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14/01/2014

Skandia International, part of Old Mutual Wealth, today announces key enhancements to its International Portfolio Bonds and European Portfolio Bond sold in the UK. The enhancements include greater flexibility in how Discretionary Fund Managers (DFMs) can be utilised, and will open up a number of possibilities for advisers and customers regarding how money is held and managed within their offshore bond.

Advisers and customers now have greater choice over who holds the assets within the bond, known as the ‘custodian’. Rather than just allowing one external custodian, advisers and customers can now:

  • select multiple external custodians
  • use a mix of external and in-house custodians

This change is key as a number of DFMs will only advise on assets held under their custodianship. Being able to hold multiple custodians means advisers can select a number of DFMs within the one bond wrapper to manage different aspects of the overall portfolio. For example, the adviser might select one DFM to manage the domestic element of the portfolio, and a different DFM to manage the international element of the portfolio. Alternatively, the adviser could select one DFM for active and a different one for passive portfolio management.

This enables the adviser to match the best DFM for each portfolio objective, and switch between DFMs depending on how they perform and on prevailing market conditions in order to get optimum results for their customers. As the portfolios are all held within the one bond wrapper, there are no income tax, capital gains tax or self-assessment implications for the customer if they switch between DFMs.

The second new option of mixing in-house and external custodians is useful for advisers wanting to manage some of the money themselves, e.g. the bank accounts, but would like to use outsourced expertise, e.g. a DFM to manage the investment portfolio.

This new flexibility is also great news for customers who already have assets with multiple custodians, as it means they can consolidate their assets within one bond wrapper without moving the assets and disrupting any existing relationships. Being able to wrap the assets inside an offshore bond enables the customer to gain wider benefits such as tax efficiency and consolidated reporting. (Please note: although the assets don’t need to be sold and moved, the beneficial ownership of the assets will change which could still result in a taxable event for the customer).

Multi-custodian business can now be applied for online, and a separate investment adviser (e.g. DFM) can be appointed to each custodian; with fees able to be paid separately to each adviser.

 

Phil Oxenham, head of proposition marketing, comments:

Phil OxenhamOffering multi-custodian business can help customers more effectively manage their wealth by providing greater choice and flexibility. The ability to leave assets with an existing custodian and select multiple DFMs is an attractive option, and we are experiencing growing demand for this type of business. We are listening to what advisers want, and the continual improvements we are making to our offshore bonds will ensure our online proposition, supported by Wealth Interactive, become powerful tools for advisers going forward.

For more information contact

Sophie LentonOld Mutual Wealth02380 916 77007834 499 558
Amelie ShepherdOld Mutual Wealth
02380 916 09107834 499 596

Notes to editors:

Quilter is a leading wealth management business in the UK and internationally, helping to create prosperity for the generations of today and tomorrow.

On a ‘go forward basis’, Quilter oversees £ 111.6 billion in customer investments (as at 31 March 2018).

It has an adviser and customer offering spanning: financial advice; investment platforms; multi-asset and single strategy investment solutions; and discretionary fund management.

The business is comprised of two segments: Wealth Platforms and Advice and Wealth Management.

Wealth Platforms includes the Old Mutual Wealth UK Platform; Old Mutual International, including AAM Advisory in Singapore; and the Old Mutual Wealth Heritage life assurance business.

Advice and Wealth Management encompasses the financial planning network, Intrinsic; Old Mutual Wealth Private Client Advisers; discretionary fund management business, Quilter Cheviot; and Old Mutual Wealth’s multi-asset investment solutions business.

The Quilter businesses will be re-branded to Quilter over a period of approximately two years following separation from Old Mutual:

  • Intrinsic to Quilter Financial Planning
  • Private Client Advisers to Quilter Private Client Advisers
  • The Multi-Asset business to Quilter Investors
  • The UK Platform to Quilter Wealth Solutions
  • The International business to become Quilter International
  • The Heritage life assurance business to Quilter Life Assurance
  • Quilter Cheviot will retain its name.

On 19 December 2017, Old Mutual Wealth announced that it has agreed to sell its Single Strategy asset management business to the Single Strategy Management team and funds managed by TA Associates. The proposed transaction is subject to customary closing conditions, including regulatory approvals. 

Quilter is part of Old Mutual plc, a FTSE 100 group that provides investment, savings, insurance and banking. For the year ended 31 December 2017, Old Mutual reported an adjusted operating profit before tax of £2.0 billion. For further information on Old Mutual plc and the underlying businesses, please visit the corporate website at www.oldmutualplc.com.

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