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Old Mutual International launches new Portfolio Bond for the Swedish market

02/03/2016

Old Mutual International, part of Old Mutual Wealth, today launches the Swedish Executive Portfolio, a new whole-of-life portfolio bond tailored specifically for Swedish investors. The new bond provides a compelling solution for wrapping investment portfolios for a market dominated by custodian business.  

Custodian business is extremely popular in Sweden with nearly 90% of Old Mutual International sales in the region using an external custodian.  This stems from the preference of Swedish investors to use investment professionals to manage their portfolios or have their Bank continue to hold their assets.

The new Swedish Executive Portfolio also provides an opportunity for Swedish investors to use multiple custodians within the one life assurance contract. For example, investors  can diversify their investments across multiple portfolios, without having to rely wholly on one investment professional. Using the new Portfolio bond, investors can select up to three different custodians. Under local Swedish tax rules this arrangement can be very beneficial as it allows the investor to transfer between investment managers without it being treated as a new premium and is therefore not subject to additional tax.

The Swedish Executive Portfolio is a whole of life, unit linked, life assurance policy. This makes it a simple, comprehensive and effective solution for tax-efficient wealth planning. It can help investors build their wealth from a wide range of assets, and offers flexible access to the investments, enabling investors to take regular or ad hoc withdrawals.

Being able to pass wealth on to the next generation is a key consideration for many investors. As the bond is designed specifically for Swedish investors, it can be used in unison with Swedish rules governing private property when nominating beneficiaries.  This allows investors to ensure their children’s or grandchildren’s inheritance can be protected as their private property, known in Sweden as “Enskild Egendom”.

The new bond will produce a tax report annually, which will support advisers who often help their clients with their tax forms.

Marcel Bradshaw, sales director, Old Mutual International:Marcel Bradshaw

“The new Swedish Executive Portfolio is a great example of how we continue to develop tailored solutions to local clients based in our international markets. We have a long history in the Swedish market and we are committed to its future.

“Sweden is a market where the majority of business is managed by custodians, such as investment managers. This market leading proposition will enable clients to hold multiple investment managers within one life assurance contract, helping them to diversify the custodians looking after their wealth.”

 

 

For more information contact:

Sophie Heywood (Lenton)   
Corporate Communications Manager | Old Mutual Wealth

M: +44 (0)7834 499 558

T: +44 (0)23 8091 6770 | Ext: 21770
E: sophie.heywood@omwealth.com | W: www.oldmutualwealth.co.uk

Notes to editors:

About Quilter plc:

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

Quilter plc oversees £116.5 billion in customer investments (as at 30 June 2018).

It has an adviser and customer offering spanning: financial advice; investment platforms; multi-asset 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; Quilter Private Client Advisers; discretionary fund management business, Quilter Cheviot; and Quilter Investors, the Multi-asset investment solutions business.

The Quilter plc businesses are being re-branded to Quilter over a period of approximately two years:

• The Multi-asset business is now Quilter Investors

• Intrinsic to Quilter Financial Planning

• The private client advisers business is now Quilter Private Client Advisers

• The UK Platform to Quilter Wealth Solutions

• The International business to Quilter International

• The Heritage life assurance business to Quilter Life Assurance

• Quilter Cheviot will retain its name

This press release is for journalists only and should not be relied upon by financial advisers or customers.

Please remember that past performance is not a guide to future performance. The value of investments and the income from them can go down as well as up and investors may not get back any of the amount originally invested. Exchange rate changes may cause the value of overseas investments to rise or fall.

This communication is issued by Quilter plc.  Registered office: Millennium Bridge House, 2 Lambeth Hill, London EC4V 4AJ, United Kingdom. Registered number: 6404270.  Registered in England.