the Executive Investment Bond by alicejenny

VIEWS: 4 PAGES: 28

									the Executive *
                      Bond
Investmentasset choices
flexibility and wider




for Hong Kong market only
*An investment-linked assurance scheme and not a government or corporate bond
    Important information
    • This product is an investment-linked assurance scheme (‘ILAS policy’). It is a life assurance policy issued by
      Royal Skandia Life Assurance Limited (‘Royal Skandia’). Your investments are subject to the credit risks of
      Royal Skandia.
    • The premiums you pay towards your ILAS policy, any assets that are transferred to the ILAS policy, and any
      investments made by Royal Skandia in the underlying funds/assets you selected, will become and remain the
      assets of Royal Skandia. You do not have any rights or ownership over any of those assets. Your recourse is
      against Royal Skandia only.
    • The premiums you pay, after deduction of any applicable fees and charges of your ILAS policy, will be
      invested by Royal Skandia in the underlying funds/assets you selected. You may also transfer your existing
      assets held in your name to Royal Skandia as a premium payment in kind. Your ILAS policy value will be
      calculated by Royal Skandia based on the performance of your selected underlying funds/assets (including
      the assets that are transferred).
    • Due to the various fees and charges levied by Royal Skandia on your ILAS policy, the return on your ILAS
      policy as a whole may be lower than the return of the underlying funds/assets you selected.
    • Early surrender or withdrawal of the policy may result in a significant loss of principal (premiums).
      Poor performance of underlying funds/assets may further magnify your investment losses, while all
      charges are still deductible.
    • The underlying funds/assets which you may choose can have very different features and risk profiles.
      Some may be of high risk and may not be subject to any regulations.




2
contents at a ¯lance
introduction                                                       4
  giving your investment plenty of opportunities to grow           4
  benefit from the strength and reputation of Royal Skandia         5
  an ideal place to put your investment                            6
  what is the Executive Investment Bond?                           7

why choose the Executive Investment Bond?                          9
  investment opportunities through widest possible asset choices   10
  transfer and consolidate your existing assets                    11
  institutional discounts                                          11
  simple dealing                                                   12
  your changing needs                                              12
  tax advantages                                                   12

criteria of assets acceptability                                   13
accessing your investment                                          14
  regular withdrawals                                              15
  partial or full surrender                                        15
  fixed account                                                     15

taxation matters                                                   16
  tax efficiency                                                    16
  your personal tax circumstances                                  16

charges that may apply to your
Executive Investment Bond                                          17
  charges summary                                                  17
  charges in detail                                                20

your Executive Investment Bond                                     21
  how to apply                                                     21
  policy maintenance                                               21
  payment of benefits                                               22
  ending your policy                                               22
  your right to change your mind                                   22
  further information                                              23




                                                                        3
    ¯ivin¯ your investment
    plenty of opportunities to ¯row
    Everyone has their own financial        be good to know you can access      growth potential through access
    goals, but one thing all investors     your investment if you want to.     to a wide range of assets; while its
    want is the opportunity for their                                          flexible charging structure of your
    money to grow. While you may be        The Executive Investment Bond       choice means you can surrender your
    prepared for this growth to happen     could be right for you. It offers   policy when needed.
    in the medium to long term, it would



4
benefit from the stren¯th and
reputation of Royal Skandia
When you invest through Royal          Originating in South Africa in 1845,     We recognise the importance
Skandia you are choosing a reputable   the Old Mutual Group has a balanced      of providing innovative, flexible
company that is committed to service   portfolio of businesses offering asset   investment solutions and local
excellence, choice and giving you      management, life assurance, banking      support to our customers.
control over your finances.             and general insurance services in 33     Therefore, we opened our branch
                                       countries, primarily in South Africa,    offices in Hong Kong in 1991 and
Royal Skandia is a company within      Europe, Latin America, Asia and          Singapore in 2008 as our Asia hubs.
Skandia International. Skandia         North America. Old Mutual is listed      We have local, dedicated teams
International, part of the wealth      on the London and Johannesburg           with a wealth of experience, local
management business of Old Mutual      Stock Exchanges, amongst others.         market knowledge and international
plc, is the international group of                                              exposure. You can be assured that
companies which provides the           Being part of Old Mutual makes           you are investing with a company
offshore and cross-border investment   Skandia International a key              that truly understands the needs of
solutions for the Old Mutual Group.    division of one of the largest life      international investors.
                                       assurers in Europe, with a strong
                                       financial base. The Old Mutual            *As at 31 December 2010, source:
                                       Group has funds under management          Old Mutual
                                       of £309.3 billion*, serving more
                                       than 15 million customers.




