For Financial Broker Use Only. Your Guide to ARFs / AMRFs from Aviva

Transcription

1 For Financial Broker Use Only Your Guide to ARFs / AMRFs from Aviva

2 text Is the ARF / AMRF Options Product Range right for your customer? The ARF / AMRF Options Product Range may suit your customer if they: The ARF / AMRF Options Product Range may not suit your customer if they: Are retired and they have taken a tax-free lump sum of up to 25% of their pension fund value and now wish to invest the remaining balance of their fund. Are happy with the charges on the ARF / AMRF Options product they have chosen to invest in. Would like to take a regular withdrawal of up to 15% of the fund value each year. Are happy with the choice of funds on the ARF / AMRF Options product they have chosen to invest in. Want to pass on the money in their ARF / AMRF to their family when they die. Are not retired or they have taken a taxfree lump sum of up to 1.5 times their final salary. Are not happy with the charges on any of the ARF / AMRF Options range of products. Require a regular withdrawal of greater than 15% of the fund value each year. Are not happy with the choice of funds on the ARF / AMRF Options range of products. Want a guaranteed income for the rest of their life. 2

3 The ARF text/ AMRF Options Product Range The ARF / AMRF Options products are unit-linked single contribution postretirement investment products. To invest in an ARF, customers must have a guaranteed pension income of at least 12,700 per annum. If they do not, then they must have at least 63,500. in an AMRF or in an annuity or a combination of both. Contributions into both the ARF and / or AMRF can only be made as one off payments and the source of the contribution must come from an approved pension arrangement or from another ARF and / or AMRF managed by another qualifying fund manager (QFM). 1

4 ARF / AMRF Option A a summary of the charging structure Minimum Investment The minimum investment is 12,700. Allocation Rates Investment Amount Gross Allocation Rate (before deduction of commission) < 75, % 75, , % 150, , % 500, % Where an ARF and AMRF are taken out together, the total of the ARF and AMRF investment amounts will be used to determine the allocation rate. Annual Fund Charge* The Annual Fund Charge is 1.00% p.a., except for the following funds: Fund Aviva Irl SRI High Yield Equity Fund Aviva Irl Irish Property Fund (Series 2) Aviva Irl UK Property Fund (Series 2) Aviva Irl European Commercial Property Fund Aviva Irl AIBIM Managed Aviva Irl BlackRock European Absolute Return Strategies Fund Aviva Irl BlackRock World Gold Fund Aviva Irl BlackRock World Mining Fund Aviva Irl BlackRock World Energy Fund Aviva Irl BlackRock New Energy Fund Aviva Irl Protected Growth Fund Annual Fund Charge 1.25% p.a. 1.25% p.a. 1.25% p.a. 1.65% p.a. 1.10% p.a. 1.65% p.a.** 1.65% p.a. 1.65% p.a. 1.65% p.a. 1.65% p.a. 1.65% p.a. New funds with different fund charges may be added from time to time. * This charge is based on the value of the funds your policy is invested in. The Annual Fund Charge is made up of: (1) a fund management charge which is deducted daily from the unit price of the fund(s) and (2) a unit charge which is taken monthly by deduction of units from the value of your fund(s). If you are invested in more than one fund, this charge will be taken proportionately across the range of funds in which the policy is invested. The Annual Fund Charge applying to your fund(s) will be shown on your policy schedule. ** A performance fee may be payable for investing in the Aviva Irl BlackRock European Absolute Return Strategies Fund. This fee is calculated as 20% of the return above the 3 month Euro London Inter- Bank Offered Rate (Euro LIBOR). See Investing in Absolute Return Funds brochure for further details. 2

5 Fund Switching Charge The first 6 switches in every policy year are free of charge. There is a 30 charge per switch thereafter. Early Surrender Charge An early surrender charge applies to the ARF / AMRF where the policy is transferred in whole or in part to another Qualifying Fund Manager, another ARF / AMRF product or used to purchase an annuity. The early surrender charge also applies where a full or partial encashment is made within the first 5 years. Early Surrender Charge Charge as a % of amount surrendered Year 1 5% Year 2 5% Year 3 5% Year 4 3% Year 5 1% This charge does not apply if the customer chooses to switch all or part of their money between funds within their Aviva ARF / AMRF. Charge for Regular Income Regular income can be taken from an ARF on a monthly, quarterly, half-yearly or yearly basis. The maximum regular income that can be taken from the ARF is 15% of the current fund value. There is a charge of 3.81 for each regular income payment. Regular income cannot be taken from an AMRF. Withdrawals from an AMRF will be limited to the amount (if any) by which the original sum invested has grown in value. Charge for Partial Encashments The minimum partial encashment is 600. There is a charge of 30 for each partial encashment. Commission Options Premium Based Commission Premium based commission of between 0% and 5% is available on ARF / AMRF Option A and is payable in bands of 0.25%. There is no commission clawback on ARF / AMRF Option A. Fund Based Commission Fund based commission of between 0% and 1.00% is available on ARF / AMRF Option A. It is payable in bands of 0.05% between 0% and 0.50% and bands of 0.25% between 0.50% and 1.00%. Fund based commission is paid for by cancelling units in the fund(s) and is payable monthly. It is available on its own or in conjunction with premium based commission. 3

