SG LIFE & PENSIONS
SG LIFE INTERNATIONAL BOND
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.
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
Suitability to market: 6.4
Investment strategy: 8
Company's reputation: 7.1
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
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
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."