                                                                                                                      5
    an ideal place to
    put your investment
    Royal Skandia is based in the            (Compensation of Policyholders)            These contributions are held in
    Isle of Man which is part of the         Regulations 1991. In the event of          a Policyholders’ Compensation
    British Isles. The Isle of Man has its   insolvency, policyholders are entitled     Fund. In the event that the fund is
    own government and the longest           to claim compensation of up to 90%         insufficient to sustain any claims
    continuous parliament in the world.      of the surrender value of their policies   made, the Insurance & Pensions
    All the life assurance companies         under the compensation scheme.             Authority may defer, reduce or
    based on the island are closely          The island’s system operates globally      extinguish any amounts payable as
    regulated by the Isle of Man             no matter where the investors reside.      compensation. Full details of the
    Insurance & Pensions Authority.          Notwithstanding the availability of        Regulations can be found on the
    Therefore, the Isle of Man is an         the compensation scheme, there is          website above.
    established offshore investment          no guarantee that you will get back
    centre offering a politically and        up to 90% of your premiums paid or         In recognition of the Isle of Man’s
    economically stable environment.         the prevailing value of your policy.       status as the leading offshore
    That’s why a lot of financial and         The final value you receive, if any,        base, from 2001 to 2009 (with
    related services set up their head       may be less than the total premiums        the exception of 2007) it has been
    offices on the island.                    paid or the prevailing value of            voted ‘Best International Financial
    You can find out more on                  your policy.                               Services Centre’ at the International
    www.isleofmanfinance.gov.im.                                                         Investment International Fund &
                                             This liability to policyholders is         Product Awards. In 2007 and 2010,
    Of all the major offshore centres, the   administered by the Insurance &            it was highly commended in the
    Isle of Man is one of only a few that    Pensions Authority of the Isle of          same category.
    has a statutory compensation scheme      Man, which levy contributions
    – the Isle of Man Life Assurance         from all participating insurers.




6
what is the
Executive Investment Bond?
The Executive Investment Bond is         may set a higher minimum investment       If you pay a premium in a currency
designed to give your investment         requirement in respect of the             other than the policy currency, you
the potential to grow by allowing        underlying asset chosen by you.           should be aware that Royal Skandia
you to access a wide range of            Once you have decided how much            will notionally convert your payment
assets through an open platform of       you want to invest, you can pay it by     into your chosen policy currency.
investment choices. It also allows you   cheque, electronic bank transfer or       This means we will not physically
to withdraw your money in a variety      bank instruction letter.                  convert the payment itself, but we
of ways should you need to.                                                        will just apply the converted amount
                                         You choose the currency in which          to your policy. Any conversion
The Executive Investment Bond is         your policy will be denominated.          that Royal Skandia makes will be
available to individual, corporate and   We currently offer Sterling, US dollar,   based on the prevailing market rate.
trustee investors. You can invest an     HK dollar, Euro, Japanese Yen and         The converted premium payment
initial minimum lump sum of £50,000      Singapore dollar. Any transactions        will be the amount shown in your
(or currency equivalent). You can        carried out in currencies other than      policy schedules.
then make an additional investment       your chosen policy currency will be
of at least £5,000 (or currency          summarised in your chosen policy
equivalent), at any time while your      currency in the valuation statements.
policy is in force, subject to our       Once you choose your policy
acceptance. However, you need to be      currency at outset, it cannot
aware that some external institutions    be changed.




   open platform
   There is no defined fund list for an open platform. You can select funds/assets as your investment choices, subject
   to certain regulatory and operational requirements. You can find details in “Criteria of assets acceptability” on
   page 13.

   The wide investment choices with different risk levels should be comprehensive enough to cater for your
   changing financial goals over time. An open platform also provides quicker access to a breadth of mainstream and
   specialist asset classes as soon as they are available in the market.




