RISING APPEAL OF BONDS ON TRANSACT
Interest in using bonds as part of client tax planning strategies has increased over recent months in some way as a consequence of the changes announced in recent budgets. Transact offers both offshore and onshore bonds which gives you the flexibility of recommending the option that best meets the needs of your clients. To complement the discussions you have been having with our Transact Sales and Technical teams, here is some background to IntegraLife International Limited ‘ILInt’, an IntegraFin Holdings plc (IHP) group company and provider of the Transact Offshore Bond.
ILInt was incorporated on the Isle of Man twenty years ago. During that time, we have achieved a record of resilient growth and robust performance with offshore bond Funds Under Direction (FUD) now accounting for ~5% of total Transact FUD. The operational and financial highlights for the Full Year ending 30 September 2024 are set out below:
| Year-end closing FUD | Inflows | Number of policies | Regulatory Capital | |
|---|---|---|---|---|
| £3.11bn - up 25% (£2.48bn in 2023) | £0.32bn - up 78% (£0.18bn in 2023) | 7,421 - up 9% (6,778 in 2023) | Solvency Capital Requirement ‘SCR’* £26.4M | Capital Held £49.0M (186% of SCR) |
This guide, that you can share with your clients, provides more detail on the financial strength of ILInt and our group.
Some reasons why bonds have more appeal include:
- ILInt is profitable, holds no debt and has paid regular dividends to our parent IHP.
- As part of the Group, ILInt benefits from the continuous innovation approach to the development of the Transact platform including the recent extensive program of digitalisation.
- Offshore bond assets are consolidated with investments in other wrappers on the platform making the management of client portfolios more cost-effective and efficient.
- The charging structure for the offshore bond is clear and transparent. Clients pay only a quarterly wrapper fee, no establishment or exit fees, in addition to the normal Transact annual charge.
A message from Gill Marples, Managing Director of ILInt:
”I work with our experienced team, based in our offices in Douglas, who are committed to providing the high-touch, personal service you expect when dealing with Transact. We work closely with our colleagues in the UK to facilitate a seamless service for you and your clients.
Please contact us with any offshore bond-related questions on:
- my email gillian.m@integralife.co.uk, or
- by calling +44 (0) 624 654600.”
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