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International and European Portfolio BondsUnlocking the secrets of intelligent investing

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Investing wisely is about more than just saving a certain amount each month for your future. With good financial planning, you can invest in ways that will help you reduce your inheritance tax liability, make it financially easier for you to move outside the UK, maybe retire abroad, and mitigate the tax you have to pay on your wealth.

This is where Quilter International’s Portfolio Bonds can help.

All references to Quilter International throughout this brochure refer to either Quilter International Isle of Man Limited or Quilter International Ireland dac.

Throughout this brochure we will refer to the International Portfolio Bond – PRIIPs, the International Portfolio Bond – Redemption, the European Portfolio Bond – PRIIPs and the European Portfolio Bond – Redemption as the Portfolio Bond.

The value of investments and the income from them can go down as well as up. You may not get back as much as you invest.

This brochure explains how a Portfolio Bond could benefit individual investors resident in or returning to the UK. Many of these benefits equally apply to non-UK residents, trustees and companies wishing to invest. Please speak to your financial adviser, who will be able to explain any important differences.

This document is based on Quilter International’s interpretation of the law and HM Revenue and Customs tax practice as at February 2020. We believe this interpretation is correct, but cannot guarantee it. Tax relief and the tax treatment of investments may change.

Contents

The intelligent investment solution �� 5

Tax benefits for UK – resident investors �� 6

Living abroad �� 8

Safeguarding your portfolio bond investment through trusts �� 9

The investment that changes with your life ��10

Wealth interactive – transforming the way you keep track of your investments ��12

Neatly packaged to save you time, hassle and money �� 13

Easy access to your capital ��14

A safe home for your investments �� 15

Fees and charges ��16

Quilter International 3

International Portfolio Bond and European Portfolio Bond4

There are four versions of the portfolio bond:Provided by: Type of bond:

International Portfolio Bond Quilter International Isle of Man LimitedLife assurance

Capital redemption

European Portfolio Bond Quilter International Ireland dacLife assurance

Capital redemption

have sophisticated investment needs and want access to a broad asset range and

multiple currencies

want to have an option to request us to appoint a discretionary asset manager and/

or an authorised custodian*

want to invest, individually or jointly, a minimum of £25,000/€37,500 or currency equivalent over the medium- to long-term, with the aim of achieving growth, bearing in

mind that growth is not guaranteed

are either a UK resident individual aged between 18 and 90, or a company or trust

want to use the bond as part of your tax planning

want the option of taking regular withdrawals

have no other savings or investments

need access to your capital in the short-term

are not willing and able to accept the risk of potential investment losses

are not comfortable making investment decisions

* subject to our approval.

The Portfolio Bonds might not be right for you if:

The Portfolio Bonds could be right for you if:

Full details of the Portfolio Bonds can be found in the relevant product literature and Policy Terms available from your financial adviser. You should read the relevant Key Information Document and the Key Features Document before making any investment decisions.


The intelligent investment solution

Our Portfolio Bonds are specifically designed to be tax efficient for UK-based investors, allowing them to take maximum advantage of potential offshore tax benefits.

Your wealth has plenty of opportunities to grow too, thanks to the wide range of assets on offer, many of which are not available through onshore alternatives.

Our Portfolio Bonds can help you create the financial future you want. You can also use them for estate planning purposes, ensuring that as much of your wealth as possible is passed on to future generations.

While they should be viewed as medium- to long-term investments (meaning 10 years or more), our Portfolio Bonds are flexible enough to adapt as your life unfolds. You can pay in additional premiums, change assets, take withdrawals – whatever suits your evolving lifestyle.

Our Portfolio Bonds are powered by Wealth Interactive, our innovative online service. That means you can monitor your bond’s progress whenever you want, and even manage parts of it through a secure password protected online account. See page 10 for full details.

Our Portfolio Bonds are PRIIPs for the purposes of the PRIIPs regulations. Details of the PRIIPs regulations are set out in Regulation (EU) No 1286/2014 of the Council of 26 November 2014 on key information documents for packaged retail and insurance-based investment products (PRIIPs).

Premier provider of offshore investment Portfolio Bonds for over 30 yearsQuilter International is a leading cross-border provider of wealth management solutions. Our aim is to help you, together with your financial adviser, manage and grow your investments; not just for your own future, but for your family and the generations to come.

