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Expat Investor : April 2008
April 2008 ? EXPAT INVESTOR 11 INVESTMENT NEWS What if you could guarantee your Euros worked as hard as you do? To find out more, about the Zurich Euro Reward Account call: +44(0)1624 671666 (quoting ref no. EP1) or visit www.zurichbankinternational.com 4.25% GROSS PA/AER* Variable Are you always having to move your Euros around to get the best rate? The Zurich Euro Reward Account’s two guarantees mean you can take it easy while your money works hard. We guarantee your interest rate will be at least 0.25% above the European Central Bank Base Rate until 1 January 2009, then we guarantee that your interest rate will be no more than 0.25% below the European Central Bank Base Rate until 1 January 2011. We also give you security and easy access to your money. So for great returns, relax and leave the hard work to us. • A low minimum investment of €5,000 • Personal service, with no call centres www.zurichbankinternational.com Instant accress to your mon ey *AER stands for Annual Equivalent Rate which is a notional rate which illustrates the contractual rate as if paid and compounded on an annual basis. Assumes rates will remain unchanged for 12 months. Zurich Bank International Limited, PO Box 422, Lord Street, Douglas, Isle of Man, IM99 3AF, British Isles. Telephone: +44 (0)1624 671666 Fax: +44 (0)1624 627526. www.zurichbankinternational.com Registered office: 43-51 Athol Street, Douglas, Isle of Man, IM99 1ET, British Isles. Zurich Bank International Limited is registered in the Isle of Man Number 22847. Telephone calls may be recorded. Licensed by the Isle of Man Financial Supervision Commission for banking business. R Fast Facts 44004 Fast Facts 44180 Fast Facts 44181 with many investors who have diligently built up their investments over a lifetime only to have the taxman take another bite of it when they die. The recent political tussle between the two major political parties shows what a hot potato the inheritance tax has become. But what hasn’t been made clear is that IHT can be mitigated by careful financial planning.” This new bond can be structured in a variety of different ways to reduce IHT. These range from a gift trust where the settler has no requirement for income or capital, to using more complex structures such as a Discounted Gift Trust or a Loan Trust. A Discounted Gift Trust can be used for an investor to gift the capital while still withdrawing an income from the assets received during their lifetime. The new Offshore Bond enables investors to withdraw income of up to 5% of the initial investment a year without any immediate tax liabilities. A Discounted Gift Trust enables the settler to make a gift for IHT purposes where the investment growth in excess of the settler’s income is free of inheritance tax (the full value is outside of the estate after seven years). A Loan Trust can also be used to stop the value of the estate growing too large and increasing the estates liability to IHT. The individual is able to make an interest free loan repayable on demand, the proceeds of which are placed in the Offshore Bond written in trust for the chosen beneficiaries. As the bond grows in value the growth will fall immediately outside the individual’s estate for the benefit of his/her beneficiaries. Standard & Poor’s, the world’s leading index provider, has launched an investable index for investors seeking exposure to environmentally responsible investment strategies. The S&P Global Eco Index provides diversified, liquid exposure to 30 of the largest publicly listed companies operating in ecology- related industries, including clean energy production, water utilities and infrastructure, timber, environmental services and waste- management. The S&P Global Eco Index covers 12 countries at launch with an adjusted market capitalisation of $376.87bn, including Brazil, Citibank expands fund range Citibank International Personal Bank is expanding the range of fund managers available to offshore investors and UK expatriates as part of its London and Jersey-based international banking and investment services. Credit Suisse and Goldman Sachs Asset Management have been added to the list of leading fund management houses from which clients can choose market leading funds. Citibank says it seeks to offer products that are tailored directly to clients’ needs, and the addition of these new fund management companies gives customers access to a greater range of products. Credit Suisse has the Russia Explorer, future energy and global prestige (luxury goods) funds, while Goldman Sachs Asset Management offers what the Bank describes as an “extensive selection of active equity, quantitative equity, fixed income and currency funds”. This latest move means Citibank’s investment offering now includes funds from a total of 10 leading fund managers, with a high-quality range of funds covering all major asset classes. These include: ABN AMRO Asset Management, BlackRock, Merril Lynch Investment Managers, Schroders, JP Morgan Asset Management, Fidelity International, Franklin Templeton Investments, Invesco, Legg Mason, and now Credit Suisse and Goldman Sachs Asset Management. Canada, Denmark, France, Germany, Great Britain, Hong Kong, Japan, Norway, Spain, Switzerland and the United States. “Investors the world over have come to understand that climate change and environmental responsibility are pressing issues that may present significant investment risks and opportunities,” said Steven Goldin, Vice President, Portfolio Services. “By incorporating a diverse range of eco-friendly themes as well as adopting a global approach to a global challenge, the S&P Global Eco Index focuses on companies that have positioned themselves to address these challenges and this will in turn help investors to focus their investment decisions where there are potential environment-related economic benefits.” www.standardandpoors.com/ indices Offshore bond launch to tackle IHT millstone Killik & Co, a leading advisory stockbroking firm, has developed an offshore bond wrapper with a low- cost and transparent means of sheltering investments from inheritance tax (IHT) burdens. Killik & Co has teamed up with Friends Provident International to give UK and non-UK resident investors access to an offshore bond vehicle along with the firm’s expert financial planning team. It offers a very wide investment choice, including unit trusts, investment trusts, OEICs, collective investments and hedge funds for UK residents. And for non–UK residents, everything a UK resident can hold plus UK and foreign equities, gilts and bonds, with up to 7.5% discounts on collective funds. Malcolm Cuthbert, Managing Director of Financial Planning Division, tells Expat Investor, “IHT is a much hated tax and a bug-bear S&P’s Global Eco Index
May June 2008