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REVIEW SUMMARY

Quilter International Managed Capital Account 

Quilter International

Quilter International (formerly known as Old Mutual International) is one of the leading providers of advice, investments and wealth management both in the UK and internationally.

Quilter International is a part of Quilter plc and manages around £107.4 billion of investments (as at 30th June 2020). Quilter plc is listed on the London and Johannesburg stock exchanges.

Quilter International Managed Capital Account 

There are two types of the Managed Capital Account:

1. Redemption version: It is provided by Quilter International Isle of Man Limited. The capital redemption account will continue for 99 years unless encashed earlier. 

2. Life version: It is a whole of life policy where, in the event of the death of the relevant life assured, the death benefit is 101% of the surrender value (which is the value of the policy, less any outstanding charges, including the early encashment charge).

Overview
FAQ
Customer Reviews
Expert Verdict

Offshore investment contracts grow tax-efficiently, as offshore based life assurance companies are not currently liable to any form of income or capital gains tax on policyholders’ funds (although certain investment income may be subject to a non-refundable tax deduction at source in its country of origin – ‘withholding tax’.)

Many investors find managing a portfolio of funds an administrative burden. With the Managed Capital Account, Quilter International (formerly known as Old Mutual International) takes care of this by establishing a portfolio of Quilter International funds within the account, and managing any paperwork on your behalf.

As per Quilter International, by choosing the Quilter International Managed Capital Account, you can enjoy the following benefits:

  • A choice of currencies in which premiums can be paid and the account denominated (currently Sterling, US Dollar and Euro);
  • Flexible premium payment facilities;
  • Availability of partial or full encashment at any time (an Early Encashment Charge may apply); and
  • A loan facility, whereby you can borrow up to 50% of the bid value of your account.
  • A partial surrender on your savings plan may be treated as a one-off withdrawal but you may not surrender more than the encashment (surrender) value of the plan.

Note, encashment penalties may apply for some years.

Quilter International Managed Capital Account Key Features:

Choice of Investments:

  • Access to more than 40 of the world’s leading fund managers.
  • Choose from around 370 international investment funds.

Choice of fund range:

  • Building your investment portfolio:
    Depending on your goals, you and your financial adviser may decide to create a portfolio from Quilter International's selection of international investment funds. These unit-linked funds are provided by leading fund managers and give access to a broad selection of asset classes, sectors, specialisations and currencies.
  • Researched range:
    Alternatively, there is Quilter International's Researched Fund Range. This range of high quality hand picked funds lets you and your financial adviser build and manage a portfolio that can help meet your needs with precision.
  • Multi-asset portfolios:
    Or you may find that one of Quilter International's pre-packaged multi-asset portfolios, such as Compass Portfolio, is more suitable for you, meaning you can leave day-to-day portfolio management to their sister company Quilter Investors, the multi-asset business of Quilter. They are a range of risk-targeted, multi-asset portfolios and their main objective is to generate a long-term total return whilst effectively managing downside risks. 

Minimums:

Lump sum minimum of £10,000 / 15,000 / $15,000.

Currency:

Choice of 3 currencies including Pound sterling (GBP), Euro (EUR), United States dollar (USD).

Charges:

  • There is an initial 'establishment' charge for each investment, to cover costs incurred in setting it up. Spread over five years, these charges work out at 1.6% each year.
  • Quilter International also take 1% of the value of your fund each year to cover ongoing management costs.
  • The fund managers of each fund you invest in may also make a charge. This is usually between 1% and 2.5% each year. It depends on the funds you've chosen, their managers and the type of investment. Your financial adviser will alert you to the charges before you commit to the individual funds.
  • A maintenance charge of US$9.25 (€9.25/£6.15) will be taken unless either:

    - The amount of the contributions paid to the account; or
    - The value of the allocated units at their bid price are equal to or exceed US$15,000 (€15,000/£10,000) at the transaction date.
  • A 1% credit card charge may apply. Please check with your credit card provider.

Early encashment:

There is an early encashment charge of 8% in the first year of each investment, reducing by 1.6% each year to 1.6% in year five and 0% thereafter.

NOTE: We would highly recommend reading the 'expert verdict' section of this review to learn why our experts gave Quilter International's Managed Capital Account 2.5 out of 5 stars.

 

The Pros

> Popular investment plan
> Preferred choice of expat financial advisers
> Strong brand of parent company

The Cons

> Risk of hidden commission
> Potentially inflexible
> Commonly mis-used
> VERY expensive if you access it in the early years
What is the Managed Capital Account used for?

Providing for children's education: 

You can build up a substantial fund and then arrange regular withdrawals to pay school fees...

But early encashment charges may apply!

Saving for retirement:

You can tailor your investments to create the kind of retirement fund you want, and then take withdrawals as and when it suits you.

The MCA can be used as an investment vehicle for an approved pension, such as a Self Invested Personal Pension (SIPP), or a Qualifying Recognised Overseas Pension Scheme (QROPS).

Generation/estate planning:

You can place your Managed Capital Account in trust and make sure your money is used as you wanted, both before and after your death.

Note: different versions of the MCA are available (Life assurance or Capital Redemption) depending on your country of residence and your investment needs.

The Capital Redemption version is subject to a maximum term of 99 years.

The Life assurance version ends on the death of the last life assured.

How easy is it to access money from Quilter International's Managed Capital Account?

Well, Quilter International (formerly known as Old Mutual International) say it's easy...but we beg to differ.

Quilter International's brochure states: 

  • you can withdraw lump sums at any time. The minimum withdrawal is US$750 (€750/£500).

  • Each year you can withdraw an amount up to 10% of the value of the premiums paid, without penalty. Applying five years after each investment.

  • As long as you’re only paying lump sum premiums, you can also use your MCA to provide an income (which can be annual, half yearly, quarterly or monthly) now or in the future if you need it. This gives you more flexibility and also an alternative source of funding.

We say:

Taking money out of your account before five years have passed will dramatically reduce the potential for your investments to perform – because of the effect of the charges made when you set up your account.

So, if you take money out of your account within five years of the last policy year in which you paid a contribution, you will be subject to an 8% charge in the first year of any investment, reducing to nil after five complete years have passed...

Happy to have encashed!

It was made really clear to me not to touch my capital for at least 5 years - and I just wanted a place to park it for a rainy day.  So all in, the Managed Capital Account seemed ideal.

I had to get out after 7 years though, and glad I did, because performance after all the fees was poor.

Expert assessment of Quilter International's (formerly known as Old Mutual International) Managed Capital Account

Quilter International Managed Capital Account - Redemption Brochure

Quilter International Managed Capital Account - Redemption Detailed Brochure

Quilter International Managed Capital Account - Redemption Key Information Document

Quilter International Managed Capital Account - Flexibility and Freedom Client Brochure

Quilter International Managed Capital Account - Life Assurance Version Brochure

Quilter International Managed Capital Account - Life Assurance Detailed Brochure

Quilter International Managed Capital Account Key Information Document - Life Assurance Version

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