Collective investment bond PROVIDER: Royal skandia Product: Collective Investment Bond - Option C is...
Collective investment bond
PROVIDER: Royal skandia
Product: Collective Investment Bond - Option C is designed for investors that recognise the economic advantages and straightforward approach of unitised funds, but also want to access the potential offered by a wider investment choice. There are three charging structures available, with Option C being based on 95 % of the amount received invested.
Place of policy issue: Isle of Man
Available to UK residents: Yes
Minimum age attained at entry of life assured: International investors aged 18 or over other than residents of the Isle of Man.
Maximum age attained at entry: 89
Minimum single investment: £25,000 or currency equivalent.
Minimum additional investment: £2,500 or currency equivalent.
Investments may be made by cheque and/or banker's draft: Yes
Investment may be made by telegraphic transfer: Yes
Minimum life cover: The bond automatically guarantees a death benefit of 101% of the encashment value.
Maximum life cover: Cover up to 120% of the encashment value can be arranged subject to medical evidence.
Additional life cover: As above.
Single life plan: The bond is available on a single life basis.
Joint life second death plan: Yes
Number of fund links available: The CI bond allows investment in Royal Skandia's own range of internal funds and most other authorised collective schemes.
Number of internally managed funds available: 110 funds managed by leading fund management groups. The CI bond offers investment in Royal Skandia's own range of internal funds; risk-graded managed, single sector and specialist funds; as well as deposit and building society funds managed by a selection of leading investment groups including Baring, Fidelity, Flemings, Gartmore, John Govett, GT Global, Henderson, INVESCO, Jardine Fleming, Lazard, Perpetual, Foreign & Colonial and Schroders.
Preferred list of externally managed funds available: Investors in the CI bond can choose to invest in Royal Skandia's own range of internal funds, plus other funds managed by an extensive list of top investment groups.
Number of preferred management groups available: 22
Access to unlimited externally managed funds: Yes, subject to set criteria.
Number of external fund managers: The CI bond enables clients to select funds from any of 161 groups. The fact an organisation is listed as one of the fund groups does not mean that all funds offered by the organisation are on Royal Skandia's standard list which shows the funds are acceptable. They include:
l Funds authorised in an EEA member state under the Ucits legislation.
l Other collective investment schemes (including investment trusts) authorised or approved by OECD countries.
l Collective investment schemes authorised and approved in the Channel Islands, Isle of Man and some Far East countries, for example Singapore, Hong Kong, Taiwan and South Korea.
Risk-graded funds available: Yes
Mandatory cash deposit: Some value of the bond should be held in the Royal Skandia deposit fund to cover the cost of charges.
Maximum number per plan: None
Minimum value per fund/asset: For each investment holding within the bond to be of a reasonable size and benefit, they should be of a minimum value of £2,500 or equivalent in any other acceptable currency.
Switch allowed: Royal Skandia permit unlimited switching between funds, even those of differing currency denomination.
Number of free switches per annum: No dealing charges are levied under Option C.
Internal switch charge: No
Valuation dates: Quarterly
Maximum number of segments: 20
Partial surrender of segment: To provide for easy and flexible access to the funds, the bond is automatically split into separate policies. Each policy can then be partially or completely encashed without cancelling the entire bond. The cash proceeds can be paid out in any major currency.
Minimum withdrawal allowed: £500
Minimum withdrawal frequency: Monthly. Withdrawals can also be made quarterly, half-yearly or yearly.
Automatic withdrawal facility: Yes
Minimum residual bond value: £10,000
Variation of currency allowed: Yes
Annual plan administration charge: 0.375% per quarter.
One-off establishment charge: No
Establishment charge period: No
Allocation rate (%): 95% for Option C.
Annual fund management charge: Unit price takes into account Royal Skandia's annual management charge which is currently 1% per annum of the value of the fund. Royal Skandia reserves the right to vary the percentage of this charge in future.
Lowest annual management charge (internally managed): 0.15%
Highest annual management charge (internally managed): 1.75%
Encashment charge: No
Bonuses: If the investor's account to which the bonds are linked invests in the Royal Skandia range of internal funds, then as the account itself is subject to charges a credit reflecting Royal Skandia's management charge levied on such (currently 1%) will be given by a reduction to the regular policy management charge or, if applicable, by an allocation of bonus units to the account.
Follows McVey's resignation
Schroders and Aviva Investors
LightTower Partners, Seneca Partners and Unicorn AM
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