High net worth clients have been identified as a core demographic for the ongoing growth in demand for onshore bonds, according to research.
HSBC Life surveyed 100 UK-based wealth management adviser for its bonds pulse study and found 44% believe HNW clients are the most important segment driving demand for bonds.
This is ahead of traditional segments such as clients close to retirement and those looking for income and inheritance tax solutions.
More than a third (36%) said onshore bonds are most suitable for those who are five years from retirement, while 26% believe they are most suitable for clients looking for income or seeking to mitigate IHT.
Mark Lambert, head of onshore distribution at HSBC Life UK, said: “Onshore bonds are increasingly viewed as being suitable for a wider range of clients. Traditionally, demand for bonds is driven by the three I’s of investment, income and inheritance.
“Our growth in recent years has been helped by wealth advisers re-evaluating the investment and financial planning solutions provided by onshore bonds for their high net worth clients. We see this continuing and especially whilst the current caps are in place on investment limits for pensions and Isas.”
