For UK financial advisers only. Not approved for use by customers. Visit the Prudential customer website For UK financial advisers only. Not approved for use by customers. Visit the Prudential customer website
Prudential Onshore Portfolio Bond

Prudential Onshore Portfolio Bond

The Prudential Onshore Portfolio Bond combines the advantages of a wide choice of assets from a platform with the taxation and trust benefits of an onshore bond.

  • Comprehensive investment choice

  • Inheritance Tax planning options

  • Tax benefits

  • Trust planning

  • Investment flexibility of a platform

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Product details

Key documents

If you invest in this product you should read our Key Information Document, relevant ‘Investment Option Document(s)’ or Fund Managers own Key Investor Information Document(s) as appropriate.  Please note that if the fund manager is not Prudential, you will need to source these documents from the fund manager directly. These include important information which may help you make up your mind.

Key Information Document (KID)

MiFID II disclosure

As part of the Markets in Financial Instruments II Directive (MiFID II) we have provided disclosure documents related to this products.

Features and benefits

  • Diversity and choice: A choice of investment options, with a range of asset classes.
  • Inheritance Tax planning options: A wide range of trust options available for use with the Prudential Onshore Bond.
  • Tax-efficient regular payments: Fixed regular payments without any immediate tax liability.
  • No tax liability on switching funds: Straightforward switching of funds which will not create a tax liability.
  • Easier to administer trust planning: Bonds can be transferred to trustees without triggering income tax charges.
  • Ease of use: Integration with your client's chosen platform allowing them to manage their bond alongside other platform assets.

The impact of taxation (and any tax reliefs) depends on your client’s individual circumstances.

Please remember that the value of investments can go down as well as up, your client may not get back what they have paid in.

About the Prudential Onshore Portfolio Bond

The Prudence Onshore Portfolio Bond combines the advantage of a wide choice of assets from your client's chosen platform with the taxation and trust benefits of an onshore bond.

With access to a wide range of investment choices, the Bond aims to increase the value of your client's investment over the medium to long-term (at least 5-10 years). 

It’s a single premium, whole of life insurance product, allowing your client to start their Bond with a single payment of £15,000. The minimum top-up payment is £2,500. Both limits are before the deduction of any Set-up Adviser Charge, if applicable. 

The Bond has no investment term and no exit charge if your clients decide to cash it in.

Download the Key Features Document (PDF) for more information.

The Cash Account

This is where any cash balances are held in the Bond. The cash account is used to buy assets for the Bond, receive cash income from assets, meet Bond charges, any regular or one-off withdrawals and Adviser Charges.

For more information on the Cash Account see our fast facts document (PDF).

Eligibility

  • Any owner must be at least 18 years of age and UK resident.

  • The maximum number of owners is 10.

  • The maximum age for ownership for life assured business is under 90.

  • Up to 10 lives assured can be covered. The Bond is available on a single life, joint life first death or last survivor basis.  

  • The maximum age at entry for single and joint life cases is under age 90. On a joint life last death basis at least one life must be under age 90.

  • Insurable interest must exist between the owner(s) and the lives assured.

Contributions

  • Minimum initial investment: £15,000 (before the deduction of any set-up adviser charges)

  • Minimum top-up investment: £2,500

No maximum applies although premiums in excess of £10 million will require additional due diligence.

Withdrawals

Clients can:

  • cash in the Bond at any time

  • take regular withdrawals every month, two months, three months, four months, six months or annually

  • take a one-off withdrawal as a specific amount

See the Key Features Document (PDF) for more information.

Trusts

The Prudential Onshore Portfolio Bond offers a choice  of trust, your client can select which one better suits their circumstances. The Bond can also facilitate investment by existing trusts.

Choice of trust:

See the Prudential Trust and Application Form Tool for more information.

Investment information

Asset choice

All assets are held on the chosen platform.

