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Product category: Consumer issues
News Release from: Defaqto | Subject: Offshore Bond market
Edited by the Insidemoneytalk Editorial Team on 30 June 2008

Defaqto Offshore Bonds Report 2008

Defaqto has today published its 3rd annual review of the Offshore Bond market.

'Calmer Waters' takes a look at a difficult year for the industry Uncertain stock markets following the credit crunch crisis, adapting to new trust legislation and defending the continued validity of the product following the 2007 Pre-Budget report have been some of the main obstacles that the offshore bond industry has had to contend with over the last year or so

2007 saw another year of growth in new business, but the first quarter of 2008 saw a significant drop as the offshore bond providers focused much of their energies on lobbying government to either amend their proposals for changes to the Capital Gains Tax Regime or make some concessions to the unit linked bond market.

Although this lobbying was unsuccessful, at least the uncertainty was removed.

The providers of both offshore and onshore bonds have been working hard to remind advisers of the benefits of this form of investment and will now be focusing on new business acquisition to maintain the momentum in the market built up over the last five years or so.

This report includes findings from a study of over 500 IFAs to determine their opinion on a number of service related functions, in terms of their importance.

The report reveals the huge significance of many of the administrative functions in an adviser's selection process, and more significantly their importance in relation to each other.

Armed with this information, providers will be able to meet the needs of the adviser and form a focused strategy for new business acquisition.

Given the unusual amount of uncertainty in the market, Defaqto have supplemented this study with a further survey of 123 advisers.

This was undertaken in June this year.

Having had time to digest the changes, and listen to the arguments for and against investing in offshore bonds this survey gives a snapshot of current adviser opinion, which will also be of interest to players or potential players in the market.

Fraser Donaldson, Principal Consultant - Investments, and co-author of the report said 'to a large degree, the arguments have been won as to the continued suitability of offshore bonds as a weapon in the advisers' financial planning armoury.

However, having built momentum in this market for the last five years there will be a period of re-establishing confidence in the product, reminding advisers of its benefits.

This report and its findings are very timely, as more than ever the product providers need to be in tune with the needs, habits and opinions of the adviser community in order to rebuild a successful strategy for continued growth in new business.'.

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