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BENEFITS OF THE COLLECTIVE INVESTMENT BOND

Fund Range

With the Collective Investment Bond, your clients can access over 1250 funds, with multiple share classes available on many of them, in our SelfSelect range. This allows you the scope to replicate your own pre-defined portfolios on the platform for the benefit of your clients. You can also access a range of packaged solutions, including WealthSelect, our risk-targeted Spectrum funds and much more.

Trusts

There are significant advantages of using a Bond in Trust for effective estate planning. One reason why bonds can be an ideal trust investment is because they are non-income producing. We have a wide range of trusts available to suit your clients needs. A number of articles and sales aids are available to support you and your clients in choosing the right trust.

Collective Investment Account (CIA) and the Collective Investment Bond (CIB)

Consider using the CIA and CIB together to create tax-efficient withdrawals. If your client has CGT planning in place or wishes to shelter income, the bond may complement CIA planning subject to advice and client objectives. This combined investment solution may also be suitable for a client who wishes to potentially reduce their tax liability in the future, e.g. an additional rate taxpayer (45%) who may become a basic rate taxpayer (20%) in the future as a result of retirement. They can surrender the bond at the time that best suits their personal situation (there may be tax penalties). This may result in paying significantly less or no tax.

Capital Protected Death Benefit

No matter how carefully selected the funds in a client’s bond may be, they will inevitably be exposed to the unpredictable ups and downs of investment markets. This means that, at any particular time, their value could be less than the total invested. If such a drop in value were to coincide with the death of the relevant life assured, the death benefit payable could be impacted.

Capital protected death benefit, available on the Collective Investment Bond, provides protection of your client’s capital in the event of death of the relevant life assured. Capital means the total premiums paid, less any regular or lump sum withdrawals including withdrawals to pay adviser fees.

Support and simplicity

Outstanding support for advisers through:

  • Face-to-face and telephone based sales consultants and sales support
  • Business change managers
  • Online adoption specialists
  • Tax planning and pension technical specialist support
  • Knowledge direct - technical planning articles written by subject matter experts,
  • Resources including industry-leading tools and literature
  • Regional seminars, workshops and Informer, our digital magazine for advisers

The CIB at a glance

Eligibility criteria
Age – maximum to open a new bond 85 (applies to youngest life assured for joint bonds).
Capital Protected Death Benefit not available if any life assured is above age 85.
Age – maximum to top up an existing bond No maximum age.
Age – minimum Bond holders – age 18.
Lives assured if different to bond holders – age 3 months.
Applicants – maximum 2
Applicant types Individuals, joint lives, trustees of a trust, corporate bodies.
Lives assured – maximum 10
Residency You must be a UK resident.
Variable product features
Automatic withdrawal – minimum £25
Bond value – minimum £1,000
Funds – maximum You can choose up to 50 funds when you invest or top up. Thereafter there is no limit if you wish to switch into more funds.
Investment – maximum None
Investment – minimum for new bond £10,000
Investment – minimum for top up None
One-off withdrawal – maximum For one-off withdrawals from specific funds, the maximum amount that can be withdrawn is equivalent to 90% of the bond value or 90% of any individual fund’s bid value.
For one-off withdrawals expressed as a percentage, there is no maximum.
One-off withdrawal – minimum £50
Rebalancing – minimum bond value £1,000
Switch – maximum value For switches given in monetary terms, the maximum amount that can be switched out of the fund is equivalent to 90% of the bid value. For switches given in percentage terms, there is no maximum.

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