CMI Corporate Investor charges

Product charges

Bond charge

The bond charge covers the administration of CMI Corporate Investor and applies to all policies:

Initial investment	Bond charge (% of the greater of each investment or fund value)
£100,000 - £199,999	0.6% per annum (taken quarterly)
£200,000 - £299,999	0.35% per annum (taken quarterly)
£300,000 - £499,999	0.25% per annum (taken quarterly)
£500,000 - £999,999	0.2% per annum (taken quarterly)
£1,000,000+	0.15% per annum (taken quarterly)

Any additional investments will be subject to the terms and conditions prevailing at that time. The bond charge for each investment will be determined by its own value rather than the total value of all investments under the bond. However, the bond charge for any additional investment will not be higher than the bond charge for the initial investment.

Nil commission terms

If no initial commission is taken there will be no initial charge or establishment charge and no early encashment charge.

Initial commission terms

There is a choice of two charging structures if initial commission is taken. These are:

Charging option 1 – initial charge

Your adviser may take initial commission of up to 3% paid for by the initial charge, which will match the initial commission on a 1:1 basis.

There will be no early encashment charge or establishment charge.

Charging option 2 – establishment charge

Your financial adviser can take an initial commission of up to 3%. In this case there will be:

• An establishment charge, taken quarterly in arrears for the first three years.
• An early encashment charge equal to any outstanding quarterly establishment charges, decreasing to zero after three years.

There will be no initial charge.

Trail commission

Trail commission is ongoing commission taken as a percentage of the bond value which you can choose to pay to your financial adviser. If you have authorised us to pay this, we will deduct it from your cash account at the end of each quarter.

CMI Insurance fund charges

The following fund charges may also apply to your CMI Corporate Investor:

• Annual management charge (AMC)

  This is a fee taken by the fund manager for administering the fund and applies to every unit trust or OEIC. The AMC is deducted from the fund and is reflected in the fund price.

  CMI Insurance Funds

  Fund	AMC % per annum
  Cash Plus
  CMI Liquidity Plus	0.25%
  Gilt & Fixed Interest
  CMI Short Duration Bond	0.25%
  CMI UK Government All Maturities Bond	0.25%
  CMI UK Corporate All Maturities Bond	0.25%
  Cautious Managed
  CMI Diversified Target Return	1.35%
  Equity Growth
  CMI UK Dynamic Managed	1%

• Switch charges

  All transactions between Clerical Medical funds are currently free of charge.

• Debit interest

  The CMI Corporate Investor cash account has an overdraft facility should there be insufficient money available to cover charges or other deductions. The overdraft limit is £5,000, although this can be exceeded at our discretion. Debit interest is currently charged on a daily basis at 4% above the currency base rate and deducted quarterly from the CMI Corporate Investor cash account on the valuation dates.

Other fund charges

If funds other than the core range of CMI Insurance funds are selected, the following charges may also apply.

• Switch charges

  The first four transactions each year between external funds are free of charge. Additional transactions for external funds are charged at £36.00 each.

• Initial fund charge (bid/offer spread)

  With many unit trusts, fund managers value their funds at a bid (sale) and offer (purchase) price. The difference between these two prices is known as the bid / offer spread, and this is often the initial charge which is taken by the fund manager to cover their commission and the cost of setting up the units. Initial charges vary according to the fund. We have negotiated special discounts on initial charges with many leading fund managers so that clients can invest at a reduced offer price allowing more units to be purchased.

• Annual management charge (AMC)

  This is a fee taken by the fund manager for administering the fund and applies to every unit trust or OEIC. The AMC is deducted from the fund and is reflected in the fund price. The AMC varies according to the fund but it is typically for external funds it is between 1% and 2% of the fund value each year.

• Notice account charges

  If you hold a fixed term or notice deposit account within CMI Corporate Investor, you may be charged a penalty if you make a withdrawal before the end of fixed term or notice period. The costs vary according to the type of deposit account held and deposit institutions can charge varying amounts. If a penalty is payable it will either be taken as a separate charge or deducted from the proceeds.

• Stockbroker charge

  Deals on investment trusts are placed through our nominated stockbroker, Capital International Limited. Their charges are currently as follows:

  • 1% of the first £7,000.00
  • 0.35% of the next £43,000.00
  • 0.2% flat over £50,000.00
  • Minimum charge of £25.00

  Please note there is also a stockbroker charge of £10.00 per transaction to cover the administration fee.

• Safe custody fees

  For holdings of investment trusts there are safe custody fees payable which are currently £30.00 (or the currency equivalent of £40.00 for non-Sterling assets) per transaction and a holding fee of 0.075% p.a. of the overall value of the assets held in the portfolio, payable quarterly in arrears. Collective investment schemes such as OEICs, unit trusts and SICAVs are free of any custodian charges.