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The Performance Illusion: The Truth Behind Investment Reporting

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(What your Financial Adviser doesn’t know they aren’t telling you).

Words: Gordon Bennie

So, you’d probably like to retire one day – wouldn’t you? If we told you that poor investment performance could mean the difference between retiring with an income of £30k per annum, versus £50k per annum with good performance, you’d want the higher amount, right? This outcome doesn’t have to be left to chance. You just need to know if your investments are performing well, and adjust if they aren’t – which should be simple, shouldn’t it?

Unfortunately, many people rely on financial advisers who themselves struggle to understand portfolio returns and risks. This can lead to misinterpretations that might give you a false sense of security. While most financial advisers excel in financial planning, if they lack knowledge about performance reporting, they won’t be able to build and manage your portfolio effectively.

Checklist for Accurate Investment Reporting

To ensure you’re getting accurate reporting and the performance you need for the life you’re planning, follow these steps.

Ask about benchmarks

Using the correct benchmark is essential for evaluating whether your investment strategy is adding value. The wrong benchmark can flatter poor performance. Are industry-recognised benchmarks like STEP MPI or ARC PCI being used to assess your portfolio? These peer group benchmarks compare your portfolio to thousands of others with similar risk profiles, providing a clearer picture.

Check the depth of reporting


Does the report cover the strategy’s entire performance history, including all changes and market reactions over time? Comprehensive reporting should record performance with every adjustment made due to market conditions, giving you a true view of how your portfolio is performing.

Beware of hindsight clarity


Or does it just show a basket of funds selected today for their strong historic performance? If your adviser is showing strategy returns based on funds that weren’t actually held in the past, be very cautious. Some advisers present charts showing impressive returns, but these are often based on selected funds chosen for their historic performance rather than actual historical holdings. Always ensure you’re looking at a realistic performance report.

Understand the ratios


Metrics such as the Sharpe and Sortino ratios can indicate whether your returns are a result of smart investment decisions or excessive risk-taking. Make sure you understand these key figures and how they apply to your portfolio’s performance.

Ask the right questions


How many analysts does your adviser employ? Do they use discretionary managers to manage your portfolio, or do they build portfolios themselves? It’s important to understand their expertise and approach to investment.

Look for consistent outperformance


Ensure your adviser selects managers who have consistently outperformed their peers over time. Remember long-term success is totally driven by returns.

Avoid cash benchmarks


Be wary of reports using cash benchmarks. These can inflate performance comparisons, especially when interest rates were so low, making it easier to show outperformance.

Ensure real data


Make sure the performance data you’re shown corresponds to the actual period your investments were held. Misaligned data can give false results and a misleading sense of how your investments are doing.

Or…

Just call Concentric.

At Concentric, we pride ourselves on providing transparent, comprehensive reporting that reflects the actual performance of strategies and portfolios. We don’t rely on misleading practices or selective data. Instead, we compare with gold-standard benchmarks and work with top-tier discretionary managers, focused solely on managing portfolios. 

Our rigorous analysis allows us to identify the best-performing managers, so we can ensure consistent outperformance for our client’s investments. When a manager no longer delivers, we act swiftly to replace them with one who will exceed your expectations.

If you want accurate, transparent investment reporting and advice to help secure your financial future, contact Concentric today on 01534 888801 or email gbennie@concentric.je to arrange a free assessment.

Moments that Mattered

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Heather-Anne Hubbell, CEO of Phundex Limited, chats us through her propensity to disrupt, challenge and question in order to embrace digital innovation; why older people do not belong on a shelf and how, as a wife and working mother, women can have it all. 

“My career started as a fashion merchandiser in Canada, a job that was fast paced and cutthroat. Despite loving it, huge competition at the time and a low renumeration meant it wasn’t a sustainable career path as a new mother, but the skills I learnt have stayed with me throughout life and informed a lot of what I do today. I now always seek out the story in everything I do, it makes problems relatable and allows you to clearly see the bigger picture. 

Armed with two children under four, I decided to change paths and retrain as a lawyer, which would offer me a defined career path and progression. Three years of full-time study whilst working part time, I was the definition of a multi-tasking mother, hungry to learn and soak it all in. I was immediately drawn to tax law because of its structure and certainty. Whilst law is very definitive, there was a lot of creativity I could apply to solving problems and I constantly looked for different ways to approach matters, which has largely shaped my career in later years. 

