Generali Personal Portfolio Bond

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Generali Personal Portfolio BondGenerali Personal Portfolio Bond Review :-
Generali Worldwide is a wholly-owned subsidiary of the Generali Group. Founded on the strength of this international presence and wide-ranging expertise, Generali Worldwide specialises in offering life-insurance-based wealth management and employee benefit solutions to a global audience, including multi-national organisations, international expatriates and local resident populations in licensed territories. This review is focused on the Generali Personal Portfolio Bond.
The company’s head office is based in Guernsey, a premier international financial centre, and is a Registered Insurer under the Insurance Business (Bailiwick of Guernsey) law, 2002 (as amended). It is also an authorised insurer in the Bahamas, British Virgin Islands, Cayman Islands, Hong Kong, Jersey and Singapore.

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Generali Personal Portfolio Bond Summary

Generali Personal Portfolio Bond

Do not mistake that the Generali Personal Portfolio Bond is provided by Generali from Switzerland. It is not and we have had clients come to us and say that the marketing hype they were provided was based on the strength of the Swiss brand.

As these types of plans go, the Generali Personal Portfolio Bond is similar to many in the offshore market place. In the 1990’s this may have been a top option but in 2016 it lacks the transparency of the latest plans available from territories such as the UK, the USA and parts of Europe; ultimately, the Generali Personal Portfolio Bond is an expensive option when compared with a pure platform plan. The standard Generali Vision funds have high ongoing fees when directly compared to platform or direct offerings from fund houses via the UK or the USA.

The Generali Personal Portfolio Bond can have high charges on early access.


For


  • Widely available and sold, with strong company rating
  • Offers some tax protection in certain jurisdictions
  • With commission rebated it could be considered for a minimum of 5 years investment where no withdrawals required
  • Some options of pay structure offer a competitive structure after the bond has been retained 5 years
  • It offers time apportionment for those returning to UK

Against


  • No flexibility of full withdrawal or full access in the early years without penalty
  • Many countries do not recognise any tax concessions
  • With commission this is an extremely expensive option, and even part withdrawals can increase real costs
  • Does not provide full access to lowest cost funds and passive trackers
  • WARNING: Costs are largely dictated by the charging structure chosen by an adviser. Some advisers recommend a 1% regime and then, after the client has signed, change the charging structure to a more expensive regime to earn more commission



Policy Currency: The Generali Personal Portfolio Bond may be denominated in US dollar, GB pound, Hong Kong dollar, Japanese yen or Euro. Benefits will be paid in the plan currency.
Why choose the Generali Personal Portfolio Bond: 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.

Expat Money Expert Verdict on Funds 

Generali Personal Portfolio Bond promotion: What does Generali write about their own Generali Vision Plan? Whatever you plan for your future, you will need financial resources available at the right time to be able to achieve the things you want. Vision is a regular premium investment solution that is designed to meet your changing needs throughout your life.So, if you are interested in building a brighter future for you and your family, look no further than than the Generali Vision Plan.

Professional Portfolio 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.

Eligibility: Generali Personal Portfolio Bond is a whole of life, life assurance contract issued by Generali International. It is available to most international investors outside of main regulated territories such as the UK, the U.S.A. and Australia. Generali also offer a range of individual unit-linked regular and single premium-based savings, retirement and investment plans and an open-architecture portfolio bond along with Group retirement and savings products, Group Life and Disability and Healthcare products.
Minimums: The minimum single premium is USD75,000 with further contributions in excess of USD7,500. However your will pay any initial fund charges on all contributions.
Charges: This will depend on the type of Generali Personal Portfolio Bond you take out from Generali as they offer different charging structures largely linked to the amount of commission or earnings being taken by the third party salesman or adviser.

Establishment charge:
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. Establishment charges will always be based on the Investment Amounts originally received irrespective of any partial surrenders or regular withdrawal payments previously taken. 0.5% of each Investment Amount on each of the first 4 Charge Dates, following payment of each Investment Amount (total of 2% per annum for one year).

Administration charge:
The Generali Professional Portfolio bond will incur an administration charge an administration charge is a percentage of the higher of (1) each Investment Amount; and (2) its associated Investment Value, deducted on each of the first 20 Charge Dates, following payment of each invested amount. there will be 0.375% on each of the first 20 Charge Dates, following payment of each Investment Amount (1.5% per annum for 5 years).

Other Charges:
There are also fund management charges, usually 1% to 2.5% pa each year- depending on the funds chosen.
The is a dealing charge made for each sale and purchase that is made within the Generali Professional Portfolio bond of £35.00 so if you sell one fund and buy another then the charge deducted from your savings is £70.00 per fund. Generali International Limited waive this dealing charge in respect of the initial purchase of Investment Instruments or re-registration of existing Investment Instruments in respect of the initial Investment Amount provided these are completed within 3 months of the Plan Commencement Date.

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

Pensions (QROPS and SIPP) – If the Generali Personal Portfolio Bond is used within a QROPS or SIPP then there will be additional set up and ongoing fees for the life of the policy. EME does not recommend this product for QROPS or SIPP investing.

