Company enters off shore market with Dublin-based products
Legal & General International (Ireland) is entering the offshore market with the launch of an international portfolio bond and a discounted gift trust from its Dublin base.
The single-premium openarchitecture products are to be aimed at UK investors via IFAs, and are the first in a series of launches designed to capitalise on the growing appetite for offshore investment. Research commissioned by L&G has shown nearly 70% of IFAs would recommend offshore investments as a tax planning strategy. LGII has trialled its systems with a panel of IFAs in the UK.
LGII is headed by David Fagan, who joined the firm in May after a 25-year stint with Irish Life & Permanent.
From the end of this year the international portfolio bond will also be available as the core offshore bond on the Cofunds platform.
While the initial launches are focused on the UK market, LGII plans to broaden the range to cover expatriate and European-based investors from 2009. Ireland's full membership of the European Union was a key factor in LGII's choice of a Dublin base, as it means it has a passport under the EU Life Directive to transact around Europe.
Commenting on the launch, LGII chief executive David Fagan said: "A number of cross-border life companies have tried to do too many markets too quickly. We wanted an initial focus on one market, and the UK was the logical choice. Legal & General has brand awareness and, just as importantly, significant distribution reach in the IFA market.That and the sizeable market in the UK for gross of tax unit-linked products added up to our decision."
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