Generali Portfolio Bond Review

What is their Professional Portfolio Bond?

The Professional Portfolio Bond, from Generali Worldwide, is a single premium, open-architecture, whole of life, life assurance product providing wealth management and estate planning options for tax-efficient investing.

It is available in a wide range of countries around the world and in US Dollar, GB Pound, Hong Kong Dollar, Japanese Yen or Euro.

The Generali Professional Portfolio Bond provides both flexibility and control to help you manage your wealth in a tax-efficient environment. Its versatility means that it is equally effective whether your investment strategy is geared for growth, capital preservation or to provide a regular income.

The Professional Portfolio Bond offers you exceptional investment flexibility, as it can hold investments in shares and a wide range of investment vehicles from around the world. You can transfer many existing investments into the portfolio and complement this by adding from a wide range of funds.

When considering a General Personal Portfolio Bond then ensure you fully understand the local taxation position and weigh any benefits against its lack of flexibility, access and charges.

What are the investment options?

Professional Portfolio offers two separate investment options. The Pooled Portfolio option enables you to build an investment portfolio from any recognised unit trust or mutual fund. Leading Fund Houses offer a wide choice of investment funds. You choose from over 100 risk-rated funds covering all the major world markets and investment classes. The funds section contains performance statistics which are updated monthly, fund prices which are updated daily and Fund Fact Sheets on each fund.

Alternatively, the Personal Portfolio option extends the investment choice across a range of internationally quoted securities, including internal funds, mutual funds, open-ended investment company schemes and cash. The product also allows the Policy Owner to appoint an independent Portfolio Manager to act as an investment adviser to the portfolio.

What is the minimum amount I can Invest?

The minimum single premium is USD75,000 with further contributions in excess of USD7,500.

What are the associated charges for investment?

The Generali Personal Portfolio Bond facilitates a range of charging structures.

The establishment charge is a percentage of each investment amount paid. It is deducted in arrears on each of the first 4 charge dates following payment of each investment amount and levied at 0.5% therefore a total of 2% per annum for one year.

An administration charge is also levied and is a percentage of the higher of

(1) Each Investment Amount

(2) Its associated Investment Value

Deducted on each of the first 20 Charge Dates, following payment of each invested amount. This amounts to 0.375% on each of the first 20 Charge Dates, following payment of each Investment Amount (1.5% per annum for 5 years).

Service Charge is GBP 500 (or currency equivalent) per annum.

Fund management charges are usually between 1% to 2.5% pa each year- depending on the funds chosen.

Additionally, there may be an adviser charge to manage the portfolio, this typically can be between 1 and 1.5% per annum depending on the chosen advisers charging structure and service provided.

What if I need to access my money?

If the Plan is fully surrendered, early discontinuance charges may be deducted from the Investment Value. The early discontinuance charge only applies on full surrender and only in relation to Investment Amounts for which less than 20 Charge Dates have passed since payment.

Partial surrenders are free of surrender charges and penalties. However, establishment charges and administration charges will continue to apply, where applicable, based on the Investment Amounts originally received irrespective of any partial surrenders or regular withdrawal payments previously taken.