The offshore bond is a standard whole of life unit-linked insurance policy allowing multiple lives assured. Underlying investments can be managed discretionarily by Parmenion in accordance with a mandate supplied by the adviser for a further 0.30 per cent per annum.
Adviser initial commission is up to 3 per cent of the value of the portfolio at inception with an annual commission of up to 1 per cent on the value of the portfolio. The bond has a 0.55 per cent set up fee (minimum £150) and 0.50 per cent per annum (minimum £125) with a minimum investment of just £25,000.
The investment is split 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.
Commenting on the launch Parmenion Capital Partners managing partner Richard Mein says: “This supports our aim of enabling advisers to offer discretionary investment management within low cost transparent product wrappers to clients of all sizes. We were concerned that large parts of the investment market was 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.”