London & Colonial has launched its Offshore Open Bond targeting high net worth clients.
The self-invested bond gives savers access to a range of collective investments plus shares in the FTSE 100 index without incurring penal tax charges applying to highly personalised bonds.
Aimed at high net worth clients and trustees with over £100,000 to invest, the product offers greater choice and control over their investment portfolio plus service from an administration team.
The bond has an open charging structure, Customer Agreed Remuneration (CAR) for advice and no exit penalties. It can be set up with cash or through the transfer of existing investments to a maximum of ten lives assured.
Up to 5% of the original investment can be withdrawn each year with no immediate tax charges, while the portfolio grows free of income or CGT until encashment.
The bond is the first non-pension product from London & Colonial which provides self-invested pension and annuity products.
"The Offshore Open Bond gives clients the scope to select and control the investments in their portfolio, allowing them to follow their chosen investment strategy in a tax-efficient way with as few restrictions as possible," says London & Colonial product development manager, Adam Wrench.
"We believe demand will come from a whole range of investors who want the tax advantages of offshore investing without the restrictions that apply to traditional insurance company offerings such as a limited fund range," he adds.
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Ceremony will take place 13 November