5-6) (June 27-28) (June 8-14) (June 8-Aug 16) (June 11-17) (June 19-21) (June 19-21) (June 19-15) (June 12-28) (June 27) (June –See web) (June – See web) (June 16-20) (June 25-28) (June 23-July 6)

JULY

(July 1-5) (July 2) (July 3-5) (July 7-10) (July 3-5) (July 3 - 18) (see website) (July 7-12) (July 8-12) (July 10-28) (July 8-10) (July 22) (July 16-19) (July 16) (July 17-Sept 12)

Badminton Horse Trials, Gloucestershire. Box Office - Tel: + 44 (0) 1454 218375 Email: boxoffice@badminton-horse.co.uk www.badminton-horse.co.uk Royal Caledonian Ball, Grosvenor House Hotel, London. Contact: 07506 650 181; www.royalcaledonianball.com 2000 Guineas, Newmarket, Suffolk. Contact: 01638 67 55 00; www.newmarketracecourses.co.uk May Festival Chester Races, Cheshire. Contact: 01244 30 46 00; www.chester-races.com Royal Windsor Horse Show, Berkshire. Contact: 0871 230 5568; www.rwhs.co.uk Lincolns Inn Circuit Judges’ Dinner, London. Contact: 020 7405 1393 Chatsworth Horse Trials, Derbyshire. Contact: 01246 56 53 00; www.chatsworth.org Newbury International Spring Festival, Berkshire. Primarily classical music from top performers. Contact: 01635 52 87 66; www.newburyspringfestival.org.uk Glyndebourne Opera Festival, East Sussex. Contact: 01273 81 38 13; www.glyndebourne.com Chelsea Flower Show, Royal Hospital, Chelsea, London. RHS member bookings: 0844 209 1797; non-member bookings: 0844 209 0362; www.rhs.org.uk Bath International Music Festival, Avon. Contact: 01225 46 33 62; www.bathfestivals.org.uk PGA Championship, Wentworth, Surrey. Contact: 01344 84 04 00; www.europeantour.com Hay Festival. Ten-day festival in the Welsh border town of Hay-on-Wye featuring renowned international authors. Contact: 0870 990 1299; www.hayfestival.com Blair Athol Highland Gathering, Perthshire. Contact: 01796 481 207; www.blair-castle.co.uk Summer Shakespeare Season opens in London. Contact: 08443 753 460; www.openairtheatre.org Royal Bath And West of England Show, Somerset. Contact: 01749 82 2222; www.bathandwest.co.uk Holker Garden Festival, Cumbria. Contact: 01539 55 83 28; www.holker-hall.co.uk

The Oaks, Epsom Downs Racecourse, Surrey. Contact: 01372 72 63 11; www.epsomderby.co.uk Garsington Opera Season, Oxford. Contact: 01865 36 16 36; www.garsingtonopera.org Grange Park Opera Festival, Hampshire. Contact: 01962 737366; www.grangeparkopera.co.uk Royal Cornwall Show, Wadebridge, Cornwall. Contact: 01208 812183; www.royalcornwall.co.uk South Of England Show, Sussex. Contact: 01444 892700; www.seas.org.uk Bramham International Horse Trials, Yorkshire. Contact: 01937 84 6005; www.bramham-horse.co.uk The Epsom Derby, Epsom Downs Racecourse, Surrey. Contact: 01372 72 63 11; www.epsomderby.co.uk Biggin Hill International Air Fair, Kent. Contact: 01959 57 22 77; www.airdisplaysint.co.uk AEGON Championships, Queen’s Club, London. Contact: 08712 31 08 29; www.stellaartoistennis.com The Royal Academy Summer Exhibition, Burlington House, London. Contact: 08708 48 84 84; www.royalacademy.org.uk Grosvenor House Art and Antique Fair, London. Contact 0 20 7399 8100 Email: info@grosvenorfair.co.uk; www.grosvenorfair.co.uk Formula One British Grand Prix, Silverstone, Northamptonshire. Contact: 08704 588260; www.silverstone.co.uk East Of England Show, Cambridgeshire. Contact: 01733 234451; www.eastofengland.org.uk Three Counties Show, Malvern, Worcestershire. Contact: 01684 584900; tickets: 01684 584924; www.threecounties.co.uk Aldeburgh Festival Of Music And The Arts, Suffolk. Contact: 01728 68 7110; www.aldeburgh.co.uk Eton And Harrow Cricket Match, Lords, London. Contact: 020 7432 10 00; www.lords.org Queen Elizabeth II’s official birthday, Trooping Of The Colour, Horse Guards Parade. Contact: 02079 30 48 32; www.royal.gov.uk The Queen’s Cup Final, The Guards Polo Club, Windsor Great Park, Berkshire. Contact: 01784 43 42 12; www.guardspoloclub.com Royal Ascot, Berkshire. Contact: 08707 27 12 34; www.ascot.co.uk Royal Highland Show, Edinburgh. Contact: 01313 35 62 00; www.royalhighlandshow.org.uk Wimbledon Tennis Championships, London. Contact: 02089 44 10 66; www.wimbledon.org

Henley Royal Regatta, Oxfordshire. Contact: 01491 572153; www.hrr.co.uk Lincolns Inn Garden Party, London Contact: 020 7405 1393 Goodwood Festival Of Speed, Goodwood Park, Sussex. Contact: 01243 75 50 55; www.goodwood.co.uk Royal Agricultural Show,, Warwickshire. Contact: 02476 696969; www.royalshow.org.uk Game Conservancy Scottish Fair, Perth, Scotland. Contact: 01828 650639; www.scottishfair.com Cheltenham International Festival Of Music, Gloucestershire. Contact: 01242 227979; www.cheltenhamfestivals.co.uk Wimbledon Finals, London. Contact: 02089 712473; www.wimbledon.com RHS Hampton Court Palace International Flower Show, Surrey. Contact: 08709 063791 ; www.rhs.org.uk Henley Festival Of Music And Arts, Oxfordshire. Contact: 01491 843400; box office: 01491 843404; www.henley-festival.co.uk Buxton Opera and Music Festival, Derbyshire. Contact: 01298 70395; www.buxtonfestival.co.uk July Festival meeting at Newmarket, Suffolk. Contact: 01638 675500; www.newmarketracecourses.co.uk Peterborough Royal Fox Hound Show, Peterborough, Cambridgeshire. Contact: 01733 234451; www.eastofengland.org.uk Open Golf Championship, Royal Liverpool. Contact: 01334 460000; www.opengolf.com Middle Temple Garden Party, London 6.00pm Contact: 020 7427 4800 BBC Proms concert season opens, Royal Albert Hall, London. Contact: 02075 898212; www.royalalberthall.com

the barrister ¦ Lifestyle supplement

JULY (con’t) (July 19) (July 20-23) (July 22-24) (July 22-26) (July 24-26) (July 25) (see website) (July 25) (see website)

Veuve Clicquot Gold Cup British Open Polo Championship final at Cowdray Park, Midhurst, Sussex. Contact: 01730 813257; www.cowdraypolo.co.uk Royal Welsh Show, Powys, Wales. Contact: 01982 553683; www.rwas.co.uk Salon Prive, The luxury supercar event & concours d’elegance, at The Hurlingham Club, London Contact: 0808 100 2205 email: david@salonprivelondon.com Longines Royal International Horse Show, Hickstead, Sussex. Contact: 01273 834315; www.hickstead.co.uk The Country, Land And Business Association Game Fair, Harewood House, Yorkshire. Contact: 01256 389767; www.gamefair.co.uk Gray’s Inn Ball, London Glitz & glamour in the walks. First ball since 1996. Contact Katie Denton:020 7458 7994,theball@graysinn.org.uk Cartier International Polo Final, Guard’s Polo Club, Smith’s Lawn, Windsor Great Park, Surrey. Contact: 01784 437797; www.guardspoloclub.co.uk King George Day at Ascot, Berkshire. Contact: 08707 271234; www.ascot.co.uk Glorious Goodwood, Goodwood Racecourse, Sussex. Contact: 01243 755000; www.goodwood.co.uk

AUGUST

(Aug 7-29) Edinburgh Military Tattoo, Scotland. Contact: 08707 555118; www.edintattoo.co.uk (Aug 1-8) Cowes Week, Isle of Wight. Contact: 01983 295744; www.skandiacowesweek.co.uk (31st July-2nd Aug) Lowther Horse Driving Trials and Country Fair, Cumbria. Contact: 01931 71 25 77; www.lowther.co.uk (14 Aug-6 Sept) Edinburgh International Festival, Scotland. Contact: 01314 732000; www.eif.co.uk (Aug 12) The Glorious Twelfth, start of the grouse shooting season (Aug 14) Ballater Highland Games, Aberdeenshire, Scotland. Contact: 01339 755771; www.royal-deeside.org.uk Scottish Championship, Thirlestane Castle Horse Trials, Berwickshire, Scotland www.thirlestane.org (Aug 18-21) Ebor Festival, Yorkshire. Contact: 01904 620911; www.yorkracecourse.co.uk (Fri 4, Sat 5 & Sun) Chatsworth Country Fair, Derbyshire. Contact: 01246 565300; www.chatsworth.org