We are one of the few financial service providers to operate in multiple global markets, offering effective financial planning solutions to expatriates and local investors across the world including Africa, Asia, Europe, Latin America, and the Middle East.

We recognise how important it is for you to know that your financial interests are being taken care of, and we take huge pride in the part we play in helping you to achieve this. We understand that each investor is an individual with bespoke needs and different goals - whether that be searching for tax-efficiency, saving for a future event, securing a regular income, or investing for a prosperous retirement.

Quilter International is part of Quilter plc, a leading provider of advice, investments and wealth management both in the UK and selected international markets, managing £118.7 billion of investments on behalf of over 900,000 customers (as at 30 September 2019). The portfolio fund for your bond will include a ‘transaction account’, which is set up as soon as the bond is live. This account is used to simplify buying and selling assets. It’s also used to pay charges that may apply to the bond.

The structure of the bond allows you to consolidate assets within one portfolio fund, saving you and your financial adviser valuable time.

With Quilter International’s Portfolio Bonds, you can:

choose how you want to invest your money, with your financial adviser’s help

take advantage of investment opportunities from leading asset providers

access your capital, including an option to take regular, tax-efficient withdrawals (see page 14)

change assets that link to your portfolio fund if your circumstances change

transfer in most collective investment schemes or unit trusts which you already hold

reduce paperwork by keeping all the assets in a single bond

carry out most of these actions online via Wealth Interactive

appoint an independent fund adviser and benefit from their guidance

agree how you want to pay for the advice provided by your financial adviser or fund adviser.

You can open a Portfolio Bond with a single investment of £25,000/€37,500 (or currency equivalent) or more. You can also add extra lump sums of £2,500/€3,750 (or currency equivalent) or more whenever you want*.* Subject to our acceptance.


Tax planningA Portfolio Bond allows you to postpone paying tax by timing any withdrawals carefully.

This is because, as the bond is a life assurance or capital redemption bond, it is considered a ‘non income producing asset’ for UK tax purposes.

As long as the bond has not been assigned for money or money’s worth, it is not liable for UK capital gains tax, so you have the freedom to buy and sell different assets as often as you want without creating any immediate personal tax liability.

Tax benefitsQuilter International Isle of Man and Quilter International Ireland dac are both based in tax-efficient environments and are not currently liable to income tax, capital gains tax or corporation tax on assets linked to policies they issue, so your investment will be able to grow virtually tax free.

Some of the dividends earned by the assets linked to your bond may be liable for ‘withholding tax’ in their country of origin and therefore only the net value of the dividend will apply to the value of your bond. However, once the dividends form part of the assets linked to your bond they can accumulate tax free.

These tax-efficient environments mean you can make the best use of your own personal tax allowances. Changing the assets linked to your bond will also be tax free in the Isle of Man or Ireland.

Quilter International Ireland dac and VAT exemption on discretionary asset manager chargeIf you request that we appoint a discretionary asset manager (subject to our agreement) to manage the assets held within a European Portfolio Bond you could potentially take advantage of a VAT exemption. The contract is between Quilter International Ireland dac as a legal owner of the assets and the discretionary asset manager therefore Quilter International Ireland dac currently benefits from a VAT exemption so there is no VAT payable on the discretionary asset managers services. So, not only does the European Portfolio Bond have the usual offshore tax advantage of gross roll-up but, thanks to its Dublin location, it is also free of VAT on discretionary asset manager charge.

Tax efficient ways of withdrawing your moneyPartial surrenders and regular withdrawals (including advice fees).

You can withdraw up to 5% of your initial premium each policy year (plus any additional premiums from the year when they are added) without any immediate UK tax charge for at least 20 years. So, for example, you could withdraw 5% each year for 20 years, or 4% each year for 25 years without incurring a tax charge. This is known as the ‘tax deferred withdrawal allowance’.

Please note, if you are paying advice fees from your Portfolio Bond, this will count as part of your annual 5% limit. See page 16 for more details on paying your adviser.

Total surrenders of individual policiesOur Portfolio Bonds are split into a number of policies to give you greater flexibility. You can withdraw money either by a partial surrender across all policies, or by the total surrender of one or more individual policies.