                                                                                                                          7
        your finance at a ¯lance
        The Executive Investment Bond enables you to access a breadth of mainstream and specialist asset classes. As
        illustrated in the diagram, Mr Jones sets up his policy in US dollar at outset. Although he also selects various
        assets denominated in different currencies with which the policy value is linked, he has no difficulty in keeping
        track of those assets. By using the Executive Investment Bond, all assets are summarised in US dollar, his chosen
        policy currency. This gives him a clearer picture of his overall finances.


                                     Mr Jones invested £100,00 into the policy linked with the
                                     following assets. His chosen policy currency is US dollar.




              US$ unit         US$ 3-month         € money           HK$ stocks         S$ mutual          £ 1-year
               trusts           fixed time         market fund                             funds          government
                                 deposits                                                                   bonds




                                                All being summarised in US dollar.




    The Executive Investment Bond is          Building a portfolio so that it           you can then give us the instructions.
    made up of a group of 12 or more          matches your investment objectives        Alternatively, you can appoint a
    policies. The separation is primarily     and risk appetite requires careful        delegated party to instruct us directly
    for individuals affected by UK tax        planning, prudent asset selection         on your behalf.
    rules. You can surrender across all       and market knowledge. You can
    policies equally or just a                either do it yourself, or you can
    few specifically. This makes it            appoint an investment adviser to
    extremely flexible for you.                make recommendations to you and




                 IMPORTANT NOTES
       The performance of your Executive Investment Bond is dependent on that of the underlying assets you select.
       You choose the underlying assets to be linked to your policy and which you would like Royal Skandia to invest in
       with your premiums. Your policy will be allocated notional units in the underlying assets, which are used solely
       to determine the value of benefits payable under your policy. Therefore, when you invest into the Executive
       Investment Bond, you are investing in a life assurance policy.

       Although you are allocated the notional units of the underlying assets such as the units in collective investment
       schemes, stocks and securities, the legal and beneficial interests in those underlying assets belong to Royal
       Skandia. Therefore, you do not have legal or beneficial interests in the underlying assets.




8
why choose the
Executive Investment Bond?
With the Executive Investment Bond      one place by transferring and    • switch investments easily
you can:                                consolidating your existing        (See page 12 ‘simple dealing’)
                                        investments subject to our
• access a wide range of assets,                                         • alter your investment portfolio as
                                        acceptance (See page 11
  giving you greater investment                                            your needs change (See page 12
                                        ‘transfer and consolidate
  opportunities (See page 10                                               ‘your changing needs’)
                                        your existing assets’)
  ‘investment opportunities through
                                                                         • enjoy tax advantages, especially
  widest possible asset choices’)     • benefit from our institutional
                                                                           for UK expatriates (See page 12
                                        discounts (See page 11
• enjoy the convenience of                                                 ‘tax advantages’)
                                        ‘institutional discounts’)
  combining all your assets in



                                                                                                                9
     investment opportunities throu¯h
     widest possible asset choices
     You have the freedom to spread and      • external collective investment          Your financial adviser or appointed
     vary your investments across a            schemes, including funds with           investment adviser can help you
     wide range of underlying assets           UCITS status, regulated OEICs,          choose the suitable assets.
     according to your financial goals and      unit trusts and investment trusts,      The minimum amount invested
     risk appetite.                                                                    into each asset holding is at least
                                             • external assets quoted on a
                                                                                       £5,000 (or currency equivalent).
                                               recognised stock exchange,
     The types of acceptable                                                           However, some external institutions
                                               including shares and fixed interest
     assets include:                                                                   may have a higher minimum
                                               securities; and
                                                                                       requirement. Your financial adviser
     • Royal Skandia’s own range of
                                             • various currency deposits               or appointed investment adviser can
       investment-linked funds managed
                                                                                       provide you with details.
       by some world-class fund              You can find further details in
       management groups,                    “Criteria of assets acceptability”
                                             on page 13.




                  IMPORTANT NOTES
        Funds not authorised by the Securities and Futures Commission (“SFC”) in Hong Kong are not available to
        Hong Kong residents.

        The underlying assets which you may choose to calculate your investment return include SFC-authorised funds
        and other assets/investments such as stocks, bonds etc. You must ensure you fully understand the nature of and
        the risks associated with any underlying assets.