SEPTEMBER (Sept 1) (Sept 3-6) (Sept 5) (Sept 10-13) (Sept 10-13) (Sept 11-13) (Sept 12) (Sept 17-19) (Sept 23-27) (Sept 18-20) (Sept 23-24) (Sept 27)

Shooting season opens with the start of partridge season. Contact: The British Association For Shooting And Conservation; 01244 573000; www.basc.org.uk Land Rover Burghley Horse Trials, Lincolnshire. Contact: 01933 304744; www.burghley-horse.co.uk Braemar Royal Highland Gathering, Aberdeenshire, Scotland. Contact: 01339 755377; www.braemargathering.org St Leger Festival Meeting. Contact: 01302 304200; www.doncaster-racecourse.co.uk Blenheim International Horse Trials, Woodstock, Oxfordshire. Contact: 01993 813335; www.blenheim-horse.co.uk National Championship Horse Trials, Windsor Great Park, Berkshire. Contact: 08456 432116; www.horsedrivingtrials.co.uk Last Night of the Proms, Royal Albert Hall, London. Contact: 02075 898212; www.bbc.co.uk/proms Ayr Gold Cup Festival, Ayrshire, Scotland. Contact: 01292 264179; www.ayr-racecourse.co.uk The New Chelsea Antiques Fair, London. Contact: 01825 744074; www.penman-fairs.co.uk Goodwood Revival, Goodwood Motor Circuit, Sussex. Contact: 01243 755000; www.goodwood.co.uk Glorious Finale, Perth Races, Scotland. Contact: 01738 551597; www.perth-races.co.uk Festival of British Horse Racing, Berkshire. Contact: 08707 271234; www.ascot.co.uk

OCTOBER

(Oct 2-6) ArtLondon, Chelsea, London; Contact: 02072 599399; www.artlondon.net (Oct 5) Prix de L’Arc de Triomphe, Longchamp, France. Contact: 0033 49 102 030; www.france-galop.com (Oct 6-9, 12-14, 15-16,30) Tattersalls Yearling Sale, Newmarket, Suffolk. Contact: 01638 665931; www.tattersalls.com (Oct 7 - 11) Horse Of The Year Show, NEC Birmingham. Contact: 02476 693088; www.hoys.co.uk (Oct 9-18) The Cheltenham Festival Of Literature, Gloucestershire. Contact: 01242 227979; www.cheltenhamfestivals.co.uk (Oct 17) Champions meeting, Newmarket, Suffolk. Contact: 01638 675500; www.newmarketracecourses.co.uk (Oct 31) Trout fishing season ends in England (Oct 31- Concourse in Regents Park. Nov 1 - Run) London to Brighton Veteran Car Run. Contact: 01327 856024; www.lbvcr.com

NOVEMBER (Nov 7) (Nov 14) (Nov 16-22) (see website) (Nov 26 - 28) (Nov 29) (Nov 30)

Tote Sport Handicap. Contact: 01302 304200; www.doncaster-racecourse.co.uk Lord Mayor’s Show, London. Contact: 02073 321754; www.lordmayorshow.org Olympia Fine Art And Antiques Winter Fair, London. Contact: 02073 708234; www.olympia-antiques.co.uk Open Meeting, Cheltenham Racetrack, Gloucestershire. Contact: 01242 226226; www.cheltenham.co.uk The Winter Festival, including the Hennessy Cognac Gold Cup, Newbury Racecourse, Berkshire. Contact: 01635 40015; www.newbury-racecourse.co.uk National Cat Club Show, Bracknell Leisure Centre, Berkshire. Contact: 01344 424418; www.nationalcatclub.co.uk Salmon and trout fishing seasons end in Scotland

DECEMBER

(Dec 10) Social season closes in England, Scotland and Wales (Dec 15) Salmon fishing season ends in England (Dec 15) Lincolns Inn Adjourned Council and Christmas Dinner, London (Dec 20-21) International Show Jumping Championships, Olympia, London. Contact: 01753 847900; www.olympiahorseshow.com (contact for details) NSPCC Cinderella Ball, London. Contact: 02078 252500; www.nspcc.co.uk (Dec 26-27) Stan James Christmas Festival (Boxing Day Meeting), Kempton Park Racecourse, Surrey. Contact: 01932 782292; www.kempton.co.uk

the barrister ¦ Lifestyle supplement

Judicious Investment in Croatia or Brazil with a trusted partner Make a

A new approach 4:Property has created a new, personal approach to investment for sophisticated investors, allowing our Investor Partners the chance to choose what suits them best, investment or purchase. Which opportunities appeal most depend upon the market and, of course, the investors’ own preferences.

There are probably two main reasons for investing in property, as a lifestyle choice for your own use in a first or second home, or as an asset-backed investment, which, by exercising good judgement, can give handsome returns. In these challenging economic times, when cash balances offer low interest rates, it is worth looking to invest a proportion of one’s assets in more active and profitable markets, less impacted by the credit crunch. As always, timing is important. Like individuals, properties and property markets are all different; to invest successfully the imperative is to be clear what you want, and to make decisions that deliver exactly that. What are you looking for? A second home or strong profits? It’s worth reflecting on that before reading on. Markets like Croatia and Brazil offer the opportunity to invest for profit or to buy a lifestyle property, or both; investing for profit and using that to buy a property, having your cake and eating it. They offer beautiful houses and apartments in areas with historic cultures and time to relax next to beautiful seascapes, plus the potential for strong growth on your investment.

The Company offers joint venture investment opportunities in which the investor and the operator share the land enhancement or development profits 50/50. The investment is asset backed (by the value of the sites purchased) and investors have first call on the assets during the project and first call on the profits on completion. Often, investors can take the opportunity to buy finished units in the development, pre-launch, before public marketing begins.

Active markets In these turbulent economic times the experienced and sophisticated investor looks to markets outside the economic gloom of the more leveraged developed economies to those markets with an economic momentum driving their property markets. For that reason, over the next 3-5 years 4:Property are focusing on Brazil, Romania and Croatia as each has, for different reasons, a strong and profitable property market.

investment are common, regularly in the 20% to 30% per annum range; an interesting comparison to current UK bank interest rates. So with John Humphreys continuing to remind us all of the gloom here, why not consider what proportion of one’s assets should be moved to more dynamic profitable investments, giving higher projected returns than foreseeable in the UK?

Astute investments 4:Property also offers tax-free (SIPPS eligible) and income-generating investments to help you grow your assets and your portfolio, as well as Invest for Charity, your chance to share your profits with charitable causes. Whatever your investment plan, there isn’t usually the time or space to do it all yourself. The opportunity to benefit is here; would you like to join us? To hear more, please call 0800 1601 004 or email barrister@4Property.uk.com

Many of our investment opportunities centre on projects for local residents, although some also offer secondhome opportunities. Currently 4:Property has projects near Dubrovnik, Split and Zadar in Croatia, in Sergipe and Alagoas in Brazil, and near Constantsa, Targoviste and Odorheiu in Romania. If you are simply looking for wise investments then all these countries offer profitable developments for local residents. Whether driven by natural product and oil sales (Brazil) or strong EU investment (Croatia and Romania), each is creating employment in new areas and strong demand for new homes. With our projects, returns that double original

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Sailing with a Gulet in Croatia By Tom Owen

