Parmenion Capital Partners, which provides outsourced investment platform services, has signed a deal with Isle of Man Assurance (IOMA) to offer an offshore bond to users of the Parmenion service.
The Parmenion Offshore Bond charges a 0.55% set-up fee (minimum £150) and 0.50% costs a year (minimum £125), with a minimum investment of £25,000, making it accessible to a broad investment base, said the company.
The offshore bond is a standard whole-of-life unit-linked insurance policy, which allows multiple lives assured. Underlying investments can be managed discretionarily by Parmenion in accordance with a mandate supplied by the adviser for a further 0.3% a year.
Richard Mein, Parmenion Capital Partners’ managing partner, said offering the bond through the platform supports Parmenion’s aim of enabling advisers to tender discretionary investment management within low-cost, transparent product wrappers to clients of all sizes.
“We were concerned that large parts of the investment market were being under-serviced as a result of the fact that many investors using IFAs simply do not have portfolios large enough to take advantage of the more sophisticated products and wrappers that are generally available,” he said.
The investment is divided across 20 identical investment segments and investors can choose to have up to 100 segments of the same amount, on the proviso that each segment contains a minimum of £2,000 in cash. Withdrawals of a minimum of £100 can be made monthly or quarterly.
Parmenion said the service offers the consolidation benefits of a wrap platform with access to onshore, offshore, Isa and Sipp portfolio wraps, plus professional discretionary investment management of the underlying collective fund investments from a minimum of £7,000.
Adviser initial commission is up to 3% of portfolio value at inception, while adviser annual commission totals up to 1% of portfolio value.
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