Zurich launches portfolio bond
Zurich has launched a portfolio bond from its Dublin operation.
The International Portfolio Bond (IPB) will initially be targeted at the UK high net worth market but Zurich said it could later be passported into other markets under European freedom of goods and services legislation.
Zurich has launched a portfolio bond from its Dublin operation.
The International Portfolio Bond (IPB) will initially be targeted at the UK high net worth market but Zurich said it could later be passported into other markets under European freedom of goods and services legislation.
Paul Wright, Zurich director for investment management, said features of the bond include factory gate pricing, which would appeal to fee-based advisers, a transparent charging structure and fund rebates, typically of up to 55 basis points on a standard annual management charge of 1.5%.
Wright added: “In addition to its offshore tax status, the wrapper offers flexibility of a choice of currency – both for withdrawals and payments - frequency of withdrawals and fund solutions. These benefits, coupled with the backing of the Zurich Group, one of the world’s largest insurance companies with a strong, stable financial position, makes this an extremely attractive proposition.”
At launch some 1,500 funds are available through the portfolio bond with more to be added based on adviser demand.
Charges on the IPB vary between 18 and 85 basis points depending on the investment level. The minimum investment is £50,000.
The bond was designed with input from Zurich’s global business and, though administered from Dublin and initially sold into the UK, has been developed to have global appeal and application.