Provider Scottish Equitable. Product Distribution Performance Bond - Initial Charge option ...
Distribution Performance Bond - Initial Charge option (A phased investment is available under the Performance Bond. Available to new and additional investments, subject to a minimum investment of £50,000. Option to select up to five funds, from the full range of life funds available, into which switches will be made over 3, 6 or 12 months. No charge will be made for these switches and they will not count towards the 12 free switches a year).
Minimum age attained at entry
The minimum age requirement for the policyholder is 18 years attained. There is not a minimum age required for the life assured.
Maximum age attained at entry
The maximum age attained at entry is 85.
Minimum stand alone single premium (£)
The minimum investment is £5,000.
Minimum additional single premium (£)
There is a minimum additional investment of £500.
Initial charge incorporated in the bid/offer spread (%)
There is an initial charge of 5% of the amount allocated to buy units.
Annual Man Charge (%pa)
There is a 1% pa. charge for internal funds. There is a further annual fee of up to 0.4%, including additional fund expenses, for some funds.
There is no administration fee.
There is no policy fee.
Early surrender charge levied %yr1/ %yr2 etc
The surrender charges are as follows: Term in force (years) Withdrawal Charge %
Less than 1 5 1 - 2 4 2 - 3 3 3 - 4 2 4 - 5 1 5 and over 0
The allocation rates are as follows: Size of investment Allocation* £5,000 to £9,999 102.50% £10,000 to £24,999 103.75% £25,000 to £49,999 104.25% £50,000 to £99,999 104.50% £100,000+ 104.75% * Allocation rates are reduced where the first life is aged over 80 (but the allocation rates will not be reduced if there is a last survivor present and they are under 80). For investments of up to £10,000, the reduction is 2%. For investments over £10,000, the allocation rate will be 101%. **The above terms are with effect from 1 April 2003.
Allocation % £5K
Allocation % £10K
Allocation % £25K
Allocation % £50K
The allocation rate for investments of £50,000 is 104.50%.(104.75% for £100,000 +)
There is no loyalty 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 can be written on a joint life second death basis. The Plan can also be written on a life of another basis and include multiple lives up to a maximum of 4. Withdrawals can be confined to the amount of income earned Withdrawals can be based on a percentage of the current value. Withdrawals can be based on a percentage of the original investment Earned income can be reinvested.
Automatic withdrawals can be taken monthly
Automatic withdrawals can be taken monthly subject to a minimum withdrawal of £40 per month. Income can also be taken annually, half-yearly or quarterly subject to a minimum of £100 per payment. Ad hoc withdrawals are subject to a minimum of £250.
Months in which distributions are made
Distributions are made on 17th May and 17th November.
Percentage paid out on death of the life assured
On death of the last survivor the benefit paid out is 101% of the bid value of the fund.
The following funds are available. The funds have been listed in relative risk order (based purely on the absolute risk relative to the other funds within the Scottish Equitable range). Where a number of funds within the same sector are of a very similar risk they have been placed in a single grouping and then in alphabetical order.
Index Linked UK Fixed Interest UK Extra Income Foreign Bond/Currency UK High Yield Corporate Bond With Profits Cautious* 70/30 Defensive Managed Fund** 80/20 Defensive Managed 50/50 Cautious Managed Collection** 60/40 Cautious Managed Collection** Distribution Ethical Care Cautious With Profits Growth*
SE External Balanced Collection** SE Baillie Gifford Balanced Managed SE DWS Balanced Managed SE First State Balanced Managed SE INVESCO Balanced Managed SE Lazard Balanced Managed SE Merrill Lynch Balanced Managed Mixed SE Newton Balanced Managed SE SocGen Balanced Managed SE UBS Balanced Managed
SE External Stockmarket Collection** SE Baillie Gifford Stockmarket Managed SE First State Stockmarket Managed Global SE INVESCO Stockmarket Managed SE Lazard Stockmarket Managed SE Newton Stockmarket Managed SE Soc Gen Stockmarket Managed SE UBS Stockmarket Managed International UK Equity Ethical Care Equity Ethical American European
Japan Pacific Technology
* Scottish Equitable has launched a new generation of with-profits funds, which are available across the performance bond range. They have been developed to introduce a series of funds more suitable to the current economic, regulatory and consumer environment.
The two with profits funds available are:
The With Profits Growth Fund (The higher risk of the two with-profits funds) The With Profits Cautious Fund (The lower risk of the two with-profits funds) The main objective of each of the funds is to provide good long-term growth prospects, while 'smoothing out' the short term volatility that usually occurs on these investments. Both Scottish Equitable's With Profits funds invest in differing percentages of Equities and Fixed Interest depending on the objective of the fund. There are no guaranteed MVR free dates. Scottish Equitable have an order in which they apply a smoothing adjustment (positive or negative). The level to apply, if appropriate will vary by circumstance and entry date of investment. **Scottish Equitable's 'Collections' Scottish Equitable fundamentally believes that a selection of managers gives the potential for excellent long-term returns particularly if the investment is held through the full underperformance/outperformance cycle that all fund managers experience. Scottish Equitable appreciate that unless there are very specific preferences, it can be difficult to favour one manager over another. What is more, every manager has good years and every manager has years that are not quite so good. This is a fact, because different investment management styles suit different market conditions and within a sector the range of returns from funds can be very wide indeed. Since no single fund has been at the top every year there is a risk of choosing an Investment Manager whose style doesn't suit current or future market conditions. What the best style is going to be is a question that can not be answered with any certainty. And as a result Scottish Equitable offer the 'Collections' an innovative range of managed funds that invest in a mix of the Investment Partners funds providing diversified exposure to different fund management houses, investment styles and asset classes.
Number of free switches per year
12 switches per annum are free.
Charge per fund switch (£)
12 switches per annum are free. Subsequent switches are charged at 0.5% of the bid value of the units switched, subject to a minimum charge of £10 per switch.
Scottish Equitable's share dealing service is provided by Stocktrade, a firm of stockbrokers based in Edinburgh. The charge applicable is 1% of the value of each stock or other investment sold subject to a minimum charge of £15 and maximum charge of £60 per stock. For the Distribution Bond the minimum initial premium is £5,000. The minimum additional premium for additional contributions is £500.
Option to split the plan into a cluster of policies
The Plan is automatically segmented into 10 policies. Segmentation is flexible to allow more or less than 10 segments with an upper limit of 99 segments.
£1bn business since inception
Considered doing so in 2015
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