Open architecture, investment choice, tax planning benefits and platform availability, all factors that have been cited by the broader UK adviser market contributing to offshore investments becoming more accessible and attractive.
In its latest review of the offshore bond market for UK investors, Defaqto said the market grew by almost 50% to £7.4bn in 2006, following a 60% rise in 2005. Plus, research from Legal & General International shows that the majority of UK advisers see further growth of their offshore investment business over the next five years, and remain confident that this business will hold up despite the threat of a global economic downturn.
At Legal & General International (Ireland) Limited, established in 2007, our aim is to position our self at the forefront of the development of offshore investment initiatives and we currently offer three products to UK residents. Future plans include the cross border opportunities that exist from passporting into Europe.
The International Portfolio Bond
An open architecture investment bond, with a wide and diverse choice of over 2,000 funds from over 100 fund management groups (as at January 2008). Investments include a choice of unit trusts, OEICs, insured funds, and cash deposits from a range of deposit account providers. The choice of investments is the subject of constant review and assessment.
The Legal & General International Portfolio Bond is also available through the Cofunds investment platform.
The International Discounted Gift Scheme
An inheritance tax planning solution with a choice of two trust structures and confirmation from a leading UK QC that the scheme is robust and fit for purpose.
Market outlook
2008 already looks set to be a challenging year for advisers and there are many factors influencing investor demand for investment planning solutions, such as:
- fears of a global economic downturn;
- higher interest rates; and
- concerns about property investments.
But, the key market drivers for increasing the popularity of offshore investments still remain. These include:
- steady growth of personal wealth;
- increased shift towards people working abroad;
- increased number of people retiring abroad;
- heightened awareness of the need for inheritance tax planning solutions;
- retirement planning alternatives becoming more popular;
- changes in legislation, such as HMRC closing tax loopholes for offshore deposit accounts; and
- leading product providers entering the offshore arena.
So, the future for international investments looks bright and with many leading product providers now focusing their attention on educating a wider adviser market about the benefits of offshore investments for their clients, the opportunities for business should continue to grow.
A strong heritage
As a subsidiary of the Legal & General Group Plc, Legal & General International aims to build on the heritage of its UK business. The Group is one of the UK’s leading financial services companies and one of the UK’s top 50 companies in the FTSE 100 Index, responsible for investing over £257 billion worldwide (as at 30 June 2007) on behalf of investors, policyholders and institutions.
Legal & General International has, after only six months of operating, achieved a ‘very strong’ rating for its Overall Financial Strength from AKG Actuaries & Consultants Ltd. This is the highest rating given by AKG to any offshore long term insurer; shared with only a few other UK financial services companies.
The value of investments in the bonds can fluctuate, are not guaranteed, and customers may not get their full money back.
For more details about Legal & General International and its products and services, contact your Legal & General representative, call 0845 6740 803 or visit
www.legalandgeneralinternational.com/advisers
Legal & General International (Ireland) Limited is authorised by the Financial Regulator in Ireland and regulated by the Financial Services Authority for the conduct of insurance business in the UK.
This is not a consumer advertisement. It is intended for professional financial advisers and should not be relied upon by private investors or any other persons.
