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Julian Gibbs

Many international investors and, indeed, UK investors, wish to put money

into with-profits endowment policies. There have been a few onshore funds

which have shown good returns by investing in secondhand policies but some

of them had difficulty in obtaining a sufficient volume of suitable

policies at the right price.

A new company has been formed, run from the Isle of Man, called the

Premium Profits Fund. This aims to overcome the problem of policy supply by

appointing three leading market-makers to acquire a steady flow of policies

giving returns after charges of 9 to 11 per cent a year.

These are Surrenda-Link, Policy Register (International) and Absolute

Assigned Policies.

This new fund should be much less volatile than an equity investment and

the anticipated return of around 10 per cent a year is higher than most

equity funds have forecast at the present time.

One factor that gives me confidence in the fund is that Richard Gough,

formerly managing director of Sun Life International, is on the board.

Also, both Surrenda-Link and LPVC are regulated by the PIA.

The portfolio will be diversified and it is expected that policies will be

purchased from at least 20 offices with no more than 25 per cent in any one


The fund is particularly attractive to international investors as no taxes

will be chargeable on any income, profits or capital gains on the fund nor

on any dividends payable by the fund.

This fund is an excellent way of building up a potentially high-return,

low-risk portfolio, particularly for international investors and for UK

investors intending to retire abroad.

I am looking to retire in the near future. In addition to my pension, I

have a substantial lump sum from which I want to achieve the highest

possible income. I understand that by using an overseas savings account, I

can get an additional 10 per cent return on my income. Is this true?


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