This second option may be more tax efficient in some circumstances, as the amount liable to tax is based on the true investment growth plus any previous partial surrenders or regular withdrawals. So be sure to consult your financial adviser before requesting a withdrawal. If you do not specify how you wish to take your withdrawal we will process your request as a partial surrender. This is in line with the policy’s terms and conditions.

Ways of reducing your tax liabilityIf you are worried about having to pay tax on the proceeds of your bond, talk to your financial adviser to find out how you can reduce your liability. Ask them about ‘top slicing’ or ‘gift assignment’ – they can help you decide which would be best for your individual circumstances.

Tax benefits for UK-resident investors


Please note: These quotations and case studies are fictional and used to purely illustrate possible real-life scenarios.

Case study: Jean “I chose my bond for the tax benefits”‘I invested most of my savings in a Portfolio Bond because I can buy and sell assets tax efficiently within it as often as I want. When I decided to use some of the bond to pay my son’s second-year university fees, my financial adviser suggested assigning two segments of my bond to my son. When he cashes them in he won’t have to pay any income tax as he can use his full personal allowance for that year.’

Case study: Eric“I want to protect my own and my children’s future”‘I’ve placed my bond in a trust to pay for my children’s education if anything happens to me. It’s designed to provide a set amount each year for them, so they can’t simply spend the whole lot straight away. It should last until they’ve both completed a degree course, but I’ve also put in provisions in case they want to stay on and do a further degree – or don’t want to go to university at all.’


For example, if you decide to cash in your bond after ten years but you have lived abroad for seven years during that time, you would only be taxed on 30% of the gains generated by your bond. This can help you avoid higher or additional rate UK income tax on very large taxable gains.

If you’ve made payments into your bond throughout the term, these will be counted as though you made them when you opened your bond. So, in our example, you would benefit from the maximum length of tax relief on the whole of your investment.

If you move abroad, and need to cash in your Portfolio Bond, the tax regulations of your new country of residence will apply.

If you are subject to tax in any country outside of the UK, you should contact your financial adviser or tax specialist in the country concerned to understand whether you will be liable for tax in that country as well, as a result of receiving benefits from this plan.

Living abroadIf you hold the bond whilst living outside the UK for a while, your UK tax liability if you return to the UK before you cash in your bond will be reduced in proportion to the amount of time you’ve spent abroad.


This can ensure your wealth is used as you intended during your lifetime and after you die, and may offer some advantages in the future if you are self-employed or get divorced. A trust can also benefit your family or beneficiaries after your death, by helping to avoid complicated probate issues.

In addition, since 6 April 2017, if you leave your home to direct lineal descendants which includes amongst others your children (adopted, fostered and stepchildren) and grandchildren. The value of your estate before tax is paid, will increase with the addition of the residence nil-rate band. This was £100,000 in the 2017/18 tax year, and will be £125,000 in 2018/19, £150,000 in 2019/20 and £175,000 from the 2020/21 tax year.

For more information, please go to: www.gov.uk/inheritance-tax

Another important benefit is that you can reduce or even eliminate UK inheritance tax when transferring your wealth. Assets which are not held in trust and are above the nil-rate band (the threshold above which inheritance tax applies, currently £325,000*) could be liable to 40% inheritance tax.

Quilter International Isle of Man and Quilter International Ireland dac offer a range of trusts that could be suitable for you if you are investing in a Portfolio Bond. You can also use our professional trust service, from Quilter International Trust Company Limited. This offers extremely good value for money, for Quilter International products.

If you want to find out more about trusts, we have a range of literature available which explains them in more detail. Your financial adviser will be able to give you copies and advise you whether a trust could have advantages for you, and which one might suit your needs.* This is based on our current interpretation of UK

tax for the current tax year. The nil-rate band is frozen until tax year 2020/2021.

Safeguarding your Portfolio Bond investment through trustsYour financial adviser may suggest that you help to safeguard your investment by placing your Portfolio Bond in trust.

If you want to find out more about trusts, we have a range of literature available which explains them in more detail.


Your investment needs will change regularly as your life evolves. That’s why our Portfolio Bonds are designed to be so flexible. You can change the balance of your asset portfolio as your life changes, to reflect a need for more security, greater growth potential or a different ethical slant. And if your life takes you from one country to another, you can take it with you, and continue adding to your investment subject to our acceptance.

