Prudential has launched its largest fund range on an offshore bond through the Portfolio Account.
Portfolio Account, a single premium offshore portfolio bond, offers access to more than 2,000 funds. Prudential’s second largest offshore range, through the International Prudence bond, offers 50 choices.
Richard Leeson, head of UK development at Prudential International, says the portfolio “will provide an alternative for investors who might have looked at fund supermarkets or wraps in the past”.
The bond also allows customers to pay in and withdraw money in 11 currencies including the euro, the US dollar and the yen.
A spokeswoman for Prudential says the options make it easier for customers to use their money internationally, such as if they retire abroad.
The investment in the Portfolio Account grows largely tax-free as funds do not qualify for income or capital gains tax (CGT), only the withholding tax levied on dividend income from some assets held in the funds.
Tax deferral benefits mean investors do not pay income tax on their investment profit until they withdraw money from the bond.
However, investors can still withdraw 5% of the original investment each year without paying tax immediately. Customers also pay no CGT on any profit made from switching from one fund to another.
The Portfolio Account requires a £50,000 minimum investment and provides 23 fund switches in the first year and 10 in subsequent years.
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