PIMS is RL360’s portfolio bond. It lets you build and manage your own portfolio of funds, shares, bonds and other assets inside an offshore wrapper, with an adviser, a platform or a discretionary manager if you want one. It is aimed at internationally mobile, higher-net-worth clients who want flexibility rather than a fixed fund range. This page explains how PIMS works, what it can hold, what it costs and what to ask before you invest.
It is general information for UK expats, not personal advice. The figures come from RL360’s PIMS web page and its PIMS guide to investment (PIM05c, 02/24). RL360 does not publish PIMS charge rates in those documents, so the page tells you where to find them. Check everything against your own illustration.
This guide sits under our section on offshore investment bonds for expats. A simpler fund-based RL360 bond is covered in our RL360 Oracle review.
RL360 PIMS at a glance
| Feature | Summary |
|---|---|
| Provider | RL360 Insurance Company Limited, Isle of Man |
| Type | Personal investment management service: a lump sum portfolio bond, on a life assurance or capital redemption basis |
| Status | Listed as a current product on RL360’s website. |
| Minimum investment | GBP 45,000 or currency equivalent, with more allowed later |
| Currencies | GBP, EUR, USD, CHF, AUD, HKD and JPY |
| Assets | Funds, listed equities and bonds, cash deposits and other assets considered case by case |
| Management | Self-directed, with an investment adviser, a discretionary manager or an investment platform |
| Charges | Several charging structures. Rates are in RL360’s latest fees information and your illustration |
| Access | Regular or one-off withdrawals at any time |
What is RL360 PIMS?
PIMS stands for Personal Investment Management Service. You make a single lump sum payment into a bond issued by RL360, and the money is invested in assets that you or your adviser choose. Growth inside the bond is not taxed until you take proceeds or cancel it. RL360 holds the assets through its own custodian or nominee, which is how it can offer institutional dealing terms. Switching between assets can be done without a tax charge.
RL360 describes the target client as a high net worth, internationally mobile individual who wants minimal restrictions on what the bond holds. It is sold only through financial advisers.
Who it may suit, and who it may not
It may suit you if:
- You have a substantial lump sum and want to hold a wide range of assets in one wrapper.
- You want to use a discretionary manager or investment adviser and keep the assets inside the bond.
- You expect to move countries and want one structure that travels with you.
- You want to use a trust, since PIMS works with several RL360 trusts.
It may not suit you if:
- You want a simple, low-cost fund bond with no management. A fund-based bond may be cheaper.
- You may become UK resident while holding it, because portfolio bonds can attract a special annual tax charge.
- You hold assets that are slow to sell, since some funds deal only weekly, monthly or quarterly.
What PIMS can hold
The PIMS guide sets out the types of asset RL360 will accept, and notes that the list changes over time.
- Mutual funds held in RL360’s custodian or nominee name, that can be turned into cash within five months of a sale instruction and are priced at least every three months.
- Equities and bonds, generally if listed on an HMRC-recognised exchange, tradable by RL360’s stockbroker and settled by its custodian.
- Cash deposit accounts held in RL360’s name, with your signed declaration.
- Other assets, considered case by case.
Because PIMS has no fixed fund range, you can end up with a very large choice, which is helpful but also makes it easy to build something expensive. The guide gives an illustration in which a fund with a 5.00% initial charge bought directly is available through PIMS at 0.00%, thanks to negotiated discounts, while the 1.50% annual management charge is unchanged. It is an example, not a promise for any particular fund.
How management works
RL360 allows three ways of managing the portfolio. In each, RL360 keeps custody and dealing, so the institutional discounts still apply.
- Investment adviser. Recommends investments. A discretionary adviser can place dealing instructions on their own. A non-discretionary adviser must consult you first. You pay their charges, which can be authorised from the bond.
- Discretionary manager. Makes investment decisions for you on a full or part basis, within a strategy you agree. Their charges can differ from RL360’s, and some require a higher minimum investment.
- Investment platform. Holds your assets under your or your adviser’s control. Platform fees can differ, and some platforms require a higher minimum.
Charges explained
RL360 states that PIMS offers a variety of charging structures and points to a separate fees page, and the PIMS guide itself gives no plan charge rates. It mentions 10 free dealing transactions. The charges you should expect to find in a portfolio bond of this kind are these.
| Charge | What to ask |
|---|---|
| Plan charges | The RL360 establishment, administration or annual charge under the structure you choose |
| Dealing and custody | Fees per purchase or sale, and any custodian fee. These may not apply when a discretionary manager or platform is used |
| Fund charges | Annual management charges and any initial charge on each fund held |
| Manager or adviser fees | Fixed or percentage fees, often taken from the bond |
| Platform fees | If an external platform holds the assets |
| Withholding tax | Some tax on income from certain countries may be deducted and cannot be reclaimed |
Ask your adviser for a single document showing every layer of cost, in money, on your investment, at the level of assets you plan to hold. This is the one test that separates a reasonable portfolio bond from an expensive one.
Withdrawals, switching and practical limits
You can take regular or one-off withdrawals at any time. The practical limits come from the assets. Some deal only weekly, monthly or quarterly, which can delay a sale. Fund managers may set minimum sale amounts. Sale proceeds can arrive in instalments, which can delay a reinvestment or a payment to you until the full amount is in. If you rely on regular income from the bond, hold enough cash or easily sold assets.
Tax for UK expats
The bond is issued in the Isle of Man, which does not make it tax-free for you. Tax depends on where you are resident when you take money out. The point to understand is the UK rule for personal portfolio bonds. If a bond lets you choose its assets, as PIMS can, and you become UK resident, an annual tax charge can apply to the bond’s value regardless of whether you take anything out. Rules differ again in other countries. See our guides to offshore investment bonds, inheritance tax for UK expats and wills and trusts.
Trusts
PIMS can be used with RL360 trusts, including Beneficiary, Discounted Gift, Gift, International Flexible, Isle of Man Probate and Loan Trusts. Used well, a trust can help with inheritance tax and probate. Used badly, it can create tax problems. Take advice that covers every country involved.
Questions to ask before you invest
- What will every layer of cost add up to, in money, each year?
- Which charging structure am I on, and what happens if I leave early?
- Who holds the assets, and who can instruct sales?
- Will I hold assets that are slow to sell?
- What happens to the tax position if I become UK resident?
- Would a simpler fund bond meet my needs?
RL360 PIMS: frequently asked questions
1. Is RL360 PIMS still available?
RL360 lists it as a current product. Confirm with RL360 or your adviser.
2. What is the minimum investment?
GBP 45,000 or the currency equivalent.
3. What can PIMS invest in?
Mutual funds, listed equities and bonds, cash deposits and other assets considered case by case.
4. Can I use my own adviser or a discretionary manager?
Yes. PIMS allows an investment adviser, a discretionary manager or an investment platform, with RL360 keeping custody.
5. What does PIMS cost?
RL360 offers several charging structures and does not publish a single rate in the guide. Ask for your illustration.
6. Can I take money out?
Yes, at any time, though slow-dealing assets can delay a sale.
7. What is the UK tax risk?
If you become UK resident, a personal portfolio bond can face an annual tax charge. Take advice before returning.
8. Can you review my PIMS bond?
Yes. Send us your latest statement and policy documents and we will set out the costs and your options.
Get your PIMS bond reviewed
If you hold PIMS or are being offered a portfolio bond, we can show you the real cost, the tax position and the alternatives. Request a callback and we will arrange a time that suits your time zone.