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New breed of offshore bond launched in the UK

26/06/2017

Old Mutual International, part of Old Mutual Wealth, has launched a new bond in the UK, called the Select Bond. The Select Bond, with a simple, transparent charging model and lower premiums, will help boost the appeal of offshore bonds to a new, wider audience. 

Offshore bonds can often be viewed as solutions which are only relevant for customers with complex investment requirements or for those intending to move overseas and who want a solution which is portable. The new bond will help to break down this perception, remove any potential barriers and encourage more advisers to use them with their customers. It focuses on three core areas of improvement:

  • Simplicity: one simple, transparent and competitive charge with no initial, dealing or transaction charges.
  • Control and Efficiency: enhanced portfolio management capability available through Old Mutual International’s Wealth Interactive platform.
  • Access: lower premiums, which will open up offshore bonds to more customers.

The Select Bond will enable investors to access the same fund range as Old Mutual Wealth’s onshore products. This includes the SelfSelect range of 1,300 funds from across all major asset classes and the WealthSelect* range of funds, providing choice and flexibility.   Advisers can use any of these funds to build and manage their own model portfolios, or select from the range of multi-asset solutions available from Old Mutual Global Investors’ Multi-Asset team. There will be no asset dealing charges, giving more freedom to advisers and customers to switch investments as they choose without being restrained by additional costs.

At a time when pension allowances are reducing, many investors are looking for new ways to save tax efficiently. The Select Bond enables customers to save for their retirement in a tax efficient way, where the underlying funds benefit from gross roll up. Customers can also benefit from 5% p.a. withdrawals without incurring an immediate liability to tax.

Peter Kenny, Managing Director, Old Mutual International, comments:

“I am incredibly proud to be launching the new Select Bond in the UK. 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, comments:

“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.”

Richard Hulbert, Insight Analyst, Defaqto, comments:

“With the quality and number of product features and benefits now available, it is more difficult than ever to choose the right product for clients. The Select Bond demonstrates a high level of comprehensiveness and a strong competitive position among the other adviser propositions on the market.”

*WealthSelect is a range of fully researched funds from market-leading asset managers providing access to high quality funds at a competitive price.

For more information contact

Tim Skelton-SmithOld Mutual Wealth02380 916 99807824 145 076tim.skelton-smith@omwealth.com
Sophie HeywoodOld Mutual Wealth02380 91677007834 499558sophie.heywood@omwealth.com

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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