Zurich launches new offshore bond

Zurich has launched a new International Portfolio Bond (IPB), aimed at high net worth UK residents. Produced and underwritten by Zurich's Irish business, IPB is an offshore investment proposition that allows customers to benefit from greater investment flexibility this proposition provides, compared to onshore investment bonds.

The International Portfolio Bond has been designed using expertise from throughout the global business. The Bond is provided from, and will be administered in, Dublin. It will be passported initially into the UK, with the potential to launch later into other countries.

Roger Ackman, Head of Proposition Management for Global Life said: "This is the first time we have developed a truly Global product and is testament to the expertise within Zurich. Developing new, innovative customer propositions in one country that can be distributed through a number of other countries is clearly an efficient route to market. By making more use of these opportunities, we are confident that our Global Life business will continue to go from strength to strength."

The Bond is ‘factory gate' priced with customer agreed remuneration, a transparent and simple charging structure and is ideal for fee based advisers who are more active in this market. The IPB is being launched with access to more than 1500 funds, a range of offshore bank deposit accounts, a discretionary management facility and flexible options available for withdrawals and payments. It is also available as a Capital Redemption plan and boasts an attractive and unique Death Benefit Guarantee, as well as access to a full range trusts for IHT planning.

Paul Wright, Zurich's Investment Management Director said: "This is an exciting proposition with novel features aimed at UK resident, high net worth customers. In addition to its offshore tax status, the wrapper also offers great 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."

In addition to being attractive for non UK domiciles, SIPP Trustees and international investors, the tax status of an offshore bond potentially makes this an attractive proposition for those planning to move abroad or those who expect to be in a lower tax bracket in the future.