There is no legal restriction on how much you can pay into your bond, so you can invest as much as you wish and even move existing funds and assets into it if you already have money in collective investment funds or unit trusts.

A choice of investmentsOur Portfolio Bonds allow you or your financial adviser to build a medium- to long-term portfolio of assets to match your medium- to long-term objectives and your current attitude to risk. You then have the freedom to change assets when appropriate for you, although some assets may have some restrictions, for example dealing cycles.

You can choose from an extensive choice of collective investment funds and assets, including:

external collective investment funds, unit trusts and UK authorised investment trusts

most investment trusts and exchange-traded funds

bank deposits

structured deposits and funds.

These are, however, all subject to our acceptance.

You can invest in as many different assets as you want, provided you keep a minimum of £400/€600 (or other currency equivalent) in each holding. Some asset providers may impose higher minimums for specific assets.

Sharing your wealthYou may decide that you want someone else to benefit from your investment – maybe a child (of 18 years or more) who is starting university, or another dependent. A Portfolio Bond allows you to do this by assigning parts of it (called ‘policies’ or ‘segments’) to another person or party.

By assigning some of your Portfolio Bond, you only keep ownership of, and have access to details for, the policies of your Portfolio Bond that are not assigned. Any future transactions submitted by you, such as dealing, will only apply to the policies you own.

The same will be true for the assignee, who can only request transactions relating to the policies of the Portfolio Bond that they now own. The assignee then has control of these policies and can manage them independently. So, they can choose how and where to invest their bond policies; when they want to make withdrawals and so on. They can even, in turn, decide to assign parts of their bond policies to another person.

In-depth support and serviceAs a Portfolio Bond policyholder, you can take advantage of our experience, excellent customer service and specialist administration team. Your financial adviser can also call on us at any time for technical support, from tax information to administrative issues.

Plus you and your financial adviser can monitor and manage your Portfolio Bond through our innovative online service: Wealth Interactive. See page 12 for more details.

The investment that changes with your life


Plus extra external expertise…You can appoint a fund adviser and/or request we appoint a discretionary asset manager to manage the assets*.

There are two types of fund adviser:

An advisory fund adviser can guide you through the process of choosing assets and then manage your portfolio for you. However, all decisions will ultimately be made by you.

You can also go one step further and allow your fund adviser to make decisions on your behalf in line with pre-agreed boundaries. This role is sometimes known as a ‘discretionary manager’.

* Alternatively, if you request us to appoint one or more authorised custodians for your bond, you may also request we appoint a discretionary asset manager in respect of the assets held by each authorised custodian. We will make a charge for this service to cover our costs in paying the fees for each discretionary asset manager we appoint in relation to your bond.

Using external investment expertise could give you the reassurance that your bond is being pro-actively managed and holds the most appropriate assets for your needs. Your financial adviser will be able to recommend an appropriate fund adviser or discretionary asset manager, or may even be able to offer this service themselves.

…and a very flexible choice of custodiansYou can request us to appoint up to three authorised custodians to hold the assets or alternatively you can request that some of the assets are held with an authorised custodian and some of the assets are held with our default custodian or you can hold all the assets with our default custodian. Please note the minimum investment amount per external custodian is £50,000/€75,000 or currency equivalent.

You can choose a custodian you already have a relationship with (subject to us having acceptable terms with them). For example, you may have a relationship with a financial institution that already holds some assets for you, and that you therefore know and trust and want to consider appointing.

You can also request us to change the custodian at a later date, but if we agree to this request, we do charge for this to cover the costs we incur in moving assets from one custodian to another.

If an authorised custodian has not been appointed, Quilter International will use its own appointed custodian (the default custodian) to fulfil this role.

A selection of currenciesWhen you open your bond, you choose a currency for it, which can be any one of a number of major currencies, please speak to your adviser for the currencies available. However, that does not mean you have to make your payments in that currency, or that you are limited to assets based on that currency.

For example, you could choose US dollars as your policy currency, but make your payments in euros and invest in assets based in sterling. However, you should be aware that making investments in different currencies could lead to losses or gains due to exchange rate fluctuations.

