The European Wealth Bond will be provided by Old Mutual International Ireland and is only available to clients who want a discretionary fund manager (DFM) to run their portfolio.
OMI will offer its clients the investment expertise of Quilter Cheviot, the DFM it officially bought in February this year. However, the company said it planned to add more DFMs to the bond in future.
OMI said since its acquisition of Quilter Cheviot there had been a lot of interest from international advisers as there was growing demand for tailored investment solutions for high net worth investors.
“Launching the European Wealth Bond is a key step towards delivering enhanced value to high net worth investors,” said Steven Levin, chief executive, investment platforms, at Old Mutual Wealth.
Quilter Cheviot impact
“This is a great example of how Old Mutual International is working together with Quilter Cheviot to deliver compelling solutions to advisers and clients,” he said.
OMl said it was already working to Quilter Cheviot to build its international presence and leverage the benefits of its vertically integrated model in markets such as South Africa.
The Jersey operation of Quilter Cheviot already has £1.3bn ($1.9bn, €1.8bn) of assets, while its business as a whole manages around £17.5bn which now sits alongside the £100bn of private client assets of Old Mutual Wealth.
Old Mutual said it believes there will be an increased demand for outsourced investment solutions from South Africa this year as the country is set to introduce its own Retail Distribution Review.