International bonds are becoming increasingly favoured by advisers, according to research.
Canada Life found 71 per cent of advisers said they expect to be using them more in five years’ time than they are currently.
Out of the firms already recommending international bonds, 66 per cent reported doing so more often than they were five years ago.
Additionally, 69 per cent of advisers expected an increase in the volume of trusts used alongside an international bond.
Sean Christian, managing director, wealth division at Canada Life UK, said: “The international bond market is gaining real momentum as advisers look to solutions that can flex with changing client needs.
“International bonds are a regulated and widely recognised solution that comprise a wide range of investments and valuable estate planning opportunities.
“A shifting tax landscape, with changes to capital gains tax allowances and inheritance tax, means advisers are seeing clear demand for this type of solution.”
Addressing the reasons why they choose international bonds for clients over alternatives, 80 per cent said for ‘inheritance tax planning’ and 54 per cent said for ‘gifting in the most efficient way’.
In terms of which providers to use, 69 per cent said servicing was a factor as well as the reputation of a provider (63 per cent).
alina.khan@ft.com
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