Your investment options with

Transcription

1 NVEST ENT PTI NS Your investment options with Utmost

2 Utmost Wealth Solutions is the brand name used by a number of Utmost companies. This item is issued by Utmost Limited. 3 BEFORE YOU B EGIN 4 WHAT ARE MY INV E STMENT O PTIONS? 6 GUID E D AR CHI T E CTURE 10 O P EN AR CHI T E CTURE 14 NOM INATION OF AN INV E STMENT ADVI S ER OR E XTERNAL MAN A GER AN D/ OR CU STO D I A N (E MC) 17 WHAT I S THE DE ALING ACCOUNT? 19 N E XT STE PS

3 B e f o r e y o u b e g i n I M P O R TA N T N O T E This guide has been designed to help you with your investment choices by explaining the options available through our Evolution and Estate Planning Bond. Please read this together with the Fund Specific Risks document and relevant product literature. In this guide we assume that you are a UK resident. Charges shown in this document are applicable as at 1 January Administration, dealing, valuation and payment charges will be increased on 1 January each year in line with the UK Retail Prices Index (RPI) without any notification to you or, where applicable, your trustees. Any increases may be rounded to the higher pound. Any other variation in charges will be made by giving you three months written notice to the last known correspondence address. Please speak to your financial adviser for details of current charges. For detailed information regarding product charges, investment charges and charges for advice please see our Charges Guide available online at T O H E L P y o u r U N D E R S TA N D i n g Throughout this guide we refer to you, we and us. You refers to you personally or the trustees as the legal owners of the bond if the bond is held in trust. We and us mean Utmost Limited. In addition, words in the singular shall include the plural and vice versa. Please remember where the bond is held in trust the trustees will be the legal owners of the bond and will have the power to make investment decisions in respect of the bond. U T M O S T - A guide to your investment options 3

4 W h at a r e m y i n v e S T M e n t o p t i o n s? We are able to offer two investment options and both provide access to a wide range of investment choices. We call these options Guided Architecture and Open Architecture. When you set up your bond you are able to make various investment choices which can include: the currency that the bond is held in a choice of funds and cash deposits how you can manage the bond though the various services and options available to you. Please read this guide together with the product literature for your chosen bond. I N V E S T M E N T C H O I C E S Depending on your investment objectives and choice of Guided Architecture or Open Architecture, you will be able to choose from: Tailored Selection funds Utmost Fund Collection funds External funds Cash deposits You may also choose to nominate an investment adviser or an External Manager and/or Custodian to manage the investments linked to your bond. You can read more about these choices on the following pages. You can obtain from your financial adviser, or the underlying fund manager, the Key Investor Information Document for the underlying fund for any funds within the Tailored Selection and Utmost Fund Collection that you intend to select. The Key Investor Information Document contains further information on the underlying fund, including its objectives and associated risk factors. In addition, your financial adviser will be able to provide you with the fund factsheet of any fund invested. It is important to read these factsheets as they include details such as charges and pricing of funds. The value of the investments can fall as well as rise and is not guaranteed. You or your trustees may get back less than invested. Funds should be selected carefully to ensure that the investment objectives meet the level of any income chosen and/or any charges for advice to be paid from the bond. Income is a regular withdrawal of capital. The funds available to you may change at our discretion. If we, or another fund manager, are to close a fund available to you when you invest in the bond on a Guided Architecture or an Open Architecture basis, we will advise you in writing. However, you will need to speak to your financial adviser for details of alternative investments. Please remember, where the bond is held in trust the trustees will be the legal owners of the bond and will have the power to make investment decisions in respect of the bond. In addition, please note that all investments are made in our name. You will not be eligible to take advantage of any investor compensation scheme or any Depositors Compensation Scheme, which may otherwise exist if you had directly invested with the underlying fund manager, bank or building society. Therefore, if the underlying fund manager or deposit taker fails to meet their obligation to us depending on the deposit chosen, our obligations would be limited to any monies we could recover from the fund manager or the deposit taker. As a result you may lose some or all of the money invested. 4 U T M O S T - A guide to your investment options

