Trustee Investment Plan from Aviva. A guide for pension scheme trustees

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1 Trustee Investment Plan from Aviva A guide for pension scheme trustees

2 Why choose Aviva? Around the world, Aviva provides around 34 million customers with life assurance, savings and investment products*. Aviva is Ireland s leading composite insurer for life, pensions and general insurance products*. Our aim is to provide an efficient and professional service through a range of channels such as Financial Brokers, financial institutions and our website We combine strong life assurance, general insurance and asset management businesses under one powerful brand. We are committed to serving our customers well in order to build a stronger, sustainable business which makes a positive contribution to society. *Source: Aviva annual accounts, March Page 2

3 Contents What is the Trustee Investment Plan? 3 Is the Trustee Investment Plan right for you? 3 Investing in the Trustee Investment Plan 4 Withdrawing money from the Trustee Investment Plan 5 Setting up a Trustee Investment Plan 5 The Charges 6 Talk to a Financial Broker 7 Important Notes 7 A commitment to quality service 8 Ensuring the Policy meets your needs 8 Page 1

4 Your guide to the Trustee Investment Plan As a trustee, the Trustee Investment Plan from Aviva could be the ideal solution for your investment needs. This guide outlines the benefits of investing in the Trustee Investment Plan from Aviva and answers some of the questions you may have. Who can invest in a Trustee Investment Plan? You can invest in the Trustee Investment Plan if you are a trustee of a scheme that is an exempt approved scheme and has been approved by the Revenue Commissoners under Chapter 1, Part 30 of the Taxes Consolidation Act, 1997.

5 What is the Trustee Investment Plan? It s an investment policy that allows trustees to invest in pension funds in a tax-efficient way. You can only invest assets that are already held under a pension scheme into this policy. It is only open to trustees, so we can t accept money directly from employers or members of the pension scheme into this policy. Here s why we think the Trustee Investment Plan is a good choice for the money from the scheme. The main advantages of the Trustee Investment Plan Access to a range of professionally managed funds The Trustee Investment Plan offers you a comprehensive range of funds, including both mixed asset and specialist funds. The funds range from low to high risk, so there should be an option to suit your needs. Ability to spread the investment risk By investing in a number of asset types, you can spread your investment risk. Active investment management You can have complete control over your investment. No charge for moving to different funds You re free to switch your money between funds as often as you need to with no charge (but we reserve the right to restrict the number of switches in any given year). Easy access to your investment You can take withdrawals from the policy as often as you need. Tax advantages Any growth in the funds is free of Irish income and capital gains tax. Please be aware the value of an investment in the Trustee Investment Plan can do down as well as up and you could get back less than the amount invested. Is the Trustee Investment Plan right for you? The Trustee Investment Plan may suit you if you are a trustee of a pension scheme that is exempt approved and has been approved by the Revenue Commissioners under Chapter 1, Part 30 of the Taxes Consolidation Act, want to invest at least one single payment from an existing approved pension scheme. are happy with the choice of funds into which payments can be invested and are happy to take risk with the aim of generating returns. are happy with the charges on this product. are aware that the value of your investments can go down as well as up and you may get back less than your original investment. The Trustee Investment Plan will not suit you if you Are an employer or a member of a pension scheme, looking to invest money directly. are not happy with the charges on this product are not happy with the choice of funds into which payments can be invested and are not happy to take risk with the aim of generating returns. Page 3

