Old Mutual International has launched an offshore bond for UK investors in a bid to provide a tax-efficient vehicle and expand their use among advisers.
The Select Bond will have a single, low, transparent charge, lower premiums than traditional offshore bonds and will allow portfolio management through Old Mutual International’s Wealth Interactive platform, the firm says.
Investors can access the same fund range as Old Mutual Wealth’s onshore products through the Select Bond, including the SelfSelect and WealthSelect ranges, while advisers can also build their own model portfolios through Old Mutual Global Investors’ multi-asset solutions. There are no asset dealing charges and investors can withdraw 5 per cent per annum without immediately being taxed.
Peter Kenny, managing director Old Mutual International, says: “The compelling proposition offers simplicity, with just one simple and competitive charge, and greater control and efficiency, with improved online functionality. This new breed solution will make offshore bonds appeal to a new audience and complements our existing range of offshore solutions.”
Tom Hawkins, head of UK proposition Old Mutual Wealth, adds: “At a time when saving for retirement is heavily on people’s minds, and the amount of tax allowance some people receive has reduced, we are seeing growing demand for alternative solutions which help investors save tax efficiently for their retirement.
“Offshore bonds can help advisers meet this demand, and simple online solutions which provide access to quality investment funds at a competitive price will be attractive.”