LONDON (HedgeWorld.com)--Platinum Capital Management Ltd. and Hansard International Ltd. have teamed to offer a single premium whole life insurance contract that can be wrapped around offshore investments.
Executives for Platinum said in a statement that investments in the security, called the Platinum Wealth Management Bond, grow in value tax free, with proceeds paid in any country without deducting taxes owed on the investment. The Isle of Man-domiciled offering can be sold in most countries but not in North America, France or Hong Kong, said Craig Reeves, a managing director for Platinum.
Even though Platinum's name is on the bond, just about any kind of tradable investment can be put into it, Mr. Reeves said. But in practice, because Platinum affiliated companies will be the primary distributor, Platinum investments are most likely to end up in the bond. Investors in the security will get exclusive access to new Platinum single strategy hedge funds and lower-minimum investment access to its multi-manager funds.
The minimum to invest is US$100,000 or the equivalent in the four other currencies accepted by issuer: euros, U.K. sterling, Swedish krone and Japanese yen. Monthly liquidity will be offered. The bond is offered on a continuous basis with no preset maturity date.
The bond is the first product offered as a result of a joint venture between a new Platinum unit, Platinum Wealth Management, and Hansard International, an insurance company affiliated firm. Platinum Wealth Management was created to sell wealth management services for corporations, high-net-worth investors, such as trusts, hedging and alternative assets.
At the beginning of August, Platinum began selling a principal protected hedge fund note that offers 110% protection of principal. The fund combined U.S. Treasury securities with mostly long/short equity hedge funds.