Optional five year guarantee
We know it’s vital for your client to feel at home and relaxed with their investment choice. That’s why we offer the option of a five year capital guarantee.
Latest guarantee charges
Fund option | Monthly equivalent | Equivalent per year |
|---|---|---|
Balanced Series 2 | 0.217% | 2.6% |
Cautious Series 2 | 0.142% | 1.7% |
If your client decides to select either the cautious or balanced fund option they can buy a capital guarantee when they take out their bond, or at any time afterwards while their bond is invested in these funds.
When your client buys a guarantee, we promise that the bond will be worth at least the amount it was when you bought it- on the fifth anniversary from that date, less any money they’ve taken out. Naturally, if the bond is worth more than the guaranteed amount at the end of the five year period they get the extra as well.
Your clients with a guarantee could get back less than they invested if they:
- cash in the bond at any time other than the day of the guarantee
- don't buy a new guarantee after the guarantee period finishes.
Buying a guarantee like this means they can lock in any gains their investment has made, or if they’re worried that markets will fall, they can use a guarantee to protect their investment.
What’s more, unlike many ‘guarantees’, ours applies whether they choose to cash in the bond at the end of five years or not.
The guarantee period lasts for five years from the date of purchase. If your client doesn't cash in on the fifth guarantee anniversary we'll:
- add units to the bond to increase the value of the bond if it's lower than the guaranteed amount (less any withdrawals)
- automatically add another guarantee (unless your client has told us not to)
Guarantees are purchased at an additional monthly charge and explained fully in our Key Features Document and Bond Conditions.
Awards