Award-winning performanceAt Quilter International, we pride ourselves on our customer service, support to financial advisers and the quality of our products. Our commitment is rewarded time and again by experts in the investment industry and over the years we have gathered an enviable collection of industry awards. Best International Life Group, Best Overall Product Range and Best Online Proposition are just some of the accolades we have been given. Full details of our awards can be found on our website www.quilterinternational.com


Our Portfolio Bonds are powered by Wealth Interactive, our innovative online wealth management service.

Facts and figures at your fingertipsWealth Interactive provides you with an at-a-glance view of your Portfolio Bond, and a straightforward, clear and transparent way to access your information.

You can sign in to your own secure online service account and review your policy, including your portfolio of assets, whenever you have access to the internet. You’ll be able to check the latest available facts and figures about your investments and keep up to date with any changes made by your financial adviser.

Wealth Interactive is supported by our large, highly experienced customer service team, our investment administration department and our knowledgeable technical team. So, if you need any help with the system, just call us.

Wealth Interactive will let you see everything you need to know about your bond, including:

its current value

how the assets have performed

a library of correspondence you’ve received from us

a history of the transactions you or your financial adviser have placed

access to factsheets for the assets linked to your portfolio bond.

Extra reassuranceWealth Interactive can help you feel more involved with your investment because you can see how it’s performing and react quickly to any changes.

When you discuss your policy with your financial adviser, you’ll already have all the latest facts at hand.

Reducing paperwork and waiting timesWealth Interactive makes your life easier because you can now update your personal details quickly and easily online, as well as approving key transactions electronically, reducing the amount of paper work you need to sign and file.

You can also view any correspondence between you and Quilter International about your policy in your Wealth Interactive account.

Support for your financial adviserWe also share important information with your financial adviser to help them provide you with the best possible service. Wealth Interactive gives your financial adviser easy access to all the data, tools and insight they need to manage your portfolio and maximise your wealth. It also provides support and services to help them and keep it on course to achieve your long-term goals.

Altogether, Wealth Interactive will make investing a much more interesting and engaging process for you.

Wealth Interactive - transforming the way you keep track of your investments


Keeping track of a wide-ranging portfolio can be time consuming and frustrating. However, one of the advantages of our Portfolio Bonds is that you can manage and monitor all the assets within a single place.

So, when you* or your financial adviser want to check your portfolio’s performance you can simply access all the valuations and reports in your Wealth Interactive online service account, instead of logging on to multiple sites.

What’s more, we will co-ordinate all the deals for you. You’ll also enjoy the benefits of consolidated reporting, without the hassle of individual paperwork, dividend receipts and tax returns for each separate fund. This may even save you money, as it involves less work for your accountant and financial adviser.* If you are a Trustee investor, access to some of our

online facilities is restricted.

Simple dealingIt’s easy to move between assets whenever you want. All deals are co-ordinated by Quilter International rather than individual fund managers, so you or your financial adviser just need to state which assets you want to buy or sell via your Wealth Interactive accounts. Assets held with an authorised custodian that you ask us to appoint cannot be accessed through Wealth Interactive. Instead, you must manage all transactions on these assets direct with the custodian’s dealing desk. Please note that there may be dealing charges, one for each sale and one for each purchase. These do not apply until the end of the first calendar quarter that the bond is live, to allow you to set up your portfolio. If you already hold collective investment assets or unit trusts, you can transfer them into your Portfolio Bond account to reduce paperwork even further – as well as potentially lowering your overall portfolio management costs.

The minimum transfer amount is £50,000/ €75,000 (or currency equivalent) and each holding must be £5,000/€7,500 (or currency equivalent). Please note that all assets need to be agreed by Quilter International beforehand, and that the transfer may lead to a UK Capital Gains tax liability, as it is classed as a disposal of the assets.

Benefit from our economies of scaleYou’ll also benefit from Quilter International’s global buying power. Because we make multiple deals on behalf of our investors, we may be able to negotiate higher interest rates on deposits for you, as well as making savings on initial fund charges, so more of your money is invested right from the start.

Negotiating rebatesEach underlying fund that you link your portfolio fund to will make an annual management charge. Our global buying power means we can often negotiate a rebate of a percentage of this charge. For clients based in the UK, we will credit the full rebate we receive to our transaction account. You can then use this to buy new assets or keep it in the transaction account to cover future charges or advice fees.