5 C U R R E N C I E S Evolution can be based in one of three currencies: Sterling, US Dollar or Euro. Your fund choices can also vary in currency so you are able to diversify your portfolio. Estate Planning Bond is only available in Sterling. We also accept premium payments in any freely tradeable currency, which we will convert to the bond currency at the rate applicable on the day the monies are received. Currency fluctuations may affect the value of your investment. Once the bond is set up, you will not be able to change its currency. All payments from the bond will be in the bond currency irrespective of the currency of the underlying investments you choose to invest into. If you choose to invest in a fund denominated in a different currency from the bond, a currency conversion will apply. All costs associated with the currency conversion will be charged to the bond. U T M O S T - A guide to your investment options 5

6 G UID E D ARCHI T E CTURE Guided Architecture gives you choice and control, by allowing you to link your bond to a comprehensive range of funds within the Tailored Selection and Utmost Fund Collection ranges. The fund ranges available to you within Guided Architecture have been carefully chosen by our investment team. If you are looking to invest in a range of industry sectors, international or specialist funds with a wide choice of investment objectives and exposure to a variety of fund managers, markets and asset types, Guided Architecture may be suitable for you. G UID E D ARCHI T E CTURE AT A GLAN C E FUND R A NGES D E ALING ACCOUNT INV E STMENT CO STS ACCE SS A DDI T IONAL OPTIONS MINIM U M INV E STMENT P REM IUM MINIM U M P REM IUM P E R FUND QUA R T ERLY ADMINISTR ATION CHARGE Tailored Selection Utmost Fund Collection Not required There are no dealing fees when switching between funds within Guided Architecture. 1 Most funds deal daily but this is dependent on the underlying asset. Fund prices quoted daily. Drip-feeding or portfolio rebalancing The minimum investment premium depends on the bond chosen, please see the product guide for your chosen bond for details. Underlying external fund minimums vary and are set by the fund manager We do not currently apply a charge for investing in the Tailored Selection and Utmost Fund Collection ranges. However, the Utmost Wealth Solutions fund s unit price is determined by the price at which the underlying fund can be bought or sold. Underlying assets typically have a higher price when being bought. Consequently the Utmost fund s transaction price may fall or rise purely as a result of sales or purchases of assets of the fund or an underlying fund. Such charges will affect the value of your investment, and are in addition to any initial fund charge. For further information on charges such as this, please speak to your financial adviser. Please note that the relevant fund manager s own management charges will apply. Some funds may have performance fees associated with them, as set by the underlying fund manager. 6 U TMO S T - A guide to your investment options

7 W H ERE W I LL M Y M ONEY B E INV E STE D? TA I L ORED SEL E CTION U TMO ST F UND COLLE CTION The investment team have refined the vast choice of funds available down to a manageable number. Active funds. Funds aiming to outperform the benchmark with an active investment strategy. Showcase range. Innovative or unique funds offering good diversification. Extended Selection. A slightly wider range of funds to allow more choice in Tailored Selection. The Utmost Fund Collection consists of money funds managed by Utmost Limited and the Utmost Deferred Distribution Fund which is a mirror fund. The majority of the funds within Guided Architecture are what we call mirror funds. The objective of each of these funds is to mirror as far as possible the performance of that underlying fund. However, the performance and unit price of these funds will not match the underlying fund, as the mirror fund may not be wholly invested in the underlying fund. There may also be timing differences and additional costs associated with the mirror fund investing in the underlying fund. In particular, the mirror fund may hold a greater amount of cash for certain periods of time. These factors may reduce the potential for growth. Mirror funds may be withdrawn without notice if the underlying fund is withdrawn or suspended by the fund manager. The Utmost Limited Money funds (available to you within the Utmost Fund Collection range) are not mirror funds and are directly invested funds. Please speak to your financial adviser for further information or refer to our Guided Architecture fund list available online or on request from us. All investments carry varying degrees of risk. The value of the funds can fall as well as rise. Taking into account market fluctuations and charges, you may get back less than invested. Currency fluctuations may affect the value of your investment. U TMO S T - A guide to your investment options 7

