CMI Portfolio charges

Fund charges

The following fund charges apply to your CMI Portfolio and are deducted from the investment:

• 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 between 1% and 2% of the fund value each year. We have negotiated special discounts with many of the world's leading fund managers, and we pay this discount back to you in full in the form of a rebate. These are shown as 'investment credits' on your quarterly statement.

• Initial 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 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.

  Please note that discounted investment terms only apply where the assets are held by CMI Insurance Company Limited.

• Stockbroker charge

  Deals on investment trusts (and equities for non-UK resident Personal Account policyholders) 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.

Third party charges

Any third party charges that apply to your policy are deducted from the CMI Portfolio cash account. These may include:

• Investment adviser fee

  This is a set amount or percentage of the bond value, which is payable quarterly to the appointed investment adviser. This only applies if you have nominated an investment adviser to manage your portfolio.

• Trail commission

  This is a percentage of the bond value, which is payable quarterly to your financial adviser. This only applies if you have selected this option on your application form.

• Safe custody fees

  For holdings of UK equities, investment trusts, gilts and loan stock there are safe custody fees payable which currently are £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.

• Telegraphic transfer charge

  Some banks charge a telegraphic transfer fee when sending money to us. Any telegraphic transfer fees are paid through the cash account.

• Trust fee

  If the bond is assigned into trust you can appoint a trust company to act as trustee. Any fees due to trustees can be paid from the bond, however, please note that the HM Revenue & Customs would consider this to be a withdrawal from the bond.

• Debit interest

  The CMI Portfolio cash account has an overdraft facility should there be insufficient money available to cover charges or other deductions. The overdraft limit is £5,000 (US$7,500; €7,500), 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 Portfolio cash account on the valuation dates.

• Notice account charges

  If you hold a fixed term or notice deposit account within CMI Portfolio, 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.