        Investment involves risks. We strongly urge you to seek independent financial and other advice before making
        investment decisions. The value of your policy is dependent upon the investment performance of the underlying
        assets chosen by you and/or your financial adviser. Royal Skandia is not responsible for their investment
        performance and we do not offer any investment advice or guarantee. Due to the general nature of varied
        investments and possible exchange or interest rate fluctuations, the performances and yields of your chosen
        assets may go down as well as up.

        This product is a life assurance policy issued by Royal Skandia. Any underlying assets and premiums paid to Royal
        Skandia will become the property of Royal Skandia and are therefore subject to the credit risks of Royal Skandia.

        Before making any investment decision, you are advised to read the prospectuses/offering documents of the
        underlying assets carefully which your financial adviser should be able to provide in the first instance.




10
transfer and consolidate
your existin¯ assets
To make life even easier, you may         holding must be of at least               All assets to be transferred must
transfer your existing assets held        £5,000 (or currency equivalent).          be quoted on a stock exchange
in your name to Royal Skandia as a        We currently offer this service free.     recognised by Royal Skandia.
premium payment in kind under your        There may, however, be charges            Alternatively, the assets have to be
policy subject to our acceptance.         made by external parties upon             registered and recognised by us.
You can then receive consolidated         transferring the assets. Once we
and consistent valuation statements,      are granted a power of attorney           Upon completion of transfer, the title
allowing you to manage all your           and have received all the necessary       to your assets will be transferred to
assets in one place.                      documentation, we will be able            and become assets of Royal Skandia.
                                          to proceed with the transfer.             This means you will then cease to
The transfer means your assets are        The amount of the premium will be         have any legal ownership or beneficial
transferred from your name to Royal       the market value obtainable by Royal      interest in the transferred assets.
Skandia’s, rather than being bought       Skandia after deduction of expenses       Please note that there may be tax
and sold. We accept asset transfer for    and taxes of the transaction in           implications and you should refer to
investments of or over £50,000 (or        respect of the assets transferred.        “taxation matters” on page 16.
currency equivalent) and each asset




institutional discounts
Our size, buying power and excellent
relationships with fund managers
means we can negotiate substantial
initial discounts. We then pass these
on to you.




   cash holding in your transaction account
   We strongly recommend you maintain a cash holding of 5% of your total investment in a deposit-based or money
   market fund in your chosen policy currency so that money is readily available to meet the policy charges and any
   regular withdrawals that you may request. The deduction of the policy charges will be made in the policy currency.




                                                                                                                             11
     simple dealin¯
     We have a simple dealing form which
     can facilitate multiple trades, so it’s
     quick and easy to buy and sell your
     chosen underlying assets linked with
     your policy.




     your chan¯in¯ needs
     Your investment objectives and            changing needs. For example, you
     appetite for risk may change over         may want to change your investment
     time, and so will market conditions.      strategy from aggressive investment
     With the Executive Investment             growth to generating regular income
     Bond you can switch your asset            or cautiously preserving your wealth.
     choices easily to cope with your ever




     tax advanta¯es
     The Executive Investment Bond is          few specifically. This can help
     automatically split into a group of 12    facilitate tax planning especially for
     or more policies. The separation is       UK expatriates. However, you should
     primarily for individuals affected by     discuss your personal tax position
     UK tax rules. You can then surrender      with your financial adviser before
     across all policies equally or just a     taking any action.




12
criteria of assets acceptability
The Executive Investment Bond            We accept no responsibility for the      minimum requirement
is designed to give you the widest       investment performance of an asset.
                                                                                  Some underlying assets may have a
possible asset choices to match your     We do not perform any due diligence
                                                                                  minimum investment amount which
investment goals. However, we have       on external assets. Any investment
                                                                                  is higher than the minimum amount
the discretion to assess if the chosen   decisions and acceptance of
                                                                                  of £5,000 (or currency equivalent)
assets are acceptable generally based    associated risks remain with you and/
                                                                                  imposed by us for each asset holding.
on the following criteria.               or your financial adviser.