8 G u i d e d A r c h i t e c t u r e C O N T i n u e D C A N I C H A n g e T H E f u n D S L I N K E D T O M Y B O N D? With our Guided Architecture option you can switch within the fund range without charge 1 at any time to suit you. For example, to reflect changes in your risk profile or investment approach. We can receive switch instructions either by fax, post or through our Online Tracking and Trading service. The Investment Switch Request form specifically designed for use with Guided Architecture is available from your financial adviser. Sells and buys from switches on Guided Architecture assets may take a couple of days to process dependent on the valuation points of the underlying funds, however they will receive the same price date. Only valid and clear purchase/sale instructions will be placed before the end of the next working day which may be longer than 24 hours from receipt. An instruction is considered to be valid and clear when all outstanding information has been received, which may include clarification of fund selection, relevant amounts and signatures of all authorised signatories. New instructions to start drip-feeding or portfolio rebalancing can be submitted by you at any time by completing the Drip-feeding & Portfolio Rebalancing Investment Alteration form. This form is available to registered users on our website Please ask your financial adviser whether drip-feeding or portfolio rebalancing may be appropriate for you. There is no administration charge for selecting either of these options. These automated options are designed to help you or your financial adviser manage and control your preferred levels of investment risk. D R I P - f e e D i n g After making your initial investment our drip-feeding functionality allows the gradual movement of the investment, over time, into a different set of specified funds. This can assist with reducing the risk associated with placing all your investment in a fund at the top of the market. However, it may also reduce the possibility of placing all your investment in the fund near the bottom of the market, when prices would allow more units to be purchased. D R I P - f e e D i n g O R P O R T F O L I O R E B A L A N C i n g If you invest in our bonds on a Guided Architecture basis, you have the option of adding either drip-feeding or portfolio rebalancing to your bond. These options cannot be used together although both can be stopped or started at any time. Drip-feeding or portfolio rebalancing will stop, and new instructions will be required, if any of the following occur: We receive a fund switch request. A fund is to be closed or is no longer available. An additional single premium is invested. The death of the last life assured (not applicable to capital redemption bonds). The minimum drip-feeding period is one month and the maximum is ten years. There are no guarantees that the use of a dripfeeding strategy will result in improved investment growth compared to alternative investment decisions. 1 We do not currently apply a charge for investing in the Tailored Selection and Utmost Fund Collection ranges. However, the Utmost Limited fund s unit price is determined by the price at which the underlying fund can be bought or sold. Underlying assets typically have a higher price when being bought. Consequently the fund s transaction price may fall or rise purely as a result of sales or purchases of assets of the fund or an underlying fund. Such charges will affect the value of your investment, and are in addition to any initial fund charge. For further information on charges such as this, please speak to your financial adviser. 8 U T M O S T - A guide to your investment options

9 P O R T F O L I O R E B A L A N C i n g Portfolio rebalancing allows the percentage exposure to each fund you have chosen to link to your bond, to be rebalanced regularly to maintain your original target percentage in each fund. This option is available on a monthly, quarterly, half-yearly or annual basis and can help maintain the required level of your exposure to risk in respect of those funds. It works by switching units from funds that exceed the chosen percentage allocation into the other funds restoring the selected fund split. For example, a portfolio invested 50%/50% in two funds may, after a few years and without any rebalancing, end up being split 63%/37%. However, using portfolio rebalancing over the same period would maintain the policyholder s desired 50%/50% allocation in each fund. If you choose portfolio rebalancing, the bond will be rebalanced to the original percentages chosen on the dates selected by you (or the nearest available working day). If a date is not specified, the default date will be the 28th of the month. If portfolio rebalancing is selected, rebalancing could switch units from a fund that is outperforming other funds into funds that are performing less well. This may mean that whilst the desired level of exposure to those fund risks is maintained, the value of the bond might have been higher at a particular time had rebalancing not been applied. C A N I C H A n g e T H E I N V E S T M E N T B A S I S f r o M g u i D E D A R C H I T E C T u r e T O O P E N A R C H I T E C T u r e? If your bond is held on a Guided Architecture basis at outset, in most cases you can switch to an Open Architecture basis after three months of the bond being set up. You will need to be aware of the following when changing from Guided Architecture to Open Architecture: The minimum value to switch to Open Architecture is 50,000 (or currency equivalent). A dealing account will be set up, and you will need to consider how you want to manage this to clear or avoid overdrawn positions. A higher quarterly administration charge will be applicable. Dealing charges will be applicable for all sale or purchase of external funds and cash deposits. Funds within the Tailored Selection ranges and some funds within the Utmost Fund Collection range will no longer be available to you. All current holdings within those ranges will therefore be sold and your investment, when instructed, may only be linked to the underlying external fund. Once the bond has been set up on an Open Architecture basis, you will not be able to revert to Guided Architecture. Please discuss your choice with your financial adviser. U T M O S T - A guide to your investment options 9