the barrister ¦ Lifestyle supplement

If sailing holidays are best taken in sunny seas dotted with islands and secluded bays, then Croatia is one of the best places in the world. The coast can get a little crowded in the middle of summer, but the abundance of islands means that on a boat you can always escape to an empty cove for a swim and a lazy lunch. We chartered the Andjeo (angel), a beautiful 30-metre ketch based in Split. She was originally built in Turkey and is similar to a gulet, but slightly faster and trimmer around the waist. For those familiar with more spartan sailing boats, this is an entirely different experience. With five double cabins each equipped with its own bathroom, there’s no shortage of room. And up on the teak deck, there’s plenty of space to stroll around or hide away with a book. All maritime and culinary duties are taken care of by a crew of three (the skipper Nika, a sailor and a chef). We embarked in Trogir, a jewel-like fortress town close to Split (and even closer to Split airport) on a sunny late-September day. You are, of course, the one who decides the itinerary, but the skipper knows the islands and coastline as well as anyone, and knows the best places. On the first afternoon cruised for a couple of hours towards the tiny island of Palmizana, arriving in the island’s small marina just as the sun passed over the yardarm. The island nestles next to Hvar, one of the liveliest of the southern Croatian islands, but has a much more relaxed atmosphere than its neighbor. It is mostly owned by the Croatian-Venetian Meneghello family, who recovered it from the state in restitution after the fall of Yugoslavia. It is now home to a small bohemian estate and restaurant adorned with eccentric and colourful local art works. Sitting on the restaurant terrace amidst the pines at dusk, serenaded by cicadas, with a plate of fresh calamari and a jug of cold Dalmatian red, contentment is not hard to find. The next day we set off under sail for Vis, one of the most easterly of the islands. With the peak of Vis a hump on the horizon, we settled down to read on the foredeck, an excellent place to get a suntan if needed. Occasionally the crew would charge around the deck running up various sails and so on, and I realised for the first time that sailing can be a spectator sport. Vis is one of the more remote Dalmatian islands and during the Tito years was a closed military base. As a result, there is relatively little tourist development and what there is, as in so many places in the Croatian islands, is true domestic hospitality. An example is the vineyard-konoba of Oliver Roki, the legendary Anglo-Italian- Croatian restaurateur, winemaker and cricketer. On the terrace of Konoba Roki, hidden away in the island’s interior, we dined off Artichokes, potatoes and fresh fish washed down with Roki’s knockabout red. We learned that Oliver is the founder of the Vis cricket team, whose shirts are emblazoned “Remember Nelson,” after the island’s role as a British naval base in the nineteenth century. “What problems did you face in starting the team?” I asked. “It’s a bit hard to find other teams to play, and there’s a not much flat ground on Vis, but we get by,” he replied, displaying the sort of phlegm that Nelson would undoubtedly have approved of. On the edge of Vis harbor, hidden among the pine trees, is a tiny British war cemetery. There are graves of sailors from the Napoleonic wars and also of servicemen from the Second World War, when Tito, his Partisans and their British allies used Vis as a base to harass the Germans on the mainland.

Vis to an islet a way offshore, home of the famous blue cave. This sea cave is entered through a tiny hole, yet inside instead of gloom the cave is brilliantly lit by an otherworldly electric blue glow from the water itself. The reason for this phenomenon is that the light gets in from outside through various submerged openings, it seems. From there we sailed most of the day to Korula. Before moving to the greater safety of Vis, Tito and Fitzroy MacLean (his British liaison and mooted model for James Bond) based themselves here. MacLean’s description of his arrival by boat stand as well today as in 1943: ‘the wooded hills of Korcula stood out black against the pale sky. As we rounded the point and entered the harbour, the first rays of the rising sun were beginning to fall on the old houses of the port.’. Korcula town looks just like a little Dubrovnik, a walled medieval trading post, each house topped with rough red tiles. The town was a Venetian colony, and the Lion of St Mark, the Venetian symbol, sits above almost every doorway in the town’s steep lanes and compact piazzas. Korcula is serene and relaxing little time capsule, and indeed none of the Croatian islands has very much in the way of carousal, so they make a poor substitute for an 18-30 week in Faliraki (although the restaurants are very decent). It seems, though, that wartime Korcula offered a rather more exuberant nightlife, as MacLean recalls: I have hazy memories of the dance at a village called Blato which rounded off our day’s entertainment and which was dramatically interrupted by the explosion of a small red Italian hand grenade which became detached from one of the girl’s belts as she whirled round the barn in which it was being held. That night we slept very soundly. The British liaison officers also amused themselves by swimming in the straits towards the Peljesac peninsula, just a couple of kilometres from Korcula town. The steady German progress along the peninsula eventually threatened Korcula, which is why the Partisans moved on to Vis, the most remote of the Croatian islands. We, instead, headed south, stopping for a night on Sipan, part of the Elafiti Archipelago, just off Dubrovnik. This is a very laid back island, once famed as the favoured place for the Dubrovnik aristocracy to spend the hot summer months. Sipanska Luka is wonderfully simple and unspoiled - tying up alongside, we leaped ashore after dinner on the boat and spent the night in a bar on the waterside with a mixture of rustic types and fellow sailors from Poland and Spain. In Sipanska Luka, as in much of Dalmatia, we can report that Blondie and David Bowie have achieved remarkably durable popularity. Our final port of call was Dubrovnik, the extraordinary walled city at the southern tip of Croatia. After such idyllic days of swimming in coves and dozing on deck, the ancient metropolis is quite a change. Still, there is no use pretending that it is not a wrench to leave Andjeo, a place of ease, pleasure and escape from the mundane, but at least you can come back. Sasha King Adriatic Holidays (ATOL 6232) 1, Victor Street, Oxford, OX2 6BT Tel: +44 (0)1865516577 Fax: +44 (0)1865514266 Email: info@adriaticholidays.co.uk www.adriaticholidays.co.uk

The following day we skirted the coast of

the barrister ¦ Lifestyle supplement

London Clubs - Bleasure is the

new buzz word in travel By Shelley-Anne Claircourt Staying with both business and pleasure in mind; nowhere exemplifies this more than London’s clubs. Membership brings a sense of belonging to a comfortable way of life, where members are really the most important element and, in return members sign up to the ethos of the club. It is a lifestyle statement like no other. There are a cluster of clubs in Pall Mall and St. James’s, including the Royal Automobile Club, the Travellers Club, White’s and the Carlton Club. Each was established to indulge members in their specific passion, be it motor cars, travelling or politics. Others have ties to specific occupations, such as officers in the Cavalry and Guards Club who have their own establishment on Piccadilly whilst farmers and landowners can join the Farmers Club, overlooking the Thames. Whilst the Caledonian Club, in London’s Belgravia, insists upon strong Scottish connections as a criterion for membership, you no longer need to be in the Foreign & Diplomatic Service to be a member of the Travellers Club. What they all offer is a home from home in the heart of the capital with en-suite accommodation

the barrister ¦ Lifestyle supplement

for a fraction of the price of the hotels and invariably the rate includes a hearty English or Scottish breakfast as well as early morning tea.

quality and personalized service. Provided that the banqueting rooms are booked by a member they can be used for discreet corporate events.

It used to be that the food in these establishments had not improved much from nursery dishes of yesteryear but, today, this could not be further from the truth; with Michelin starred chefs cooking at events at the Royal Automobile Club on a regular basis and resident chefs frequently nominated for awards. Clubs too, in the large, have acquired incredible wine cellars through buying wisely and laying down for future generations. The Caledonian Club boasts an extensive wine list at prices that Oddbins would be challenged to match, if they were only able to secure such prestigious labels. Likewise the Travellers Club, where currently a Chateau Batailley 2001 is available for just £35.00; it would be three times the price in any local restaurant. Indeed Clubs represent exceptional value for money not only with their room rates but in their restaurants and bars where prices are invariably 30% to 40% lower than in nearby competitive hotels and restaurants.

It is a fallacy that you need to be over 70 to be a member of these grand institutions, indeed the average age of membership has plummeted since most clubs have an “under 30” category and, that particular age group has been used to paying an annual subscription, albeit to a gym and enjoys the quirkiness of club life; where they can catch up with the Sunday newspapers prior to traditional Sunday lunch.

For this reason the private dining and meeting rooms are always popular; members already know that they are getting the best value, highest

Clubs are no longer male bastions and most now open their doors to both men and women; although the 122-year old University Women’s Club in Mayfair rather bucks the trend when it comes to sexual equality and its stated aim is to offer a “welcoming environment and pleasant accommodation for graduate, professional and business women”. Clubs were first created to ensure members could relax amongst compatible souls, as David Broadhead, Secretary of the Travellers Club explains: “Principally a club is formed of likeminded people. This is achieved because the

election procedure makes it happen i.e. at our club a candidate is entered in the candidates’ book by a member of more than three years standing as his proposer, the candidate must also be seconded. Both the proposer and seconder must write to the Secretary explaining the reasons behind their proposed candidate and why he is worthy of becoming a member. They must also present a biographical notes form giving details of education, work etc. The candidate must attend a Chairman’s reception where he meets other Club members and committee members after which his details are presented at the Election Committee. This procedure ensures people of the same ilk and with similar interests are brought together in an environment conducive to those interests.”

mention squash courts and a gym, complete with personal trainers. The Caledonian Club too has a snooker room and organizes a number of societies for members including bridge, golf and many traditional sports. Undoubtedly what clubs provide in abundance is privacy and it is for that reason many of the captains of industry, not to mention sporting heroes choose to be members so that they can stay, entertain and enjoy London away from the media glare. All clubs have reciprocal arrangements

with other clubs overseas. Members of the Royal Automobile Club, for instance, have access to more than 60 of them from Chile to Japan including the prestigious Automobile Club de France on the Place de la Concorde and the Muthaiga Country Club in Nairobi, which was the base of the notorious Happy Valley set of White Mischief fame during the 1930’s and 1940’s. “Essentially a club provides a haven, someone once eluded it was like running a country house hotel with a captive audience, I would go one stage further and say it’s like running a private house with an extremely large family!” quipped David Broadhead.

