Eligibility
- UK residents with no maximum age limit
- A minimum age of 18 for ISA investments. For OEIC investors the Fund can be designated to minors
- A minimum investment of £3,000 or £1,000 if investing via an ISA
Features
- OEIC investments available on a single or joint basis
- ISA investments available on a single basis
- Corporate OEIC investment allowed
- Cheque and paper applications accepted
Additional investments
- Ability to make additional payments of at least £250 during the cash investment period
Switching
- Switching out of the Fund and into another fund will incur a charge, currently 0.5% or the full initial charge of the fund into which the switch is made.
- If your client switches out of the Fund before the protection date they will lose any protection on their investment
Withdrawals
- Your client can sell some or all of their shares at any time before the protection date. If they sell their shares before the protection date they’re likely to get back substantially less than they invested
- If they don’t sell all of their shares in the Fund they must continue to hold at least £500 worth of shares
Life assurance
- Life cover is not included with this product
Death benefit
- There is no capital protection in the event of death
- If a single investor dies within the term, the Fund offers three options to the executors
- Review the value of the funds and sell the shares
- Transfer to a new owner who can keep the investment until the protection date
- Transfer to a new owner who can keep the investment until they are happy with the valuation when they can sell all or part of the shares
Tax
- For OEIC investors - income will be accumulated net of tax within the Fund during the periods the Fund is invested in cash
- For ISA investors – there will be no liability to income or capital gains tax on their investment. However, as the interest is paid as a dividend, there will be no reclaim of tax credits in respect of interest earned during the periods the fund is invested in cash
- For OEIC investors, Capital Gains Tax will be payable if the customer’s total gains from all sources in any tax year are more than their personal Capital Gains Tax exemption allowance for that year
- Tax treatment depends on the individual circumstances of your client and may be subject to change in the future
- Tax rules can change
Primary risks
- The Fund aims to offer capital protection for the investment on the protection date. It does not provide a guarantee
- During the Growth Potential Period, if the derivative provider (the counterparty) fails and this coincides with the Fund having collateral which fails then clients are likely to get back significantly less than they invested
- At the end of the term, clients might get back less than if they invested directly in the shares that make up the FTSE 100 Index. This is because we set a cap on any amount payable in addition to the Capital Protected Value
Important notice
Please note that charges, terms and limits may change. We may change the selection of funds that we make available. There may be restrictions on the amount that can be invested in certain funds. Please contact us for details of any restrictions that apply.