6 ARF / AMRF Option B a summary of the charging structure Minimum Investment The minimum investment is 12,700. Allocation Rates Investment Amount Gross Allocation Rate (before deduction of commission) < 75, % 75, , % 150, , % 300, , % 500, % Where an ARF and AMRF are taken out together, the total of the ARF and AMRF investment amounts will be used to determine the allocation rate. Annual Fund Charge* The Annual Fund Charge is 0.70% p.a., except for the following funds: Fund Aviva Irl SRI High Yield Equity Fund Aviva Irl Irish Property Fund (Series 2) Aviva Irl UK Property Fund (Series 2) Aviva Irl European Commercial Property Fund Aviva Irl AIBIM Managed Aviva Irl BlackRock European Absolute Return Strategies Fund Aviva Irl BlackRock World Gold Fund Aviva Irl BlackRock World Mining Fund Aviva Irl BlackRock World Energy Fund Aviva Irl BlackRock New Energy Fund Aviva Irl Protected Growth Fund Annual Fund Charge 0.95% p.a. 0.95% p.a. 0.95% p.a. 1.35% p.a. 0.80% p.a. 1.35% p.a.** 1.35% p.a. 1.35% p.a. 1.35% p.a. 1.35% p.a. 1.35% p.a. New funds with different fund charges may be added from time to time. * This charge is based on the value of the funds your policy is invested in. The Annual Fund Charge is made up of: (1) a fund management charge which is deducted daily from the unit price of the fund(s) and (2) a unit charge which is taken monthly by deduction of units from the value of your fund(s). If you are invested in more than one fund, this charge will be taken proportionately across the range of funds in which the policy is invested. The Annual Fund Charge applying to your fund(s) will be shown on your policy schedule. ** A performance fee may be payable for investing in the Aviva Irl BlackRock European Absolute Return Strategies Fund. This fee is calculated as 20% of the return above the 3 month Euro London Inter- Bank Offered Rate (Euro LIBOR). See Investing in Absolute Return Funds brochure for further details. 4

7 Fund Switching Charge The first 6 switches in every policy year are free of charge. There is a 30 charge per switch thereafter. Early Surrender Charge An early surrender charge applies to the ARF / AMRF where the policy is transferred in whole or in part to another Qualifying Fund Manager, another ARF / AMRF product or used to purchase an annuity. The early surrender charge also applies where a full or partial encashment is made within the first 5 years. Early Surrender Charge Charge as a % of amount surrendered Year 1 5% Year 2 5% Year 3 5% Year 4 3% Year 5 1% This charge does not apply if the customer chooses to switch all or part of their money between funds within their Aviva ARF / AMRF. Charge for Regular Income Regular income can be taken from an ARF on a monthly, quarterly, half-yearly or yearly basis. The maximum regular income that can be taken from the ARF is 15% of the current fund value. There is a charge of 3.81 for each regular income payment. Regular income cannot be taken from an AMRF. Withdrawals from an AMRF will be limited to the amount (if any) by which the original sum invested has grown in value. Charge for Partial Encashments The minimum partial encashment is 600. There is a charge of 30 for each partial encashment. Commission Options Premium Based Commission Premium based commission of between 0% and 5% is available on ARF / AMRF Option B and is payable in bands of 0.25%. There is no commission clawback on ARF / AMRF Option B. Fund Based Commission Fund based commission of between 0% and 1.00% is available on ARF / AMRF Option B. It is payable in bands of 0.05% between 0% and 0.50% and bands of 0.25% between 0.50% and 1.00%. Fund based commission is paid for by cancelling units in the fund(s) and is payable monthly. It is available on its own or in conjunction with premium based commission. 5

8 ARF / AMRF Option C a summary of the charging structure Minimum Investment The minimum investment is 250,000. This could be made up of 63,500. going into the AMRF and 186,500 going into the ARF. Alternatively if your customer is investing in an ARF only the minimum investment will be 250,000. Option C is not suitable if your customer is investing in an AMRF only. Allocation Rates Investment Amount Gross Allocation Rate (before deduction of commission) 250, % Annual Fund Charge* The Annual Fund Charge is 0.50% p.a., except for the following funds: Fund Aviva Irl SRI High Yield Equity Fund Aviva Irl Irish Property Fund (Series 2) Aviva Irl UK Property Fund (Series 2) Aviva Irl European Commercial Property Fund Aviva Irl AIBIM Managed Aviva Irl BlackRock European Absolute Return Strategies Fund Aviva Irl BlackRock World Gold Fund Aviva Irl BlackRock World Mining Fund Aviva Irl BlackRock World Energy Fund Aviva Irl BlackRock New Energy Fund Aviva Irl Protected Growth Fund Annual Fund Charge 0.75% p.a. 0.75% p.a. 0.75% p.a. 1.15% p.a. 0.60% p.a. 1.15% p.a.** 1.15% p.a. 1.15% p.a. 1.15% p.a. 1.15% p.a. 1.15% p.a. New funds with different fund charges may be added from time to time. * This charge is based on the value of the funds your policy is invested in. The Annual Fund Charge is made up of: (1) a fund management charge which is deducted daily from the unit price of the fund(s) and (2) a unit charge which is taken monthly by deduction of units from the value of your fund(s). If you are invested in more than one fund, this charge will be taken proportionately across the range of funds in which the policy is invested. The Annual Fund Charge applying to your fund(s) will be shown on your policy schedule. ** A performance fee may be payable for investing in the Aviva Irl BlackRock European Absolute Return Strategies Fund. This fee is calculated as 20% of the return above the 3 month Euro London Inter- Bank Offered Rate (Euro LIBOR). See Investing in Absolute Return Funds brochure for further details. 6

