for the year ended 31 December 2024
Stakeholder Letter
Our People - Their Success
Our People - Growing around our peoples needs
Our People - Expanding our reach and influence
Our Impact - Alignment with the SDGs
Our Impact - Partnerships
Our Impact - Philanthropy and Commitment
Our
- Awards and Shortlisting
As we prepare this letter, we currently have Michelle meeting clients and intermediaries in Dubai; Justin doing the same in Singapore; Ben attending a sustainable finance event in Amsterdam and David chairing a debate at a Trust & Estate practitioner meeting in Prague (To complete the circle Russell and James are WFH!)
As you will gather from this opening paragraph, after the period of consolidation we reported 12 months ago, this year has once again seen us building our business and scanning new horizons. Despite the challenges presented by a deglobalising world, with geopolitical risks shifting from background concerns to pressing realities, we believe the Affinity business is sufficiently resilient - and its team of people suitably adaptable - to capture the opportunities this volatile environment will inevitably create. Being on the front-foot during these uncertain times is the result of a lot of our hard work and also a position we find ourselves in thanks to the support of numerous important stakeholders which the circulation of this annual report is designed to thank.
Being successful in building our future relies on us having confidence in the foundations we have laid in the past. We continue to embed the operating principles of Traction – the entrepreneurial business management framework we made reference to this time last year – which enables us to develop and execute strategy across the company. Workstreams are clearly defined, goals are specific and efficiencies are regularly captured. Interwoven with our core values of being Authentic, Sustainable & Inclusive, Traction continues to strengthen our brand and deliver tangible value in helping us measure the pulse of our two operating businesses and keep us focused on the metrics that matter.
In common with 2023, our strategic goals over this year have centred around 3 key pillars, purposely combined to catalyse the corporate mindset shift from consolidation to growth.
These are:
1- Business development; Expanding our reach and influence
2- Succession; Investing in our future leaders
3- Driving Innovation; Data: creation, management and analytics
Since our incorporation in 2011, Affinity has operated from the single jurisdiction of Jersey, which continues to be recognised as one of the premier International Finance Centres in the world. This reputation, coupled with its excellent transport links to London, has enabled us to build client relationships for the benefit of both our trust and investment operating companies. This UK nexus has served us well and has also proved a valuable springboard to also build our client base in Europe, Asia and the Middle East.
The macroeconomic, geopolitical and regulatory landscape has changed significantly since 2011 and the requirements of current and future clients have quickly moved in tandem with this, particularly those requiring the services of our trust company. Nowhere has this been more evident than during our marketing in the Middle East and following a strategic review lead by Michelle, we are pleased to announce we are currently in the process of applying for a license to open an office in Dubai’s DIFC. This second operating jurisdiction for Affinity offers a highly regarded regulatory framework, featuring its own courts and an English common law foundation, which ensures a stable and predictable operating environment for a firm like ours. We have concluded the city’s growing high-net-worth population, advanced infrastructure and access to top talent, alongside strong government support for fintech and sustainable finance, make Dubai a natural choice for our continued expansion.
First and foremost, our financial performance has been strong this year. Our accounts are currently being audited and will be available early next year. Based on our unaudited accounts we are ahead of budget for turnover and net profit , at the group level. The trust company has taken on an additional 30 structures and it is pleasing to report a record level of new business pipeline as we head into 2025. Our focus on high levels of service, a regular visitation program and a flexible but compliant approach to wealth structuring have combined to make us a valued operator in the local fiduciary ecosystem. A noteworthy endorsement of this assessment came with us being finalists for the STEP Trust Company of the Year (Midsize Firm) Award for the second consecutive year. These awards, widely regarded as the most prestigious in our industry, are rigorously judged by a panel of international experts, making our selection from a record-breaking number of entries a meaningful achievement. Alongside this, several employees were shortlisted for individual awards, which you will read about later in this report.