Further Information:

It is those interests that produces extensive and creative events lists, with guest speakers ranging from explorers such as Ranulph Fiennes to imminent politicians including William Hague, Boris Johnson, Liam Fox and all speak openly, safe in the knowledge that the Chatham House rules applies. Undoubtedly clubs open doors that are closed to the rest of the nation and visits are arranged to gardens, such as Highgrove as well as theatre, gallery and stately home private tours.

www.caledonianclub.com www.royalautomobileclub.co.uk www.thetravellersclub.org.uk

Many clubs have their own gardens and terraces to enjoy the increasingly warm summers with alfresco dining. Whilst clubs such as the Royal Automobile Club boast health and fitness facilities that were originally built in 1911 that would put many hotels today to shame, including a 26 m swimming pool and a Turkish bath comprising of five rooms of varying degrees of heat and steam, not to

Situated in the heart of Belgravia, adjacent to Hyde Park Corner, The Caledonian Club epitomises total elegance and style. The original grand architecture of this private members’ club is complemented by elegant interior design and modern facilities. Choose from eight immaculately maintained function rooms for meetings, private dining, receptions, weddings and events. During the summer months, the Terrace is an ideal setting for al-fresco entertaining and accommodation is available with 39 bedrooms designed with luxury and comfort in mind. Membership is not a pre-requisite for holding meetings at the Club and for more information, simply contact the Banqueting Department on 020 7333 8722 or email banqueting@caledonianclub.com THE CALEDONIAN CLUB

9 HALKIN STREET

BELGRAVIA

LONDON SW1X 7DR

WWW.CALEDONIANCLUB.COM

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Handel House Museum: Handel’s Legacy 250th Anniversary Year By Claire Barton In 1759 George Frideric Handel died at his home at 25 Brook Street, Mayfair, the house in which he had lived for the previous 36 years and where he had composed some of his most famous works – Messiah, Zadok the Priest and the Music for the Royal Fireworks. Handel’s biggest legacy to us is his music – his operas, oratorios, concerti etc. – but during his lifetime and after his death he was a very generous and imaginative benefactor too. He founded the Fund for the Support of Decay’d Musicians (now the Royal Society of Musicians) in 1738, having discovered the wife and children of one of his former oboists begging outside the Haymarket Theatre. He left the Fund £1,000 in his will, which would be worth over £110,000 today. He was also closely involved with Thomas Coram’s Foundling Hospital. In 1749 he gave a concert to help finish the building works on the Chapel. It included the first indoor performance of the Music for the Royal Fireworks and an anthem written specially for the occasion Blessed are they that considereth the poor and the needy, now known as the Foundling Hospital Anthem. The concert was a great success – the Prince and Princess of Wales attended – and it raised more than £350 (c.£40,000 today). He later donated an organ to the Hospital, which he used for a special fundraising performance of Messiah – and from that time onwards he performed the oratorio at the Hospital each year until his sight failed him. Over ten years Handel generated an income of £10,000 (£1million today) from these performances and in his Will Handel bequeathed the Hospital a complete fair copy and parts of Messiah, which allowed the annual fundraising concerts to continue. Handel House Museum opened at 25 Brook Street in 2001, and during the past eight years has welcomed over 120,000 visitors through it doors. The museum celebrates Handel’s life and works, displaying portraits of Handel and his contemporaries in finely restored Georgian interiors and brings live music back to his house. The Museum runs a lively series of events as part of its ongoing education programme, including family events, study events, live music and special events.

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Handel House Museum has worked with the major London music schools: Royal College of Music, Royal Academy of Music, Guildhall Schools of Music and Drama and Trinity Laban Conservatoire of Music and Dance and has been able to offer students and young professionals the opportunity to rehearse and perform in Handel’s own rehearsal and performance room on period instruments, including our own harpsichord and an original 18th century spinet. Last year over 200 promising musicians benefited from this opportunity and we have received much positive feedback from visitors, on how much their time in the museum was enriched by hearing live music during their visit.

If you have clients who are making or changing their Wills, and have a passion for music, opera and the performing arts, then please do consider bringing Handel House to their attention. We would be delighted to show a prospective legator around the Museum. In this anniversary year of Handel’s death, we are renewing our legacy campaign and planning events for all those who have pledged their support for Handel House in their Wills. For further information on leaving a legacy to Handel House Museum, please contact Claire Barton on 020 7399 1964 or at cbarton@handelhouse.org © Dalton

Handel House Museum is an independent museum, which means that it has to generate all of its own income to stay open, it receives no statutory or government grants. Income comes from admission and event ticket sales, the various Friends schemes, donations from Trusts and Foundations and individuals, and legacies. Baroness Warnock writes: ‘Many people give money to support their favourite charities during their lifetime, but very few remember those charities in their Will. For a small independent Museum, such as Handel House, legacies are an absolutely vital form of support. I have remembered Handel House in my Will and I would urge you to do the same. By leaving a legacy to Handel House you will ensure that future generations of visitors can enjoy the arias from Messiah and countless beautiful operas in the very place where they were written. You will also ensure that Handel House’s important education work with schools and community groups and the ‘Thursday Live’ programme of concerts, promoting the very best in young upcoming talent in baroque music, will continue to thrive.’ This year, 2009, is the 250th anniversary of Handel’s death and Handel House Museum is commemorating this with a number of special events, exhibitions and concerts during the year. Full information can be found on our website: www.handelhouse.org/handel2009

Herbie Frogg an exemplary quality menswear company in Jermyn Street for 40 years. Choose your individually cut and tailored suit from the superb range of Italian fabrics.

£495. 2 for £800 Tax Free shopping available, please enquire in store

Walk in appointments available/welcome Tel: 020 7439 2512 Email: 21@herbie-frogg.co.uk 21 Jermyn Street, London SW1Y 6HP Nearest Tube: Piccadilly Circus www.herbie-frogg.co.uk

Making best use of the tax concessions applied to savings There is a wide choice of tax efficient savings vehicles available for salting away hard earned cash but two of these stand out as being universally popular – Pensions and Individual Savings Accounts or ISAs. By Anne Gregory-Jones, Head of Tax, Haysmacintyre For those willing to accept higher risks, Venture Capital Trusts are well worth considering. This article looks at the tax treatment of these options and suggests how they might best be used by barristers.

ISAs now pensions later Firstly, the ISA which has now completely replaced PEPs and TESSAs and is currently available in two forms – the cash ISA limited to investments of £3,600 per tax year and the Stocks and Shares ISA with an annual limit of £7,200. The ISA must be funded from net of tax income or capital and offers freedom from tax on any income or capital gains generated from the underlying investments. The investments are open ended and may be encashed at any time. Pension plans were subjected to some major changes back in April 2006 when the old contribution limits – generally 17.5% of earnings up to around £100,000 - were scrapped. The contribution limit now is 100% of earnings subject to a maximum of £235,000 (£245,000 if this is to be published after 5th April 2009) in the current tax year.

the same as a pension and the investment choices are broadly similar. However, the fund can be accessed at any time. Let us say that over a period of time investment returns are such that the fund doubles in value (bear with me here – it has happened before). The ISA will be worth £12,000 but the equivalent pension fund would be worth £20,000. However, the ISA could be encashed and the proceeds used to fund a net pension contribution. Assuming the gross amount is within the band of income to be taxed at 40% the £12,000 would become a pension fund of £20,000 – the same figure as if the investment had been in a pension all the time. But, if needed, the ISA fund would have been accessible at any time. With tax rates increasing – a top marginal rate of 60% from April 2010 on income just over £100,000 or just over £140,000 and then 45% on income above £150,000 from April 2011 – it makes even more sense to do ISAs now and pensions later.

Pensions are more tax efficient than ISAs for the following reasons:

• • •

Investment is made from gross income benefiting from tax relief at the highest marginal rate The fund is taxed in the same way as an ISA 25% of the fund can be taken as a tax free lump sum at any time after age 50 (55 from 6th April 2010)

However, pension funds cannot be accessed until age 50 or 55. The change to the contribution limit suggests a different approach to the use of these two types of investment during a barrister’s lifetime financial and tax planning. The conventional wisdom was that younger barristers should start pension saving as early as possible because of the restrictions on contribution levels and the power of compound interest. Now, however, because of the higher contribution levels there is less pressure to commence pension contributions early. In one’s 20s and 30s priorities are likely to be house purchase, school fees, etc and retirement becomes a priority later. For the above reasons, there is sense in maximising ISA contributions early in one’s working career and concentrating on pensions later. The points are that:

• • • • •

If required, ISA investments are accessible at any time; pensions only after age 50/55 Barristers are likely to be paying much higher rates of tax later in their careers Tax rates are increasing Pension contribution limits are very high ISA portfolios can be transferred into pensions at a later date

Let us take for example an investment of £6,000 from net income. If this goes into an ISA, the gross investment is still £6,000 but if the same investment is made into a pension by a 40% taxpayer, the gross investment is £10,000. But if the investor opts for the ISA, the tax treatment in the fund is

the barrister ¦ Lifestyle supplement

In summary, maximise your ISA allowances before investing in pensions, with a view to switching your ISA portfolio to pensions in your early 50s.

