The Professional Portfolio Bond, from Generali Worldwide, is a single premium, open-architecture, whole of life, life assurance product providing wealth management and estate planning options for tax-efficient investing.
It is available in a wide range of countries around the world and in US Dollar, GB Pound, Hong Kong Dollar, Japanese Yen or Euro.
The Generali Professional Portfolio Bond provides both flexibility and control to help you manage your wealth in a tax-efficient environment. Its versatility means that it is equally effective whether your investment strategy is geared for growth, capital preservation or to provide a regular income.
Perhaps the greatest criticism of this offshore investment bond is that its distribution strategy enables the supply of these type of sophisticated tax-deferral products to expatriates by unregulated intermediaries. This means many policy holders have not had the full charges disclosed to them and they hold inflexible, illiquid and expensive underlying investments. As such, the underlying investment performance does not match the client’s expectations over the long term.
Generali Worldwide Professional Portfolio Bond Key Features
Investment Options - Professional Portfolio offers two separate investment options. The Pooled Portfolio option enables you to build an investment portfolio from any recognised unit trust or mutual fund. The Personal Portfolio option extends the investment choice across a range of internationally quoted securities, including internal funds, mutual funds, open-ended investment company schemes and cash.
In addition the product allows for the Policy Owner to appoint an independent Portfolio Manager to act as an investment adviser to the portfolio.
Eligibility – Generali Personal Portfolio Bond is a whole of life, life assurance contract issued by Generali Worldwide. It is available to most international investors outside of the main regulated territories such as the UK, the USA and Australia.
Charges – The Generali Personal Portfolio Bond you take out facilitates a range of charging structures, largely driven by the amount of commission taken by your adviser or salesman. See the FAQ for more details.
Early Surrender Penalty:
If the Plan is fully surrendered, early discontinuance charges may be deducted from the Investment Value. The early discontinuance charge only applies on full surrender and only in relation to Investment Amounts for which less than 20 Charge Dates have passed since payment.
Pensions (QROPS and SIPP)
HEALTH WARNING!!!!! We have seen all too often the Generali Professional Portfolio Bond being used or sold to investors within QROPS and SIPPs. This is done in order to generate more commissions for the salesman. The Generali Professional Portfolio Bond should NOT be used within a QROPS or SIPP, because when you start to draw on your pension, then the charges may still apply on the original investment, which effectively means your charges will go up as the capital decreases and will erode some of the remaining capital and a quicker rate.