HSBC has reached GBP500 million of invested assets within the HSBC Onshore Investment Bond – Select, an open architecture bond designed to enable investors’ portfolios to be constructed from over 2,700 collective investments encompassing OEIC’s, Investment Trusts and ETFs from a range of investment managers.
The investment bond wrapper offers both administrative simplicity and investment flexibility within a structure that often has beneficial tax advantages for investors.
HSBC believes that the Bond is competitively priced – with an annual administration fee of 0.35 per cent of the bond value (for investments up to GBP149,999), 0.30 per cent (for investments between GBP150,000 – GBP249,999) and 0.25 per cent (GBP250,000 plus). It is available to Advisers both directly with HSBC and through a number of platform providers.
The Onshore Investment Bond market is currently the subject of increased adviser focus as a tax efficient model for dividend payments, following the introduction of the new dividend tax rules. In addition, onshore bonds serve as a very effective vehicle for trust and estate planning, with the ability to assign policy segments to children, spouses or partners in a lower tax bracket – further enhancing the tax efficiency of the bond.
Neil Davies, Deputy CEO of Insurance, HSBC UK, says: “We have seen a real increase in demand for tax-efficient bonds such as the new Select Bond and will be adding to our dedicated Business Development team which will help us further enhance the level of support we currently offer Advisers.
“The demand for tax efficient wrappers and flexible products to meet income and tax mitigation needs is increasing. The HSBC Onshore Investment Bond generates no CGT liability for investment switches and portfolio repositioning within the Bond. The tax charged within the Bond is specific to the investments held and is charged separately, meaning that customers get a clear view of all the deductions and charges which apply.”