Combining VCTs and pensions VCTs are Investment Trusts quoted on the London Stock Exchange investing in small to medium-sized qualifying companies. To qualify a company must be unquoted or AIM listed and carrying on a trade in the UK which is not, in broad terms, a financial or professional activity. The tax benefits of VCT investment can be summarised as follows:

•

Income tax relief at 30% on investments of up to £200,000 in any tax year. The relief is available for the current tax year irrespective of the investor’s top tax rate. Thus a 20% taxpayer can benefit from 30% relief. The shares must be held for a minimum of 5 years to maintain qualification for this relief.

•

Tax free dividends

•

Tax free capital gains on the investment itself provided the shares are held for at least five years.

If investment is made in a VCT for 5 years, the fund can then be encashed and transferred as a net contribution to a pension. In this way, the original net investment can be more than doubled. In some cases it may be possible to transfer the VCT to a SIPP (self invested pension plan) as an “in specie” contribution. An illustration is given below based on a net investment of £100,000.

Summary It will be seen that the tax reliefs available for different types of investment can be pulled together to enhance returns and fit with your changing needs. Anne Gregory-Jones, haysmacintyre Head of Tax

Escape the rat race

“Twenty years from now you will be more disappointed by the things that you didn’t do than by the ones you do do. So throw off the bowlines, sail away from the safe harbour. Catch the trade winds in your sails.

” Mark Twain

Explore. Dream. Discover.

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If you’ve ever dreamed of spending your holiday relaxing on a luxury yacht in a secluded bay, but thought that this was a pastime only for the super rich, then think again. There are many opportunities to get out on the water and experience sailing either at home in the UK or abroad. And whether you are looking for a relaxing getaway or an adrenaline filled experience you’ll never forget, sailing has it all! Caribbean sailing

If a slow pace of life is what you’re looking for then sailing Caribbean style could be just for you! An average day involves finding a secluded bay for lunch, going for a swim in the azure blue waters, then setting sail to explore, with perhaps a spot of fishing before dropping anchor for a barbeque on the beach. The Caribbean is a sailor’s paradise and despite its popularity with tourists, there remain areas of unspoilt beauty- many of which can only be reached by boat. Choose from a variety of tropical locations including St Lucia, St Vincent and the Grenadines, Martinique, the British Virgin Islands and Antigua. Where you visit is up to you, with a professional skipper to take you to the best locations on offer. If its variety you’re looking for then combine your time onboard with a few days ashore to discover what these sensational islands have to offer. From historic landmarks, to thriving markets, amazing wildlife and breathtaking beaches, the Caribbean has it all. For those looking for a bit more adventure, then the Caribbean offers a wealth of opportunities for yacht racing. (put in a text box?)

St Maarten Heineken Cup

The ethos of the St Maarten Heineken Cup regatta is ‘serious fun’ which is probably why it has been at the forefront of Caribbean sailing events since it began. Not only does it offer fantastic sailing, but the entertainment onshore both during and after the racing is second to none.

BVI Spring Regatta

The week long sailing spectacle takes in everything the British Virgin Islands have to offer starting at Nanny Cay, racing up the Sir Frances Drake channel to the infamous Bitter End Yacht Club. The warm and steady trade winds provide fantastic sailing conditions and the idyllic sandy beaches allow for the perfect way to unwind after a great day’s racing.

Bequia Easter regatta

The tiny island of Bequia is part of the Caribbean islands of St Vincent and the Grenadines, and each year hosts this hugely popular regatta. Since it began 26 years ago the event has grown into of the region’s most popular small island regattas. As well as taking part in the racing, you can enjoy watching the action unfold from one of the island’s many breathtaking beaches.

Antigua Race week

One of the premier sailing regattas in the world, this prestigious event

continues to attract world class yachts and yachtsmen to race in the beautiful waters of Antigua. The culmination of the Caribbean racing calendar, its an event not to be missed.

Learn to sail

Closer to home, opportunities to get out on the water are just as inviting, with one of the best sailing areas in the world right on our doorstep, on the South Coast. Whether your dream is to take the family and sail off round the world, or simply charter a yacht with friends and family in the Mediterranean or Caribbean, then a sailing course is the perfect way to get started. But be warned- most people who take to the water get bitten by the sailing bug and quickly become lifelong yachties! From the start yachting course through to the yachtmaster qualification, hundreds of sailors take to the beautiful waters of the Solent every year to learn the ropes. With its vast array of navigational marks, shipping lanes and tidal range there is no better place in the world to learn. Courses are run over 5 days or a series of weekends throughout the year. The very least you can expect is a spacious and comfortable yacht, great food, even better company and an awful lot of fun. If you’ve never stepped on a boat before then don’t worry- no previous knowledge is necessary. All that is needed is a spirit of adventure and a sense of humour!

Adventure cruising

If you have a taste for adventure then why not take a long weekend to sail across the English Channel to Cherbourg or St Vaast on the famous Brittany coast. Yachts leave the Solent on a Friday evening to arrive in time to peruse the Saturday markets before enjoying the best of French food and wine. Always a popular choice, these weekends are a firm favourite with those who are new to sailing or those who simply want to get out on the water for a great blast!

UK Yacht Racing

For adrenaline junkies yacht racing in the UK is difficult to beat. With its stunning coastlines and challenging sailing conditions, yachtsmen come from around the world to compete in these waters. The Round the Island Race in June is one of the largest and most famous yacht races in the world, allowing novice sailors to race alongside professionals in the 50 mile course around the beautiful Isle of Wight. Join as crew on a racing yacht and experience the drama for yourself first hand. If this doesn’t make you into a salty sailor then nothing will! If that’s too tame then how about The Rolex Fastnet race. One of the world’s classic offshore yacht races, the 600 mile course tests the mental and physical abilities of skippers and crew to the limit. As part of the crew for this historic sailing challenge you will compete in 3 qualifying races before taking to the start line for the Fastnet in August 2009.

In2sail Ltd Tel: 01983 615 557 Mob: 07789 265026 www.in2sail.com info@in2sail.com

the barrister ¦ Lifestyle supplement

Living off capital: understanding drawdown Like all self-employed people, barristers cannot duck choices about how they finance their spending when they stop earning, There is no shortage of technical explanations about how pensions work. They are tedious but rules-based so barristers should have little trouble mastering that aspect of the brief quickly. This is not enough. By Stuart Fowler, institutional investment manager, founder, No Monkey Business Ltd. Retirement spending usually involves more sources of capital than just pensions and financial goals cover more than retirement spending. Now the choices look like part of a broad approach to good financial management, involving more complex dependencies and requiring better advice. This aspect of the brief is harder to master. Mistakes can be costly, with time to regret them but not enough time to correct them. They are avoided by advisers and their clients applying a few powerful generic insights which are based on essential principles. This is what we seek to provide in this article.

Bath time

The process is divided into two sequential phases: accumulation and drawdown. Viewed as a bath, accumulation is about filling it and drawdown is about emptying it. As long as there is some water in the bath, its volume is subject to a capital-market process of expansion and contraction, as a function of any trend rate of return (expansion) and volatility (expanding faster or even contracting). The return and risk characteristics of a portfolio (describing a particular stock of water) depend on the sort of assets it holds and how they are put together. Whilst the bath is filling up, the effect of volatility will be cushioned by these new inputs. Whilst drawing down, the speed with which the capital stock is exhausted depends on the rate of draw and the particular path taken by the portfolio value. The returns we are interested in are called ‘total return’ and include both change in capital value and any dividend or interest. Cumulative returns are calculated assuming this income is reinvested as received. Markets trade off yields and growth potential on a presumption of a common required rate of return. It follows that consuming income is in any circumstances (including distributions from trusts) a form of drawdown from capital.

From their mastery of the rules governing personal pensions, barristers will see that, to the extent the plan assets include pension accounts, these now constrain the level of inputs, the stock (in the form of a ‘lifetime allowance’), the rate of draw and the benefit of generation-skipping bequests. A further set of constraints that particularise these general principles covers unique personal welfare preferences. These include • stability of the rate of draw (adjusted for inflation), as in being able to sustain spending through a series of bad years for portfolio values (think of Japan, for instance) • control, as in a preference for drawing down rather than buying an annuity to provide the income stream • time preferences, such as valuing high payoffs from investment bets less the later they emerge.

Balance

For a plan to have technical integrity, its defined parameters must be quantified and the values must be internally consistent. The parameters are: the resources applied, the target outcomes, the time horizons (if drawing down, these are a sequence of dates not a single date) and the amount of risk accepted or sought. This inconvenient truth flows from the same theoretical source as the tenet ‘there is no such thing as a free lunch’. For instance, taking more risk increases the uncertainty of outcome so achieving a given minimum acceptable outcome at the same level of confidence must call for additional resources.

