Provider Scottish Mutual Product Smoothed Investment Bond The Smoothed Investment Bond is ...
Smoothed Investment Bond
The Smoothed Investment Bond is a single premium life bond issued by Scottish Mutual Assurance.
There are two fund choices available within this product:
• The Smoothed Income Fund
• The Smoothed Growth Fund
Investors can select one, or a mix of the funds subject to a minimum premium of £5,000. The Income fund will invest predominantly in bonds, the Growth fund mainly in equities.
This product is only available via IFAs.
Launch date of current with profits tranche
The bond was launched on 14 April 2003.
Brand accredited under the ABI Raising Standards Quality Mark
Scottish Mutual are not currently accredited under the Raising Standards Quality Mark.
Minimum age attained at entry
The Minimum age attained at entry is 18 years for policy owner. There is no minimum age for the life assured.
Maximum age attained at entry
The maximum age for the Life assured is Age 80 attained. There is no maximum age for policy owner.
Minimum stand alone single premium (£)
The minimum initial investment is £5,000
Minimum additional single premium (£)
Additional single premiums cannot be added into the bond.
Initial charge incorporated in the bid/offer spread (%)
There is no initial charge.
Annual Man Charge (%pa)
The annual management charge is 0.85%
There is an establishment charge of 1.3% pa taken monthly by unit cancellation in the first 5 years.
No policy fee is levied.
Early surrender charge levied %yr1/%yr2 etc
Surrender penalty is expressed as a percentage equal to all outstanding establishment charges. For example, after one year the surrender penalty will be 5.2%.
The allocation rates are as follows:
Amount of Allocation investment %
£5,000 to £29,999 100
£30,000 to £49,999 101
£50,000 to £99,999 101.5
£100,000 plus 102
Allocation % £5k
The allocation rate for investments of £5,000 is 100%.
Allocation % £10k
The allocation rate for investments of £10,000 is 100%.
Allocation % £25k
The allocation rate for investments of £25,000 is 100%.
Allocation % £50k
The allocation rate for investments of £50,000 is 101.5%.
Allocation % £100K
The allocation rate for investments of £100,000 is 102%
There is no loyalty bonus payable.
MVA Free Options
No smoothing reductions will apply on death of the life assured or income taken each year up to 5% of the value of the fund at the start of the year (this applies to the Smoothed Income Fund only).
Smoothing increases may also apply.
Product allows investment into With Profit Fund Only
Yes, although there is a choice of two With Profit funds available.
Other Fund Links available
There are no other fund links available.
Number of free switches per year
All switches between the Income and Growth Funds are free. However, Scottish Mutual will monitor switches between the funds to ensure against anti-selection.
Charge per fund switch (£)
There is no charge to switch funds.
Reversionary Bonus rate for 2003
The smoothed unit price for each fund will be calculated daily using the average asset value (per unit and after charges) over the last 12 months. There is a bit more weight given to the more recent asset values. The weights are 3/4 for the most recent 6 months and 1/4 for the rest. This unique approach to smoothing ensures that the smoothed unit price broadly trends around the actual value of the assets, but with a much-reduced level of volatility.
Guaranteed Bonus Payable
There is no guaranteed bonus
Plan can be written on a single life basis
The plan can be written on a single life basis.
Plan can be written on a joint life 1st death basis
The plan is not available on a joint life first death basis.
Plan can be written on a joint life 2nd death basis
The plan is available on a joint life second death basis.
Option to split the plan into a cluster of policies
The plan is automatically split into 20 segments. On request, the bond can be split into any number of segments between 1 and 100.
Percentage paid out on death of the life assured
On the death of the life assured, or the second life assured, 101% of the smoothed value (including any smoothing increase but excluding surrender penalties and smoothing reductions) at the date of notification of the death will be paid.
Fixed sum regular withdrawals available
Regular withdrawals are available as a fixed monetary amount.
Regular withdrawals available as a fixed percentage of current value
Regular withdrawals are available as a fixed percentage of current value.
Regular income payment frequencies
Income payments can be monthly, quarterly, half yearly and annually.
Phased investment option available
There is no phased investment option available.
Share exchange scheme available
There is a share exchange available.
Joined as head of strategy, multi asset, in June
Group income protection
Nine in 10 do not have income protection
Set to become part of Single Financial Guidance Body