Growth of our investment business has proved harder to come by. Sustainable (dark green) investing has endured another challenging year as it remained caught in the crosshairs of weakening public policy ambitions, increasingly complex and onerous reporting frameworks and a macroeconomic and geopolitical environment which was less than favourable. Notwithstanding this, we have continued with the strategy to expand European distribution of the Affinity Sustainable Growth UCITS fund via our ongoing partnership with FEIFA (Federation of European Independent Financial Advisers). This initiative has included delivering seminars in Cyprus, Southern Spain and Prague, as well as webinars to IFAs across the UK. These efforts have helped us establish valuable relationships with business introducers and enhance our brand profile. We expect this to deliver new business flows through 2025. This initiative has run in parallel with a digital marketing strategy, enabling us to reach our target audience while gathering valuable data on the effectiveness of our promotional collateral. Early analytics have highlighted our brand engagement has doubled since we introduced this approach which augurs well for the future.
Where the investment business has been able to deliver growth is through portfolio returns. Our Responsible suite of discretionary strategies (light green) have enjoyed a very successful year of performance. The Income and Real Real (£) solutions are first quartile over the last 12 months versus their relevant ARC Private Client Index benchmark. This leaves the latter a top quartile performer over a 5-year time-line, with Responsible Growth above its relevant ARC Index during this period too. In a world that has become increasingly uncertain it is pleasing to have navigated this challenging environment and deliver robust returns for our clients.
In terms of expanding our influence, we are committed to managing and operating a sustainable business and were delighted to gain the Jersey Good Business Charter Silver Status accreditation this year. We are the first company on the island to receive this recognition and it reflects our commitment to upholding the highest ethical and sustainable standards across five evaluation categories; People, Planet, Community, Clients and Suppliers. In other words, a collection of our key stakeholders.
Through the year, Russell has been a member of the Jersey Finance Sustainable Finance Steering Committee working alongside representatives from the Government of Jersey, our Regulator and broader industry to help develop the policy framework which will shape the island’s approach to this space. The finalised Action Plan has now been published by Government and we will continue to help implement on the ambitious agenda ‘to help Jersey to be a consistently high-performing, environmentally sustainable small island economy’.
This autumn we were proud to unveil our dynamic succession plan that reinforces Affinity’s commitment to remaining owner-managed and independent. This strategic initiative, which was nearly two years in the making, was driven by the original founders and shareholders, with the focus on securing the future independence of Affinity while ensuring that client needs remain at the forefront of all decisions.
With support from leading tax and legal firms, our succession strategy has been recognised as pioneering and original thinking. This underscores the firm’s dedication to a structure that prioritises stability, free from the influences of outside shareholders. As a result of this process we were pleased to welcome Michelle and Elizabeth as new shareholders and see Sean increase his holding.
Alongside this initiative, our Future Leaders structured 2-year training program has seen the selected cohort complete their first 12 months of training; with this delivered by experienced individuals from both inside and outside the business. By investing in the next generation of our leaders we are equipping them with the skills and insights necessary to steer our organisation in the years to come.
Affinity’s dedication to a client-focused business model is essential in today’s complex financial landscape. Our determination to build and execute this succession strategy - the importance of which we believe many similarly positioned firms fail to execute - is enabling us to prioritise key stakeholder relationships and adapt quickly to both theirs and our own evolving needs.
Investment in technology continues to gather apace as we seek to harness efficiencies digitisation affords and free up more time to work on high value-add services for our clients. Our focus also extends to enhancing the experience all our stakeholders receive as they interact with our business and we continue to dedicate increased resources to manage our exposure to cyber risks.
This year we have been testing the utility of Microsoft’s Copilot; the AI (Artificial Intelligence) enabler. Its data-driven insights enable quick analysis of large volumes of information, informing timely decision-making and enabling us to work smarter. By way of example, our trust company is utilising this tool to reengineer numerous administration routines and improve reporting. The investment business is already seeing real-time benefits in terms of record keeping, data-analytics and communication.
Insights from the data we collect also enhances our marketing efforts by providing a clearer understanding of our target audiences’ preferences and behaviours. We are designing a new website, timetabled to go-live in Q1, 2025, built around this data-driven approach, which will provide flexibility in content creation, boosting digital engagement, and delivering data insights that drive smarter decisions.
As a regulated business, mandatory reporting is an ever present as businesses are asked to collect and present audit standard financial and sustainability metrics. With reference to the latter, the investment team has partnered with Clarity AI, a leading ESG data and analytics platform. This provides easy-to-use, AI-powered technology which is ensures we comply with the EU Taxonomy framework for our Dublin-based UCITS fund.
