Swindon, 17 April 2008 – Zurich has today launched the Zurich Wrapper Comparison Adviser tool which helps advisers assess the comparative returns from UK investment bonds and unit trusts/Open Ended Investment Companies (OEICs). The tool provides advisers with a comprehensive, unbiased and flexible analysis to support their client recommendations.
The taxation assumptions in the Zurich Wrapper Comparison tool have been independently verified by Technical Connection Ltd, a financial and tax consultancy firm. The tool shows the total cash return from the different product wrappers and the relative annual return. The adviser can include various levels of income and withdrawals, optimise annual capital gains tax exemptions, and show the effect of changes to the client's marginal tax rate over time.
Commenting on the launch of the new tool, Paul Wright, Investment Management Director at Zurich, said: “The changes to capital gains tax have had unintended consequences for advisers who are coming under increasing pressure to justify product wrapper choice. Too much comment is often focused on only one aspect of the comparison. We want to help advisers and their clients to make informed decisions about their investment choices and with the tax rules built into the model the adviser can select the appropriate asset mix, investment returns and the level of charges”.
The comparison tool helps advisers to be better equipped to identify the most appropriate solution for their clients and will enhance Zurich’s distributor relationships by offering them an additional added value service. It enhances Zurich’s ‘e’ capability proposition, and in particular its reputation for innovation in the adviser tool area. This latest tool builds upon the recently launched Zurich Portfolio Planner and IHT Adviser Tool.
David Ingram, Partner from Three Sixty Services, said: “This is exactly what is needed, the truth is that this has always been a difficult area for advisers. This tool allows advisers to look at the key areas of difference between the two product types and not just the marginal differences which the Budget announcement introduced”.
Tony Wickenden and John Woolley, of Technical Connection said: "The recent changes to capital gains tax have, in our opinion, reinforced the continuing importance of taking an investor centric approach to investment product wrapper selection. In the light of this, well founded, unbiased guidance should be valued by those who have to make this selection".
For more information, advisers should please contact your Zurich Intermediary Group consultant, on 0500 546546.
For further information contact:
Sarah Yates, Senior Media Relations Consultant, Tel: 01793 505586 / Mobile 07875 885694
Zurich Financial Services Group (Zurich) is an insurance-based financial services provider with a global network of subsidiaries and offices in North America and Europe as well as in Asia Pacific, Latin America and other markets. Founded in 1872, the Group is headquartered in Zurich, Switzerland. It employs approximately 60,000 people serving customers in more than 170 countries.
