AXA Isle of Man launches offshore Regular Investment Account

AXA Isle of Man (AXA IOM) has launched the Regular Investment Account to complement its award winning Offshore proposition and to capitalise upon its position as a premier provider of offshore investment solutions. AXA IOM’s offering is an offshore investment bond, which has been designed to accept both single and regular premiums for people prepared to invest for the medium (at least five years) and long (at least ten years) term.

Whilst the single premium offshore market continues to rapidly expand the regular premium market appears to have remained underdeveloped. However, comprehensive customer and adviser research conducted for AXA shows that there is substantial demand for a product which can adapt to a customer’s needs and life stages and a single premium product can’t always achieve this.

Features of The Regular Investment Account include:

Minimum investment of £500 per month or £5,000 annually and £5,000 lump sum injections

Single lump sum of £20,000
No maximum fund size
Greater flexibility of premium payment options
Freedom as to how benefits are taken

The Regular Investment Account provides a large degree of flexibility for both the customer and adviser. With access to over 250 funds, most customers’ risk profiles can be accommodated. Establishment charges can be spread over 1 to 5 years to suit customer and adviser demands. After the establishment period there are then no ongoing product charges if premiums continue unchanged, decrease or stop. Fund charges can vary depending on the funds chosen. In common with most product charges, the establishment charge, fund management charge and administration charge will reduce the potential for growth and/or income.

Christine Hall, Offshore Proposition Manager at AXA Isle of Man, said: “Customers were very clear that they wanted a product which was flexible enough to fit around today’s changing lifestyles. We have therefore allowed premiums to be easily stopped and started again without penalising the customer. After the first year customers who are paying monthly or quarterly premiums can even take a three month premium holiday and this won’t lead to a clawback of an Adviser’s commission.” However, charges will continue to be taken during the premium holiday. If the premium is increased an additional establishment charge will apply.

Kevin Dean, Managing Director of AXA Isle of Man, said: “The development of the Regular Investment Account provides investors with the additional flexibility they require in today’s market. The quality of service that advisers and their clients have come to expect from AXA Isle of Man will be fully supported on the new product, including the facilities available through the secure extranet, AXA Isle of Man Online.”