Scottish Mutual International has launched its guaranteed with-profits plan in Germany. The contr...
Scottish Mutual International has launched its guaranteed with-profits plan in Germany.
The contract is a medium to long-term investment with medium risk carrying a choice of return of investment guarantees ranging from 117.5% of the original investment in eight years to 135% of the original investment after 15 years.
As a special offer the allocation bonus has been increased to 3% on investments of more than E150,000 and to 1% on investments over E75,000 for a limited period.
However, applications for the extra allocation bonus must be received by 11 June and be processed by 31 August.
Regular withdrawals are allowed of up to 7.5% a year. An annual bonus accrues daily and subject to market conditions. Terminal bonuses may also be added on death or on surrender at some stage in the future. Investments can be made in euros, dollars or sterling, starting at E22,500, $22,500 or £15,000, up to a maximum of E3.75m, $3.75m and £2.5m. Annual bonuses are currently set at 4.25% for euro and dollar investments and 4.75% for sterling investments. At terminal bonus may be added on claims, currently applied at a rate of 1% on death only.
The establishment charge is 1.3% a year of the value of the bond for the first five years payable quarterly by unit cancellation. The management charge is deducted from the underlying with-profits fund.
Andrew Stones, European sales manager at Scottish Mutual International, said: 'The current stock market volatility makes the absolute cash guarantee after eight years an important feature for both advisers and investors in Germany.'
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