This page will delve into offshore investment bonds, covering topics like:
- Offshore Investment Bonds Explained
- Offshore bonds vs onshore bonds
- Offshore Bonds Taxation
- Advantages and disadvantages of offshore bonds
- Offshore Investment Bond Providers
Before we get into each of the offshore bond providers, let’s define what is an offshore bond.
Offshore Investment Bonds Explained
Offshore investment bonds are investment vehicles or tax wrappers where investors can gain certain tax advantages as they accumulate wealth. Life insurance providers and other financial institutions usually establish these wrappers in locations with beneficial tax rules like the Isle of Man.
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Investors are allowed to pay into offshore investment bonds in lump-sum amounts or regular contributions. The money is injected into different types of investment options, including but not limited to stocks, funds, bonds, etc.
Should they choose to, investors are eligible to make limited withdrawals or get income distributions regularly. Transfers to another fund held within the offshore investment bond are also permitted.
These bonds also go by the name portfolio bonds. Sometimes, the term is also used interchangeably with international bonds.
Offshore bonds vs onshore bonds
Investors located in jurisdictions with exorbitant taxes normally utilize offshore investment bonds to trim their obligations as they invest in various investment options in another country with more favorable tax treatment.
Meanwhile, onshore bonds are accessible inside the investors’ country of home, subject to the applicable tax decrees.
Offshore Bonds Taxation
Gains from investing in offshore bonds are taxed as income rather than capital gains. The tax rate that is applied to such gains is determined by the income tax bracket of the investor.
Advantages and disadvantages of offshore bonds
Benefits of offshore investment bonds
- Taxes can be postponed by holders until it makes sense economically to retrieve their funds.
- Offshore investment bonds allow for withdrawals.
- Investment fund growth is tax-free with offshore bonds, and fund moves within the wrapper do not result in an investor’s income tax or capital gains tax obligation.
- Access to a variety of international investment opportunities is made possible via offshore bonds, which improves portfolio diversity.
Disadvantages of offshore bonds
- There is a minimum investment requirement for some bonds.
- When an offshore bond is encashed, surrendered, or the final life assured dies, there may be complicated tax ramifications.
- When compared to onshore investments, offshore investment bonds may be costlier.
Offshore Investment Bond Providers
This list includes offshore investment bond providers and the particular product they offer that may directly or indirectly give you access to these tax wrappers. We’ll also cover portfolio bonds.
The best offshore bonds are those that match your investment, cost and tax targets, as well as your appetite for risk.
RL360 Oracle
RL360 Insurance Co. Ltd., issued Oracle (RL360 Oracle) in the Isle of Man as a life assurance of capital redemption policy. Investors who choose one over the other option cannot switch.
As both an investment and savings plan, Oracle lets investors tap different funds directly or through an adviser. It enables tax-advantaged lump-sum investments for the mid to long term.
Oracle provides a simplified process that eliminates the need to maintain different accounts for dealing and cash. This simple approach is primarily intended for low-income individuals, companies, and trusts who are keen to investigate investment alternatives and take advantage of the growth potential provided by a carefully chosen pool of premier funds.
RL360 PIMS
RL360 offers PIMS or Personal Investment Management Service in the Isle of Man as an international savings insurance policy in exchange for a one-time payment.
A discretionary fund manager or an investment advisor can be appointed, and investors have the option to select a totally open or managed structure.
Additionally, the portfolio bond can be used within trusts.
RL360 Quantum Savings Plan
This Isle of Man offshore savings plan from RL360 is tax-efficiently tied to different funds. It requires regular contributions from prospective investors – individuals, businesses, or trusts.
RL360 Quantum offers access to approved funds within its covered sectors and investing themes. There are no fees for moving your investments within the plan.
New investors can no longer apply for this product, but it’s still accessible to those who already have it.
RL360 Regular Savings Plan
This savings plan from RL360 allows investors access short-term bonds, certain government bonds and corporate fixed income securities, and others.
The goal of this is to give investors the opportunity to make regular investments for possible growth in the mid to long term. The plan also permits the investment to be divided into portions, providing further flexibility that, depending on the investor’s location, may give tax advantages.
Providence Life Horizon Portfolio Bond
Mauritius-based insurer Providence Life used to offer the Horizon Portfolio Bond, an offshore investment-linked savings product designed for lump-sum investments. It has a range of investment options and features, but comes with relatively high associated fees.