A serendipitous re-connection with a law school colleague saw me offered a role in London at Clifford Chance. Whilst I relished this chance, I initially thought I’d made a huge mistake. I was working all hours of the day, with little chance to return home, collapsing where I could for snatches of sleep. Family life and balance is very important to me, but we viewed this as the means to an end, so this became my life for two years. Sometimes it’s important to focus on the long game and to embrace what may come your way. 

Visiting Jersey for an event in 2018 was a defining moment for me. I was working as a consultant for a digital start up and saw immense opportunity on the island to launch this company, supported by the dynamic infrastructure that Jersey can deliver. Having the regulator just down the road, a high quality of professionals comparable to the UK, and the ability to work as a tight knit community appealed to me in so many ways. Forming connections and forging new ways together felt nostalgic to me, but it is one of the island’s greatest selling points. Jersey is ready to do business and to make it personal, so it was an exciting move. 

I remember being blown away when I saw Becky Houze present at an event and explain how she ran her Jersey farm all from her mobile phone. I thought ‘this is the future!’ and I wanted to play a part in it, enabling more industries like hospitality to become digitally enabled. We need to find more efficient ways of working and disrupting the standard process, using technology and most importantly, encouraging a constant learning pathway. 

I come from an age of manual typewriters and the dawn of the fax machine, but have embraced all new technology as an aid to my role. I am living proof that someone in their 60’s can adapt and change. We have a large pool of talented people on the island in their older years with immense amounts of experience. When I look to hire, I am most interested in an open attitude and willingness to learn, the rest can be taught. Similarly, older people may not have the tools they need to do certain roles, but they have extensive domain expertise, can adapt and learn, and I believe they are an untapped resource on the island. 

Jersey is such an accessible place to do business, and it sets itself apart from the UK in terms of the number of opportunities it offers for learning, progression, networking (the list is endless). No where is too far, and in most cases, you can knock on a door and be welcomed. We need to teach people to seek out these opportunities and grab them with both hands. 

My greatest advice would be that you don’t need to follow someone’s else idea of a career path, and, be prepared to take opportunities as they present themselves. It takes courage to do things differently, but the outcome is far more rewarding. You must get comfortable with being uncomfortable to be ready for the fast-paced change of today’s business environment”.

Financial Matters on Divorce

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Words: Claire Woodhouse, Benest and Syvret

On the breakdown of a relationship, resolution of financial issues is usually one of the most difficult and worrying aspects for a separating couple. It is a sad reality that in the majority of households, the assets and combined incomes that were able to meet the needs of the family in one household cannot be divided in such a way as to meet all the needs of the parties and the children at the same ongoing standard of living in two separate households. There are sometimes difficult decisions to be made over the future of the family home and how other assets or income are to be shared.

Financial disclosure is the process of giving your spouse, and the Court if there are financial proceedings ongoing, full details of your personal financial circumstances and your anticipated future needs and resources.

It will help your lawyer and help you to control your costs if you are able to be efficient and organised in collecting together all your financial information such as bank statements, credit card statements, wage slips, details of any liabilities or savings and details of your pension or other assets.

It is always hoped that you may be able to resolve financial matters between you. If you can talk to your spouse, great! If not, you do have other alternatives before you go to Court such as negotiations through lawyers or a round table meeting. You can also can consider mediation to resolve matters.

If you need to issue court proceedings, the Court will always adopt the “overriding objective” to deal with the case justly. This includes focusing on minimising costs, avoiding unnecessary delays, proportionality and fairness. Both the Court and the parties (and their lawyers) are expected to work towards achieving the overriding objective. The Court will consider the whole circumstances of your case but the first consideration is always the welfare of the children of the family. We will try to avoid court proceedings wherever we can as we understand the high financial and emotional cost to our clients; however sometimes they are necessary to resolve matters.

If you need any advice regarding family matters, please contact clare.woodhouse@benestsyvret.com or nina.benest@benestsyvret.com or call them on 01534 875875.

