Collective Redemption Bond

The Collective Redemption Bond is an offshore based single premium redemption contract. A redemption contract is one which has no life cover. This means it does not end on the death of the policyholder and can be passed to future generations. The Collective Redemption Bond offers investments in funds which are virtually free of capital gains and income taxes. (Withholding tax may be payable on certain dividend income in its country of origin.)

Benefits

Access to nearly any open ended fund in the market.

Convenience of holding all your assets in one portfolio.

Easy access to capital.

No life cover so ideal for inheritance tax planning.

Access to withdrawals up to 5% per annum for up to 20 years without immediate liability to tax.

Quarterly valuations.

Access to Royal Skandia Trust Company and Royal Skandia's own trust range for effective inheritance tax planning.

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.

Who is eligible?

UK residents.

Minimum and maximum ages

Minimum 18; no maximum.

Minimum contribution

£25,000 minimum initial single contribution.
£2,500 additional single contribution.

Term

99 years.

This web page is only intended as a general introduction to the Collective Redemption Bond. Full details of the product can be found in the Collective Redemption Bond product brochure available from your financial adviser.

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Information on this website is not intended for Hong Kong residents. Information on this website about Skandia Group Companies is intended for UK residents only, unless it relates to Royal Skandia, Skandia Life Norge or Suomen Sivuliike. Skandia Group companies do not offer investment advice and no information on this website should be construed as such.

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