Neatly packaged to save you time, hassle and money


Our Portfolio Bonds give you flexible access to your capital – subject to a minimum withdrawal amount of £400/€600 (or other currency equivalent), and provided that the amount in your bond can sustain both the withdrawals and the charges involved. Any withdrawals made to pay for advice fees are exempt from this monetary limit. (See page 16.)

You can withdraw up to 5% of your total investment each policy year for at least 20 years without any immediate UK tax liability. This allowance will be reduced by the amount of any partial withdrawals made to pay fees to your financial adviser or fund adviser. If you don’t use this allowance in a specific policy year, it can be carried over to the next year, so you could withdraw 10% tax deferred, and so on.

All withdrawals will be free of policy encashment charges. If the value of your bond falls below the minimum value for maintaining a policy (currently £10,000), we can decide to surrender it unless you agree to make a further premium to top up your investment and we agree to accept the premium.

One-off withdrawals (part surrenders)As long as you leave the minimum amount in your bond (see previous paragraph), you can normally withdraw any amount you want at any stage, subject to a minimum of £400/€600, by making a request to us and providing an investment instruction.

However, please remember that our Portfolio Bonds are designed for medium to long-term investment, so taking money out of your bond in the early years can dramatically reduce its potential.

Regular withdrawalsYou can use your policy to create a regular income stream; either yearly, half-yearly, termly (every 4 months), quarterly, every two months or monthly. These withdrawals will be deducted from the transaction account for your policy where we pay withdrawals to you.

Where you have chosen to appoint one or more authorised custodians, you may also ask us (subject to our agreement) for the authorised custodian to pay the regular withdrawals on Quilter International’s behalf. If you do not request this, or we do not agree to such a request, Quilter International will pay the regular withdrawals to you.

You may also select which authorised custodian we should be receiving money from to pay the regular withdrawals to you.

Where regular withdrawals will be funded from assets held with our default custodian, you must nominate an asset to be sold. The nominated asset may be the transaction account held with us for your policy.

If we cannot sell a nominated asset, or there is insufficient credit in either the transaction account held with us or the authorised custodian’s transaction account (where we have agreed they can pay the regular withdrawals on our behalf) on the regular withdrawal due date, then the regular withdrawal will not be paid.

Regular withdrawals will be reflected by selling units in the portfolio fund linked to the policy. This is a partial surrender across all of the policies within the bond, in equal amounts. This will be reflected in your quarterly valuations.

Please refer to your policy terms for further information on taking money out of your policy. You financial adviser will be able to provide you with a copy of your policy terms.

You should ask your financial adviser about the tax and financial planning implications before you commit to withdrawals.

Easy access to your capital


Quilter International Isle of Man LimitedQuilter International Isle of Man investors will benefit from the Isle of Man’s policyholder protection scheme, which covers policies issued by an authorised life assurance company based on the island. So in the unlikely event that Quilter International becomes insolvent, you will be able to claim compensation of up to 90% of the policy value, less any contractual charges.

Quilter International Ireland dacThe EU does not currently have any legislation governing investor compensation schemes for EU insurers. However, there are other protections in place as highlighted in the ‘QII Investor Protection’ document available at www.quilterinternational.com/Investor_protection

You may take one-off and regular withdrawals from your bond and depending on the assets in which you have invested, there may be early redemption charges. Please refer to the charges section of the Policy Terms for further details of the charges that may apply. Your financial adviser will confirm the actual charges applicable to your policy should you apply for a bond. Taking money out of your bond (including to pay for fees), especially in the early years, will dramatically reduce the potential for the assets to perform – so we strongly believe you should stay invested for at least five years. This will also help to mitigate the effect of the charges made when you set up your bond.

A safe home for your investments

The International Portfolio Bond, provided by Quilter International Isle of Man Limited, based in the Isle of Man. This is provided as either a life assurance or a capital redemption version.

The European Portfolio Bond, provided by Quilter International Ireland dac, based in Dublin. This is provided as either a life assurance or a capital redemption version.