6 Investing in the Trustee Investment Plan You can start your policy with a minimum investment of 75,000. Once the policy is up an running, you can make additional investments provided these are 10,000 or more. You can pay into the policy by cheque or by Electronic Funds Transfer (EFT) from your Trustee bank account. Choose from over 20 funds We have a range of funds that you can choose from, investing in up to 10 funds at any one time. You can find out more about the funds and risk ratings in our Your Investment Options guide. We also produce a fund fact sheet for each fund, which gives you more information. You can find these fact sheets on our website We can t give you advice about which funds to choose. For specific advice, taking into account your circumstances, you should talk to a financial broker. Please also read Supplementary Important Information about your Trustee Investment Plan. 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: These products may be affected by changes in currency exchange rates. Move your money between funds You can change the funds you invest in at any time. We won t charge you for changing your funds, but we reserve the right to restrict the number of switches carried out in any given year. If you make an additional investment into your policy, you can choose to invest that money in different funds to your existing selection. You just have to make sure that you don t invest in more than 10 funds at any one time. Withdrawing money from the Trustee Investment Plan You can normally make withdrawals from the Trustee Investment Plan at any time. We ll pay the money directly into your Trustee bank account. Withdrawing all or part of your investment You can withdraw all or part of your investment from the policy at any time. You can make as many withdrawals as you like. If you re invested in more than one fund, you can ask us to withdraw money from specific funds. If you don t give us specific instructions, we ll take the money equally from each of the funds you are invested in. For example, if you want to withdraw a third of the value of your investment and you re invested in five funds, we ll cancel one-third of the value of each fund. Any withdrawals or transfers must be authorised by the two named trustees on the application form. Setting up a Trustee Investment Plan To set up a Trustee Investment Plan, you need to send us: A completed application form, giving us details of: The name and details of the scheme you are transferring money from Names and details of two trustees who are authorised to invest/withdraw money on behalf of the scheme A signed trustee declaration Y our investment by cheque or Electronic Funds Transfer (EFT) from your Trustee bank account. A certified copy of the pension scheme s Revenue Approval letter must accompany your application. Page 4

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8 The Charges We don t take any up-front charge for setting up your policy. Instead, we take an annual fund charge for managing and administering your policy. The annual fund charge will be determined by the amount you invest in the Trustee Investment Plan. The annual fund charge is based on the value of the funds your policy is invested in. Annual Fund Charge* and Available Funds Fund Name Original Investment Amount 75, ,000 Annual Fund Charge Original Investment Amount 250,000 + Cash Fund 0.80% 0.75% Multi Asset Fund Cautious (Risk 3) 0.80% 0.75% Bond Fund 0.80% 0.75% Long Bond Fund 0.80% 0.75% Multi Asset Fund Strategic (Risk 4) 0.80% 0.75% Corporate Bond Fund 0.80% 0.75% Aviva Investors Multi-Strategy (AIMS) Target Return Fund (Ireland) 1.15% 1.10% Merrion Multi Asset 70 Fund 0.80% 0.75% Irish Property Fund 1.05% 1.00% UK Property Fund 1.05% 1.00% Multi Asset Fund Dynamic (Risk 5) 0.80% 0.75% High Yield Equity Fund 0.80% 0.75% Eurozone Equity Income Fund 0.80% 0.75% Asia Pacific Equity Income Fund 1.05% 1.00% Emerging Market Equity Income Fund 0.80% 0.75% Legal & General Investment Management Multi Index III Fund 0.75% 0.70% Legal & General Investment Management Multi Index IV Fund 0.75% 0.70% Legal & General Investment Management Multi Index V Fund 0.75% 0.70% *The annual fund charge is based on percentages of the value of the funds to which the policy is linked and is made up as follows: 1. A fund management charge which is deducted daily from the fund(s) and reflected in the unit price, and if applicable 2. (i) an additional management charge deducted monthly by cancellation of units proportionately across the range of funds to which the policy is linked, and / or (ii) an allowance against the fund management charge which is added monthly by allocation of units proportionately across the range of funds to which the policy is linked. The annual fund charge applying is determined by the original investment amount and not the current fund value. The annual fund charge applying to your fund(s) will be shown on your Trustee Investment Certificate and maybe different to those shown above because of any premium or fund based commission applying to your policy. New funds with different annual fund charges may be added from time to time. Where a fund invests in another fund(s), additional charges may apply. These charges may vary depending on the specific investments in each fund. Where these charges are applied, they are reflected in the unit price. As a result, the overall charge may be higher than shown in the product documentation. Page 6