Staying with the regulation and legislative environment; where relevant, our trust team will be working closely with clients to help them navigate the implications of the changes to nondomicile rules being announced by the UK Government. The impact will be complex and far reaching for some; Justin and the team will ensure any transition arrangements required are implemented in a timely and effective manner.
Alongside this, our strategy for growth across the trust company – beyond what we have already highlighted in the Middle East – will continue in its current guise. Namely, our Family Focus work stream will help drive us to create wealth solutions that preserve family legacies while fostering intergenerational engagement. Successfully strengthening existing relationships is at the core of what we do and we have a goal to meet 75% of our clients each year through our domestic and international visiting program. Finally, we remain committed to the role we can play as a sustainable trustee helping those clients wanting to mobilise their capital to achieve positive impact or philanthropic goals.
As our business grows, we are focused on ensuring our service levels remain at the high standard we have set. Automation of routines is a tangible contributor to achieving this and James is overseeing a series of projects timetabled to introduce tech solutions to improve client onboarding, custody and investment manager book-keeping and improve transactional workflows. Ben is similarly focused on driving tech efficiencies in the investment business and we have now terminated our SWIFT contract – and capturing valuable cost savings – switching to an in-house solution we have developed.
The time we have spent evolving our investment process and the resultant delivery of improved performance leaves us better placed to build our book of discretionary and advisory managed assets over the next 12 months. The intergenerational wealth transfer forecast to take place over the next few years convinces us the pool of assets wanting to be invested to align wealth with values will continue to grow.
And there’s more
As an extension to our usual update, this is Affinity’s first Stakeholder Report which also brings together all our CSR initiatives, awards and people-focused achievements. It aims to showcase our impact, celebrate successes and provide stakeholders with clear insights into our contributions to the industry and society. We hope you enjoy reflecting on our year with us.
David, Justin, James, Michelle, Ben & Russell
We recently completed ADHD and autism awareness training to strengthen our commitment to inclusivity and ensure a supportive environment for all employees. By deepening our understanding of neurodiversity, we are better equipped to create an accommodating workplace where everyone can thrive. This training also enables us to offer more informed support to our neurodiverse clients, fostering a culture of empathy and understanding both internally and externally.
Our Accounts team recently participated in Deaf Awareness training, aimed at deepening our understanding of the challenges faced by deaf and deafblind individuals. The session provided practical strategies for improving communication and fostering a more accessible and supportive environment. This training was suggested by one of our colleagues and demonstrates our proactive approach to building a diverse set of soft-skills across the business.
We have recently enhanced both these policies consistent with our progressive HR strategy to support our people during their moments that matter. Recognising personal challenges and family responsibilities impact all of us, we want to create a workplace where employees feel confident and supported.
Our Culture Committee organises all social, charity, and wellbeing events throughout the year. With a focus on work-life balance, this year’s wellbeing sessions encouraged getting out of the office and exploring what Jersey has to offer. We held sessions on setting healthy boundaries and supported a sustainable farming initiative, highlighting the importance of knowing the provenance of the food we eat.
This year we also switched our healthcare insurer to better support the needs of our employees.
Our team has been actively attending and speaking at conferences and events across key locations, including Dubai, Prague, Jersey, London, Marbella, Cyprus, and beyond.
These platforms enable us to share insights to our approach, promote our trust and investment solutions, and contribute to conversations on best practices and sustainable growth within the financial sector.
Over the past year, David, James, Michelle, Elizabeth, and Russell have brought their expertise to a variety of panel discussions on compelling and timely topics. From the gender pay gap and the climate majority project to UK Non-Dom rule changes, family law, philanthropy, women in finance, and the great wealth transfer, they have contributed to shaping important conversations in our industry and beyond.
This year, Russell and Elizabeth participated as judges for notable industry awards. Russell evaluated entries for the Investment Week Sustainable Investment Awards and the Investment Week Fund Manager of the Year Awards. Elizabeth served as a judge for the WealthBriefing Channel Islands Awards, specifically in the Private Banking category. Their involvement highlights our team’s active engagement within the industry and support for recognising excellence.