10 O p e n A r c h i t e c t u r e Open Architecture is all about wider investment opportunities. So if you are looking for access to a much wider range of assets, including external funds or cash deposits, or perhaps wish to nominate an External Manager and/or Custodian to select and manage your linked investments, Open Architecture may be the option for you. Open Architecture allows you to link your bond to a variety of external funds and cash deposits from some of the world s leading investment management groups and banking institutions. Our buying power can make it possible for us to negotiate preferential terms with fund managers. As a result, the terms available to you through our bonds may be more competitive than those obtained when investing directly. Once your bond is held on an Open Architecture basis, it cannot be moved to Guided Architecture. 10 U T M O S T - A guide to your investment options

11 OPEN ARCHI T E CTURE AT A GLAN C E I N V E STMENT OPTIONS DEALING ACCOUNT I N V E STMENT C O STS A CCE SS MINIM U M INV E STMENT P REM IUM MINIM U M INV E STMENT P ER FUND QUA R T ERLY ADMINISTR ATION CHARGE Utmost Fund Collection - only some of the funds within the Utmost Fund Collection are available External funds Cash deposits External Manager and/or Custodian Required, debit interest will be charged if overdrawn External fund purchase or sale (or the equivalent in the currency of the fund being traded*) for each transaction Cash deposit purchase or sale (or the equivalent in the currency of the fund being traded*) for each transaction A charge of 12 (or currency of the asset being traded*) will be made for each external fund or cash deposit account purchase or every time money is transferred by CHAPS to an external account (e.g. external managed accounts) to cover third party charges incurred Further to these dealing and payment charges, the provider of any external asset or cash deposit may also apply their own charges for purchases and sales and these will be reflected in the transaction applied to the bond. Assets traded via a stock broker will also incur further charges such as brokerage fees, stamp duty, tax and custodian fees. These charges will be passed on to the bond, with brokerage fees, tax and stamp duty reflected in the transaction value, and custodian and delivery fees deducted on a monthly basis and reflected separately in the bond cash account. Switching between Utmost Fund Collection funds is currently free (however, please see note on page 6 1 ) Most funds deal daily but this is dependent on the underlying asset. Dealing dates for external funds and cash deposits will vary The minimum premium/bond value to invest in Open Architecture is 50,000 External fund minimums vary and are set by the fund manager (Please see page 15 for details of the administration charge if an External Manager and/or Custodian is appointed) * Based on the exchange rate available at the time of the trade. U TMO S T - A guide to your investment options 11

12 O P E N A r c h i t e c t u r e C O N T i n u e D U T M O S T f u n D C O L L E C T i o n Please note that under the Open Architecture option your choice of funds within the Utmost Fund Collection is limited. Please speak to your financial adviser for more information. E X T e r n A L f u n D S Open Architecture gives you access to a wide range of external funds offered by many of the world s major investment management groups. C A S H D E P O S I T S Open Architecture provides access to a range of cash deposits from banks and building societies in the UK, Isle of Man, Channel Islands and Ireland. As with external fund links, a dealing account will be required to manage the investments. For further details about the dealing account, please see page 17. If you ask us to invest in a bank or building society account the deposit will be bound by the terms and conditions as applied by the deposit taker. This means you may not be able to access the value of the deposit until the end of a fixed term or without giving notice. Where the deposit taker does agree to close the account early a charge may be made by the deposit taker, which may mean you do not receive back the full amount of the investment made. If you hold an Estate Planning Bond, you are required to take an income. Certain deposits may require a long notice period before any withdrawals can be taken, or may contain clauses in the deposit terms and conditions that could delay redemptions in certain circumstances. Such deposits may not be appropriate for this product. Where you have the Right to change your mind (please see the relevant section of the product guide for the bond you are investing in) and you decide not to proceed with your bond within the cancellation period, if we cannot secure the return of the funds from the deposit taker, you will need to wait until the end of the deposit term before any sums can be returned to you. Any charge made by the deposit taker for breaking the deposit early will reduce the value of the amount that we will return to you upon cancellation. Please discuss with your financial adviser whether your chosen deposit taker is appropriate to your required level of risk. All investments carry varying degrees of risk. You should remember that the value of the funds can fall as well as rise and is not guaranteed. Taking into account market fluctuations and charges, you may get back less than invested. If investing in a fund held in a different currency from the bond, currency conversion will apply. All costs associated with the currency conversion will be charged to the bond. You should bear in mind that currency fluctuations will affect the value of your bond. The fund links and cash deposits available through our bonds may change at our discretion at any time. You or your investment adviser are responsible for the selection of the external funds and cash deposits, however, we reserve the right to refuse to accept any fund link or cash deposit if we so choose. 12 U T M O S T - A guide to your investment options