New law, new accountabilities.

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 Words : Advocate Chris Hillier, Head of Family Law at Ingram Advocates.

Advocate Chris Hillier, Head of Family Law, Ingram Advocates, discusses safeguarding and the impact of the Children and Young People (Jersey) Law 2022.

The Children and Young People (Jersey) Law 2022 (the Law) was enacted in March this year. Overall, the Law promotes and strengthens accountability for the protection  of children and young people in Jersey.

What is safeguarding?

The NSPCC defines safeguarding as “the action that is taken to promote the welfare of children and protect them from harm.”

What does the Law do?

The Law forms part of the Government’s response to the final report of the Independent Jersey Care Inquiry, and its purpose ( the “overriding objective”) is to promote and support the wellbeing, and to safeguard the welfare of children and young people in the Island.  Taking a step back to 2017 when the Inquiry’s final report was published, it was the experience of children within the care system that was at the heart of the Inquiry’s work.  That report identified individual and systemic failings and made recommendations for the future management and operation of Jersey’s residential and foster homes, to ensure the island provided a safe and secure environment for the children in its care.  

The Children’s Commissioner

Running throughout the Law is a duty to consult the Children’s Commissioner, whose role is to promote and protect children’s rights in Jersey, when Ministers publish or revise guidance.

New responsibilities

The Law invokes a duty on the Minister for Children and Education to assess the requirements of children with health or development needs, children in care and care leavers, along with placing a duty on the Minister to provide a range and level of services appropriate to meet the assessed needs of these groups of children and care leavers. 

There is a further duty to:  

• promote wellbeing and to publish a children and young people’s strategic plan every four years. 

• review child deaths. 

• provide a framework of support for children in care and care leavers, and

• to make arrangements for independent advocacy for certain groups and establish a procedure for complaints and representation.

Responsible Ministers and ‘Safeguarding Partners’ must also ensure that:

• children and young people are protected against all forms of unlawful discrimination;

• they have the best interests of children and young people as a primary consideration.

Who are the Safeguarding Partners?

The Law confirms certain Chief Officer roles in the States of Jersey as ‘Safeguarding Partners’ (Article 5), to ensure individual accountability and to maintain  a consistent approach by children and adult services. 

Safeguarding Partners include the Chief Officer, States of Jersey Police, the Chief Executive and Head of the Public Service, as well as the Chief Officers of CYPES, Health and Community Services and the Justice and Home Affairs Departments. 

A Safeguarding Ministerial Group is responsible for ensuring that Ministers understand their duties, and to consider priorities for reform, as well as to ensure a collaborative style of working.

Conclusion 

Some seven years after the conclusions of the Independent Jersey Care Inquiry, the new Law is a statutory effort to avoid previous failings relating to children in care and care experienced people. It is hoped that the specific accountabilities of Ministers and Safeguarding Partners will create a consistent, high-level approach, and greatly improve the experience of looked after children and young people in Jersey. 

White Leopard Cases

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 Words: Claire Davies, Principal of Claire Davies, Advocate

Since 2000, the courts of both England and Jersey have recognised the principle of equality when resolving financial applications on divorce. In some cases, we achieve equality by dividing assets down the middle. 

In others, one party will need either a bit more of the assets or some additional income for a period of time. In essence the court will look at the available resources and do their best to find a solution that meets the reasonable needs of both parties – particularly their need for housing.  In simple terms, most cases begin and end with those needs, rather than wants.

In cases where there is more than enough to go around, wealth will generally be shared equally. Sometimes a divorcing couple will have entered into a nuptial agreement, which may (or may not) alter the outcome. Very occasionally, particularly where a marriage has been short, the court will ring-fence an asset or some funds because they were generated outside the marriage. However, as a general rule, all assets are in the pot – wherever they come from. In 2024, it still comes as a nasty surprise to many spouses that their businesses, pensions and share options are matrimonial assets that will be taken into account on divorce.  

For higher earners, the law can feel particularly unfair. They will not get special credit for their efforts in the office or the boardroom. Arguments of special contribution, as it is known, are now limited to truly exceptional cases, described by one English Judge as “white leopards”.  The moral of this story? Consider whether a nuptial agreement will help you to feel more secure in your position. There are couples who both feel that the current legal position is less than fair. Otherwise, understand that when courts speak of equality – they mean it.

