The Hartford launches International Investment Bond

Hartford Life Limited has announced that it is launching Hartford Diamond, an international investment bond that is available with The Hartford's unique guarantees - Hartford SafetyNet and Hartford SafetyNet for Life.

The innovative new product will allow investors to grow capital investments in a tax efficient way whilst also, when one of the optional guarantees are selected, providing the benefits of a guaranteed annual income of between 4 per cent and 6 per cent and a guaranteed death benefit. In doing so, investors will have more control over their financial planning because Hartford Diamond represents a new and highly attractive way for UK consumers to both mitigate inheritance tax (IHT) and to plan for their retirement.

The Hartford Diamond international investment bond is the fourth savings and retirement product available with a guarantee to be launched by Hartford Life Limited in the UK in the last three years. Hartford Gold, an onshore investment bond was launched in 2005, followed by Hartford Platinum, a personal pension product and Hartford Trustee Investment Plan (TIP), both of which became available to UK customers in 2007. Hartford Diamond allows individuals to invest in up to 113 available investment funds. Customers can also select from a number of pre-set portfolios created with Ibbotson Associates, the asset allocation experts. The plan's underlying funds were selected in conjunction with Old Broad Street Research (OBSR), and include leading providers such as: Threadneedle, M&G, F&C, Newton, Artemis, Investec, Blackrock, JP Morgan, Gartmore, Jupiter, Fidelity, Norwich Union, Invesco, Newstar and Schroders.

An ‘offshore' or ‘international' bond is an investment bond that is not written through a UK office and therefore benefits from different taxation regulations to those that exist in the UK. Growth can be achieved tax efficiently because the income and gains from the funds are not liable to tax, which is known as gross roll-up. This means that, with the exception of certain investment income that may be subject to a withholding tax in its country of origin, the investment will grow tax-free.

Hartford SafetyNet (which is a 20 year income guarantee) and Hartford SafetyNet for Life (which is a lifetime income guarantee) enable investors the potential to ‘lock in' up to 10 per cent of the investment growth of their funds each year and increase their guaranteed income over time. The guarantees also ensure that investor's income will never fall below the previous highest guaranteed income level.

These guarantees could prove to be very valuable in times of market volatility in ensuring that their income is secure and does not become eroded at a time when they might need it most. The Hartford is a market leader in offering these types of guarantees, whose financial strength allows them to deliver on their promises throughout all market conditions.

Andy Marks, Managing Director of Sales for Hartford Life Limited said: "There are a number of advantages that offshore or international bonds offer customers as part of a retirement portfolio or as an IHT planning tool. What we are offering to customers in Hartford Diamond takes these advantages a stage further. As well as benefiting from the tax advantages of offshore investing, investors have the reassurance that they have a guaranteed income when they need it whatever the markets are doing - whether that's for generational or retirement planning through to living and working abroad. I fully expect Hartford Diamond to appeal to a wide range of consumers and in-effect, open the offshore market to a number of investors who would not otherwise have considered it. It is important that the IFA community communicates this to their clients and advises them of the benefits and suitability of this type of product."

A recent study sponsored by The Hartford in September 2008 found that the number of British consumers who would consider investing in an offshore or international bond more than doubled from 15 per cent to 34 per cent if the product was available with a guarantee on income and the guaranteed ability to pass on wealth to dependents. The survey also revealed the general lack of awareness of offshore bonds and the need for IFAs to educate their clients on their benefits and suitability. Just 11 per cent of British consumers aged over 55 indicated that they would consider investing in an offshore or international investment bond, with the number one reason cited being a lack of understanding.John Woolley of Technical Connection commented:

"An offshore bond provides an investor substantial scope for tax efficient financial planning with a lump sum investment. In today's investment climate, the reassurance to an investor of knowing that there will be a secure level of income from an investment, if needed, may also be essential. In this respect, where additional reliable guarantees can be provided within the product, the offshore bond can look even more attractive."

For further information, visit thehartford.ie