13 C A N I C H A n g e T H E I N V E S T M E N T S L I N K E D T O M Y B O N D? We can receive switch investment instructions either by fax, post or through our Online Tracking and Trading Service to change investments linked to your bond. For every sale or purchase of external funds or cash deposits a dealing charge will be taken from the bond s dealing account. Please see page 11 for details of the applicable charge. Please complete our Open Architecture Dealing Instruction form specifically designed for use with Open Architecture bonds; this form is available to registered users on our website Only valid and clear purchase/ sale instructions will be placed with the relevant fund manager before the end of the next working day which may be longer than 24 hours from receipt. An instruction is considered to be valid and clear when all outstanding information has been received by us. This may include all authorised signatories signatures, clarification of fund selection, investment amounts and set up of funds if Utmost has not previously traded into a specific fund. If a fund has not been previously traded, a review of it may be required before this is added to our fund universe and before the purchase can be placed. There are additional time frames involved for this process which could result in your purchase instruction not being placed within the usual 24 hour turnaround. Open Architecture portfolios will always have a dealing account. For most funds, purchases will be debited 5 working days after the trade date, while sales will be credited 10 working days after the trade date. Some funds may operate on a different settlement basis. For example, if a fund requires payment in advance before they trade, then the dealing account will be debited the same day we send the payment. If a fund requires a notice period before they sell the fund, this will delay settlement. A sell to buy instruction is where the purchase of a fund is dependent on the proceeds of the sale of another fund. We endeavour to place deals so that the sales and purchases settle on the same day. This is done to limit any potential debit balance on the dealing account. U T M O S T - A guide to your investment options 13

14 N o m i n at i o n o f a n I n v e S T M e n t A d v i s e r o r e X T e r n a l M a n a g e r a n d / o r C u s t o d i a n ( E M C ) As our bonds are designed as a medium to long term investment, meaning five to ten years or longer, you may wish to nominate a suitably qualified investment adviser and/or EMC who can help with your strategic investment decision making. They may have access to vital market information, enabling them to act swiftly and effectively in rapidly changing market conditions. I N V E S T M E N T A D V I S E R If you request the appointment of a suitably qualified investment adviser to give us investment instructions on your behalf, then the charge they apply will be treated as an Investment Adviser Charge (IAC). IAC can be paid directly by you to the appointed investment adviser. Alternatively, you can choose to pay IAC from the value of the bond. If IAC payments are taken from the bond, these will be treated as non-taxable withdrawals and will not form part of your 5% annual taxdeferred entitlement. E X T E R N A L M A N A g e r A N D / O R C U S T O D I A N ( E M C ) You can choose to nominate an EMC to be appointed to help manage your investment. An EMC can carry out their investment management service for the external managed account in one of two ways: Discretionary basis: The manager will make investment decisions on the account without any specific consultation with you. Advisory basis: Each investment decision they implement will be as a result of prior discussions with you and in line with your agreement. When charges for advice are paid from a bond held on an Open Architecture basis, they are taken from the dealing account. This means any charges for advice agreed to be paid from the bond, could take the dealing account into a negative balance which will lead to a debit interest charge being applied. Please see pages for more information about the dealing account. For detailed information about the different ways an investment adviser may be paid please see our separate Charges Guide. 14 U T M O S T - A guide to your investment options