Love and Law: Are prenuptial agreements unromantic or sensible?

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Words: Matthew Godden, Partner and Advocate at Le Gallais & Luce

The wedding dress, the venue, the guest list, the photographer, the cake, these are just some of the many things that need to be organised before the big day and now it is becoming more commonplace to add another to that list –  the prenuptial agreement.  According to the New Marriage Foundation research one in five weddings in the UK now start with a prenup and a YouGov poll in 2023 found that 42% of British people consider prenups a good idea, compared with 13% who consider them a bad idea.

A pre-nuptial agreement is an agreement made by a couple before they marry or enter into a civil partnership, which sets out how they wish their assets to be divided if they should divorce or have their civil partnership dissolved. The agreement sets out what will happen to assets that were purchased both before and after the marriage and assets held in both sole and joint names in the unfortunate event the marriage breaks down and ends in divorce.

Prenuptial Agreements are understandably viewed by many as unromantic and contrary to the very notion of marriage.  Talking about the possibility of breaking up is a conversation that many people don’t want to have before they are about to tie the knot but the reality is that on marriage as well as the loving commitment you are making to each other you are also making a contractual commitment – yes that makes marriage sound like a business arrangements which of course it’s not but fact is that it is estimated that the divorce rate in the UK is around 42%; nobody gets married to get divorced but it is sadly something that happens.

The happiness of a wedding day could be followed in years to come by arguments about finances and financial disclosure, about what should happen with the monies that were inherited or gifted to one party by a grandparent or parent and for some couples they may rather set out clearly at the outset what will happen in that eventuality.  With a prenup in place you can determine how your wealth should be split yourself, rather than, should you get divorced and be unable to reach an amicable agreement, leave it in the hands of the Court.  A pre-nup can reduce potential conflict.

Prenuptial agreements are most common when people are getting married for the second or third time as they may want to protect assets they have acquired as part of their divorce or when they have inherited or may inherit from their family.  Prenups can cover anything from money to property to belongings, they can include pre-marriage assets, inherited wealth and also future assets such as expected inheritance.  It doesn’t matter whether the value is millions, thousands or just sentimental.

A few key points to consider in relation to pre-nuptial agreements:

You should ideally enter your prenup at least 28 days before your wedding day.

You will both need to get legal advice so you understand what you are signing.

The agreement must be entered of your own free will.

Both parties will need to disclose all their finances.

What is fair at the time you enter the pre-nup may not be fair in the future so you should keep it under review.  The most obvious example of this is children, a pre-nup that does not take into account children may well not be upheld by the Courts. 

Pre-nuptial agreements are not automatically enforceable in the Jersey court, the fairness of upholding any particular agreement will be considered by the court on a case by case basis. In the absence of circumstances which would make it unfair, it may well be upheld.


If you want to know more about pre-nuptial agreements including the fixed fee packages Le Gallais & Luce offer, or have any questions about any family law issues, please contact Matthew Godden at family@lgl.je or by phone on 01534 760760.

Claire Farley made Chief Executive at Brightly

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Claire Farley has been made Chief Executive of Brightly.  She will manage the charity’s staff and volunteers, help the charity to further raise funds and awareness of its work and develop effective working partnerships, as well as working with the Board of Management to ensure the continued success of Brightly.

Claire has previously worked in the private, public (health and safeguarding), educational and charitable sectors at senior levels and has worked with Government at ministerial level to enhance and protect the lives of Jersey’s children and young people. She has considerable experience in business management, marketing and setting strategic direction. Describing Brightly as a “highly respected and vital charity”, Mrs Farley commented: “I am privileged to be offered this opportunity and very much look forward to helping Brightly to further evolve and to continue to deliver excellent, tangible support. Brightly makes a real difference to children’s and young people’s lives.”

Leadership Changes at Jersey Water

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Jersey Water has today announced strategic changes to its leadership team, with the appointment of Andy Isham as non-executive director and Mark Manton as Chief Water Operations Officer.