Are charges explicit: Yes, as long as you are provided the literature of course. Any decent adviser will be able to explain the full charges of this product.

Documents

Professional Portfolio Bond Brochure

Professional Portfolio Bond Details

Professional Portfolio Bond Details

Expat Money Expert Verdict on Charges – commission taken:

Expat Money Expert Verdict on Charges – no commission taken:

Surrender of the Generali Personal Portfolio Bond:
Early Discontinuance Charge – 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. 8% of the higher of (1) each Investment Amount; and (2) its associated Investment Value prior to the first Charge Date, following payment of the Investment Amount. This early discontinuance charge reduces by 0.4% on each Charge Date to 0% after the 20th Plan Charge Date following payment of the Investment.

Expat Money Expert Verdict on Accessibility 



Expat Money Expert Assessment of the Generali Personal Portfolio Bond

A predominantly commission-based advisers product, which is a shame, as some charge variants could be utilised well.

Yes, we have written this before, but it applys to this product as well. As these types of plans go, the Generali Personal Portfolio Bond is similar to many in the offshore market place. In the 1990s this may have been a top option but in 2016 it lacks the transparency of the latest plans available from territories such as the UK, the USA and parts of Europe.

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 which are often not explained. The General Personal Portfolio Bond is an expensive option compared with a pure platform custodian plan and supposed tax benefits can be outweighed by charges. It is vital that a commission rebate is taken to offset high ongoing charges. It does not offer a full range of discounted funds, direct equities or trackers to invest in. We do not recommend it within any form of pension planning.

NOTE: The Generali Personal Portfolio Bond provides the option of lump sum commission to its distributors ( in the industry this is called indemnified or up-front commission) and it has a successful network of distributing agents throughout the world excluding the main regulated territories. Not all distributing agents have regulation or financial qualifications and may not be aware of the other saving plan options available.

There is also an option for the adviser not to charge the client commission, but instead charge a fee. If this option were chosen, it may be of considerable benefit to the performance of the overall investment, as the charges often have a lower impact on the growth of the portfolio. Ask your adviser for further details, as it is not always offered.

Pensions (QROPS and SIPP) – If the Generali Personal Portfolio Bond is used within a QROPS or SIPP then there will be additional set up and ongoing fees for the life of the policy. EME does not recommend this product for QROPS or SIPP investing.

WARNING: Costs and information is correct as of July 2016. Please refer to a brochure from the company for current up to date information and any changes on costs or information. You should not buy based purely on information contained within this article and EME do not accept liability for purchases. If you have any doubts then please speak with your financial adviser or a representative of the company for further advice.

If the provider improves or amends its terms then EME would like to hear from them to amend the review page accordingly, and providers are encouraged to comment on errors or omissions to ensure that readers have the latest and correct information.



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  • Charges criteria

    Charges are assessed inclusive of fund fees, capital units, bid/offer spread criteria and third party management fees which are often ignored but are, in effect, compulsory additional costs that essentially must be considered by clients.


    Star ratings

    The star ratings apply at inception of the products and in at least the first 2 -8 years. Some products reduce charges or become more accessible with time held, but the length varies for each product; from our reviews it is typically overall between 5-10 years.

    These ratings are awarded based on information obtained from the companies at a certain date. It is worth considering obtaining the latest updated information yourself before making a decision.


    Star ratings

    ChargesOverall charges greater than 5% per annum.
    FundsLimited selected range of collectives or mirror funds with upfront additional charges (Bid/Offer spread) or initial “capital” units.
    AccessibilityTo avoid access penalties, only accessible after establishment period of 8 years or longer.
    Overall AssessmentA commission-based adviser’s product. Not recommended under any circumstances.

    ChargesOverall charges greater than 4% per annum.
    FundsIn-house range of collectives or mirror funds with upfront additional charges (Bid/Offer spread).
    AccessibilityPenalties resulting in loss of fund value may exist for 5 years – 8 years.
    Overall AssessmentA predominantly commission-based adviser’s product with limited use or appeal.

    ChargesOverall charges between 2.5% and 4% per annum.
    FundsIn-house or limited range of collectives or mirror funds with no Bid/Offer spread.
    AccessibilityTo avoid access penalties, only typically accessible after establishment period of 12-24 months or longer, but with no penalties thereafter.
    Overall AssessmentFor those seeking lock-in target dates (perhaps with guarantees) over 5 years.

    ChargesOverall charges less than 2.5% per annum.
    FundsFull range of collectives with no Bid/Offer spread and rebates on charges reducing annual costs.
    AccessibilityImmediate within 60 days without any penalties on any item.
    Overall AssessmentRecommended for some situations and some people due to lower charges and flexibility.

    ChargesOverall charges less than 1.5% per annum.
    FundsIncludes ETPs (passive) and Individualised accessible collectives with no Bid/Offer spread and clean share classes for lowest annual costs.
    AccessibilityImmediate within 30 days without any penalties on any item.
    Overall AssessmentRecommended for most situations and most people, with full transparency and low charges.