We remain actively involved in helping to shape the sustainable finance agenda in Jersey. Russell sits on the Jersey Finance Sustainable Finance Steering Committee, Lydia is part of the Future Sustainable Finance Leaders Committee and Ana is a member of the Institute of Directors D,E&I Committee. Additionally, we participated in preparations for Jersey’s MONEYVAL assessment and submitted a comprehensive response to the Government of Jersey Policy and Regulatory Framework for Sustainable Finance consultation paper.
As participants of the UN Global Compact our business has made a commitment to drive business awareness and action in support of achieving the Sustainable Development Goals (SDGs) by 2030. As such we are part of an accountable group of companies supporting and sharing best practices that enable positive change.
Based on our internal assessment, we have chosen to highlight our support towards 8 of the goals which we believe best represent the impact of our approach and our continued efforts to improve.
We prioritise the health and well-being of our employees, recognising that a healthy workforce drives productivity and business success. By offering wellness programmes, we aim to reduce absenteeism, lower healthcare costs, and enhance employee engagement.
We offer accelerated learning and develop career progression plans with our employees. We also collaborate with local education providers, and dedicate time and people to local careers fairs, internships, and carbon literacy training. This support of education and lifelong learning helps build a skilled workforce, drives innovation, and contributes towards long-term economic growth and social stability.
SDG 5/10
We promote gender equality and reduce inequalities by ensuring equal opportunities for all, regardless of gender or background. Through workforce diversity, gender pay gap reporting, and D&I surveys, we foster an inclusive culture which we believe, enhances productivity, and strengthens our reputation, while opening new opportunities for growth and social impact.
By creating job opportunities and supporting team engagement through Employee Opinion Surveys we seek to build on Affinity’s reputation as a decent place to work. Moreover, as participants in the UN Global Compact and signatories to the Living Wage campaign, we promote fair practices, protect labour rights and contribute to the island’s economic prosperity.
SDG 16/17
Affinity supports responsible consumption as evidenced by our focus on recycling, paper usage, procurement, conscious travel choices and sustainable corporate gifts.
Through strong corporate governance, led by our Board of Directors and overseen by our Compliance team, Affinity seeks to build an effective, accountable and inclusive enterprise. Additionally, we actively engage with our regulator, support government initiatives and participate in ongoing industry collaborations; all of which contribute to the sustainable development of our island economy.
By investing in Affinity’s sustainable mandates, Investors are supporting the work of Durrell Wildlife Conservation Trust (Durrell). For the past three years, we have donated a fixed percentage of the discretionary fees to this Jersey-registered charity, which works globally to protect species from extinction. We are proud to have recently reached the milestone of over £100,000 in donations through this initiative alone.
Durrell focuses on conserving rare and often overlooked species—those that, while not as iconic, play a crucial role in revitalising ecosystems and fostering a healthier, more sustainable natural world. These “little brown jobs,” as Gerald Durrell affectionately called them, are vital to achieving long-term environmental balance.
BELOW ARE SOME EXAMPLES SHOWCASING HOW AFFINITY’S SUPPORT HAS ENABLED DURRELL TO CONTINUE THEIR MISSION OF SAVING SPECIES FROM EXTINCTION:
INDIA PYGMY HOG RELEASES
50 camera traps - The pygmy hog, the world’s smallest pig and one of the most endangered mammals, lives only in Assam’s tall grasslands. To monitor released populations, camera traps are arranged in a grid pattern using GPS points.
8 transmitters - Transmitters track pygmy hogs after their release, providing data on their behaviour and range to inform future release strategies.
THE SAINT LUCIA RACER CONSERVATION PROGRAMME
Funding supports 24 staff trips over four months to monitor the Saint Lucia racer, the world’s rarest snake with only 80-100 surviving in the tiny Maria Major island off Saint Lucia.
MADAGASCAR POCHARD BREEDING PROGRAMME
Biosecurity training for local partners to prevent invasive species like rats and mongooses from causing the extinction of the Saint Lucia Racer on Maria Major island.
The Madagascar pochard, the world’s rarest duck, was once thought extinct. Durrell’s work with the species began in 1989, and a captive breeding programme was established in 2009.
Funding for four groups of captive-bred pochards to be released into Lake Sofia aims to establish a wild population. The number of birds released depends on breeding success and covers transport, equipment, and staff costs.
