NEWS
Axa IoM kicks
off ambitious
expansion with
bond launch
Axa Isle of Man has begun
its expansion plans through
a tie-up with its Irish sister
operation.
A new product, the
International Portfolio
Bond, has been launched
in conjunction with Dublinbased
Axa Life Europe.
The bond is based on
Axa’s Isle of Man domiciled
and administered Evolution
product and shares the
same functionality. But
unlike the Isle of Man version,
it is not available in a
capital redemption format.
It is a single premium
whole of life medium to
long-term investment.
Kevin Dean, chief
executive of Axa Isle of
Man, said: “The launch of
the International Portfolio
Bond will take advantage
of Axa Life Europe’s position
as a gateway to the
EU. It bridges the gap in
the current Axa offering for
the UK market and marks
the beginning of development
plans to expand further
into Europe.”
Dean said the main
investor base was expected
to be UK residents domiciled
in other European
countries. He added that
if a UK-resident but continental
Europe-domiciled
investor wanted to repatriate
the bond to their home
country, the EU-based
International Portfolio
Bond might receive better
tax treatment than its Isle of
Man counterpart.
Dean further highlighted
the arrangement with
Axa Life Europe paved the
way for further product
launches and expansion
into other territories.
ABC application approved: June ’08
Daniel Judge Editor
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E daniel.judge@lastwordmedia.com
Budget changes may boost
the offshore bond industry
by Daniel JuDge
Budget changes to income
and dividend tax for discretionary
trusts may provide a
boost to the offshore bond
industry, life company technical
specialists believe.
The new 50% higher rate
of income tax that kicks in
on earnings over £150,000
also applies to discretionary
trusts – though there is no
£150,000 threshold before
the rate applies – while
their dividend income rate
rises from 32.5% to 42.5%
from April 2010.
Louise Somerset, tax
director at RBC Wealth
Management, said:
“Discretionary trusts will
be particularly hard hit by
the rate increases, as they
will be liable to the new
50% on all trust income
above the standard rate
band (currently £1,000).
“This will include will
trusts and both onshore
and offshore trusts (UK
source only).
“Beneficiaries of life
interest trusts are liable
to tax on their income
entitlement at their
personal rates.”
Offshore life companies
say the higher rates make
for a compelling argument
for trustees to wrap investments
in offshore bonds,
Liontrust seeks white label ventures
following registration of French fund
Liontrust Asset Management
has registered its Pan
European Fund for sale in
France and revealed it is
negotiating with Swiss and
Scandinavian firms over
white label fund deals.
The Luxembourg-domiciled
fund is managed
by Gary West and James
Inglis-Jones, who together
run some €250m across a
range of funds and institutional
mandates.
The French registration
comes as Liontrust said it
was in talks with asset
managers in Switzerland
and Scandinavia over white
labelling agreements.
The company, which
has this year lost key fund
managers Jeremy Lang and
William Pattisson, who
together managed the
flagship First Income and
Helen burggraf Reporter
T +44 (0)20 70 5 75 8
E helen.burggraf@lastwordmedia.com
Dylan emery Editorial director
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Stephen grasso Head of production
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E stephen.grasso@lastwordmedia.com
Liontrust Pan European vs sector
120
110
100
90
%
80
70
60
Jul ’07 Nov ’07
Source: Financial Express
First Large Cap funds, has
also announced plans to
expand its Luxembourg
Sicav range. Launches are
likely to include a European
absolute return equity fund
that will be managed by
West and Inglis-Jones.
Jonathan Harbottle,
FO Equity – Europe inc UK
Liontrust – Pan European
head of European sales at
Liontrust, said: “A number
of French-based distributors
are interested but they
have been unable to invest
their clients’ assets until
now because the fund
has not been registered for
sale there.”
INTERNATIONAL ADVISER [www.international-adviser.com] mAy 2009
Mar ’08
Dean andrews Production editor
T +44 (0)20 70 5 7570
E dean.andrews@lastwordmedia.com
ben Wiseman Head of sales & events
T +44 (0)20 70 5 7573
E ben.wiseman@lastwordmedia.com
allan goodridge Head of int’l events
T +44 (0)20 70 5 7574
E allan.goodridge@lastwordmedia.com
which benefit from a 5%
tax-free annual withdrawal
facility, the ability to
assign the bond to another,
lower rate, taxpayer and
tax deferral.
Margaret Jago, technical
manager, Aegon Scottish
Equitable International,
said: “People likely to pay
tax at the 50% rate may
wish to consider wrapping
their investment assets into
offshore bonds to take
advantage of the fact that
they can defer personal tax
liabilities on their investment
income until a point
where they are no longer
paying tax at the top
rate of 50%.”
Jul ’08
Nov ’08
Mar ’09
emily Proctor Events manager
T +44 (0)20 70 5 75 1
E emily.proctor@lastwordmedia.com
Jamie Hinchliffe Publishing director
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Rod boulogne Managing director
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Wynaendts: ‘strategic priorities’
Aegon to exit
Taiwan after
selling business
Aegon is to pull out of
Taiwan after reaching a
deal to sell its business to
a local consortium.
The Dutch insurer is to
sell its Taiwanese life insurance
operation to a group
of investors, via a holding
company, Zhongwei Co,
for €65m.
The deal is expected
to be completed in the
third quarter of 2009, subject
to regulatory approval.
Aegon said the move was
designed to maximise cash
flows and future earnings.
Alex Wynaendts, chief
executive of Aegon group,
said: “Our decision to divest
our Taiwanese life business
is a result of Aegon’s strategic
priorities to optimise
capital allocation and returns
announced last June.”
Aegon’s Taiwan operation,
established in 1993,
has been unprofitable for
the past three years, according
to reports. Zhongwei
said it would retain
the business’s existing 500
staff and management, led
by James Liu.
Aegon’s decision to
leave Taiwan follows
the recent departures of
Prudential and ING. But
not all insurers are leaving
the territory. Zurich
International Life set up an
office there last year.
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