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Flexible Guarantee Bond optional guarantee

Your client can buy a capital guarantee when they take out their bond or at any time afterwards while their bond is invested.

When your client buys a guarantee, we promise that, at the end of the selected guarantee term, the bond will be worth at least the amount it was when they bought it, less any money paid during the guarantee term. Naturally, if the bond is worth more than the guaranteed amount at the end of the guarantee term they get the extra as well.

If your clients have a guarantee they could get back less than they invested if they:

  • Cash in the bond at any time other than the end date 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 the guarantee term or not.

If your client doesn't cash in at the end of the selected guarantee term we'll add units to the bond to increase its value if it's lower than the guaranteed amount (less any money paid out).

Guarantee charges

If your client already has a Flexible Guarantee Bond, with a guarantee, the charge for this is shown on their Bond Summary or Guarantee Endorsement and their Yearly Statements.

If your client is thinking of investing in a Flexible Guarantee Bond, or they already have a bond and are thinking of either purchasing a new guarantee, replacing their existing guarantee (to lock in gains), or their current guarantee term is ending soon, the tables below show the current charges for new guarantees.

The guarantee choices available will depend on the date the bond started.

On or after 12 June 2017

We offer a range of guarantee terms to help you tailor the guarantee to your client’s investment or retirement income strategy.

If their bond started on or after 12 June 2017 (FGB(S3)1 or FTA TC's & C's ref is FTA6 or FTABD2), your client can choose from the following fund guarantee options:

Guarantee Term (Years)/Fund

8

9

10

Cautious Fund

1.40%

1.20%

1.00%

Balanced Fund

N/A

N/A

1.30%

Managed Growth Fund

N/A

N/A

1.50%

The guarantee charge is taken monthly as 1/12 of the annual charge. The guarantee terms we offer may change over time. However, we’ll always offer at least a 10 year guarantee term on each fund option.

Between 22 October 2012 to 11 June 2017

We offer a range of guarantee terms to help you tailor the guarantee to your client’s investment or retirement income strategy.

If their bond started between 22 October 2012 and 11 June 2017 (FGB2(1) or FGB2(2) or FTA TC's & C's ref is FTA4, FTA5 or FTABD1), your client can choose from the following fund guarantee options:

Guarantee Term (Years)/Fund

8

9

10

Cautious Fund

1.20%

0.90%

0.70%

Balanced Fund

N/A

N/A

1.00%

Managed Growth Fund

N/A

N/A

1.70%

The guarantee charge is taken monthly as 1/12 of the annual charge. The guarantee terms we offer may change over time. However, we’ll always offer at least a 10 year guarantee term on each fund option.

Between 20 August 2012 to 5 September 2014

We offer a range of guarantee terms to help you tailor the guarantee to your client’s investment or retirement income strategy.

If their bond started between 9 August 2010 and 17 August 2012 (FGB3), your client can choose from the following fund guarantee options:

Guarantee Term (Years)/Fund

8

9

10

Cautious Fund

1.20%

0.90%

0.70%

Balanced Fund

N/A

N/A

1.00%

Managed Growth Fund

N/A

N/A

1.70%

The guarantee charge is taken monthly as 1/12 of the annual charge. The guarantee terms we offer may change over time. However, we’ll always offer at least a 10 year guarantee term on each fund option.

Between 9 August 2010 and 17 August 2012

If their bond started between 9 August 2010 and 17 August 2012 (FGB2), your client can choose a 5 year guarantee on the following fund options:

Fund option

Yearly charge

Cautious Series 2

1.0%

Balanced Series 2

2.00%

Managed Growth Fund

2.75%

The guarantee charge is taken monthly, as 1/12 of the yearly charge stated in the table.

Between 18 August 2009 and 6 August 2010

If their bond (FGB1) started between 18 August 2009 and 6 August 2010, your client can choose a 5 year guarantee on the following fund options:

Fund Option

Yearly change

Cautious Series 2

1.0%

Balanced Series 2

2.0%

Managed Growth

2.75%

The guarantee charge is taken monthly, as 1/12 of the yearly charge stated in the table.

Please remember that these charges can be changed at any time.

Guarantees are bought at an extra monthly cost and are explained fully in our Key Features Document and Bond Conditions.

Please remember that these charges can be changed at any time.

Guarantees are bought at an extra monthly cost and are explained fully in our Key Features Document and Bond Conditions.

0800 681 6292

TextDirect: first dial 18001

09:00am - 17:00pm Monday - Friday

We may record and/or monitor calls for training and audit purposes.

Literature

Performance

Performance

Read more about the current performance and asset allocation of our Flexible Guarantee Bond.

More about performance

Fund options

Fund options

Find out about our three 'ready-made' fund options managed by a team of investment experts.

View the three fund options

Membership rights

Membership rights

Taking out a Flexible Guarantee Bond Series 3 entitles your client to membership rights.

More about membership rights

Contact us

Contact us

Read more about where we're based and all of our contact information.

Contact our retirement specialists

FOR UK FINANCIAL ADVISERS ONLY
LV=, County Gates, Bournemouth, BH1 2NF, UK