The life assurance version ends when the last life assured dies (there can be more than one life assured on the policy). Quilter International then pays a death benefit of 101% of the surrender value of the bond. This version is sometimes referred to as ‘whole of life’.

Redemption bonds have no life assurance cover; they have a maturity value instead. So, instead of ending on the death of the policyholder, a redemption bond will continue for 99 years from commencement of the policy, unless it is totally surrendered before then.

If a policy is still in force after 99 years, we will pay the greater of:

International Portfolio Bond– Redemption a guaranteed maturity value of twice the initial premium paid (less adjustments for withdrawals) or the encashment value, whichever is highest.

European Portfolio Bond– Redemption a guaranteed maturity value of 20% of the initial premium paid (less adjustments for withdrawals) or the encashment value, whichever is highest..

Your financial adviser will recommend which version is right for you. The Isle of Man and Ireland are both established international finance centres with stable and independent legal, political and regulatory frameworks. So whichever bond you use, your investment is held in a secure offshore environment.

We offer four versions of our Portfolio Bond:


Paying for your financial adviceAny fee your adviser charges for advice must be agreed with you in advance, to make sure you know exactly what you’re going to pay and are happy that it’s fair and reasonable based on the service and advice provided. This fee is agreed between you and your adviser.

Advice feesYou can pay your adviser a fee in a number of ways. You can pay it directly to your adviser, for example by cheque, keeping it completely separate from your policy. Alternatively, you can ask Quilter International to pay a withdrawal from the policy that’s equivalent to the fee, which will then be paid to your adviser. We will also confirm to you any fees for which you ask us to arrange payment to either your financial adviser or fund adviser.

If you decide on this route, there are a number of options which can be used on their own or in combination with each other, see the next two columns for the possible options available.

Financial adviser advice feesInitial fee from your payment before it is invested as a premium in the policy (not available for cash or asset transfers): you can ask Quilter International to pay a fixed monetary amount or a percentage of the initial investment we receive from you to pay to your financial adviser.

Initial fee taken as a withdrawal from your policy once we have accepted your application for the policy: you can ask Quilter International to make a one off withdrawal from your policy. This can be a fixed monetary amount or a percentage of the premium invested in the policy.

These initial fees can also apply to advice for top ups where the fee can be paid either before or after the top up is accepted by us. If you ask us to pay a fee after the policy or top up is accepted, we will treat this as a withdrawal.

Ongoing service fee: you can also ask Quilter International to make a regular withdrawal of a fixed monetary amount or an annual percentage of the value of the portfolio fund linked to your policy to pay a regular fee to your financial adviser for ongoing advice. This regular withdrawal for ongoing fees is payable quarterly in arrears.

Ad hoc fee: you can also ask Quilter International to pay a one off withdrawal to your financial adviser to pay an ad hoc fee. This must be a monetary amount.

Fund adviser feesIf you appoint a fund adviser (which could be your financial adviser or a third party), there are a number of fee payment options which can be used on their own or in combination with each other:

Fund adviser fee: you can ask Quilter International to make a regular withdrawal for ongoing fees for a fixed monetary amount or an annual percentage of the value of the assets held in the portfolio fund linked to your policy which relate to a particular custodian to pay a regular fee to the fund adviser you have appointed to manage those assets. You can request a fund adviser fee for each fund adviser you have appointed in respect of the assets they are appointed to manage for you. This regular withdrawal for ongoing fees is payable quarterly in arrears.

Ad hoc fee: you can ask Quilter International to pay a one off withdrawal to your fund adviser to pay an ad hoc fee. This must be a monetary amount.

Dealing advice fee (only available where some or all of your assets are held with Quilter International’s default custodian): you can ask Quilter International to pay a dealing advice fee that will be a fixed percentage of the value of the assets held with our default custodian on the purchase date of a qualifying transaction which are payable quarterly in arrears to your fund adviser for ongoing investment services provided.

Please note that advice fees and fund adviser fees – with the exception of the initial fee before you invest – are treated as withdrawals from your bond and count against your tax deferred withdrawal allowance. For further information please see page 6.

Fees and charges

There are three possible types of deductions from your bond, other than withdrawals we pay to you, that you should be aware of:

withdrawals to pay for advice fees or fund adviser fees

Quilter International’s portfolio fund charges

third-party and other charges.

