Saturday, 11th July 2020

This Month's Magazine

Is there such a thing as a tailor made, trouble free portfolio?

Many modern investors have clear, well-informed opinions on the specific assets in which they wish to invest. They do not want to limit themselves to funds constructed to meet generic needs by traditional packaged products.

Rather, they want to build their own portfolio.
One of the major disincentives to managing one's own portfolio is administration. The chore of wading through the paperwork created through implementing investment strategies is sometimes dull, laborious and time consuming.

With a portfolio bond an administration team takes care of all the buying, selling, valuation, income collection and they arrange custody of the underlying assets. The assets of your portfolio bond are held within a unique fund linked to a life insurance policy owned by you. This gives you the benefits of tax efficiency and confidentiality, and protection in the event of death.

A portfolio bond
allows you to tailor your own investment portfolio from a wide range of funds, unit trusts, UCITS, OEICS and other pooled investments that provide global investment opportunities. The life company's range of specia-list funds may also be accessed through the portfolio bond.

A personalised portfolio bond
allows you almost absolute discretion over the assets in which you choose to invest. In addition to all the assets, which may be held in a portfolio bond, you may select from any other investment, which the life company considers to be sufficiently liquid and readily capable of valuation.
 In general terms, any investment quoted on recogni-sed exchanges such as stocks, shares and bonds will be acceptable, though the life company reserves the right to refuse investment in any particular asset.
Tax-efficiency - A portfolio bond is a unit linked life insurance policy. The policy's value is determined by reference to a unique fund linked to that policy. You select the investments to be held in the fund but do not actually own them. Rather, you own the life insurance policy to which that fund is linked. This structure generally enables investments to be brought and sold without creating any immediate tax liability for the owner of the policy.


Ease of use - The life company's professional administration team executes your investment instructions. They carry out the sale, purchase, dividend collection (if applicable) and valuation of the stock held in the fund.

Control and adaptability - The structure of the bond may be altered at any time. Simply issue instructions to buy/sell specific investments and the life company will do so as soon as practicable. You may choose to appoint a professional investment instructor to monitor the performance of your portfolio and make transactions as the markets move. The life company can act on instructions issued by you or your instructor.

Accessibility - Full or partial encashment is allowed at any time or you may opt to take regular planned withdrawals. Encashment charges may apply in the early years.

Optional life cover - On death 101% of the encashment value of the policy at that time will be payable to the beneficiaries. In addition you may select optional life cover of up to 4 times the amount invested.
Best Advice:
If in any doubt, seek professional financial and tax advice, and always read any small print carefully to make sure you understand any investment properly.

If you would like any more information on this investment or any other type of investment, please call me,
Mark Bullen on 626 787 160 for free, independent and confidential advice.

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