Zurich International Life has established the wealth account, a single premium offshore bond that provides access to 130 funds from a range of fund management groups.
The bond offers funds from management groups such as Artemis, Framlington, Jupiter and New Star. Policyholders can select up to 30 funds at any one time.
The bond is available in two versions, a life insurance bond and a capital redemption bond. The first version is aimed at individual investors, while the second is aimed at corporate investors and trustees.
Regular withdrawals to be taken on an annual, half-yearly or quarterly basis. But if the bond is surrendered before the first five years, investors will pay a penalty which reduces from 8.25 per cent in the first year to 1 per cent in the fifth year.
There is a menu of charging structures in place, which all include 25 free fund switches a year. There is a choice of a high initial charge but no annual management charge, a low initial charge with a high annual management charge or a middle path between these options.
This bond could appeal to investors who are looking for offshore tax advantages who want to move between a range of funds without having to pay a charge every time they switch. It does not offer as many funds as Clerical Medicals CMI global investors bond, which offers 33 internal and 170 external funds. However, it has a minimum investment in £40,000 which makes it accessible to a wider market compared with the Clerical Medical product, which has a minimum investment of £100,000.