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Investment Terms

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ROPS

A Recognised Offshore Pensions Scheme (or "ROPS"), typically based in a jurisdiction such as Isle of Man, the Channel Islands, Gibraltar or Malta. Impacted in many (non European in particular) jurisdictions by imposition of a 25% tax on transfer in 2017 from UK final salary pension schemes.

SIPP

A Self Invested Personal Pension (or "SIPP") is a UK based personal pension scheme. Typically a low cost solution inside which investors may then invest into a variety of underlying assets either in the form of direct investments or alternatively via investment funds.

Active management

Where fund managers select specific components of an investment universe with the express intention of successfully picking those assets that will outperform the average to the benefit of their investors.

Passive management

An investment approach that involves buying the whole universe of investments with no conscious decision to either overweight or underweight any specific individual components. Each investment is simply held in proportion to its weighting within the investment universe. Passive solutions may feature ETFs or index funds which are typically lower cost than active solutions.

Multi Asset

This describes an investment approach that involves investing across more than just one asset class. Each individual asset class has different characteristics and will perform and react differently under different market conditions. The primary reasons for using a multi asset approach are to reduce the volatility of investing in a single asset class and to improve returns of the portfolio over the longer term. This is driven not by improved performance in rising markets but in actual fact by reducing downside exposure through diversification in falling markets. 

Multi Manager

A specific type of multi asset approach which focusses on the fund manager picking a variety of third party actively managed funds, as opposed to investing in direct investments or using passive solutions such as ETFs and index funds.

Jersey Terms

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Jersey Estate

The situs of tangible real assets can be relatively straightforward, however for intangible or financial assets it can be less so. FlexGlobal is structured specifically to ensure "Jersey situs" of the assets resulting in the creation of a "Jersey Estate". Consequently each FlexGlobal Application form includes a Jersey Will to ensure certainty of outcome in the eventuality of untimely demise. Any individuals with assets deemed to have Jersey situs and not having a valid Jersey Will would otherwise be deemed intestate.

Jersey Financial Services Commission

The Jersey Financial Services Commission (or "JFSC") is responsible for the regulation, supervision and development of the financial services industry in the Island of Jersey.


www.jerseyfsc.org