15 E MC CHARGES If an EMC is appointed, then, in addition to the administration charge we apply to the bond, the EMC will also apply their own charges for the service they provide. Please speak to your EMC or financial adviser for specific details of these charges. If no investment advice is given, the charge they make for managing the investment on a full discretionary basis, together with any other fees they apply (such as custody, transaction or bank fees), will be taken from the external managed account as administration costs. They will not be included within your 5% annual tax-deferred entitlement. Where an EMC provides investment advice to you in relation to your bond, the charge they apply (in respect of this advice) will be treated as an EMC Investment Adviser Charge (EMC IAC). If you choose to pay EMC IAC from the value of the bond, these charges will not form part of your 5% annual tax-deferred entitlement. This is because the investment advice is being provided on the underlying investments that we legally own. Charges for investment advice provided by an EMC can be paid in a number of different ways, for information about these options please see our Charges Guide. ADMINISTR ATION CHARGES FOR BONDS MAN A GED BY AN E MC QUA R T ERLY ADMI N CHARGE I N V E STMENT C O STS Standard charge is In some circumstances, the individual administration charge level may be reduced to per quarter if the EMC is able to provide us with an electronic valuation data feed for your bond in a format that is acceptable to us. We do not charge a dealing fee for transferring money to or from the EMC. We do not take individual dealing charges for each fund or cash deposit bought and sold by the EMC. A charge of 12 will be made every time money is transferred by CHAPS to an external account (e.g. external managed accounts) to cover third party bank charges incurred. The EMC will make their own charges for operating the investment portfolio which will be deducted from the value of the bond via the external managed account. The appointment of any investment adviser and/or EMC is subject to our agreement. Where trustees are managing the bond, you can request the appointment of an investment adviser and/or EMC at outset, but any removals or further appointments can only be requested by the trustees. Please be aware that the payment for advice options available to the trustees can vary for bonds held in trust. For information about the different advice payment options available to trustees and the potential tax consequences associated, please see our Charges Guide. Tax information is based on our interpretation of current law and taxation practice in the Isle of Man and the UK as at 1 January Tax rules can change and are subject to individual circumstances. U TMO S T - A guide to your investment options 15

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17 W HAT IS THE D E ALING ACCOUNT? The main purpose of the dealing account is to enable the purchase and sale of the investments linked to your bond. A dealing account is only required for bonds held within Open Architecture. Once a dealing account has been set up, it will remain in force and a higher quarterly administration charge will apply. H O W DOES THE DE ALING ACCOUNT WORK? The dealing account forms part of the holdings to which the value of your bond is linked. The value of the dealing account will depend on the level of activity through it and other factors such as (but not limited to): i) the amount of any sums retained within the dealing account; ii) any interest rates applied to debit and credit balances; iii) product charges incurred, which are also allocated to the dealing account as they arise; and iv) withdrawals and any adviser charges that you have authorised to be deducted from your bond. There must be sufficient cash in the dealing account, or expected proceeds from sales being placed, to cover the cost of any product charges, charges for advice, withdrawals and purchases requested. By default we will set up the dealing account in the same currency as your bond. Separate dealing accounts are created for other currencies if the investments purchased are not based in the currency of the bond. When investments are sold, the proceeds will be held in the currency the investment was based in. It will remain in that currency until such time as a suitable instruction to convert to another currency is received or if the funds are used to clear a negative balance on a dealing account in another currency. We retain discretion as to where any money linked to the dealing account is invested. If this is held with a third party deposit taker, the value of your bond may be adversely affected in the event of the deposit taker s default. Our liability in these circumstances will be limited to such amounts, if any, which we may be able to recover from the defaulting third party. WHAT INT EREST I S PAI D OR CHARGED ON A DE ALING ACCOUNT BALAN C E? Where a dealing account is in credit, the interest rate applied is based on the rates obtained from our main bankers and the balance on the account. It is important to note, that when interest rates are very low, it is possible that a dealing account may earn no interest at all despite being in credit and for some currencies this could result in a negative rate of interest being applied. Where a negative rate is applied the dealing account will be charged. It is possible for a dealing account to hold a negative balance, for instance, when charges are applied or when investment funds are changed. Debit interest on a Sterling account is currently charged at 5% above the highest interest rate we would apply on credit balances. Rates for accounts held in currencies other than Sterling may be different and are available from us on request. Rates are reviewed regularly and can change at any time. For example, as at 4 January 2016, on Sterling overdrawn balances, the charge would have been 5.0% per annum taken quarterly. This is equivalent to % Annual Equivalent Rate (AER). You can get current Sterling rates, and rates applied for other currencies by calling us on +44 (0) U TMO S T - A guide to your investment options 17

