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SG Life & Pensions starts offshore



Type: Traditional offshore bond.

Aim: Growth by investing in a choice of three risk-graded portfolios,

cautious, balanced, aggressive or a self-select option with a choice

of 94 unit trusts, Oeics, managed bond funds and investment


Minimum investment: £50,000.

Place of registration: Guernsey.

Investment split: Choice of three risk graded portfolios, cautious,

balanced, aggressive or a self-select option with a choice of 94 unit

trusts, Oeics, managed bond funds and investment trusts.

Isa link: No.

Charges: Initial up to 0.7 per cent a quarter for three years, annual up

to 0.3125 a quarter.

Commission: Subject to negotiation.

Tel: 01865 747314.

Broker Panel:-

Jonathan Elms – Partner, Teare Rose

Mike Ferguson – Managing director, Ferguson Oliver

Simon Clements – Director, S & G Financial


Bruce Coverley – Director of financial planning, Spectrum Financial


Broker Ratings:-

Suitability to market: 6.4

Investment strategy: 8

Company&#39s reputation: 7.1

Charges: 5.6

Commission: 6.9

Product literature: 7.1

The newly formed SG Life Pensions, has introduced SG Life

International bond, a traditional offshore bond registered in

Guernsey. It allows the investor a choice of three risk-graded

portfolios or a choice of 94 funds.

Looking at how the bond fits into the market Clements thinks the

multi-manager approach is likely to become increasingly popular as

investors seek diversification and reduction of investment risk. He

goes on to says: "An excellent addition to the range of offshore

bonds with a competitive charging structure and a good range of


Ferguson says: "Following the introduction of IR35 for one man

contracted companies, the need for flexible, well managed offshore

bonds has increased." Coverley says: "It brings an

investment house name to a market dominated by insurers."

Elms thinks that it is a fairly crowded market but it might have a

novelty value.

Identifying the type of investor the bond is likely to attract the panel

agree that it would appeal to high-net-worth individuals. Coverley

says: "Clients to whom offshore investment is suitable, who

require a degree of investment choice without fully resorting to fully

discretionary portfolios."

Clements says: "Many individuals with lump sums in excess of

£50,000 available would benefit from the tax advantages and estate

planning opportunites afforded by offshore bonds. Corporate clients

may benefit from offshore investment as it may prove more tax

efficient than current deposit arrangements."

Ferguson says: "High-net-worth ex-pats. Coming from where

we do ex-pat oil industry clients may be attrached to the


Analysing the marketing opportunites the bond provides Ferguson

says: "At this current time with the current enviroment, very little

unfortunately. Perhaps usage of the bond funds could be marketed

with the potential of switching."

Elms says: "There are some funds not readily accessible

through competitors products."

Clements says: "This sort of investment bond should be

considered in overall portfolio and tax management. In particular

companies retaining cash or surplus profits in deposit accounts may

well find this product tax efficent and not necessarily unduly restrictive

for cash flow."

Coverley says: "It would be suitable for existing clients. Another

one in the stable."

Discussing the main useful features and strong points of the bond.

Elms says: "Three managed portfolios for simplicity, decently

wide fund range for choice. Reasonable charges for an offshore

product and reasonable early surrender terms."

Coverley says: "There are other more competitively charged

contracts available, however, the range of funds and the depth of

research are its strong suit."

Ferguson says: "A good range of funds offering a flexible

approach for clients investments."


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