acceptability of assets                                                           liquidity
                                         We reserve the right to decline to
                                                                                  We can only consider liquid assets,
All investment instructions are          hold or deal certain underlying assets
                                                                                  i.e. where the price and/or dealing
subject to individual assessment         as this investment forms part of our
                                                                                  point is readily available. We generally
to ensure the underlying assets          Long Term Business Fund, and we are
                                                                                  do not accept an underlying fund
are acceptable. The reason for           the legal and beneficial owner of all
                                                                                  where redemption proceeds would
carrying out the asset review            investments to which the benefits of
                                                                                  be payable in tranches. Additionally,
is to satisfy ourselves that the         the policy are linked.
                                                                                  an underlying fund will not be
asset is acceptable for Isle of Man
                                         re¯istration                             accepted if trading takes place on a
regulatory purposes and for our own
                                                                                  matched bargain basis.
administration requirements.             Underlying assets must be able to
                                         be held under the nominee name or        pricin¯
Any review conducted is not an           account of Royal Skandia’s custodian.
                                                                                  Prices for all underlying assets have to
endorsement of an asset by Royal
                                         subscription and                         be readily available and quoted.
Skandia. If an asset is rejected,
you will be advised of the decision      redemption frequency                     cash holdin¯ in your
accordingly. We reserve the right to     We may allow assets which are dealt
reject any asset without having to                                                transaction account
                                         and valued less often than daily, or
provide a reason.                                                                 You should maintain a cash balance
                                         which may exist for a fixed duration.
                                                                                  in liquid assets or deposit funds so
                                         This may result in the transaction
                                                                                  that money is readily available to
                                         taking more time to complete.
                                                                                  meet charges.




                                                                                                                             13
     accessin¯ your investment
     The Executive Investment Bond is          completely surrendered without            You can access your investment
     designed so that your investment          cancelling the entire portfolio.          in the following ways:
     is automatically split into a number      The cash amount can be paid out in
                                                                                         • by regular withdrawals
     of separate policies. Each individual     most major currencies of your choice.
     policy can then be partially or                                                     • by partial or full surrender
                                                                                         • via a ‘fixed account’ for an interest-
                                                                                           free loan




         instant money access via international bank account
         You can instruct us to pay your regular withdrawals or surrender from your policy directly into a personal bank
         account via the international bank account facility. This will give you instant worldwide access to your investment
         using a VISA debit card.

         If you are interested in this, please ask your financial adviser for more information. They can help you complete
         the required paperwork as this facility is provided by an external bank and not Royal Skandia.


14
re¯ular withdrawals
You can make withdrawals monthly,        An early withdrawal charge will          1. the remaining policy value is equal
quarterly, half-yearly or yearly.        be applied (see page 17 ‘charges            to or exceeds 25% of your total
The minimum withdrawal is £500           that may apply to your Executive            premium paid; and
(or currency equivalent) each time.      Investment Bond’) unless the
To meet regular withdrawals,             criteria are satisfied after              2. the surrender value (i.e. the
we will partially surrender across       the withdrawal:                             policy value less any applicable
the group of all the policies unless                                                 early withdrawal charge) exceeds
you specify otherwise.                                                               £10,000 (or currency equivalent).




partial or full surrender
You can also take partial surrender      An early withdrawal charge will          1. the remaining policy value is equal
or full surrender at anytime. If you     be applied (see page 17 ‘charges            to or exceeds 25% of your total
take a partial surrender, the minimum    that may apply to your Executive            premium paid; and
you can take is £500 (or currency        Investment Bond’) unless the
equivalent) and we will partial          criteria are satisfied after              2. the surrender value exceeds
surrender across the group of all the    the surrender:                              £10,000 (or currency equivalent).
policies unless you specify otherwise.



Please note that in relation to the      immediately after the withdrawal falls
regular withdrawals and partial          below the higher of 5% of the total
surrender, we may not accept             premium you have paid or £10,000
a surrender request or we may            (or currency equivalent).
limit the amount available if the
value remaining in all the policies




fixed account
You can take out an interest-free        amount as an interest-free loan as       The amount in the fixed account
loan from your policy subject to         long as you keep your policy with        will be reduced by the amount that
our agreement.                           us. The amount in the fixed account       you repay. Your financial adviser
                                         does not grow or receive any interest    should be able to answer any
The amount of the loan is realised by    and so remains the same at all times.    questions you may have about
selling assets linked with your policy                                            this facility.
and transferring the units into a fixed   You can repay the loan at any time
account. You can then borrow this        while your policy is in force.




