AXA Wealth International has launched Delegation, a new offshore investment service which will allow investors to access a broader range of asset types including collective investment schemes and equities, as well as government and corporate debt and derivatives.
According to AXA Wealth, the launch responds to the need to fill a gap in the UK offshore bond market which has witnessed strong growth in the discretionary fund management channel with advisers and their clients outsourcing investment strategy and management in recent years.
Simon Willoughby, head of proposition at AXA Wealth International told SRP that the way in which advisers and their clients are investing is continually changing and that as a provider, AXA Wealth needs to adapt to meet these needs.
"Derivatives can be used in relation to Delegation, but only in the context of achieving efficient portfolio management. Structured products could therefore be used in moderation with this aim in mind," he said. "In combining the tax deferral benefits of a conventional portfolio bond with access to a broader asset choice, Delegation has the potential to open up a much wider client base for the offshore portfolio bond."
The extended investment capability of Delegation, said Willoughby, will allow discretionary fund managers to invest in line with their standard portfolio management practices and maintain consistent mandates across all wrappers, including self-invested personal pensions and offshore portfolio bonds.
The new bond, which is distributed through AXA Wealth International's Dublin jurisdiction, is a single premium life assurance investment bond that allows advisers to set investment objectives based on their client's attitude to risk and is managed on a fully discretionary basis.
However, for Delegation to retain its UK tax-compliant wrapper status, the policyholder must not be able to select or influence the choice of the assets held in the bond.
"By allowing the bond to be taxed like a usual offshore bond while investing in assets other than mutual funds and deposit accounts, we are giving customers greater asset diversity options managed by investment management experts," added Willoughby. "The flexible investment structure can adapt to investors' changing financial needs, supporting them through different life stages."