Providence Life Orbit Portfolio Bond
This portfolio bond offers suitable minimum investment requirements and adaptable withdrawal guidelines. While many expats consider it to be tax-efficient, others consider it to be pricey.
Providence Life Polaris Portfolio Bond
This option may have cheaper long-term costs but provides less flexibility in terms of capital withdrawals than the Providence Orbit option. It offers lower minimum account requirements, effective administration procedures, and excellent IT systems.
However, disadvantages include a largely vanilla asset range that might not satisfy investor needs and little flexibility.
Friends Provident International Zenith
This product from Friends Provident is a unit-linked offshore bond that bears an investment minimum of 10,000 pounds, 15,000 USD/euros, or 120,000 HKD.
Anyone who can secure an international investment and is at least 18 years old can avail Zenith. For a life ensured, there is no minimum age requirement; however, one of the lives must start at age 79 or under.
Utmost International Choice
Utmost offers Choice, an investment-linked insurance policy, through Utmost Wealth Solutions. The product eyes clients who wish to have various options in their investments while being covered by a life assurance.
The plan was previously dubbed Generali Choice Account.
Utmost International (Quilter) Collective Investment Bond
Life insurance is included in this financial product, so after deducting any relevant fees or costs, the beneficiaries of the insured person will get a payout equal to 101% of the investment’s value in case of death.
The Collective Investment Bond also offers possible tax benefits to investors and is available to non-UK residents as an offshore bond. It offers investment opportunities, including currency deposits, Quilter International and foreign funds, plus Eurobonds.
Some might be familiar with its former name, Quilter International Collective Investment Bond.
Utmost International Collective Redemption Bond
This option is offered as a capital redemption agreement with a 99-year fixed length that works well for long-term investments. The account can be opened in euros, British pounds, or US dollars.
Designed with medium- to long-term investment goals in mind, the Collective Redemption Bond guarantees a minimum value at term completion of 2x the premium paid, minus any surrenders or withdrawals.
This product used to go by the name Quilter International Collective Redemption Bond.
Utmost International Executive Redemption Bond
Like the Collective version of this offering, the Executive Redemption Bond is a 99-year capital redemption contract that stays in place ‘til maturity or redemption, whichever comes first.
This is beneficial to investors since it gives them flexibility if they require early access to their money. Nonetheless, in order to maximize possible gains and returns, it is usually meant for long-term keeping.
The bond is available in US dollars, euros, and pounds. It was previously called Quilter International Executive Redemption Bond.
Utmost International Executive Investment Bond
There is only one upfront payment needed for this financial product, which is a lifetime insurance coverage. If the policy is still in effect when you pass away, your beneficiaries will be compensated. This policy can be sold either as a single or multiple policies.
There is a fixed charge that is predetermined by the commission and charging structure upon policy activation.
The bond, called Quilter International Executive Investment Bond in the past, is accessible for most overseas investors.
Utmost International Managed Capital Account
Investors who want to streamline fund management could take advantage of the Managed Capital Account as Utmost International maintains all administrative duties and builds a fund portfolio that gives access to offshore investment bonds.
This account, formerly Quilter International Managed Capital Account, offers flexibility by allowing partial or full withdrawals at any time, and allowing premiums to be paid in USD, British pounds, or euros. Early encashment, however, can result in fees.
Utmost International Professional Portfolio Plan
When Utmost acquired Generali in 2019 for about 409 million euros, this portfolio bond—which was previously known as the Generali Worldwide Professional Portfolio Plan—saw a restructuring.
The Professional Portfolio Plan is an investment-linked product aimed at investors looking for mid- to long-term commitments. Money can be contributed to the plan in the form of a lump sum payment or a mix of investment assets for at least 150,000 USD.
AXA Isle of Man Evolution Bond
The Bond is a flexible international portfolio bond for medium- to long-term investment. The offshore investment bond was formerly distributed by AXA Financial through financial advisers.
AXA Isle of Man Evolution Bond, now dubbed Evolution, is currently owned by Utmost International.
Investors are required to invest at least 50,000 pounds, 75,000 euros, or 100,000 USD.
Hansard International Capital Investment Bond
The Hansard International Capital Investment Bond is a permanent life insurance policy.
