Zurich Life International offers a simple, manageable opportunity for tax efficient offshore investment at a reasonable cost - The Elite International Bond.
The Elite International Bond enables you to invest internationally, combining the advantages of an offshore life insurance policy with the quality of service normally associated with specialist institutions.
The Elite International Bond is a simple, tax efficient investment which
aims to provide the facility for lump sum investment in a wide spread of international unitised funds, in a tax efficient manner, with the option to receive a regular income.
WHAT IS THE ELITE INTERNATIONAL BOND?
The Elite International Bond is a single premium, unitised, whole life Bond designed to provide investment growth.
This is achieved by crediting your lump sum contribution to a personal Investment Account, within which your contribution is allocated to the investment funds of your choice.
Contributions may be denominated in one of a range of major currencies: Sterling, US Dollars,
Deutschmarks, Hong Kong Dollars or Japanese Yen.
The Bond is designed as a medium to long term investment vehicle. Growth is virtually tax free, because your investment is offshore. You can access part or all of your investment, whenever it suits you.
You can make your own choice of holdings in Zurich Life International's investment funds, including our Guaranteed Accumulation Funds. You may take out a joint holding with someone else. Normally, the holding will pass to the survivor on the first death. Your holdings are unitised and these units represent your share of the entire investment portfolio in each of the funds you have chosen.
All income from the underlying investments of the funds are reinvested. As the value of the investments
change, so too will the value of the units. The Elite International Bond has no bid/offer spread, so you can buy and sell units at one price.
Full details of the range of funds offered by Zurich Life International are available in the
"Guide to your Investments"
under the Funds Section. Each bond will be issued as a cluster of 100 separate, identical policies.
THE GROWTH OF YOUR INVESTMENT
When you invest in an Elite International Bond, 100% of your contribution is invested in full. Your policy document will confirm the number of units you hold in each fund.
Unit prices of the unit linked funds are quoted in the Financial Times and other leading investment journals. You will be sent an annual valuation statement along with information on each fund you hold investments in.
The growth of your investment will depend on the performance of the funds you've chosen. Unit prices in the funds may fall as well as rise. At all times you will have a team of expert fund managers seeking to maximise the returns from your investment.
MINIMUM CONTRIBUTIONS
The figures shown below are the current minimum lump sum contributions accepted into an Elite International Bond:
£10,000
US$15,000
DM25,000
HK$120,000
¥1,500,000
CHF25,000
ADDING TO YOUR BOND
If you are an existing Elite International Bond holder you can invest in a new Elite International Bond and benefit from a reduced minimum investment requirement, currently:
£4,000
US$6,000
DM10,000
HK$48,000
¥600,000
CHF10,000
BONUS ALLOCATION
We will allocate bonus units, based on the value of your investment, to your Elite International Bond on the fifth Policy Anniversary and thereafter on an annual basis.
FUND SWITCHING
You may change the balance of your investment as your personal and financial circumstances change. There will be no administration charge for any switching during the first five years of your investment. However,
Zurich Life International reserves the right to levy a charge of not more than 2% of the Investment Account value after the five year period.
If you switch out of the Guaranteed Accumulation Funds outside the Elite Encashment Dates, the Company reserves the right to apply a Market Level Adjustment to reflect the value of the underlying investments. Elite Encashment Dates fall on the tenth Policy Anniversary and each fifth Policy Anniversary thereafter.
For amounts switched into Guaranteed Accumulation Funds, the Elite Encashment Dates will apply based on the anniversary of the switch rather than on the Policy Anniversary.
LIFE COVER
The Elite International Bond also provides life insurance. Your Bond can be written on the basis of one or more lives insured (up to a maximum of five). The amount payable on the death of the last life insured will be 101% of the Bond's encashment value.
PLAN CHARGES
Zurich Life International makes every effort to keep charges to a minimum.
Any variation of plan charges will be subject to not less than three months notice in writing to all Hong Kong resident Elite International Bond Policy Owners.
Establishment Fee
This charge is taken for the first five years only and is as follows :
|
Time |
Charge % |
|
|
|
Year 1 |
2 |
|
Year 2 |
2 |
|
Year 3 |
1.5 |
|
Year 4 |
1 |
|
Year 5 |
1 |
The Charge is based on the lump sum contribution and is deducted in advance by cancellation of units.
Switching Charges
For Details please see how Elite International Bond Works.
INVESTMENT FUND CHARGES
Management Charges
Investments are subject to a Management Charge which is taken daily by deduction from the unit price on the unit linked funds and by deduction from the dividend on the Guaranteed Accumulation Funds. The charges are as follows:
|
Zurich Life International Funds |
Fund Charge On Fund Value % Per
Annum |
|
|
|
Guaranteed Accumulation Funds |
0.50 |
|
Secure Money Funds |
1.00 |
|
Managed Funds |
1.50 |
|
Specialist Funds - Bonds |
1.25 |
|
Specialist Funds - Equity |
1.50 |
Management Charges - Mirror Funds
Investments are subject to an Underlying Management Charge and an ZIL Management Fee which are taken daily by deduction from the unit price on the unit linked funds. The charges are as follows:
Zurich Life International Mirror Funds
Mirror Fund Range - Underlying Fund Charge 0.8% - 1.75% per annum
ZIL Management Fee 0.75% per annum
The Equity, Bond and Managed Funds will be subject to further charges which are levied on the funds to cover fees and cost incurred in running these funds. These additional charges are guaranteed not to exceed 0.5% per annum.
EARLY ENCASHMENT
You can fully or partially encash your Elite International Bond at any time. However, the value of investments in the Guaranteed Accumulation Funds is only guaranteed if you encash your Bond on one of the Elite Encashment Dates. Should you decide to encash your Bond outside of these Policy Anniversaries, the Company reserves the right to apply a Market Level Adjustment to reflect the value of the underlying investments.
The early encashment fee will apply if:
You fully encash your Bond during the first five years, or,
You partially encash your Bond during the first five years and the amount remaining in the Bond is less than the charges set out in the Plan Charges section applicable at the time, or,
You make regular withdrawals during the first five years and the amount remaining in the Bond is less than the charges set out in the Plan Charges section applicable at the time.
The fee is based on your initial contribution reducing on a pro rata basis throughout the policy year, as shown in the table below:
|
Year Of Encashment |
Start Of Year
Reducing Fee % |
End Of Year
Reducing Fee % |
|
|
|
|
1 |
8.5 |
6.25 |
|
2 |
6.25 |
4.00 |
|
3 |
4.00 |
2.25 |
|
4 |
2.25 |
1.00 |
|
5 |
1.00 |
0.00 |
INVESTMENT
FUND INFORMATION
Your Elite International Bond offers you access to Zurich Life International's comprehensive range of
funds, as shown below. Please refer to the "Guide to your Investments"
for more information.
Guaranteed Accumulation Funds
These funds offer a guaranteed return over ten years and invest in top quality quoted securities with a minimum credit ratings of AA-.
Equity Funds
Centred among the major equity markets of the world, these funds offer you the opportunity to invest in an actively managed range of equities.
Bond Funds
Investing in fixed interest securities, these funds seek to maximise investment growth in the major worldwide bond markets.
Secure Money Funds
Capital invested in these funds is protected from decreases in its value and offers investors a high degree of liquidity.
Managed Funds
A mixed portfolio of equities, cash and fixed interest securities, these funds seek to capitalise on returns subject to the investment objective of the fund.
Please
click on the e-mail icon below if you would like to discuss investing
into a Zurich Life International Elite Bond
|
