Segregated Portfolio Service

Offering a wider choice of investment for greater diversification

 

The Segregated Portfolio Service (SPS) provides your clients with access to a wide range of investment opportunities through Canada Life International Assurance (Ireland)’s open architecture bonds.

Under current legislation, international bonds taken out by UK residents, including our Premiere Europe Account, Premiere Europe Discounted Trust Account and International Portfolio Bond (only available to existing policyholders), are subject to HMRC rules on permissible assets. These include investments such as authorised unit trusts, investment trusts, collective investment schemes and linked life funds.

Under the SPS, a discretionary investment manager is appointed by the investor and the manager is able to step outside the usual permissible assets rules, providing they can manage the portfolio without any influence from the policyholder or their professional adviser. This allows them to use a wider range of assets such as direct equities, corporate bonds and so on, alongside the usual range of permissible assets, while still meeting HMRC regulations for international bonds.

 

Key Benefits 

  • The discretionary manager can use a wider choice of investments, including direct investment into equities, giving a greater scope for diversification.
  • Potential to reduce expenses by investing directly rather than through funds.
  • Opportunity to benefit from the discretionary investment manager’s stock selection expertise.
  • Opportunity to create true income portfolios, with direct investment into gilts and other fixed interest assets.
  • The appointed discretionary investment manager can also use fixed interest assets in a liability-driven strategy that matches maturities to future requirements.

 

Who is it Suitable For?

This service is only available through a discretionary investment manager that has a suitable agreement in place with Canada Life International Assurance (Ireland) DAC.

Your client can only select this service if they are willing to give up all decisions regarding the underlying investment to the discretionary investment manager. If they are not happy to do this, the SPS is not appropriate for them.

 

View Related Documents

View our list of Segregated Portfolio Service partners

View our SPS article: Unleashing the full potential of investment bonds using SPS

View our SPS Webinar Recording

 

This website is for UK professional advisers only and is not approved for use by private customers.

Canada Life Limited is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority.

Canada Life International Limited and CLI Institutional Limited are Isle of Man registered companies authorised and regulated by the Isle of Man Financial Services Authority.

Canada Life International Assurance (Ireland) DAC is authorised and regulated by the Central Bank of Ireland.