Our European Executive Investment Bond is designed for expatriates and global investors who have no immediate plans to move to the UK. They may have a higher initial lump sum to invest and want a wider, more personalised investment choice. This bond gives your clients significant flexibility and freedom of choice, through access to a wide range of investment asset types. This portfolio bond may also appeal to corporate and trustees investors.
This wide investment choice is often referred to as ‘open architecture’ which means you can conveniently customise your client’s portfolio to their individual needs and preferences.
Keeping track of such 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 European Executive Investment Bond provides investment freedom by enabling investors to:
- 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, with no need to compromise to fit within pre-set rules and parameters
- wrap their existing investment portfolio, or build a new one, within a bond
- 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 portfolio’s performance in a summary on our online service Wealth Interactive. We co-ordinate all the deals and provide consolidated reporting therefore 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.
Tax-efficiency and stability
Under current Irish legislation, Old Mutual International Ireland dac enjoys tax exemption in respect of the bondholder’s funds. Investments within the Bond can therefore grow virtually free of Income Tax and Capital Gains Tax (CGT), although there may be an amount of withholding tax on income which cannot be reclaimed
As, in the UK, this Bond is classed as a highly personalised bond for taxation. If your client is moving back to the UK then we strongly recommended that they consider restricting the assets that their bond can invest in, by way of an endorsement, in order to mitigate an annual tax of 15% on a deemed gain.
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.
For all other 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 European Executive Investment 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.