These appointments strengthen the utility’s existing leadership team and form part of Jersey Water’s strategic direction for the coming years, which aims to build resilience and drive operational excellence across the business. Based in Jersey and a qualified chartered accountant, Andy Isham brings extensive financial and boardroom experience to Jersey Water’s Board of Directors. In his non-executive capacity, he will also chair the utility’s Audit Committee. Mark Manton, a Chartered Engineer with the Institute of Mechanical Engineers, has been a well-respected and committed member of the Jersey Water team since 2015. During this time, he has demonstrated his extensive leadership capabilities, expertise and dedication to the business.

Movers & Shakers: Henry is a Hero

Standard Chartered is proud to announce that Henry Baye has been recognised in the top 20 of the prestigious ‘Heroes Advocates Role Model List 2024’, published this week. He was selected for his commitment and influence to advocate for women’s inclusion both within Standard Chartered and beyond.

As CEO at Standard Chartered Jersey, Henry Baye is a member and sponsor of the Bank’s Europe Diversity and Inclusion (D&I) Council. He is also the Jersey country Diversity and Inclusion (D&I) sponsor, where he allocates resources and supports activities that promote gender diversity.  

Henry champions the advocacy pillar of the Bank’s Europe D&I plan, celebrating International Women’s Day annually with themes addressing workplace challenges for women. Henry has also embedded Diversity, Equity and Inclusion principles in recruitment, ensuring gender-diverse interview panels and shortlists. In 2024, Henry appointed three women to his Country Management Team, achieving a near 50-50 gender balance. 

He also sponsors female talent for the Bank’s Global Vantage program, mentors three women colleagues through the Bank’s Elevate program, and has trained as a male CEO Ally. Additionally, Henry leads on D&I initiatives outside of the Bank, including coaching women executives, speaking at the “When Females Lead” conference and supporting programs run by St John Ambulance Jersey and LEAP for young women leaders.

Judy Hsu, CEO, Wealth and Retail Banking, Standard Chartered, said: ““I am immensely proud to see Henry recognised by Involve for his unwavering dedication to championing and advancing our diversity and inclusion agenda at the Bank. Advocacy and allyship are crucial in driving progress, and Henry exemplifies these qualities through his leadership, consistently setting the standard for how we can all contribute to a more diverse and inclusive workplace.”

Henry Baye, CEO, Standard Chartered Jersey, added: “I am honoured to be recognised among such global trailblazers in the top 20 on the Heroes Advocates Role Model List 2024. I am encouraged to continue to represent and lead the diversity agenda, which seeks to strengthen our workplace and the society at large. Thanks to the many who support us to lead and champion diversity.”

This is the eighth year running that Standard Chartered has been recognised in the Heroes Lists.

The Great Solar Giveaway

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When SunWorks launched its first ever solar giveaway earlier this year, the business was looking for something meaningful and unique that could provide community benefit as well as promote renewable energy. The Great Solar Giveaway received many applications from local social enterprises, but it was The Sustainable Cooperative (SCOOP) who the public chose as the winners of the £10,000 solar installation, which was completed recently.

SunWorks was keen to enable SCOOP to start reaping the benefits of solar energy as soon as possible, helping them to continue their amazing work with the advantage of a sustainable power source. The system will produce over 5,000 units of electricity annually, amounting to yearly savings of over £1,000.

Kaspar Wimberley, Co-Founder of SCOOP, shared the charity’s delight at being the first winners of the Great Solar Giveaway: “We are super excited and a big thank you to the SunWorks team for creating this opportunity. Thanks to everyone that voted for us and allowing this to happen for us. This not only helps us today, but significantly protects us for the future against rising energy prices”.

Volunteers from SunWorks joined the team at SCOOP for a collaborative installation and handover of the solar panel system. Mark Brandon, Director of SunWorks, reflected on the day’s success: “It was a day filled with teamwork, great conversations, and celebration. The energy and excitement today have set the tone for even bigger and better things to come next year. Let’s keep the momentum going!”

To expand on this effort and make this annual giveaway even more meaningful, SunWorks is seeking a future sponsor and wants to encourage interested companies to get in touch to find out how they can support this unique local initiative. So, if you’re interested in spreading solar love, get in touch.

@sunworksci