Risk management

The entire process is subject to several sources of uncertainty that need to be allowed for when planning but also call to be managed somehow. The management techniques can be one of three: avoiding a risk, insuring (or hedging it) and embracing it but also trying to control it.

Plan outcomes can be defined in terms of the rate of drawdown in real pounds, or directly in terms of the after-tax spending it supports.

As financial management tasks go, living off capital subject to constraints is one of the toughest and is mostly performed with hopelessly inadequate technical resources. Mistakes made in less complex situations, such as Equitable Life and endowment mortgages, have been the source of widespread regret and recrimination. In this case there is even less scope for recompense.

Constraints

The three risk sources are inflation, longevity and investment.

How the entire process is planned and managed depends on the constraints imposed on the process. If these are not specified correctly, the plan will not be managed efficiently. The first key constraint is that the target outcomes need to be expressed in real terms, whatever the actual rate and profile of inflation over the life of the plan. Unless outcomes have comparable purchasing power, they are as meaningless as if expressed in Turkish lire. Even the illustrative growth rates for pension products prescribed by the FSA fall into this trap. The second is that the bath must not run out before it has achieved its minimum objectives. This constraint needs to bite hardest if all spending depends on the plan assets alone.

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Inflation risk

“Inflation is as violent as a mugger, as frightening as an armed robber and as deadly as a hitman”, said Ronald Reagan in 1978. Inflation risk is also very well disguised and difficult to model. No Monkey Business avoids this problem by estimating the return and risk of asset classes in real terms, based on all available histories of real total return for equity markets around the world. This approach has a striking impact on fixed income investing. It precludes it. This is because it is inflation’s most frequent and most damaged victim. This can be observed from histories of real total return for bonds over long holding periods. It happens because inflation is so well disguised that the markets’ implicit estimates of future inflation, which make up most of the

nominal yield of a bond, have historically shown very large cumulative errors.

Longevity risk

Longevity defines how long the plan needs to last. Uncertainty about longevity for a single life is very high so self-funding of the risk means you have to plan on a long life and draw less. This risk can be eliminated by an annuity, whose payout reflects the mean mortality of all insured lives of the same age. You have a choice about the form of annuity you buy, affecting the level of income. Options include: a pension for the surviving spouse; maximising starting nominal yield (leaving inflation risk uncovered); maximising inflation protection; covering mortality risk while still enjoying payoffs from equity bets. Once drawdown starts, the option of leaving the casino by covering some or all of the longevity risk needs to be constantly assessed as part of the management of the plan. The impact on the welfare value assigned to a bequest has to be part of this assessment.

Investment risk

Investment risk is, as we have seen, best described as the uncertainty or possible error associated with assumptions about the portfolioâ&#x20AC;&#x2122;s real total return. Since we are interested mainly in risk as the uncertainty of real outcomes, we need this to be specific to the time horizon. For foreign markets, the risk also needs to take into account currency volatility. A market is a potential building block of the portfolio and exposure to different markets should be diversified. But this principle mainly applies to equity markets since the diversification benefits of conventional bonds are very weak relative to their high outcome risk and low real returns. The risk within each market should be minimised by diversification, which can be achieved very cheaply using index tracking funds or exchange traded funds. Outcome risk is best managed by diluting equity risk using a risk free asset. We divide the plan into time slices (each funding say three years of draw) and manage the asset allocation for each time-slice portfolio dynamically as market conditions and horizons change. Broadly speaking, early years are matched by cash, middle years by a combination of equities and index linked (the only risk free asset in real terms) and later years by equities. Clients see the aggregate portfolio allocations.

Knowing the odds

In a mathematical, modeled approach like ours, planning outcomes can be quantified and expressed as probabilities, like quoting odds. Odds can be use to differentiate between different ways of balancing risk and resources, obviating the need for silly questions about risk tolerance which mean nothing or anything. They can also be used to make choices along the way, based on the progress of the plan. They are part of how an unbiased adviser will demonstrate the impact on possible outcomes of paying low or high industry charges. Above all, odds can be used to ensure any claims made about a safely-sustainable real rate of draw can be backed up. Stuart Fowler is a seasoned institutional investment manager and founder of No Monkey Business, a wealth management firm for individuals which puts into practice the no-nonsense principles set out in his book of the same name published by FT Prentice Hall in 2002. No Monkey Business Limited Suite 5, 2 Station Court, Townmead Road, Imperial Wharf, London SW6 2PY +44 (0) 207 736 2434

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Sweeping between the traditional gateposts and rounding the corner into Fawsley Hall is like stepping back in time By Emma Holifield, Indigo PR Ahead of you lies a grand Tudor Manor House, resplendent in all its traditional glory. Intricate turrets pepper the rooftop, tall bay windows reflect the skyline and the terracotta brick of the converted outhouses throws gentle colour to the scene.

Ease away the strains of the journey with a cup of tea or coffee in the historic and very comfortable Great Hall. Here, rich ochre rugs, twinkling candelabras and a colossal stone fireplace are the backdrop to soft deep sofas and attentive waiter service that guests will struggle to leave.

It was in 1975 that Mr. E A Saunders reclaimed this famous country seat saving it from extinction. Then it resembled nothing more than a favourite local picnic and walking spot and has now been reinvented as one of England’s most treasured country houses. Fawsley Hall was a royal manor as early as the 7th century and has since enjoyed a colourful past to become the impeccably maintained English country house hotel that it is today. It proudly boasts 4 AA red stars and 3AA rosettes and is listed in a host of the very top hotel guides.

The promise of the beautiful bedrooms beyond however might just tear you away. A trip up the quaint staircase leads you to a host of deluxe rooms that immerse you in English rusticity. Several of the suites offer four poster beds that are all florals, plush bedding and comfort whilst the standard, club and superior rooms are equally as enchanting. Waking up in the morning guests can enjoy a cup of tea from the privacy of their own room overlooking the extensive Fawsley estate. Breakfast can then be taken in the generous living area of the suites or downstairs in lively Bess’s Brasserie with the other hotel guests. Time can then be taken to explore the many walking trails and pathways meandering through the 2000 acres of parkland surrounding the property. Be sure to admire the expansive lake and look in at the local pub for refreshments before ambling slowly back.

To the left of the hotel’s broad gravel driveway, manicured lawns and a helicopter pad (no less!) give way onto an original ha ha and 2000 acres of estate beyond. In the distance, the tower of an ancient stone church punctuates the skyline whilst sheep graze in the foreground. This is rural England embodied and a refreshing change for the business traveller. Unlike some of its stuffier counterparts who have cast the all too familiar stigma over the ‘corporate entertainment’ sector, Fawsley Hall is one of the few places that knows how to do corporate entertainment in style. Stepping under the majestic stone porch and into the hotel hallway guests are met by enthusiastic receptionists and a country home away from home.

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For the corporate traveller, the luxury doesn’t stop here. The newly refurbished Knightley Court, a Grade 1 listed stable block and exquisite private entertainment building lies just next to the main hotel and is a spectacular space. This property, dating from the Georgian era, has been completely gutted and refurbished and reopened 18 months ago. The interiors, a canny mix of traditional old and ultra functional new, offer everything the corporate guest could possibly desire in chic country surroundings.

A full business centre, private bar, cinema, banqueting space for up to 120, reception lounge and 8 sumptuous bedrooms are stylishly incorporated within the bounds of this historic building. The result is country elegance at its best with a touch of modernism thrown in. The walls are pale wooden paneling interspersed with occasional murals whilst chandeliers drip from the ceilings and swathes of lilies explode from huge ornamental vases. The heart of Knightley Court, the Saunders Suite, is the ideal spot for black tie dinners, formal presentations or workshops and affords clients absolute privacy.

attendees can put all thoughts from their mind with a visit to the new Grayshott Studio Spa which opened in April of this year. Situated in the idyllic converted Coach House, this spa embodies absolute escapism and is the first of its kind in the UK. Under the expert supervision of the therapists, guests will enjoy natural treatments, beauty products sourced from some of the world’s leading product houses and an innovative list of pamperings. The moment guests step inside the immaculate interior, normal everyday life will be left firmly on the doorstep and the true spirit of incentive breaks realized.

From the moment they arrive, guests will be plied with piping hot (and very good) coffee and left to take in the surroundings. Ceremony seating can be arranged for audiovisual presentations ahead of resplendent banquets whilst post dinner entertainment can comprise everything from distinguished digestives in the private bar or private screenings in the fully sound-proofed cinema.

If guests ever emerge, it will be to expound the delights of Fawsley Hall, its exceptional facilities and all that it offers to the corporate and leisure traveller.

Those attending larger functions can also enjoy exclusive use of the main hotel and its many meeting rooms. In the summertime, events often spill out onto the house’s main lawns or original courtyard immersing guests into the most inspiring and relaxing of surroundings.