An offshore investment option is provided by the 99-year fixed-term product from Hansard International. It can be set up as a collection of policies made up of several separate ones, or as a single policy. If an early withdrawal or surrender is made before the first billing term ends, charges apply.
Hansard International Universal Personal Portfolio
The Universal Personal Portfolio is an example of a unit-linked insurance policy that provides the policyholder with lifetime coverage through a single, one-time contribution.
Particularly created for foreign customers, this plan directs your contributions into a variety of asset classes that are either managed by Hansard International or outside investment managers, or they can be applied to a managed account that you choose.
The value of your contract, after deducting any fees and levies, will depend on how well the assets you choose perform.
Hansard International Vantage Platinum II
Vantage Platinum II is an insurance policy that requires payments on a regular basis and is backed by an investment unit.
This policy, which is available to anybody between the ages of 18 and 65 at the beginning of the contract and up to 75 at maturity, is designed for a global customer base and has no territorial limitations.
It provides access to global funds that include foreign bonds, shares, and collectives; the minimum monthly investment required is 325 pounds or currency equivalent.
Investors Trust Access Portfolio
A range of investment options are offered by Investors Trust Access Portfolio, which is supplied by global insurance provider Investors Trust Assurance SPC.
The portfolio bond aims to provide clients with flexible and diverse investment options. It is made up of three products: Access 5000 series, Access Portfolio 8000 Series, and Access Portfolio Plus.
Investors Trust Assurance is a subsidiary of ITA International Holdings.
Investors Trust Fixed Income Portfolio
Investors Trust provides alternative investments in addition to capital-protected fixed income portfolios in different lump sum solutions. A variable-rate USD fixed income portfolio with a 15-year term is one of these offers.
Contributions to this plan must be at least $2,400 annually to be eligible, with riders offering the option of extra top-ups at the same annual cost.
Moreover, Investors Trust offers fixed income portfolios with USD values for terms of 3, 5, 7, and 10 years. With a $10,000 starting commitment and the possibility of subsequent increases of the same amount made possible by a rider, investors have freedom in deciding how much money they want to put in.
Investors Trust Platinum Investment Bond
The objective of the Platinum Investment Bond is to give investors access to mutual funds so they can adjust their holdings as needed.
This bond’s structure gives investors the freedom to change their holdings, and the investment portfolio can be modified to accommodate shifting requirements.
The Platinum Select and Platinum Plus investment product plans are available for qualified investors to choose from in order to engage in this investment opportunity.
Friends Provident International Reserve Bond
This investment opportunity is available to investors globally and is designed to support capital appreciation over a long period, usually five years or more.
The Reserve Bond, which is intended for investors with significant amounts to commit, is especially appropriate for clients looking for increase in investment value, regular withdrawals, or both.
Personalized assets and group investments are the two ways that investors can use this offering to allocate their money. While the former enables targeted investment in particular asset classes like foreign equities and bonds, collective investments provide the chance to diversify across a number of funds.
Prudential International Portfolio Bond
In late 2022, financial services company M&G rolled out this Portfolio Bond in the Channel Islands and the Isle of Man.
This offshore bond is made for investors who want to put away a lump sum money for a considerable period. It offers online applications for individuals and visual representation and breakdown of potential investment outcomes and financial projections for corporations and trustees.
This product allows investors to access the PruFund Range of Funds, the PruFolio Risk Managed Active and Passive Funds, and funds managed by other respected external fund managers. Clients may maximize their earnings and reduce their tax liability.
Zurich International Vista Savings Plan
A division of the Zurich Insurance Group, Zurich International Life focuses in providing personal savings, investment, and insurance solutions.
The Zurich Vista savings plan, a unit-linked international insurance product, has run extensive marketing initiatives targeting expats throughout the years.
Investors may purchase managed funds in USD, euros, or pounds, and they have access to about 170 funds that are overseen by reputable investment management companies across the globe. Each fund’s allocation to bonds and stocks determines both its potential gains and relative risk.
Zurich International Portfolio Bond
This offshore unit-linked bond offers investors flexibility. First-time single payments must be made at least 50,000 pounds, 70,000 euros, or 85,000 USD; subsequent ones must be at least 10,000 pounds, 14,000 euros, or 17,000 USD.
The product is now called Monument International Portfolio Bond after Monument Life Insurance DAC acquired it in 2020 from Zurich.
