Personal Management and IRA Provident Funds

In January 2012, the Ministry of Finance approved the operation of Provident Funds and Study Funds and the management of Individual Retirement Accounts (“IRA”), which allow you, the client,  to manage your pension savings funds independently and successfully or have them managed personally by an investment portfolio manager all the while maintaining the tax benefits inherent in these financial instruments.

How can an IRA Investment Vehicle Be Used for Your Personal Benefit?

Amendment 190 – Funds may be transferred to entitled holders to a personally managed Provident Fund drawing on Amendment 190.

Advantages of Utilizing an IRA Investment Vehicle:

    • Transparency – you can access your portfolio at any time
    • Flexibility – an investment mix according to your financial profile
    • Tax benefits *
    • Reduced trading costs – you are entitled to the terms of the management company as an institutional client**
    • Protection of funds
    • Management of investments in a Provident Fund or Study Fund under personal management, will be through a bank that operates in trust and is fully separate from the assets of the managing company, so that it is not exposed to said company’s risk.
    • Fund mobility – funds from Study Funds and ordinary Provident Funds can be managed

The Result:

  • Better and optimal adaptation of the investment portfolio to the client's needs.
  • Higher value per portfolio
  • Better "sleep" at night

* Mainly utilizing Amendment 190

** Mainly through a liquid-managed investment portfolio