Providing innovative solutions to the market
Scottish Equitable International is always looking for ways to bring innovative solutions to the market to help financial advisers and customers get the right product at the right time. There are three themes we are currently developing as a result of research and feedback from financial advisers.
We have seen a very definite shift in the risk profile of the average investor. Compared to five years ago, investors are now typically more cautious in nature. And even if we were to see a sustained recovery in the stock market, the likelihood is that investors will retain a cautious 'core' to their portfolio.
In response to this we have undertaken a series of fund developments to enhance our already strong offering for cautious investors. Recent launches include:
• Northern Trust Cautious Manager of Managers fund - ideal for advisers who want to delegate the fund management to a specialist manager of managers.
• 'Best in class' Select Distribution Fund and Select Reserve Fund - where we are using top industry specialists to manage each of the separate asset classes.
• Protected Growth Fund - a true innovation in the offshore market this fund offers exposure to some of the upside of equity returns, while providing an ongoing defined level of protection.
Simplifying inheritance tax planning
Recent press coverage points to a lot of confusion in the marketplace over inheritance tax (IHT) planning relating to the perceived complexity of the trust arrangements and the uncertainty over the tax status of some of these trusts. As a company we have taken great strides in addressing both of these issues. We have recently launched a packaged IHT planning solution which simplifies the decision-making process for both advisers and clients through product design, explanatory literature, fund choice and technical back up. We also sought, and have now received, unequivocal confirmation from the Inland Revenue that our discounted gift trust is unaffected by pre-owned assets tax, which should give advisers extra peace of mind in recommending the trust.
Flexible savings solutions
In 2004 we launched an offshore flexible savings plan, designed for the UK market. This has proved very successful with advisers in enhancing their offering in retirement planning. There are many instances where a client is unwilling or unable to make pension contributions and an offshore plan is a suitable alternative. Restrictions on when and how pensions benefits can be taken have meant this has proved to be an ideal supplement to a pension in the high-net-worth market. As A-Day approaches we are likely to see a lot more activity in this area.
£92bn transferred since 2015
Achievements, charity work and other happy snippets
Since first announcement