                                                                                                                           15
     taxation matters
     tax efficiency
     As Royal Skandia is located in the        Under Isle of Man law, we are not         deducted at source in the country of
     tax-efficient offshore centre of the       liable to income tax, capital gains tax   origin, but once inside your policy
     Isle of Man, your investment will grow    or corporation tax on funds linked        they can accumulate free of tax.
     virtually tax free.                       to policies. Some dividends may           Thanks to this, your investment
                                               be received net of withholding tax,       within the Executive Investment
                                                                                         Bond will grow more efficiently.




     your personal tax circumstances
     We do not make a deduction of tax         many factors. However, you should
     when you surrender your policy,           consult your financial adviser on
     either in part or in total but the        the suitable ways to access your
     personal tax consequences of              investment and on the taxation
     investing or transferring your existing   rules that apply in your country
     assets to the policy will depend on       of residence.




16
char¯es that may apply to your
Executive Investment Bond
To ensure your Executive Investment      The charging structure you choose      it cannot be changed.
Bond is tailored to your needs, we       will apply to your full investment     We reserve the right to vary the
offer a choice of charging structures.   amount, including any cash             administration charge and investment
You should discuss and agree the         investments, shares, assets            dealing charge with not less than
most suitable charging structure with    transferred and additional             one month prior written notice
your financial adviser.                   investments you may make in the        or such shorter period of notice
                                         future. Once it is set up at outset,   in compliance with the relevant
                                                                                regulatory requirements.




char¯es summary
The tables on the next pages show
                                         We strongly recommend you keep
the details of the fees and charges of
                                         adequate cash holding in your
the charging structures A1 and B1
                                         transaction account to meet
which are available for your choice
                                         the charges.
under the Executive Investment Bond.




                                                                                                                       17
     char¯es summary
     Charging
     Structure               A1          Applicable rate                           Deducted from
     Policy char¯es
      Establishment charge                0.25% per quarter for the first year      Policy value in arrears on each
                                          only, based on the higher of 1) the      quarterly date, by debiting the
                                          premium paid or 2) the value of the      transaction account.
                                          underlying assets in respect of the
                                          relevant premium.

                                          A separate first year period will apply
                                          for each additional premium paid in
                                          the future.
      Regular policy management charge    0.3% per quarter, based on the           Policy value in arrears on each
                                          higher of 1) the premium paid or         quarterly date, by debiting the
                                          2) the value of the underlying assets    transaction account.
                                          in respect of the relevant premium.

                                          The charge will apply separately in
                                          respect of each additional premium
                                          paid in the future.
      Administration charge               £48 per quarter                          Policy value in arrears on each
                                                                                   quarterly date, by debiting the
                                                                                   transaction account.
      Currency dealing charge             Currently waived                         N/A
      Investment dealing charge           £15 per sale or purchase of each         Policy value by debiting the
                                          underlying asset.                        transaction account.
      External investment charges         These vary by underlying funds/assets and are taken by external institutions.
     Char¯es (where applicable)
      Early withdrawal charge             6% during the first year, reducing        Policy value on the working day the
                                          by 0.75% each year to nil after 8        surrender request is processed, by
                                          years, based on the higher of 1) the     debiting the transaction account.
                                          premium paid or 2) the value of the
                                          underlying assets in respect of the
                                          relevant premium.

                                          The charge will apply separately in
                                          respect of each additional premium
                                          paid in the future.




18
Charging
Structure               B1          Applicable rate                           Deducted from
Policy char¯es
 Establishment charge                0.5% per quarter for the first year       Policy value in arrears on each
                                     only, based on the higher of 1) the      quarterly date, by debiting the
                                     premium paid or 2) the value of          transaction account.
                                     the underlying assets in respect of
                                     the relevant premium.

                                     A separate first year period will apply
                                     for each additional premium paid in
                                     the future.
 Regular policy management charge    0.425% per quarter for 5 years and       Policy value in arrears on each
                                     nil thereafter, based on the higher of   quarterly date, by debiting the
                                     1) the premium paid or 2) the value      transaction account.
                                     of the underlying assets in respect of
                                     the relevant premium.

