Offshore portfolio bonds

An international investment bond, offering a wide range of investment and administration options – to suit you.

If you haven’t heard of portfolio bonds yet, chances are it’s only because you haven’t spoken to an expat financial adviser. Simply defined, they are structures within which multiple savings and investment solutions can be housed.

They are also referred to as “wrappers”, because all your savings and investment solutions are basically “wrapped up” inside the one account.

Portfolio bonds are available from leading, well-known financial institutions. Within these secure structures you can hold virtually any asset that’s not physical property.

 The potential benefits of offshore portfolio bonds depend on an individual’s circumstances, and anyone contemplating their options should certainly take expert advice.

Firstly, because anti-money laundering and “know your customer” due diligence only has to be done once when you establish the portfolio bond, from then on you can swap and change how you save and invest very easily. This avoids a great deal of red tape, which can add time and stress when it comes to your saving and investment benefits.

Because you can hold such a wide array of assets within a portfolio bond, you have maximum investment choice and maximum portfolio diversification benefits.

An individual’s portfolio bond should be personally tailored to suit their investment objectives, risk profile and financial goals. What’s more, you can maintain such a structure for as long as you like; they are not close-ended.

Portfolio bonds can also be utilized by those seeking an income from their investments, or those concentrating on wealth growth.

Portfolio bonds are non-income producing assets in themselves; therefore allegedly their administrative fees are low.

Wrappers can be 100 per cent secure with no tax deducted until a withdrawal is made. Upon withdrawal it’s sometimes possible to significantly reduce any tax liability on income taken from the portfolio. (Obviously this depends on an individual’s tax status, and is certainly not a benefit that can be attributed as applying to all).

Portfolio bonds have been heavily utilized by those expats adversely affected by the European Savings Tax Directive

Because the above list of benefits is long and extensive, it’s easy to understand why so many expatriate financial advisers rate portfolio bonds so highly. And yes, they may be beneficial for you.

Ensure you consider your tax status, the establishment and ongoing charges and fees associated with a portfolio bond, and look at your short-term potential requirements to access any wrapped income before opting to commit to one of these solutions.

Taking expert financial advice from Moneo Consultants is key to making sure your decision is right for you and your wealth.