Custodian Life Exclusive Investment Bond
Evelyn Partners
UK-based financial services firm Evelyn Partners grants investors access to offshore bonds and portfolios.
Specifically, the Evelyn Partners Multi-Asset Range consists of actively managed funds for direct bonds, direct stocks, and mutual funds. These funds act as tax-efficient vehicles that make direct equities and shares as well as bonds—including corporate bonds—more accessible.
Sarwa Dubai
Digital investment platform Sarwa offers diversified investment options to investors, like offshore bonds, stocks, and alternative investments. Users can also seek advice and assistance from qualified financial advisors at any point during their investing experience.
Fund allocation into US equities, developed market equities, emerging markets, US real estate, US bonds, and international bonds is the main objective of their investing strategy.
Dominion Capital Strategies
Guernsey-based investment management company Dominion Capital Strategies offers products, such as Dominion Capital Strategies Funds PCC Limited – Global Bonds Fund and DCS Global Bonds that both give investors access to offshore investment bonds.
Dominion Capital Strategies Funds PCC provides exposure to international bonds by allocating money into established EU markets’ collective investment schemes and worldwide exchange-traded funds (ETFs).
In contrast, DCS Global Bonds offers exposure to global bonds through investing in mutual funds and ETFs that are located in reputable European markets. The fund mostly makes investments in funds run by top asset management companies, which then invest in international corporate and government bonds.
Novia Global
Novia Global Ltd offers different investment products and services, including the Novia Global UK SIPP. It also provides access to third-party offshore bond and pension wrappers.
The range of products and services offered by Novia Global is comprehensive and caters to the needs of UK expats.
Novia charges tiered fees from 0.45% to 0.15% depending on the amount invested. Dealing fees are also paid for each transaction, either 5 USD for a trade outside a model portfolio or 2 USD for a rebalance.
St James’s Place
UK wealth and fund management firm St James’s Place provides various investment options like offshore bonds.
The company has portfolio offerings including SJP Defensive portfolio, a conservative fund that invests in government bonds, as well as SJP Strategic Growth which includes both equities and bonds.
Premier Trust
Premier Trust is an insurance tied to an investment and is available in over 60 countries. Its multinational trust structure enables participants to build a portfolio of diversified foreign investments.
This option for an offshore bond is especially designed for expats looking for investment opportunities.
Guinness Asset Management Funds
Ireland-based Guiness is an asset manager that gives access to offshore bonds, particularly Guinness China RMB Income Fund.
An array of bonds and fixed income instruments are invested in by this fund. Together with global and high-grade corporate credits from the offshore bond market, its portfolio consists of government and quasi-government bonds from the domestic Chinese bond market.
Raymond James
Wealth management firm Raymond James can let investors tap into offshore investment bonds, especially through Carillon Reams Unconstrained Bond Fund.
The investment fund looks for value-added opportunities across several fixed-income market segments. This covers derivatives, bonds, and securities backed by mortgages and assets.
Barclays International
Barclays International caters to an extensive clientele, including expats, those looking to create bank accounts overseas, people preparing for living abroad, UK citizens coming back, and frequent travelers.
While Barclays International itself doesn’t offer offshore investment bonds, its fellow Barclays Group-units, Barclays Bank UK PLC and Barclays Private Bank, do.
Barclays Bank UK PLC has Offshore Bond Reserve Account investment that it offers only to clients who use its banking services related to an offshore bond.
Meanwhile, Barclays Private Bank allows investors to access offshore investment bonds under its wealth management offering.
Ardan International
Ardan is a wealth management platform that permits international investors to hold offshore investments like bonds, funds, etc. Global trustees and corporate bodies can also use Ardan International.
The International Financial Group Ltd. Arm is located in the Isle of Man. IFG is an investment, savings and protection services company.
Credit Suisse
Credit Suisse offers investors the opportunity to invest through offshore bonds and to utilize their discretionary investment portfolios.
The Swiss global investment bank and financial services provider is now a subsidiary of UBS Group after a $3 billion takeover deal.
UBS Wealth Management
UBS Financial Services Inc. subsidiary UBS Wealth Management offers discretionary and non-discretionary programs to clients, and gives access to offshore investment bonds.
Deutsche Bank
Frankfurt, Germany-headquartered global investment bank and financial services provider Deutsche Bank AG permits entry into offshore bonds.