                                     The charge will apply separately in
                                     respect of each additional premium
                                     paid in the future.
 Administration charge               £96 per quarter                          Policy value in arrears on each
                                                                              quarterly date, by debiting the
                                                                              transaction account.
 Currency dealing charge             Currently waived                         N/A
 Investment dealing charge           £15 per sale or purchase of each         Policy value by debiting the
                                     underlying asset.                        transaction account.
 External investment charges         These vary by underlying funds/assets and are taken by external institutions.
Char¯es (where applicable)
 Early withdrawal charge             8.5% during first quarter, reducing by    Policy value on the working day the
                                     0.425% each quarter to nil after         surrender request is processed, by
                                     5 years, based on the higher of 1) the   debiting the transaction account.
                                     premium paid or 2) the value of the
                                     underlying assets in respect of the
                                     relevant premium.

                                     The charge will apply separately in
                                     respect of each additional premium
                                     paid in the future.




                                                                                                                     19
     char¯es in detail
     establishment char¯e                      administration char¯e                     external investment char¯es
     This charge covers the costs of           This charge is the monetary amount        Your chosen underlying assets
     setting up the policy subsequent to       as specified in the tables on the          may have separate charges for
     each premium you pay. This charge         previous pages. It is deducted in         management fee, performance
     is calculated as a percentage for         pound sterling from the policy value      fee, bid-offer spread, switching
     the first year only and is based on        in arrears on each quarterly date,        fee or redemption charge taken by
     the higher of the premium paid or         by debiting the relevant transaction      external institutions. These charges
     the value of the underlying assets        account. If the chosen policy             may be reflected in the unit price of
     in respect of the relevant premium.       currency is not in pound sterling, this   the underlying assets at purchase
     It is deducted from the policy value      charge will be converted from pound       or the redemption proceeds of the
     in arrears on each quarterly date, by     sterling into the policy currency at      underling assets at sale. For details,
     debiting the transaction account.         the prevailing market rate.               you should refer to the respective
                                                                                         offering document of the underlying
     A separate charge will apply to each      currency dealin¯ char¯e                   assets involved which is available
     additional premium paid in the future.    This charge refers to any costs           from your financial adviser in the
                                               incurred in converting any sum            first instance.
     re¯ular policy                            from one currency to another for
     mana¯ement char¯e                         a transaction and which may be
                                                                                         early withdrawal char¯e
     This charge covers the costs of           deducted from the amount available        (where applicable)
     administering the underlying assets       for the transaction. We may apply this    This charge applies if the policy is
     to which your policy is linked. This      charge in the future but this is waived   fully surrendered within the period
     charge is calculated as a percentage      currently.                                of time as specified in the tables on
     based on the higher of the premium                                                  pages 18 and 19. This charge also
     paid or the value of the underlying       investment dealin¯ char¯e                 applies if you make partial surrender
     assets in respect of the relevant         This charge applies to each               or regular withdrawals which result in
     premium. Depending on your                transaction to buy or sell an             the remaining policy value being less
     chosen charging structure, it may         underlying asset. It is deducted in       than 25% of the total premiums paid,
     be deducted throughout your whole         pound sterling from the policy value      or the surrender value being less than
     investment period until the policy        by debiting the relevant transaction      £10,000 (or currency equivalent).
     comes to an end or for the number         account. If the chosen policy
     of full years as specified in the tables   currency is not in pound sterling, the    This charge is calculated as a
     on pages 18 and 19. It is deducted        charge will be converted from pound       percentage based on the higher of
     from the policy value in arrears on       sterling into the policy currency at      the premium paid or the value of the
     each quarterly date, by debiting the      the prevailing market rate.               underlying assets in respect of the
     transaction account.                                                                relevant premium.

     This charge will apply separately                                                   This charge will apply separately to
     to each additional premium paid in                                                  each additional premium paid in
     the future.                                                                         the future.




