Offshore bonds being recommended by advisers

There has been a significant increase in the number of financial advisers recommending offshore bonds to private wealth investors.

Such is the main finding of a new report by Legal & General Investments (Ireland), which also found that 50 per cent of advisers are recommending offshore bonds to their clients.

This is a 70 per cent increase on the figure taken in February 2009, suggesting offshore bonds are increasingly being seen as lucrative for private wealth investors.

Six out of ten of those polled stated that offshore bonds are gaining popularity due to the growing awareness of their potential uses.

David Fagan, chief executive officer of the firm, said: "We have seen a growing demand for offshore bonds over the last year boosted by a number of key drivers."

These include economic uncertainty and ongoing debates about increases in personal taxation meaning people are looking for ways to secure their assets in a more tax-efficient manner.

Offshore bonds occur when companies can offer their customers growth on their funds that is largely free from tax. Offshore centres are typically the Channel Islands, Isle of Man and Dublin.
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