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Portfolio fund chargesThere are a number of charges that we may deduct from your policy, for example to cover administration and management of your policy and the portfolio fund, and any asset dealing charges. Any funds that you invest in will also charge an annual management charge. The cost of this varies from fund to fund.

You can find a full description of all the charges in the Policy Terms.

Third party and other chargesYou may incur some additional charges due to the nature of this investment, such as bank charges, and telegraphic transfer charges.

Your financial adviser will provide details and explanations of all the charges.

Quilter International’s Portfolio Fund charges will be listed for you in a charges schedule and your illustration.

We will also confirm to you any fees for which you ask us to arrange payment to either your financial adviser or fund adviser. You can amend ongoing service fees and fund adviser fees at any time.

Please note that advice fees and fund adviser fees – with the exception of the initial fee before you invest – are treated as a withdrawal from your bond and count against your tax deferred withdrawal allowance.

Helping you manage the payment of chargesWe will deduct portfolio fund charges from your transaction account, which is set up within the portfolio fund for your bond as soon as it starts.

You should keep enough cash – a general guide is approximately 5% of your premium(s) - in your transaction account to cover any charges. Please refer to your Policy Terms for further information on selling assets to pay for portfolio fund charges.

Alternatively, if you have selected an authorised custodian to hold the assets linked to your bond, you need to ensure that there is enough cash in the authorised custodian’s general transaction account to cover any charges.

We strongly recommend you and your financial adviser manage your bond to ensure there is always enough cash in liquid assets to meet charges and any regular withdrawals.

Talk to your financial adviser about our Portfolio BondsYour financial adviser looks at your financial arrangements holistically and can help make sure the bond fits in with your overall objectives and plans. They will be able to answer your questions, recommend specific assets and asset providers, and provide you with further support material, including the full Policy Terms and Key Information Document.

Your financial adviser looks at your financial arrangements holistically and can help make sure the bond fits in with your overall objectives and plans.


This document was last updated in February 2020. Please confirm with your financial adviser that this is the most up-to-date document for your product or servicing needs.

The value of your bond can fall as well as rise over time and there is no guarantee that your capital will be returned to you.You should view your investment in the Bond as a medium- to-long-term commitment; if you cash in your Bond in the early years, the amount you receive may be less than the premiums you’ve paid.

You and your financial adviser should satisfy yourselves that any particular asset is suitable based on your needs, objectives and attitude to risk. You should also familiarise yourself with any particular risks associated with the assets in your Portfolio Bond. There may be currency risks if assets are denominated in another currency, or liquidity and valuation risks for property funds, for example. The value of the assets linked to the Bond determines the value of the policy and can fall as well as rise.

This brochure should be read in conjunction with the Policy Terms and Key Information Document and where appropriate any additional disclosure information.

Business unit name goes here 19

www.quilterinternational.com Calls may be monitored and recorded for training purposes and to avoid misunderstandings.

Quilter International Isle of Man Limited is registered in the Isle of Man under number 24916C.

Registered and Head Office: King Edward Bay House, King Edward Road, Onchan, Isle of Man, IM99 1NU, British Isles.

Tel: +44 (0)1624 655 555. Fax: +44 (0)1624 611 715. Licensed by the Isle of Man Financial Services Authority.

All promotional material is approved by Old Mutual Wealth Limited. Old Mutual Wealth Limited is authorised and regulated by the Financial Conduct Authority. Financial Services Register number 165359

The rules made under the Financial Services and Markets Act 2000 (as amended) for the protection of retail clients in the UK do not apply.

Quilter International is registered in the Isle of Man as a business name of Quilter International Isle of Man Limited.

Quilter International Ireland dac is regulated by the Central Bank of Ireland. Registered No 309649.

Administration Centre for correspondence: King Edward Bay House, King Edward Road, Onchan, Isle of Man, IM99 1NU. Tel: +353(0)1 479 3900. Fax: +353(0)1 475 1020.

Registered and Head Office Address: Hambleden House, 19-26 Lower Pembroke Street, Dublin 2, D02 WV96, Ireland. VAT number for Quilter International Ireland dac is 6329649S.

Quilter International is registered in Ireland as a business name of Quilter International Ireland dac.

8801/INT19-1420/February 2020

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