18 WHAT I S THE DE ALING ACCOUNT? C ONT INUED H O W CAN A DE B I T BALAN C E BE P REV ENT E D? Some of the investment can be retained in the dealing account to cover any debits which may arise. Alternatively, you can set up standing instructions to clear any negative balances through the sale of funds. Whilst you cannot choose to have a standing instruction that includes fixedterm cash deposits, you can choose an instant access cash deposit. We reserve the right to sell investments at any time to cover monies due to us, or to delay purchases to prevent an unacceptable level of debit balances occurring. We will clear a dealing account s negative balance in the following order: 1. By transfer of cash from a dealing account in another currency. 2. By sale of one or more underlying funds or deposits as selected by you or your investment adviser. 3. If we do not hold a standing instruction to clear the debit balance, we will clear it by selling units in the highest valued fund. If the selected fund or highest valued fund is suspended, then we will cancel units in the highest valued redeemable fund. Any fees and redemption penalties applied by the fund manager will be applied to the dealing account. We will clear an overdraft once the overdrawn amount reaches 2,000 for each external fund that you have chosen to clear it from (or 100 for each fund in the Utmost Fund Collection). This works as follows: If we were clearing the overdraft from one external fund, the overdraft would be cleared once it reached 2,000 (or currency equivalent). If we were clearing from three external funds, equally, the overdraft would be cleared once it reached 6,000 (or currency equivalent). This equals 2,000 for each of the three deals. If we were clearing from one fund from the Utmost Fund Collection, the overdraft would be cleared once it reached 100 (or currency equivalent). If we were clearing from three funds from the Utmost Fund Collection equally, the negative balance would be cleared once it reached 300 (or currency equivalent). This equals 100 for each of the three deals. If you choose to clear a negative balance using different funds in different proportions, the debit will only be cleared when the smallest percentage reaches the minimum dealing level of 100 (for funds within the Utmost Fund Collection) or 2,000 (for external funds). For example, if you choose to clear the debit using 10% from one external fund and 90% from another, then the debit balance will only be cleared once it reaches 20,000 ( 20,000 x 10% = 2,000). A dealing fee will be applied to the sale of each external fund or cash deposit. The settlement of funds generally takes 10 working days. However, it should be noted that this is just a guide as some funds, for example those with infrequent dealing days, could take considerably longer. Where you choose to have your investment managed by an EMC, it is the responsibility of the EMC to maintain sufficient liquidity within the dealing account to ensure overdraft balances do not occur. 18 U TMO S T - A guide to your investment options

19 N E XT STE PS Your financial adviser will be able to help you with any questions you may have about the investment choices available to you through our products. It is important that you discuss your financial needs and circumstances with a financial adviser so that you can find out what s right for you, before deciding to invest in a bond or making any financial decisions. For further details regarding investment options available with products offered by Utmost Limited please contact our Customer Support team on: +44 (0) Telephone calls may be recorded. U TMO S T - A guide to your investment options 19

20 CONTACT US To find out more please contact us: +44 (0) Utmost Limited Royalty House Walpole Avenue Douglas Isle of Man IM1 2SL British Isles I M O Please note that s are not secure as they can be intercepted, so think carefully before sharing personal or confidential information in this way. Telephone calls may be recorded. Utmost Wealth Solutions is the brand name used by a number of Utmost companies. This item is issued by Utmost Limited. The following Isle of Man registered companies are, where regulated, licensed by the Isle of Man Financial Services Authority. Regulated: Utmost Limited (No C), Utmost Administration Limited (No C) and Utmost Trustee Solutions Limited (No C). Non-Isle of Man regulated: Utmost Services Limited (No C). Each has its registered office at: Royalty House, Walpole Avenue, Douglas, Isle of Man, IM1 2SL, British Isles. Telephone: +44(0) customersupport@utmostwealth.com Web: Telephone calls may be recorded. T +44 (0) E customersupport@utmostwealth.com W IOM PR 0082/