Old Mutual International, part of Old Mutual Wealth, announces the launch of a new wealth management solution called the Wealth Management Plan which is specifically designed for...

13 January 2015

Old Mutual International, part of Old Mutual Wealth, announces the launch of a new wealth management solution called the Wealth Management Plan which is specifically designed for local mass affluent and internationally mobile investors. This new investment-linked plan is fully compliant under the new Hong Kong Guidance Note 15 (GN15) regulations which came into effect on 1 January 2015.

The needs of the Hong Kong market are rapidly evolving. Investors are increasingly mobile and want solutions which can move with them. They also want more flexibility, so they can vary their investment goals and adapt their investments to suit their changing needs, without any arduous lock-in periods or constraints.

In response to these changing needs of investors in Hong Kong, the Wealth Management Plan is an innovative, single premium, wealth management solution. It provides greater flexibility by accepting non-contractual recurring premiums once the plan has been established for a period of 12 months. There is also flexibility on the wide range of currencies that can be held in the plan and both regular and ad hoc withdrawals can be made at any time. 

The plan will provide investors with access to approximately 650 Hong Kong Securities and Futures Commission (SFC) authorised Mutual funds and Exchange Traded funds from many of the world’s leading asset managers, whilst also providing the option to access a wider range of investments when moving out of Hong Kong. It has been designed to offer value and transparency to investors with a reducing cost structure that lowers the effective management charge as the plan value grows.

Crucially, the plan has already been approved under the new GN15 regulations. GN15 focuses on the fair treatment of customers and sets out principles that will shape the design of Hong Kong products and any associated remuneration going forward. Old Mutual International is one of the first providers in Hong Kong to launch a new product solution under the new regulations which is testimony to the company’s existing focus on the customer and its alignment to the direction of the regulations.

The plan has been launched on Wealth Interactive, Old Mutual International’s new online service. This provides an innovative, best-in-class technology infrastructure that will enable independent financial advisers to be better positioned to service their customers 24/7. Incorporated into the new online service are research tools powered by Morningstar, a leading provider of investment research, as well as risk profiling and financial goal planning tools that enable independent financial advisers to deliver against their customer’s expectations.

Mike Leeson, head of sales, Hong Kong and North East Asia, Old Mutual International, comments:

“Whilst the detail of the regulatory change has only been provided relatively recently via the issuance of GN15, the general direction of change has been known for some time since the Global Financial Crisis in 2008. We are very supportive of the changes being witnessed which ultimately should ensure a greater focus on client needs. It is against this back drop that the new product has been created; a world in which customers and advisers seek greater use of technology with a desire to be better connected to their investments, a greater level of transparency making it easier to understand, a wide enough investment choice to increase positive investment outcomes and all at a competitive cost. We see the Hong Kong advice market changing and believe from our market testing with clients and advisers that the Wealth Management Plan has an important role to play in helping customers to achieve their financial goals.”

For more information please contact

Sophie Lenton
Old Mutual Wealth

02380 916 770
07834 499 558