The premium will initially be invested in the Cash Account in the Bond which the Adviser, client or Discretionary Fund Manager can reallocate to purchase the chosen Assets.    

There is a wide range of fund and asset choice available, which your client can manage on their chosen platform. Typically, these include assets such as:

  • Unit Trusts

  • OEICs

  • SICAVs (Societies d’Investissement a Capital Variable)*

  • UCITS (Undertakings in Collective Investments in Transferable Securities)**

  • ETFs/ETCs  

* SICAVs are European Collective Investments similar to OEICs.

**UCITs is a generic term for funds that meet certain regulatory requirements and can be sold in any European Union country.

Discretionary Fund Managers

Your clients platform may offer access to a managed portfolio of assets.

These portfolios may be managed by a Discretionary Fund Manager (DFM), who on an ongoing basis, choose the investments within the managed portfolio.

For further details on how your client's Bond assets are managed download Prudential Onshore Portfolio Bond - fast facts (PDF).

Fund switching

Switching funds is a straightforward process:

  • There are no restrictions in the number of assets that can be held at any time*.

  • There are no restrictions on the frequency of trading*.

* This will depend on the terms agreed between the platform and the fund manager. In addition the platform may set a minimum holding in a particular fund.

Asset choice

All assets are held on the chosen platform.

The premium will initially be invested in the Cash Account in the Bond which the Adviser, client or Discretionary Fund Manager can reallocate to purchase the chosen Assets.    

There is a wide range of fund and asset choice available, which your client can manage on their chosen platform. Typically, these include assets such as:

  • Unit Trusts

  • OEICs

  • SICAVs (Societies d’Investissement a Capital Variable)*

  • UCITS (Undertakings in Collective Investments in Transferable Securities)**

  • ETFs/ETCs  

* SICAVs are European Collective Investments similar to OEICs.

**UCITs is a generic term for funds that meet certain regulatory requirements and can be sold in any European Union country.

Charges

The main charges will be:

  • Bond Charges
  • Asset Charges
  • Adviser Charges

Bond Charges

The following charges can be taken from the bond:

  • Ongoing Product Charge
  • Administration and Operation Charge

  • Discretionary Fund Manager Charge

  • Expenses (dealing costs, taxes, duties, levies)

Bond charges are reviewed annually. From time to time, we may introduce new charges as a result of a levy or a charge imposed on the company. For more information on charges,  download Prudential Onshore Portfolio Bond - fast facts (PDF).

Asset Charges

  • Ongoing Charges Figure
  • Initial Charge

Asset Charges are reviewed annually. For more information on charges, view our Prudential Onshore Portfolio Bond - fast facts (PDF) document.

Adviser Charges

There are three main types of Adviser Charging.

  • Set-up Adviser Charge: deducted from the initial payment before it is invested in the plan.

  • Ongoing Adviser Charge: taken at plan level, will apply across all in-force segments.     

  • Ad hoc Adviser Charge: after the initial plan is set-up, the client can request an Ad hoc payment to be made to the Adviser. Will apply across all in-force segments. 

Ongoing and Ad-hoc Adviser Charges are treated as withdrawals from the Bond and will count against the 5% tax-deferred allowance. 

The Prudential Onshore Portfolio Bond facilitates a range of Ongoing and Ad hoc Adviser Charging options available through the platform. Prudential International Assurance plc, UK Branch can facilitate Set-up Adviser Charges.

For more information on Adviser Charging, download the Prudential Onshore Portfolio Bond - fast facts (PDF) document.
 

Additional information

A summary of tax liabilities

Investment bonds offered by Prudential International are normally affected as single assurance life policies and have different tax treatments from other types of investments.

Our Adviser Guide (PDF) to tax on your clients investment bond provides more detail.

Life cover

The plan comes with a small amount of life cover and will pay out a lump sum when the person, or people, covered dies. The Bond can be written on a single life, joint life first death or a joint life last death basis.

© Prudential 2018