Investments  

Axa Wealth launches offshore DFM bond

The provider’s head of proposition said the Dublin-domiciled bond, called Delegation, had the potential to “open up a much wider client base for the offshore portfolio bond”.

He said it represented “one of the most significant new product developments in the UK offshore market”.

Mr Willoughby added that the product combined the tax deferral benefits of a conventional portfolio bond with access to a broader choice of assets, giving clients and advisers an enhanced outsourced investment strategy.

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The investment strategies available include collective investment schemes, equities, government and corporate debt and derivatives.

Key features

• Delegation is a single-premium life assurance investment bond.

• Due to its offshore nature, costs associated to DFM fees are not subject to VAT.

• The bond allows advisers to set investment objectives based on a client’s attitude to risk and is management on a fully discretionary basis.

• Advisers and clients can select flexible adviser remuneration – based on an initial one-off product management charge and ongoing charges.

Mr Willoughby said: “The way in which advisers and their clients are investing is continually changing and, as a provider, we need to adapt to meet these needs.

“By allowing the bond to be taxed like a usual offshore bond while investing in assets other than mutual funds and deposit accounts, we are giving customers greater asset diversity options managed by investment management experts.

“The flexible investment structure can adapt to investors’ changing financial needs, supporting them through different life stages.”

Adviser View

Philip Milton, managing director of Devon-based Philip J Milton & Co, said: “We use offshore bonds marginally with Transact, and they can be complex if trying to mitigate tax, so I would be interested to see how this product can offer a greater choice without falling foul of tax rules.”