Royal & SunAlliance International Financial Services has designed a discretionary portfolio management service mainly for high net worth clients and trustees in the UK who are looking for offshore tax advantages.
The global wealth portfolio is one of two new offshore investment portfolios introduced by RSAIFS that allow clients and their IFAs to appoint a stockbroker, who is independent from Royal & SunAlliance, as a discretionary fund manager and custodian.
Once appointed, the stockbroker will manage an investment portfolio tailored to the individual requirements of investors. It is up to the stock manager to choose from the wide range of bonds, unit trusts, investment trusts, Oeics, Sicavs and other investments permitted under UK tax regulations for personal portfolios.
The global wealth portfolio could be of interest for clients with at least £250,000 to invest who are looking to defer capital gains tax if they have used up their allowances through other investments. It could also be useful in preventing investors from being swamped with paperwork from an array of different investments.
IFAs and their clients would need to take care in choosing a stockbroker for this role and would need to look at factors such as their level of expertise, the length of time this person has been involved in portfolio management and the investment area they specialise in.
However, if IFAs and their clients do this research, there is nothing to stop them from making their own arrangements with stockbrokers to manage their clients' portfolios without the involvement of Royal & SunAlliance International Financial Services.