MADAGASCAR, BIG-HEADED TURTLE (LOCAL NAME “RERE”, PRONOUNCED “RAY-RAY”)
The Rere is threatened by overfishing, hunting, and climate change. Since 1998, Durrell have worked with local communities to protect them. Funding for 10 radio tags helps track turtles and gather data to better protect their habitats.
The protection of 400 nests - wire mesh costs USD 200 per roll. Community members guard the nests and are paid for each successful hatch.
Learn more about the important work Durrell do by visiting www.durrell.org.
SOURCE - Durrell - figures correct as of September 2024
We have partnered with Ocean Culture Life (OCL) to fund several of their Storytelling Grants over the next 12 months. This initiative aims to highlight the untold stories of ocean conservation, amplifying efforts to preserve ocean ecosystems and inspire global action.
The Storytelling Grants provide a platform for storytellers to showcase the often-overlooked work being done to protect our oceans. In addition to financial support, the grants offer grantees the opportunity to connect with OCL’s global network of ocean advocates and conservationists, increasing visibility for projects that might otherwise remain unseen.
Elizabeth Shaw, Trust Director at Affinity, will join a panel of renowned conservationists to shortlist the grant applications. Elizabeth said, “We are pleased to partner with OCL, a charity whose values align closely with ours. Storytelling plays a crucial role in raising awareness about the vital, yet often unseen, conservation efforts that are essential for the health of our oceans. By supporting these stories, we aim to inspire greater ocean stewardship.”
This partnership reflects our shared commitment with OCL to raise public awareness around marine conservation, in line with UN Sustainable Development Goal 14. Through mediums like photography, film, and immersive experiences, the Storytelling Grants will showcase the efforts of those dedicated to ocean preservation.
Applications for the Storytelling Grants are now open, with a submission deadline of January 1, 2025, and winners to be announced on January 31, 2025.
For further details and to apply, please visit https://oceanculturelife.com/storytelling-grant-programme
Over the course of our partnership with Blue Marine Foundation, we have supported the Jersey Hand Dived Scallop Initiative, a research project focused on understanding and protecting scallop populations in Jersey’s waters. The initiative aimed to gather critical data on the health of scallop beds in both Marine Protected Areas (MPAs) and non-protected areas, providing valuable insights into how MPAs contribute to the conservation of marine ecosystems.
The research, which involved hand-diving to collect samples from different locations around Jersey, highlighted the positive impact of MPAs. Scallop populations were found to be more abundant in protected areas, with a higher proportion of scallops reaching legal size, underscoring the role of MPAs in fostering sustainable marine environments. These findings are vital in advocating for the expansion of Jersey’s MPA network, as MPAs offer essential protection to marine species, ensuring that populations can thrive and regenerate.
The data collected has been submitted to the Government of Jersey, helping to inform policies around marine conservation and the sustainable management of local fisheries. The Government of Jersey has also presented the findings from this data within a national scallop fishery management platform. The work also aligns with Blue Marine’s broader mission to establish Marine Protected Areas in Jersey, plans of which were approved by the Government of Jersey in October, increasing protection from 6.5% of territorial waters, to 23%.
Our collaboration with Blue Marine reinforced the importance of protecting vital marine ecosystems and promoting sustainable practices within the local fishing industry. Through initiatives like the Jersey Hand Dived Scallop project, we have contributed to ongoing efforts that aim to ensure a healthier, more sustainable future for Jersey’s marine environment.
This year, we partnered with Highlands College to sponsor six fully funded Carbon Literacy courses. This initiative aims to promote sustainability and environmental awareness across Jersey’s public and private sectors.
The courses, accredited by the Carbon Literacy Project, offered participants the opportunity to become certified as ‘Carbon Literate.’ By deepening their understanding of carbon impacts and motivating emission reductions, successful participants left equipped to drive change at individual, community, and organisational levels.
We are pleased to announce that we have become the first company in Jersey to be awarded Silver Chartered status by the Jersey Good Business Council (JGBC). This recognition highlights our leadership and commitment to sustainable business practices, corporate responsibility, and community engagement.
