Collective Redemption Bond
The Collective Redemption Bond is a flexible lump sum investment. It allows you to take advantage of a wide range of investment opportunities and offers the convenience of holding all your funds in one portfolio. It provides a great opportunity to achieve capital growth with the minimum amount of administration.
Benefits
Extensive choice of investment funds from many of the world’s
leading managers.
Ability to transfer existing fund holdings into your policy.
Option to delegate fund management responsibilities by appointing a fund adviser.
Option to select a custodian by using the selected custodian facility.
Easy access to capital – total or part surrender at any time with the option to take regular withdrawals to provide an ‘income’.
Competitive choice of charges.
Paperwork and record keeping made easy.
Invest and denominate your policy in one of a range of the world’s major currencies.
An early encashment charge may apply if the Bond is encashed in the early years.
Risks
The value of fund units can go down as well as up and investment growth cannot be guaranteed.
If you cash in the bond early, or take withdrawals that exceed the growth, you may get less back than you paid in.
If you invest in a fund that holds investments in another currency, there may be additional risks because of exchange rate fluctuations.
Tax-efficient growth
Whichever investment funds you select, growth can be achieved tax-efficiently. As Royal Skandia is based on the Isle of Man, it is not currently liable to any form of tax in respect of the income and gains on policyholder funds. This means that, with the exception of certain investment income that may be subject to a tax deduction in its country of origin, the Collective Redemption Bond will grow tax-free. Policyholders may be liable to taxation on any gains made on the Account.
Policyholder protection and peace of mind
Of all the major offshore centres, only the Isle of Man has a statutory compensation scheme for life assurance companies. This means that Royal Skandia investors benefit from unrivalled protection.
Who is eligible?
The minimum and maximum age limits for investment are 18 and 89 respectively. The Collective Redemption Bond is designed for international investors.
Minimum premiums
- Minimum initial premium: £25,000 / $37,500 / €37,500 (or currency equivalent).
- Minimum additional premium: £2,500 / $3,750 / or €3,750 (or currency equivalent).
Premiums are accepted in most major currencies.
More information
This page is only intended as a general indication of the Collective
Redemption Bond’s structure. More information on the Collective
Redemption Bond can be found in the client brochure below. We have
also attached Royal Skandia Dealing Instruction Form for our personal
portfolio bonds.
Collective Redemption Bond - client brochure pdf 
Dealing
Instruction Form pdf
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For more information, and advice on the suitability of this Bond, please contact your professional financial adviser.
Investors should be aware that the value of unit-linked contracts is not guaranteed and the prices of units can fall as well as rise. Where a fund invests in securities designated in a different currency to the fund, the value of the fund may rise and fall purely as a result of exchange rate fluctuations. Royal Skandia can give no guarantee that tax reliefs and the tax treatment of funds will remain the same in the future. The value of any reliefs will depend on individuals' circumstances.
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