Throughout March and April, exclusive Corporate Day Rates will be available from £60 per person including VAT and 24hr rates from £175 per person including VAT. Similarly for the leisure traveller, plush accommodation, a full English breakfast and dinner in the delectable Bess’s Brasserie will be available from just £69.95 per person per night (inclusive of VAT based on two people sharing a club double room. Rates are usually from £175 per person per night B&B).

When the formalities of the day are over, guests can look forward to memorable dining experiences in either acclaimed fine dining restaurant Equilibrium or more relaxed Bess’s Brasserie. The refined décor and sophisticated menu at Equilibrium can be enjoyed from two small private dining rooms whilst the atmospheric Bess’s Brasserie offers traditional British cuisine in a larger livelier dining room.

For more information and reservations contact 01327 892000 or visit the website www.fawsleyhall.com

Fawsley

Hall

As the day’s presentations and activities draw to a close,

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Passing it on while the going is rough By Peter Scott and Clare Savory

It is arguable that the media has a vested interest in the drama of current financially difficult times. However there has been a significant reduction in the value of property assets since the high watermark of eighteen months ago. The UK economy is officially in recession and there is an expectation of further value “readjustment” to come. The FTSE has lost 30% of its value. Values of goodwill in many unquoted trading companies, with historically low trading levels, have been significantly reduced.

Even if a PET subsequently becomes chargeable by the death of the donor within 7 years, the value of the PET is frozen at the depreciated value of the transfer in 2009. Transfer of assets to trusts will now generally qualify for CGT holdover relief and therefore assets with accrued gains can be transferred to trusts without triggering an immediate payment of CGT. In consequence the lower the current values of those gifted assets the lower is the held over gain. On the other hand, transfer of assets to individuals with the exception of certain business assets, will not qualify for CGT holdover relief. If transferred assets have accrued CGT losses then those losses can

Most property owners, business owners and shareholders will choose

be used to offset gains arising on transfers to the same transferee. Careful

to sit out these difficult times waiting for an upturn; some are forced to

consideration is required of the CGT profile of all assets proposed to be

realise assets in a falling market. The purpose of this feature is to suggest

transferred.

that this is just the right time for those thinking of passing on assets to the next generation to do so while low values prevail. Not all asset

The new flat rate of 18% CGT means that there is now a lack of alignment

classes have fallen in value of course; although the prices for modern

between the CGT and IHT rates. IHT remains at 40% for transfers on

art have nosedived since Damien Hirst’s extraordinary auction, fine

death. If an IHT saving plan can defer a CGT liability of 18% while at

English furniture broke the price record, set in 1993, four times in 2008 at

the same time avoiding an IHT liability of 40%, it is well worthwhile

Christie’s. Agricultural land has held its value and the consequence of

considering.

rising commodity prices in 2007/08 saw a surge in value for a time. To summarise, gifts to trusts over £312,000 will now trigger an IHT entry

New approach to tax planning

cost of 20% on the amount over £312,000 but CGT on potential gains can be held over. Gifts to individuals will be PETS and therefore no IHT is

When looking at generation tax planning both capital gains tax (CGT)

payable if the donor survives 7 years. If death is within 7 years the IHT is

and inheritance tax (IHT) are relevant. Diminished asset values create

based on the depreciated value at the date of gift. While there is no CGT

opportunities to mitigate those taxes when passing on assets to the next

holdover for gifted assets to individuals (with the limited exception of

generation. Recent changes to trust taxation have influenced both when

certain business assets) CGT will be calculated at 18% of that depreciated

and how such transfers can be made most tax effectively.

value).

Gifts of assets to most types of trusts now will result in a 20% inheritance

Taxation of trusts changes

tax liability if the value of the gift made exceeds the donor’s nil rate band of £312,000 and will no longer qualify as potentially exempt transfers

In 2006 when the Government introduced the new trusts tax regime,

(PETs). In contrast, a gift to an individual will qualify as a PET and

many professionals complained at the time that not all trusts are

therefore at the time of the gift there is no financial limit on the amount

the creatures of tax planners. Many are made to reflect parents’ or

which can be transferred to an individual without triggering an IHT cost.

grandparents’ concerns that valuable assets passing to the next generation

the barrister ¦ Lifestyle supplement

or future generations should be protected from profligacy or third party

gifted assets will have increased considerably outside their estates since

claims. The high incidence of divorce is a particular concern to donors.

the date of those gifts.

The abolition of the favourable accumulation and maintenance trusts IHT regime and the requirement for a beneficiary to take his or her interest at

Conclusion

18 if the gift is to be treated as a PET was particularly objected to. While the Government did ameliorate that position the result is not generally

The advice therefore for all those considering generation tax planning

regarded as a satisfactory one as the new regime lacks the flexibility for

at this time is to look at the current financially difficult times as creating

trustees to respond to the varying capacities of the younger generation to

opportunities which may be once in a generation ones to transfer assets

manage valuable assets at a prescribed age.

on. Trusts are still the favoured vehicle for passing down such gifted assets or at least the principle of asset protection through trusts remains

Since then trust and tax practitioners have been exploring ways of

an influential one. If the IHT current entry cost to such trusts proves a

maximising gifts for lifetime giving in excess of the nil rate band by

disincentive because assets are of a substantial value then there are now

using the PET regime while enabling donors to have some means of

alternative quasi -trust structures which can be used and the options

control and therefore protection over gifted assets and how those are

there are still developing.

managed. Quasi-trust structures have emerged; all are more complex and more expensive to set up and to run than standard trusts which therefore

Peter Scott, partner, with assistance from Clare Savory, solicitor

makes them more suitable for holding gifted assets of more significant

Wealth Preservation Team

values. An example of such a structure is the family limited partnership

Private Client Group

where the general partners (quasi-trustees) manage the assets and the

Cripps Harries Hall LLP

limited partners (quasi-beneficiaries) have a passive receiving role. For

Tel: 01892 506292

IHT such partnerships are transparent so that gifts from a donor to a

E-mail: peter.scott@crippslaw.com

limited partner’s capital account will be treated as a PET.

New opportunities These are simply to take advantage of the lower valuations of land and other currently depreciated assets to achieve some significant generation planning. For example a husband and wife jointly owning property or shares can each make gifts of assets at 2009 values of £312,000 into trust. They will achieve a transfer of value totalling £624,000. If they survive seven years, their nil rate bands will be re-established which will allow assets to pass on the death of the survivor of a further £624,000. Therefore, at current IHT relief levels, by modest planning parents can successfully pass on around £1,248,000 worth of assets to the next generation without charge to IHT with a good chance that the lifetime

the barrister ¦ Lifestyle supplement

Safari Styles Kenya offers the traveller an unparalleled range of options. The incredible diversity of landscapes, cultures, wildlife and activities mean endless opportunities. With so many choices at hand, some people find the prospect of planning a trip quite daunting. It doesnâ&#x20AC;&#x2122;t have to be that way By Cleopatra Gichuki

the barrister ÂŚ Lifestyle supplement

In Kenya it is very easy to plan and prepare for a safari that is as individual as you are, and that satisfies your own personal needs and interests. If you are planning a trip, use this website to explore Kenya in advance, and decide where you would like to go, what you would like to see and what you would like to do. Here are a few important first points to think about: How Long and How Far? Kenya offers a diverse range of environments all within relatively close proximity to one another, and has an excellent domestic travel infrastructure. This means that you can choice to either stay based in a single location or to move around the country and see a range of different places. Your first decision should be how long you want to stay and how much you want to see. Staying in a single place lets you explore that area in great detail. In wilderness areas, this is the best way to really get to experience many facets of an ecosystem. Kenya’s rich diversity of wildlife means that no two experiences in the wild are ever the same. Each day you’ll experience and see completely different things. Spending time in a single location also allows you to really get to know and learn from the local cultures, and to get to know locals on an individual level. Alternatively, it is possible in Kenya to take a safari to a completely different destination every single day. This is a good option for travellers who like variety of experience and environment. In a single trip to Kenya, you can visit tropical forests, beautiful beaches, and deserts, climb mountains and explore the wild. Another choice is to decide on 2 or 3 destinations and spend a few days exploring each one. The choice is yours. When you are planning your trip, think about how many destinations you’d like to visit and how long you’ll spend in each one. Who to Bring Whether you are travelling solo or looking for a family trip, Kenya has plenty of options to suit. Think in advance about whether or not you’d like to join an organized safari group, or have your own private transport and guides. Kenya has plenty to keep the single traveller busy. Organized safaris and camping trips are often great social experiences and a good way to meet other travellers. Kenya is popular with independent travellers, and is quite easy to meet up with travelling companions on the road. For couples, Kenya is a perfect destination for a relaxing break. We have many secluded, private guesthouses, camps and hotels ideal for romantic stays or honeymoons. Kenya is also a great family destination. Kids love Kenya, and the sights and experiences of a safari can outdo any theme park. There are hotels that cater especially for families and have special facilities, programs and safari guides for children. Your own Style Look at as many options as you can before you come to Kenya. Try and plan for the perfect safari for yourself. If you want five star Luxury accommodation you’ll be spoilt for choice. But if you want to really rough it and experience life away from the trappings of civilization it can be equally easily arranged. Think about how you are going to get around and how long it will take. Do you want to be use light aircraft to avoid long road trips, or do you enjoy the experience of driving through the countryside? It is possible to plan a safari that blends adventure and relaxation, luxury and natural simplicity, social experiences and solitude. Consider trying several different experiences and seeing this great land from several different perspectives. In Kenya, you can experience a different safari every day.

