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64% of expats working in the UAE plan to return back home when they retire

New research from Old Mutual International and Quilter Cheviot found that 64% of expats working in the UAE plan to return back to their home country when they retire. This highlights the need for expats to choose savings and investment solutions which are suitable and portable back to their home country.

A breakdown of the data shows that 75% of North American expats plan to return back to America when they retire, 62% of European (excluding UK) expats plan to return to Europe when they retire, and 52% of UK expats plan to return to the UK when they retire.

9% of expats plan to remain in the UAE when they retire. This contradicts the belief that all expats leave the UAE once they hit retirement. There are strict rules in place for expats regarding their ability to retire in the region, with some property and business owners perhaps looking to receive residency status.

16% of expats plan to retire somewhere other than their home country or the UAE, with 11% not sure yet where they will retire.

With so many UK expats stating their intention to return to the UK, there is a very clear need for a portable investment solution to enable them to take their savings home in a tax efficient way.

There are many investment options open to UK expats to invest in whilst overseas, but in order for the products to be tax efficient and avoid a UK deemed gain tax charge when they return to the UK, they impose limitations on the assets which can be held.

Old Mutual International’s new innovative Wealth Portfolio is different, and can offer UK expats working in the region an investment solution that invests in a wide range of assets but avoids the UK deemed gain tax charge. 

The new solution sees Old Mutual International appoint Quilter Cheviot, a discretionary fund manager, to manage the investment portfolio linked to the bond. As it removes any client influence over the investment choice or asset selection, the bond is not regarded as a ‘highly personalised portfolio bond’ and therefore the UK deemed gain tax charge of 15% will not be applied upon the expats return to the UK.

This means that the bond is able to invest in a broader range of assets, such as direct equities, than is usually permitted within a generic international portfolio bond in the UK.

Paul Evans, Head of Region, Middle East & Africa, Old Mutual International, comments:

“The research shows just how many expats plan to retire back to their home country and highlights the importance of having a portable investment solution available for them. For UK expats, our new Wealth Portfolio is a great example of how we have created an innovative investment solution. It will enable UK expats to save for their future while working in the UAE, but is portable back to the UK without fear of incurring a deemed gain tax charge by HMRC when they return.

“Working with Quilter Cheviot, part of Old Mutual Wealth, our parent company, to deliver the solution is real coup for us. Quilter Cheviot is a London headquartered, award winning discretionary fund manager with a representative office in the Dubai International Financial Centre. Discretionary investment management is growing in popularity in the region as people see real tangible benefits in delegating portfolio management to investment experts.”

*Old Mutual International and Quilter Cheviot investment and retirement research, August 2017. A targeted piece of research, aimed specifically at investors living in the UAE (mainly Dubai and Abu Dhabi) who use the services of a professional to invest in the stock market. Investors needed to have a minimum of US$50,000 invested. 130 responses were received in total and were a representative cross section of those living in the UAE (expats, NRIs and GCC Nationals).

 

NOTES TO EDITORS

 

Quilter Cheviot

 

Quilter Cheviot, part of Old Mutual Wealth, is one of the UK’s largest discretionary investment firms and can trace its heritage to 1771.The firm is based in 12 locations across the UK, Jersey and Ireland and has total funds under management of £23.6bn (as at 31 December 2017). Quilter Cheviot focuses primarily on structuring and managing bespoke discretionary portfolios for private clients, charities, trusts, pension funds and intermediaries.

 

Quilter Cheviot Limited is registered in England with number 01923571, registered office at One Kingsway, London, WC2B 6AN, England. Quilter Cheviot Limited is a member of the London Stock Exchange; is authorised and regulated by the UK Financial Conduct Authority; has established a branch in Jersey and is regulated under the Financial Services (Jersey) Law 1998 by the Jersey Financial Services Commission for the conduct of investment business in Jersey and by the Guernsey Financial Services Commission under the Protection of Investors (Bailiwick of Guernsey) Law, 1987 to carry on investment business in the Bailiwick of Guernsey; is regulated by the Dubai Financial Services Authority as a Representative Office (and its business name in Dubai is Quilter Cheviot Limited (DIFC Representative Office)); and has established a branch in Dublin, Ireland with number 904906 and is regulated by the Central Bank of Ireland for conduct of business rules. Accordingly, in some respects the regulatory system that applies will be different from that of the United Kingdom.

 

 

Notes to editors:

Old Mutual Wealth is a leading wealth management business in the UK and internationally, helping to create prosperity for the generations of today and tomorrow.

On a ‘go forward basis’, Old Mutual Wealth oversees £114.4 billion in customer investments (as at 31 December 2017).

It has an adviser and customer offering spanning: financial advice; investment platforms; multi-asset and single strategy investment solutions; and discretionary fund management.

The business is comprised of two segments: Wealth Platforms and Advice and Wealth Management.

Wealth Platforms includes the Old Mutual Wealth UK Platform; Old Mutual International, including AAM Advisory in Singapore; and the Old Mutual Wealth Heritage life assurance business.

Advice and Wealth Management encompasses the financial planning network, Intrinsic; Old Mutual Wealth Private Client Advisers; discretionary fund management business, Quilter Cheviot; and Old Mutual Wealth’s multi-asset investment solutions business.

On 19 December 2017, Old Mutual Wealth announced that it has agreed to sell its Single Strategy asset management business to the Single Strategy Management team and funds managed by TA Associates. The proposed transaction is subject to customary closing conditions, including regulatory approvals. 

Old Mutual Wealth is part of Old Mutual plc, a FTSE 100 group that provides investment, savings, insurance and banking. For the year ended 31 December 2017, Old Mutual reported an adjusted operating profit before tax of £2.0 billion. For further information on Old Mutual plc and the underlying businesses, please visit the corporate website at www.oldmutualplc.com.

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