Financial Planning


What Are Offshore Personal Portfolio Bonds?

Offshore Personal Portfolio Bonds (commonly referenced as PPB's) are 'investment platforms' provided by a number of life assurance and investment companies within tax-efficient jurisdictions.

A Personal Portfolio Bond (PPB) centralises a clients assets and investments under 'one roof' to ease the administration headaches and burdens that come with running a complex investment portfolio.

Personal Portfolio Bond (PPB) investors gain access to virtually all asset classes on the following stock exchanges:

• London
• New York
• Nasdaq
• Hong Kong
• Deutsche Bourse
• Toronto

• Euro Stock
• Australian
• Singapore
• Taiwan
• Japan
• Bombay

In addition to the above stock exchanges, clients may also buy shares from some of the smaller global stock exchanges around the world as well as execute forex trading.

Index funds, ETF’s (Exchange Traded Funds), Structured Notes / Structured Products are investment instruments that are also available via a Personal Portfolio Bond (PPB).

Increasingly, clients use the research and investment model creation skills that a Discretionary Fund Manager provides in order to remove the burdens of fund and stock research and selection.

Both TAM International and Momentum Harmony Fund Management are often used in these roles having both gained award winning accolades in the financial services industry.

ESG (environment, social, governace) investment funds are a relatively new asset class that are becoming increasingly popular with investors that are concerned with a myriad of ethical values.

If you are looking to access an index tracker fund with a formiddable track record, you would be well advised to consider the Sanlam AI Global Managed Risk Fund. This tracking fund is unique in the market as it offers a combination of artificial intelligence / machine learning with a 'risk-on' 'risk-off' approach to the MSCI World Index.

The Bowmoor Capital CTA Global Alpha Fund is an award winning 'Trend Following' fund that seeks to provide alpha returns in both rising and falling markets.

There are some asset purchase restrictions that apply with Personal Portfolio Bonds (PPB) most notably the inability to buy crypto assets and bitcoin.

Primary features of Personal Portfolio Bonds

It is the ease of administration in maintaining a mix of investments within a Personal Portfolio Bond that appeals to most international investors.

With just one account and working alongside us as your independent financial adviser the purchase and sales of your investment assets could not be easier.

Ordinarily when an investor builds an investment portfolio independently from a Personal Portfolio Bond (PPB) it is often the case that a variety of stock markets will be used to buy stocks - for example an investor may have stock holdings on the London, New York and German stock exchanges and perhaps even investment fund holdings elsewhere as well.

Each of these investments may require several trading accounts to be established and maintained, it’s possible also that more than more custodian would be required for those investments.

For international expatriate investors the issues of time zones and record keeping complicate issues further and simply add to the headaches, not to mention the additional costs.

As you may imagine, investors can very quickly find themselves having to be involved with very time consuming administration with a variety of different companies all serving to exacerbate and magnify the commitment required to run portfolios independently.

A Personal Portfolio Bond (PPB) eliminates all of the tedious time consuming administration as investors need only deal with one contract.


Taxation - spouses & partners

Personal Portfolio Bonds (PPB) are generally effected in the jurisdiction of the Isle Of Man. As such investors benefit from a tax friendly environment coupled with robust laws that provide high levels of client protection - these benefits are not always available when investments are held independently.

What happens upon death?

An often overlooked issue is the situation that occurs upon death.

Imagine for a moment the scenario where an investor is holding a spread of investments across a number of global stock markets independently of a Personal Portfolio Bond. There will be different time zones that need to be considered, each investment could be subject to different laws and procedures in respect of probate. Multiple cost and fee structures could apply to each jurisdiction where investments are held.

The likelihood is that the investor will not have made a Will in each of the jurisdictions that he holds investments in, particularly if he has no other interest in that country other than his stock investments.

His widow, in all likelihood, would have to engage lawyers to unravel and reclaim his investments (possibly at a loss if a sale is forced) but most certainly at considerable cost in terms of legal fees.

Once again owning a Personal Portfolio Bond (PPB) would eradicate all of the above issues as only one company and just one jurisdiction need to be involved - the Personal Portfolio Bond (PPB) issuer.

To simplify matters further if the spouse or partner of the investor were to jointly effect the Personal Portfolio Bond (PPB) the ownership of the Bond simply passes, in its entirety to the remaining joint holder - very simple - very straightforward - the investments remain intact, their is no forced sales and all very cost-effective.


Using a Personal Portfolio Bond for income

Naturally clients can use their Personal Portfolio Bond (PPB) in many ways and alter the way in which they use their Personal Portfolio Bond (PPB) as time evolves.

It may be that during a working life an investor simply uses his Personal Portfolio Bond (PPB) and the investments within it to grow the portfolio. Later, at retirement for example, the investor may decide to reconfigure his Personal Portfolio Bond (PPB) to generate retirement income.

As trusted advisors we are always at hand to help and guide at each stage.

Personal Portfolio Bond asset exchange

Investors that are attracted to the benefits of Personal Portfolio Bond (PPB) may already have investments.

For such investors there is the opportunity to exercise what is known as 'Asset Exchange'

In simple terms 'Asset Exchange' enables investors to transfers their existing investments directly into the portfolio bond - the administration of which is handled trouble free by the Personal Portfolio Bond (PPB) provider

Let us help you set up a PPB and remove your admin headaches