Sun Life International has launched a new bond that gives access to three different fund ranges and ...
Sun Life International has launched a new bond that gives access to three different fund ranges and has two distinct charging options.
The first fund range is Sun Life's internal Evolution range. This has no initial charge, no charge for switching and an annual management charge of 0.5%.
The second tier of funds comprises Sun's preferred investment groups. These include AXA Investment managers, Aberdeen, Barings, Fidelity, INVESCO, Investec Guinness Flight and Schroders.
Investing in these funds via the bond is cheaper than direct access for most investors as Sun Life has secured special terms for these funds, so charges are lower than normal.
The third tier of funds are a wider range covering most of the major market sectors, including cash funds, and specialised funds such as emerging markets funds and technology funds.
The bond is available in dollars, euros and pounds and has a minimum initial premium of $75,000 or equivalent, with further contributions having to be at least $7,500.
Evolution has two charging structures and additional structures will be added to increase the flexibility of this product. Once one of the two structures has been chosen, there is no option to switch back.
Option A has a 0.25% quarterly establishment charge for the first four years, while option B is more expensive at 0.43%. However, option A has an early surrender charge for the first eight years, while with B it only lasts four years.
Furthermore, for every 1% of the negotiable 5.2% commission the intermediary gives up, Sun Life will contribute 1.16% to the fund in the B option, while in the A option, this is only 0.9%.
Option A has a quarterly management charge of 0.19%, 0.17% or 0.15%, depending on whether the total premiums are less than $150,000, less than $375,000 or more than $375,000 respectively.
Option B charges are 0.20%, 0.17% and 0.15% with an extra band of 0.14% for investments over $750,000.
The bond can also be written on a capital redemption or a life assurance basis. The minimum age for access to life assurance is 18, while the maximum is 65.
This product is available to most individuals, trusts and corporate investors, but not to Isle of Man investors. There may be other limitations depending on the domicile of the investor.
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