Download International With-Profit Bond from Aviva

Issued for use by financial advisers only. This information has not been approved for use with customers.
International With-Profit
Bond from Aviva
Product details at a glance
The International With-Profit Bond from Aviva is a single premium investment bond with no fixed term. It is designed to be a medium to
long-term investment and should not be viewed as a short-term commitment.
The international With-Profit Funds are reinsured into Aviva’s With-Profit Fund. This means that investors enjoy all the benefits of a well
established With-Profit Fund from the largest insurance services provider in the UK.
The value of an investment can go down as well as up and is not guaranteed. A market value reduction may apply if the quoted value of
units plus any final bonus is high compared to the market value of your client’s share of the investments in the fund at that time when units
are sold. A market value reduction is most likely to be applied following a large or sustained fall in the stockmarket or where investment
returns are below the level expected. However, we may apply an individual market value reduction irrespective of what, if any, general
market value reduction is applying if we think it’s necessary to protect investors.
Offshore funds can grow in a very tax-efficient environment. Your client will also have control over the timing of any withdrawals and thus
any potential income tax liability.
The future basis and rates of tax may vary.
Product name
International With-Profit Bond from Aviva
Fund availability
Aviva Sterling With-Profit Fund Int
Aviva Euro With-Profit Fund Int
Aviva Dollar With-Profit Fund Int
With-profit regular bonus
The regular bonus rate depends on the fund chosen.
Our bonus rates are as follows:
■ Aviva Sterling:
■ Aviva Euro:
■ Aviva Dollar:
3.50%
3.25%
3.25%
Future bonus rates are not guaranteed and may vary at any time.
Minimum investment
£50,000 (€75,000 or $75,000)
Maximum investment
£1,000,000/€1,500,000/$1,500,000
You can’t invest more than this without our agreement.
Number of individual policies
250 maximum
Bond currency
Sterling/Euro/US Dollar
Investment into any of the With-Profit Funds must be in the same currency as the bond.
Once set, the bond currency can’t be changed.
Allocation rates
(Example in Sterling)
Amount of total
investment
£50,000 - £99,999
£100,000 -£249,999
£250,000 +
Percentage of investment
used to buy units
100.5%
101.5%
102%
Euro and Dollar bands are 1.5 times the Sterling bands. Euro and US Dollar bands apply when
the bond currency is either Euro or US Dollar.
No reduction in allocation rates for older ages.
Extra investments
■ Cumulative allocation rates for extra investments will be offered for any With-Profit Bond
available at that time at the rates of that time.
■ Extra investments issued as separate policies.
■ Extra investments can be made in the same or different currency.
■ Extra investments may not be possible for clients who are living in some overseas territories.
■ The terms and conditions for any extra investment will be based on the terms available at the
time of the extra investment.
Minimum/maximum age
Bondholders: 18 years/no maximum
Lives assured: No minimum/89 years
(Note: maximum relates to the youngest life assured at time of investment.)
Regular withdrawals
■ Taking regular withdrawals greater than the growth of a bond, after charges, can result in a
reduction in its capital value. An individual’s tax position should be considered before
deciding the level of regular withdrawals to take.
■ If selected at the outset, the maximum withdrawal is 7.5% of the single premium. If
selected at a later stage, the maximum is the lower of:
– 7.5% each year of the money originally invested
or
– 7.5% each year of the value of the bond on the day we get the request, excluding any
final bonus or market value reduction.
■ Withdrawals up to 5% a year are market value reduction free, if selected at outset or at a time
when no market value reduction is applying and no decision had been taken to apply one. If
withdrawals are greater than 5%, any market value reduction will apply to the whole amount
withdrawn.
■ If your client cancels their regular withdrawal and then requests a new regular withdrawal, they will
have to pay a market value reduction on their new withdrawal if there is one applying at the time.
■ Minimum: £50/€75/$75 per payment
Partial withdrawals
■ Taking a partial withdrawal in excess of 5% of the original amount invested in any one policy
year may give rise to an immediate liability to income tax.
■ In the first five years, early cash-in charges will not apply provided that at least 20% of the
money originally invested across all segments is kept in the bond. It should be noted that
making a large partial withdrawal may have tax implications.
■ Minimum: £1,000/€1,500/$1,500
Bid/offer charges
None
Establishment charge
1.4% a year of the money originally invested, not the growing fund value, taken monthly for a
period of five years.
Management charge
1% a year.
Early cash-in charge
An early cash-in charge will apply if an individual policy, or the entire bond is cashed in during
the first five years. Please also refer to the partial withdrawals section.
■
■
■
■
■
Year 1: 9.9%
Year 2: 8%
Year 3: 6%
Year 4: 4%
Year 5: 2%
Percentage applied against the money originally invested not the growing fund value.
These charges relate also to individual policy surrenders.
Death benefit
1% more than the cash in value plus any final bonus payable (including any early cash-in charge
but excluding any market value reduction).
Commission
Choice of initial only or combinations of initial and renewal commission:
■ Option A: 5% initial plus enhancement
■ Option B: 0.8% a year renewal
■ Option C: 2.5% initial plus enhancement plus 0.5% a year renewal
Rebating of commission
Advisers may rebate initial commission on a 1:1 basis to:
■ increase the amount invested or
■ reduce the establishment charge term or
■ reduce the establishment charge rate.
Valuations
Yearly
You can also find out the current value of your bond at any time by logging on to our website www.aviva.co.uk/international - once you have been set up for access.
Unless otherwise stated, we reserve the right to defer any cashing in of investments for up to one month.
Important Notes
Full written terms and conditions are available on request.
Aviva Life International Limited is authorised in Ireland by the Financial Regulator and subject to regulation by the Financial Services Authority.
Details on the extent of our regulation by the Financial Services Authority are available from us on request. The Financial Services Authority rules
and regulations are made under the Financial Services and Markets Act 2000.
If the company should become unable to meet its liabilities, the Financial Services Compensation Scheme will protect the eligible policyholder of
an Aviva Life International Limited bond who is habitually UK resident at the time the contract commences. Registered Office: 6 Georges Dock
International Financial Services Centre, Dublin 1, Ireland. Registered in Ireland No 303257. Telephone +353 1 802 8494 Fax + 353 1 802 8400
www.aviva.co.uk/international
IN 09 091 01/2010
© Aviva plc