Prudential International launches new portfolio account

The Portfolio Account is an open architecture offshore portfolio Bond
Benefits include: wide choice of funds, flexibility and clear, straightforward charging options.

The Portfolio Account launched today by Prudential International is a single premium offshore portfolio Bond.  It offers access to more than 2,000 funds from many different managers, tax efficiency and four charging options allowing investors to pick a structure that best suits their needs.

Prudential International’s buying power means preferential terms have been negotiated with a number of fund managers providing investors with competitive fund terms.  The fund choices also extend to specialist types not available in the UK and those denominated in different currencies. 

Richard Leeson, Head of UK Development for Prudential International, said: “This is a major product development for Prudential International and will place us in a leading position for open architecture investment.   The Portfolio Account brings together for the first time factory-gate pricing and an almost unlimited range of collective investments from markets across the world and will provide an alternative for investors who might have looked at fund supermarkets or wraps in the past.”

The investment grows largely free of tax as funds are not liable for income or capital gains tax, only the Withholding tax levied on dividend income from some assets held in the funds.  Tax deferral benefits mean that investors do not pay income tax on their investment profit until the money is taken out of the Bond.  However, 5 per cent of the original investment can still be withdrawn each year without investors paying tax immediately.  If part of the investment is switched from one fund to another there is no capital gains tax liability on any profit made on the switch.  For tax return purposes the Portfolio Account also simplifies matters as only the Bond itself needs to be detailed, not each of the funds held in it.  For individuals and trustees, the Bond does not need to be detailed until a chargeable event arises. 

The Portfolio Account requires a £50,000 minimum investment and provides twenty free fund switches in the first year and ten in subsequent years.  There is also a choice of 11 currencies in which to put money in and take it out