Our Executive Bond is ideal for non-UK tax resident investors who have no immediate plans to move to the UK, and international or corporate investors wanting the widest investment choice possible.
This broad investment choice is often referred to as ‘open architecture’ and means you can conveniently customise your client’s portfolio precisely to their individual needs and preferences, without compromise.
And the Executive Bond can save you valuable time. Keeping track of a well-diversified portfolio can be time consuming but one of the key benefits of this bond is that you and your client can manage and monitor all the investments within a single wrapper.
The Executive Bond provides investment freedom by enabling investors to:
- wrap their existing investment portfolio, or build a new one, within a bond
- invest in a wide range of investment asset types which can be adapted as circumstances change
- customise their portfolio precisely to their individual needs and preferences, without having to compromise to fit within pre-set rules and parameters
- take the investment with them if they move from country to country
- easily access their capital through one off or regular withdrawals (subject to a minimum withdrawal amount of €750/£500/$750 or other currency equivalent)*
- choose the currency the bond is denominated in, which can be one of a number of major currencies
- use the bond as the underlying investment for SIPP, QROPS and QNUPS trustees, whose member will not return to the UK
- appoint third party fund managers for additional oversight and control
- use a trust (where appropriate) to help safeguard their investment. Visit our Trustabilty Hub for more information
- minimise and postpone local tax payments by timing their withdrawals appropriately
- check the whole portfolio’s performance in a summary on our online service, Wealth Interactive. We co-ordinate all the deals and provide consolidated reporting, freeing up time that would be spent reviewing individual paperwork, dividend receipts and tax returns for each separate investment
- benefit from significant savings on initial fund charges, thanks to our negotiating strength.
*All withdrawals are free of charge subject to our terms and conditions.
As it is classed as a highly personalised bond for taxation, if your client is moving back to the UK, we strongly recommended that they consider restricting the assets that their bond can invest in, by way of an endorsement, in order to mitigate annual tax on a deemed gain of 15%.
This product is not available in all EU jurisdictions, please contact your Old Mutual International sales consultant for more information.
Life and redemption options
The Executive Investment Bond is a whole of life policy available on a single, joint or multiple lives assured last death basis. Old Mutual International will pay a death benefit of 101% of the surrender value of the bond once we are notified of the death of the last life assured. The bond will then end.
The Executive Redemption Bond is a capital redemption contract with a 99-year fixed term. This means the investment will continue to the end of the term (the maturity date), unless it is fully cashed in beforehand.
Tax-efficiency and stability
As the bond is held in the politically stable and tax-efficient jurisdiction of the Isle of Man, your client’s investment is held in a secure environment and the investments, while held within the bond, are not liable to any form of income or capital gains tax. For most EU member states, you should consider recommending one of our Dublin based products to ensure they meet the local EU regulations and are tax compliant.
Manage your Old Mutual International business online
With our award-winning online service, Wealth Interactive, it’s fast, easy and convenient for you to do business with Old Mutual International, and for investors to monitor their Old Mutual International investment products. As well as submitting business online, you can also manage the whole of your Old Mutual International portfolio bond business with us through the service.
Clients who take out a new portfolio bond will be able to set up their online service account on Wealth Interactive and keep track of their investment straight away.
Supporting your recommendation
Watch our Techcellence videos to help your decision-making and provide key facts about important subjects including the UK taxation of offshore bonds, retirement options, inheritance tax and trusts.
Find out more about how your clients can benefit from this investment opportunity in the Executive Bond Client Brochure – The Discerning Investor
For application forms and other documents, please refer to the literature library.
You can also email your clients a link to our consumer web page explaining the Executive Bond.
Contact your Old Mutual International Sales Consultant or e-mail firstname.lastname@example.org to discuss how this could be the right product for your clients.