Cleopatra Gichuki, Lead Tours Consultant, Shique’s Africa Safaris Ltd. P.o Box 61444 - 00200 Nairobi Tel:+254 20 2129833 Fax:+254 20 4343176 Cell:+254 720 644 873 the barrister ¦ Lifestyle supplement

A Guide to Investing in Traded Life Policies By Jeremy Leach, Managing Director, Managing Partners Limited out sufficient diversification to control the risk. The old adage “don’t put all your eggs in one basket” applies here because a manager should not buy policies issued by just one company in case it goes bust. Thankfully, this has not been a problem, even in the current financial climate. It is also important to have a high number of policies because while it is known from day one what a policy will be worth upon maturity, it is not possible to know exactly when the life assured will pass on and how many premiums will have to be paid before that date. The higher the number of policies that are held, the greater the chance that the actual maturities converge towards the standard life expectancies used to manage the fund.

Investors can be forgiven for feeling a little shell-shocked after the rocky ride they have had over the last two years or so. The more money they had then the more they are likely to have lost as financial markets went south. Lawyers, tending to be among the richer echelons of society, will have been among the biggest losers unless they had a financial adviser that told them to sell their equity, bond and property investments about two or three years ago. Many investors and their advisers are understandably looking at whether there are alternatives to these traditional asset classes. Some might look at hedge funds or other ‘absolute return’ products. But even these have been disappointing. And what about the ‘with profits’ policies that promised steady, incremental returns for several decades? The failure of these products to deliver on such promises has been well documented. The good news for investors though is that there has been one asset class that has managed to deliver steady, predictable returns even amid the financial catastrophes of the last two years. This relatively new asset class is known as traded life policies (TLPs). TLPs are US-issued, whole-of-life assurance policies sold before the maturity date to allow the original owner to enjoy some of the benefits during their lifetime. The transaction by which an existing life insurance policy is sold to third parties is known as a life, or traded, settlement. Under the transaction, the buyer of the policy becomes the new beneficiary.

Clearly managing TLP funds is a complicated task. But with the right investment process it is possible to deliver secure, incremental returns to a high degree of accuracy in the order of 8-10% per annum, year in, year out. These returns are largely unaffected by what is happening on financial markets because people always want to sell their policies at all stages of the economic cycle, if not more so in downturns when they might need to raise cash. Last year was particularly good for TLP funds. The sterling share class in MPL’s own Traded Policy Fund, which is available to retail investors, delivered 10.56% net of all charges over the year to 1 January 2009. The credit crunch was in fact beneficial for TLP investors, who were able to buy them at discounted prices towards the end of last year from cashstrapped institutions with substantial portfolios that were selling TLPs at a discount to raise money. TLP funds are becoming popular. A report by Professor Merlin Stone of the Bristol Business School, published in December, estimated that investment in TLP funds by both retail and institutional investors rose by more than 50% over the year to 1 November 2008. One of the reasons that Professor Stone believes that TLP funds are likely to grow in popularity among retail investors is that they can be a good replacement for with profits-based investments because they offer steady, incremental returns with relatively low risk.

Some large institutions, such as banks, buy TLPs directly and build up their own substantial portfolios. But there is another way to invest in them that is available to ordinary investors: there is a growing number of collective investment schemes, or funds, that invest in TLPs and which are managed by professional fund managers.

The sensitive nature of TLPs in being linked to the lives of individuals does raise emotive issues. But investors should have a clear conscience about investing in them. There are many reasons why someone may wish to sell a policy. People’s insurance needs change throughout their lives. For example, a young couple might take out insurance to protect each other or their children against their premature deaths, but they might divorce or outlive their children. Premiums can also become a burden or unnecessary expense and they might need ready cash to pay for care. Companies insure their staff but those staff might leave the company, the company might become unable to pay the premiums or a new owner takes over and changes the staff benefits. For all these reasons and many more, thousands of policyholders in the US decide unsolicited that they want to sell their policies each year.

These fund managers must use actuarial analysis to buy TLPs at the right discounts, calculating backwards from the known face value, and carry

Another contentious issue is the fact individuals are selling assets at deep discounts that they could otherwise pass on to inheritors. However,

The fundamental advantage of TLPs for investors is that the face value of a policy is known; what is unknown is when the life assured will pass on and that value will be paid out. The premiums will have to be paid until that date.

the barrister ¦ Lifestyle supplement

it is worth bearing in mind that the TLP market allows policyholders to benefit from policies they have paid for themselves, rather than having to pass those benefits on to anybody else. As part of the life settlement, inheritors have to approve the transaction before it can take place. It should also be borne in mind that a second-hand market exists only because it offers policyholders much better prices than they would get from the insurance companies, which offer zero or near-zero surrender values. The TLP market first took off in the 1980s during the AIDS epidemic, when a substantial number of people required ready cash to pay for care. Some years on, the market has now become much more focused on policies written on the lives of seniors, or over-65s, where life expectancy opinions are much more consistent. While the TLP market is still quite young in many respects, it has grown at a phenomenal rate from a mere $50m in 1990 to a staggering $10 billion in 2006. The potential is for further growth. Unlike the UK, where the market in traded endowments have a limited life span because people do not buy with profits policies so much any more, people continue to buy life insurance policies in the US. The total value of life policies held by the over-65 age group in the US is currently estimated to be $500 billion. There is still much room for expansion in the TLP market, too. One reason for this is that life policies traded constitute a small proportion of the policies surrendered each year. This suggests a lack of awareness by policyholders of the secondary market. There was an average annual growth of 42.9% in the value of life settlement transactions over the five years from 2000 to 2004, yet their value as a percentage of sales of life policies was just 0.2% over the same period.*

place for a much larger secondary market. As life expectancy in the US rises over time, the chances are higher that people will outlive the usefulness of their life policies, especially with regards to income protection for dependents, who are more likely to become independent as the subject of the life policy changes. Awareness of the life settlement industry will increase as people realise they can get more for their policies than if they were to surrender them back to the insurance companies. Suneet Kamath, writing in the ‘Bernstein Research Call’ in March 2005 estimated the TLP market could grow to $161bn by 2030. The market is now starting to display signs of its maturity as a major investment class because large financial institutions are showing clear appetite for market share. The introduction of adequate regulatory codes covering the TLP market in an ever-growing number of US states is also likely to contribute to that growth potential by providing an environment in which the market can flourish even further and make regulations to protect investors even tighter. All of this is encouraging for those investors looking for steady, predictable returns in the region of 8-10% year in, year out. TLPs offer the kind of risk-return combination that with profits once promised but eventually failed to deliver. If investors ever wanted proof of TLPs’ ability to deliver they could not have asked for more testing conditions than those seen over the last two years. If TLPs can produce double-digit returns in what has been the most difficult conditions seen on western markets in living memory then it is hard to imagine an environment in which they would fail to do so. TLPs have certainly earned the right to be regarded as a significant asset class in their own right and investors would add some stability to their portfolios by including TLP funds. *Source: ACLI/Bernstein Research, march 2005

The factors are all in

the barrister ¦ Lifestyle supplement

On Just One Day... 20th January 2009 • Barack Obama sworn in as the 44th President of the United States • S&P cuts Spain’s credit rating • Gordon Brown and Alistair Darling announce the second rescue plan for the UK banking industry • Crude oil falls below $33 a barrel as the strengthening dollar reduces the appeal of commodity investments • Britain to suffer ‘deepest slump since 1946 and worst of big EU economies’ • Irish banks plunge on talk of nationalisation • Minister tells French carmakers the price of a bailout will be keeping jobs at home • UK Treasury gives go ahead to print money • Obama team looks at setting up ‘bad bank’. How did these developments affect your investment portfolio? Did they affect your overall financial objectives? Thomas Miller Investment recognise the importance of understanding a client’s needs. An investment portfolio can then be constructed reflecting the client’s risk profile. Only then can developments in financial markets be interpreted for the client’s benefit. Working together to secure your financial future.

90 Fenchurch Street, London EC3M 4ST Phone: 020 7204 2200 • Fax: 020 7204 2737 Email: invest@thomasmiller.com • www.tminvestment.com Authorised and Regulated by the Financial Services Authority. No. 189829

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