9 Important Notes 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 you 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 terms and 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 propertyrelated 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 (as outlined on in the policy terms and conditions) subject to any legislative limits. Should any increase in the fund charges and fees occur you 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. 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: These products may be affected by changes in currency exchange rates. Talk to a Financial Broker We strongly recommend that you talk to a Financial Broker to ensure this policy meets your needs. The Trustee Investment Plan at a glance: Available to trustees only Invest in up to 10 funds at a time Minimum investment of 75,000 Top-up investments from 10,000 a time Potential for tax-efficient growth of your investment Competitive charges Withdrawals available Page 7

10 A commitment to quality service Any enquiries or complaints regarding your policy should be in the first instance directed to our Group Pensions Department. We will endeavour to ensure that all matters in relation to your policy are dealt with in a satisfactory manner. In the event that you are dissatisfied on any matter, you may refer your complaint to one or more of these offices: Financial Services Ombudsman s Bureau 3rd Floor, Lincoln House, Lincoln Place, Dublin 2 Tel: Fax: (01) enquiries@financialombudsman.ie Website: Office of the Pensions Ombudsman 4th Floor, Lincoln House, Lincoln Place, Dublin 2 Tel: (01) Fax: (01) info@pensionsombudsman.ie Website: The Pensions Authority Verschoyle House, 28/30 Upper Mount Street, Dublin 2 Tel: (01) Fax: (01) info@pensionsauthority.ie Website: Full details of the remit of the Financial Services Ombudsman s Bureau, the Office of the Pensions Ombudsman and the Pensions Authority can be obtained directly from their respective offices. Ensuring the policy meets your needs We only want you to have a Trustee Investment Plan if you are satisfied that it is the right plan for you. So, shortly after your Trustee Investment Plan has started, we will send you the full documentation governing your Plan. You will then have a cancellation period of 30 days from the date on which your plan documentation is issued to change your mind. Study the documents and, if you would like to cancel the arrangement, simply return the documents and a signed notice of cancellation to our branch: The Customer Services Manager, Aviva Life & Pensions Ireland, One Park Place, Hatch Street, Dublin 2. We will cancel your Trustee Investment Plan and, subject to the relevant legislation, apply it as instructed by you. The amount returned to you will be reduced in respect of any fall in the value of the underlying investments since the policy s inception. Page 8

11 Financial Services Compensation Scheme The UK Financial Services Compensation Scheme (FSCS) provides protection to consumers by allowing them to claim compensation in the event that a UK authorised financial services firm (such as Aviva Life & Pensions UK Limited) is unable to meet claims made against it. Aviva Life & Pensions UK Limited trading as Aviva Life & Pensions Ireland has been covered by the FSCS for policies issued since the 1 January In the unlikely event that we cannot meet our financial obligations, you may be entitled to compensation from the FSCS for policies issued since the 1 January 2015 depending on the type of product (or type of fund in the case of investment products) and the circumstances of the claim. For further information, see or telephone This brochure has been produced by Aviva Life & Pensions UK Limited. Great care has been taken to ensure the accuracy of the information it contains. However, the company cannot accept responsibility for its interpretation, nor does it provide legal or tax advice. This brochure is based on Aviva s understanding of current law, tax and Revenue practice, November Copyright Aviva Life & Pensions UK Limited, November Page 9

12 Aviva Life & Pensions UK Limited, trading as Aviva Life & Pensions Ireland, is authorised by the Prudential Regulation Authority in the UK and is regulated by the Central Bank of Ireland for conduct of business rules. Aviva Life & Pensions UK Limited, trading as Aviva Life & Pensions Ireland, is also regulated in the UK: by the Prudential Regulation Authority for prudential rules and, to a limited extent, by the Financial Conduct Authority for applicable UK conduct rules. Registered Branch Office in Ireland (No ) at One Park Place, Hatch Street, Dublin 2. Tel (01) Web Registered in England ( ) at Wellington Row, York, YO90 1WR