Achieving Silver Chartered status involved a comprehensive assessment process by the JGBC, building on the Bronze status we achieved three years ago. While the entry level focused on meeting the ‘credible intentions’ standard across five categories—People, Planet, Community, Clients, and Suppliers—the Silver level required us to demonstrate ‘significant measurable outcomes’ across the same categories, with evidence for 80 specific indicators.
Following the documentation and preparation of this evidence, two JGBC assessors visited our offices for an in-person inspection. The final validation involved the JGBC’s review and endorsement, culminating in the awarding of Silver Chartered status.
In 2023/24, Affinity has been deeply involved in helping one of our clients bring an ambitious philanthropic vision to life.
Through our long-term relationship with the family in question, and a period of thoughtful discussions and reflections, we supported them in reaching a consensus to dedicate their philanthropic efforts to rewilding and environmental restoration. This led to the purchase of 7,650 hectares of land in Scotland, a project that had previously seemed uncertain to our client. Once introduced to the team at the Durrell Wildlife Conservation Trust (Durrell), we found a trusted partner for the rewilding efforts.
In November 2024, Courtney and David visited the site to witness firsthand the incredible potential of this project. The land, now leased to Durrell for 100 years, will be at the centre of an ambitious rewilding effort focused on restoring peatlands, planting woodlands, reviving river courses, and supporting biodiversity. The aim is to create a thriving, sustainable ecosystem that will grow and evolve over the next century.
This project represents a meaningful alignment of our client’s wealth with their core values, making a lasting impact on the environment. As trustees, we are proud to have guided this process, helping our client realise their vision for environmental conservation. This endeavour embodies Affinity’s role in providing support and guidance in helping clients’ values are reflected in their charitable efforts.
Our continued commitment
At Affinity, each colleague is allocated 8 hours of CSR time annually to contribute to charitable and community causes. Many extend this commitment further, volunteering their personal time with organisations such as the Jersey Association of Sustainability Practitioners and the Future Sustainable Finance Leaders Group, among others, fostering meaningful engagement and contributing to the community in which we operate.
This year, our efforts have supported Trees for Life, Macmillan, Tiny Seeds, Healing Waves, and several other deserving charities.
For the fourth consecutive year, we have offset our carbon footprint through the Rewild Carbon programme administered by Durrell. This year, our reported emissions increased as we expanded the scope of our carbon calculations to include train travel and refined our employee office commute data. Despite this, we have gone above and beyond for the third consecutive year, investing in additional carbon credits beyond our measured emissions.
Through the Rewild Carbon programme, we have supported Durrell’s vital work to restore Brazil’s Atlantic Forest, where 178 million hectares of this critical ecosystem have been lost to agriculture since 1990. In 2023, we proudly contributed to the planting of 312 trees, bringing our total to 550 trees since joining the programme. These trees are strategically planted to reconnect fragmented forest areas, expand habitats for threatened species, and boost biodiversity. With 569 species found only in the Atlantic Forest, its restoration is more critical than ever, and we are proud to play a part in its preservation.
We actively engage with schools and participate in career fairs to guide and connect with aspiring future finance professionals. This year, we once again took part in the Life in Finance - Jersey Finance’s internship program - while also welcoming additional interns. Their contributions significantly supported projects across both our trust and investment teams, providing them with valuable, hands-on industry experience.
As UN PRI signatories, we integrate environmental, social, and governance factors into investment decisions by adhering to the PRI’s six principles.. In July 2024, we completed our first mandatory report. This was a valuable undertaking which strengthened our governance structures, including updates to our Responsible Investment Policy and Exclusions Framework.
Our participation in the UN Global Compact requires us to submit an annual Communication on Progress (COP) to demonstrate alignment with its Ten Principles. Our latest submission, completed in June, is available at Affinity Private Wealth | UN Global Compact.
Company recognition and succession
STEP Trust Company of the Year (Midsize) – Finalist 2023 & 2024 -
Being recognised alongside global firms is a privilege in these prestigious awards for two consecutive years.
Jersey Finance Sustainable Finance Awards – Investment Management 2023 -
Celebrating two consecutive years of outstanding achievement in sustainable investment solutions.
Jersey Finance Sustainable Finance Awards – Dalnacardoch Project -
Celebrating the exceptional work of our trust team in driving impactful philanthropic initiatives with a valued client.
