MVA-free options
This section only applies to the CMI Premier Bond II, which is a single premium, whole of life, unitised life assurance policy.
If your MVA-free date on your Offshore With-Profits investment is approaching, it’s important to carefully consider all
your options on the MVA-free date.
First of all it is important to understand the difference between the bond and the fund(s) in which you have invested.
Your bond does not have a specified investment term or maturity date and can continue for the whole of your life.
Through your bond you have access to a range of investment funds including the Offshore With-Profits (OWP) fund in
which you are currently invested. The OWP fund does not have a specified investment term but it does have a market value adjuster
(MVA) free-date, which was fixed on the day you invested in the fund
On the MVA-free date you have a number of options available to you, which are explained below.
If you are happy with your investment, you can remain invested in OWP and receive a new MVA-free date in three years time.
If you choose this option you do not have to do anything.
We recommend you carefully read all the options available to you on the MVA-free date and discuss them with your financial adviser before making a decision.
We also recommend you consult your financial adviser on the taxation treatment of regular withdrawals in your country of residence.
What are your options?
Please click on one of the below further information.
If you are happy with your bond and its benefits you can leave the bond as it is,
especially if your personal circumstances and financial goals haven’t changed.
Your bond is whole of life so you can keep it as long as you want. On the MVA free date you can choose
taking MVA-free regular withdrawals, up to a maximum of 10% of the original value of your OWP investment each year,
if you select this option on your MVA-free date.
You can currently switch funds up to 12 times a year free of charge. You can select from a range of funds to suit your attitude to risk.
Please see the below for more details. If you switch to a fund other than OWP, you can also take regular withdrawals or partial encashments
at any time after the MVA-free date with no MVA.
Before choosing an alternative fund or funds, you need to determine your attitude to risk. Using the table below find the statement
in the left hand column which best describes your attitude to risk; this gives you an idea as to the risk rating in the right hand column
that you can use to select the fund(s) that suit your investment needs. Please remember that the risk category of each fund is the opinion
of Clerical Medical and may not necessarily match your own perceptions of risk.
CMI fund range
CMI Investment Solutions fund range
Click on any fund to view the fund factsheet.
CMI Investment Solution funds
CMI fund range
The CMI Premier Bond has a regular withdrawal facility, which allows you to take money out of your investment on a monthly,
quarterly, half-yearly, or yearly basis. The minimum that can be taken from the bond at any time is currently £200 ($300 or €300).
If your regular withdrawals are taken from the Offshore With-Profits (OWP) fund, the maximum regular withdrawal that can be taken in any
12-month period is 10% of the original investment.
you continue your investment after the MVA-free date and would like to take regular MVA-free withdrawals from that investment, please complete the regular withdrawal form.
If you are already taking regular withdrawals from the OWP fund, and you choose to remain invested in the fund after the MVA-free date, your withdrawals will continue unless you tell us otherwise. If you would like to increase or reduce your regular withdrawal amount, please tell us on the regular withdrawal form.
If you continue your investment in the OWP fund(s) after the MVA-free date and wish to postpone or cancel your current regular withdrawal, please tick the appropriate box on the regular withdrawal form. If you cancel your regular withdrawals and wish to start them again at a later date, please note an MVA may apply.
If you switch into the most currently available version of OWP, the 10% withdrawal limit is not based on the original investment but will be based on the actual amount switched into the fund.
We pay regular withdrawals directly to your bank account by direct credit or telegraphic transfer. Direct credit transfers are free and can be made in sterling to UK bank accounts, but there may be restrictions on direct credit payments in other geographical areas. Please note that bank charges are deducted for payments made by telegraphic transfers.
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