Specifically, the bank offers so-called dim sum bonds. International investors looking to diversify their foreign currency holdings find appeal in these renminbi-denominated bonds, which are listed in China’s offshore markets, mostly concentrated in Hong Kong.
Moreover, dim sum bonds are beneficial to companies who depend on the money raised from the selling of these bonds to complete international trades.
Arbuthnot Latham Bank
London-based private bank Arbuthnot provides access to investment opportunities like offshore bonds. This is on top of its banking, investment management and wealth planning services.
The bank caters to high net worth individuals and commercial clients.
Praemium
Praemium Limited is an investment platform based in Melbourne, Australia. The ASX-listed firm offers offshore investment bonds access through its Praemium Administration Ltd arm in London.
Praemium Administration, or PAL, backs offshore bond providers like Friends Provident, Utmost International, and Canada Life International.
Nedbank Private Wealth
Nedbank Private grants access to offshore bonds under its wealth structuring services, among other services.
The firm is a division of Nedbank Group, a financial services provider listed on the Johannesburg Stock Exchange.
IVCM Pension
IVCM is a March 2006-founded company that focuses in global retirement solutions. The organization provides Qualifying Recognized Overseas Pension Schemes and Self-Invested Personal Pensions from a number of nations, including Gibraltar, the UK, Australia, and New Zealand.
IVCM Pension in Gibraltar offers offshore bonds held within its Retirement Annuity Trust.
STM Group
Alternative Investment Market-listed STM offers financial services in different countries.
The company provides opportunities for offshore investment bonds and other investment platforms through the STM International Pension Plan from London & Colonial, which is a unit of STM Group.
TAM Asset Management
Launched in 2004, TAM is a discretionary asset management company that operates in Europe and the UK. It provides investment management services to onshore and offshore clients.
Clients have the option to invest in offshore bonds through TAM Asset Management, and in such cases, they would still pay an annual management fee for the management of those assets within the offshore bond structure.
Brewin Dolphin
Brewin is a financial planning and investment management company located around the UK, Ireland, and the Channel Islands. Its headquarters are in London.
With its discretionary fund management offering, it may construct solutions that are specifically suited to the goals and priorities of each customer.
The company offers sustainable investing solutions, offshore bonds, and direct stocks. To round up their financial products, they also provide pension wrapper services.
Canaccord Genuity Wealth Management
Canaccord Genuity Wealth Management, or CGWM, is the wealth management unit of financial services company Canaccord Genuity Group.
Previously known as Canaccord Financial, CGWM offers offshore, stockbroking, and managed portfolio services, as well as bespoke portfolio management.
The company grants access to offshore investment bonds via its financial advisor channels. It also offers ETFs, investment trusts, alternative investments, and other securities.
Cazenove Capital
Cazenove offers tax-efficient offshore investment bonds to its clients as part of its wealth planning services, enabling them to efficiently structure their finances. Various financial strategies are also covered, such as estate preparation, retirement planning, and succession and inheritance tax planning.
The goal is to optimize profits while making sure that financial management is done with tax considerations in mind.
The business offers services connected to managing investments stored within offshore bonds, giving clients the choice to choose these as a vehicle for their investments.
Investec Wealth & Investment
Investec Wealth & Investment (UK) is a unit of the larger wealth management firm, Investec Group.
The firm does offer access to offshore investment bonds which are listed alongside other investment structures like taxable portfolios and Individual Savings Account (ISA).
Nedgroup Investments
Nedgroup Investments is a financial service from South African bank Nedbank.
Offshore investment bonds are available to investors via the Nedgroup Investments Opportunity Fund, which invests in onshore and offshore equities, real estate, and bonds, among others.
However, the Fund is only available to institutional investors.
Rathbone Funds
Rathbone, a UK-based business that is listed on the FTSE 250, is a major distributor of funds to foreign investors.
The business specializes in offshore investment bonds designed specifically for the advantage of residents in the UK. Rathbone normally conducts business out of favored offshore jurisdictions like Ireland and the Isle of Man.
Canada Life
Both the Select Account onshore bond and The Retirement Account personal pension plan are no longer offered by Canada Life.
This move came after the business recognized the UK offshore bond market as having significant growth potential. According to Canada Life, the wealth division’s main focus going forward will be offshore bonds.
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