9 Fund Switching Charge The first 6 switches in every policy year are free of charge. There is a 30 charge per switch thereafter. Charge for Regular Income Regular income can be taken from an ARF on a monthly, quarterly, half-yearly or yearly basis. The maximum regular income that can be taken from the ARF is 15% of the current fund value. There is a charge of 3.81 for each regular income payment. Regular income cannot be taken from an AMRF. Withdrawals from an AMRF will be limited to the amount (if any) by which the original sum invested has grown in value. Charge for Partial Encashments The minimum partial encashment is 600. There is a charge of 30 for each partial encashment. Commission Options Premium Based Commission Premium based commission of between 0% and 5% is available on ARF / AMRF Option C and is payable in bands of 0.25%. There is commission clawback on ARF / AMRF Option C. Commission clawback will apply in the first two years and will be applied where the ARF / AMRF is transferred to another QFM, another ARF / AMRF product or used to purchase an annuity. Commission clawback also applies on full or partial encashments made within the first two years. It will be calculated as follows: Commission Paid x (24 number of complete months since payment) / 24. Fund Based Commission Fund based commission of between 0% and 1.00% is available on ARF / AMRF Option C. It is payable in bands of 0.05% between 0% and 0.50% and bands of 0.25% between 0.50% and 1.00%. Fund based commission is paid for by cancelling units in the fund(s) and is payable monthly. It is available on its own or in conjunction with premium based commission. 7

10 Important Fund Information The information below applies to the 3 ARF / AMRF products described in this brochure. 1. From time to time, some of the funds may also hold a proportion of their assets in cash. 2. Investment values and unit prices are not guaranteed; they can fall as well as rise, as a result of stockmarket and/or currency fluctuations and your customer may not get back the full amount invested. 3. Property investments cannot be sold as easily or quickly as equities or bonds so, in order to protect the interest of the remaining investors, in some circumstances, encashment of units from funds that invest directly or indirectly in property may be deferred for a period not exceeding six months. For all other funds, encashments of units may be deferred for a period not exceeding three months. Please see a copy of the policy conditions for further information. 4. There may be circumstances when the number and/or amount of investor withdrawals from the fund leads to a need to sell a proportion of the underlying assets. In such circumstances, Aviva reserves the right to adjust the unit price of the funds, to reflect the costs involved in selling the necessary assets. As a result, investors withdrawing money would bear the costs of realising all or part of their investment. For funds holding a significant proportion of property-related assets, given the costs associated with buying and selling properties, this adjustment can be significantly higher than that applying to funds invested in other asset classes. 5. Aviva reserves the right to increase the fund charges and fees subject to any legislative limits. Should any increase in the fund charges and fees occur the policyholder will be given 30 days notice of such an increase in writing. The fund charges apply to the value of the investments and are deducted daily from the fund and/or taken monthly by cancellation of units. Aviva may from time to time close or merge the funds or offer the opportunity to invest in new funds not listed previously. These new funds may have fund charges different to those shown previously. 8

11 Under Aviva Life & Pensions Ireland Limited s agreement with BlackRock the Aviva Irl BlackRock unit linked fund described herein is not available for distribution to, or investment by, US residents or citizens. They may not be directly or indirectly offered or sold in the USA or any of its territories or possessions or areas subject to its jurisdiction or to or for the benefit of a US person. Warning: The value of your investment may go down as well as up. Warning: If you invest in this product you may lose some or all of the money you invest. Warning: The income you get from this investment may go down as well as up. Warning: These products may be affected by changes in currency exchange rates. Warning: Withdrawals and switches from funds investing directly or indirectly in property may be deferred for up to 6 months. Warning: Withdrawals and switches from all other funds may be deferred for up to 3 months.

12 Aviva Life & Pensions Ireland Limited. A private company limited by shares. Registered in Ireland No Registered Office One Park Place, Hatch Street, Dublin 2. Member of the Irish Insurance Federation. Aviva Life & Pensions Ireland Limited is regulated by the Central Bank of Ireland. Life & Pensions One Park Place, Hatch Street, Dublin 2. Phone (01) Fax (01) Telephone calls may be recorded for quality assurance purposes