Every year, Old Mutual International’s (OMI) range of executive bonds are sold to expatriate investors, based on their flexibility and potential tax advantages.
According to OMI’s sales brochures, their executive bonds allow investors to access a wide range of assets, transfer in or consolidate existing investments, switch assets or funds, and make ad hoc payments or withdrawals.
In the words of OMI: The Executive Bond offers you a high-powered portfolio that puts you in the driving seat.
However, as we will explain, their potential advantages are too often eclipsed by high and deliberately opaque charges.
There are two types of executive bonds from OMI for non-UK residents; namely the Executive Investment Bond and the Executive Redemption Bond. This article looks in depth at the Executive Investment Bond (EIB), which is a whole of life offshore bond, also known as a portfolio bond, wrapper or offshore investment bond, provided by Old Mutual International Isle of Man Limited.
It’s important to note that this bond is an investment solution, rather than purely a life assurance product, and that it is designed for those planning to invest for at least the medium-term, and ideally the long-term.
It’s also important to keep in mind that withdrawals are subject to certain terms and conditions and potential financial penalties…
Let’s take a closer look at Old Mutual International, and its Executive Investment Bond.