20
your Executive Investment Bond
how to apply
The Executive Investment Bond              named person upon whose death            Your investment is accepted and
is available to applicants aged 18         the life assurance value of the policy   allocated only when our bank
and over subject to our reasonable         will be payable to the policyholder.     account in the Isle of Man has
requirements. You should, however,         A death benefit of 101% of the            received your investments (provided
check that your country’s laws             surrender value will be paid after we    there is enough information for us to
allow you to invest in an offshore life    have been notified of the death of        allocate the premium to your policy).
assurance policy.                          the last life assured.                   We will send you an acceptance
                                                                                    letter followed shortly afterwards by
You may apply on your own or jointly       When you have decided to set up          Policy Terms & Conditions and Policy
with another applicant. The policy         a policy, simply complete an             Schedules, which are the formal
may be set up on a single, joint or        application form and select the          record of your policy.
multiple lives assured last death basis.   charging structure that is most
Each life assured must be aged under       suitable for you. Your financial
89 at outset. The life assured is the      adviser can help you do this.




policy maintenance
You will receive a detailed valuation      income accrual, cash withdrawals and     You will be given a dedicated user
statement from us every quarter.           charges taken. Alternatively, you can    account and password. Your financial
This will keep you informed of the         view details of your portfolio online    adviser will be able to tell you more
latest policy status and will provide      via our Client Centre on                 about this.
full information on asset movement,        www.skandiainternational.com/hk.




                                                                                                                            21
     payment of benefits
     Policy benefits are payable when you          Therefore, the process may take        Documentation may be sent to
     surrender your policy or on the last         some time to complete, especially      our Hong Kong office for onward
     death of the lives assured, whichever        for example when dealing with real     transmission to our Head Office.
     happens earlier. Benefits can be paid         property-related assets.
     almost anywhere in the world and                                                    Death claims may be subject to Isle of
     in any freely convertible currency.          Payment following a surrender          Man probate. The maximum interval
     The policy value is determined by the        request or death claim would           between receipt of all relevant
     sale value of the underlying assets          normally be remitted within five days   documentation completed to Royal
     less any outstanding charges which           of receipt by Royal Skandia at our     Skandia’s satisfaction and payment
     may apply.                                   Head Office of the Policy Schedules     of the proceeds will normally be no
                                                  and such other documentation and       longer than one month. If the Courts
     When you want to fully surrender             evidence that we may need.             of Justice require further evidence,
     your policy, you must send your                                                     there may be delays.
     original Policy Schedules and a              We require the original Policy
     completed surrender authority to             Schedules and death certificate
     Royal Skandia’s Head Office before            (if applicable) to be sent to our
     we make any payments.                        Head Office and may require further
                                                  evidence in some circumstances
     We can only realise the assets when          before any death benefit payments
     they are valued and dealt at the latest      can be made.
     available dates.




     endin¯ your policy
     Your policy will end when we have
     completed paying the benefits
     following a request for a full surrender
     or on the last death of the lives assured.




     your ri¯ht to chan¯e your mind
     You have the right to cancel your            Skandia’s Hong Kong office at 24th      whichever is earlier. If the value of
     Policy and obtain a refund of any            Floor, Henley Building, 5 Queen’s      your investment has fallen by the time
     premium(s) paid less any market              Road Central, Hong Kong within 21      we receive your cancellation letter/
     value adjustment.                            days after:                            notice, the refund of your premiums
                                                                                         will be reduced by an amount
                                                  • either the delivery of the policy
     If you wish to cancel, you must return                                              equivalent to the drop in the value.
                                                    to you/your representative, or,
     the policy and give written notice,
     signed by you, to Royal Skandia to           • the issue of the notice informing    These cancellation rights do not
     request cancellation. This notice              you/your representative about the    apply to additional investment once
     must be received directly by Royal             availability of the policy and the   your policy is issued and passed all
                                                    expiry date of the cooling-          the above cancellation conditions.
                                                    off period,




22
further information
This document is based on Royal            However, this will not preclude the      This ILAS (investment-linked
Skandia’s understanding of the law,        right to bring legal action in a Hong    assurance scheme) is authorised
regulation and taxation practice of        Kong court or any court elsewhere        by the Securities and Futures
the UK and Isle of Man as at June          which has a relevant connection with     Commission in Hong Kong.
2011, which may change in the future.      the Policy.                              Authorisation is not a
No liability can be accepted for any                                                recommendation or endorsement
personal tax consequences as a             Royal Skandia Life Assurance             of a scheme nor does it guarantee
result of future legislative, regulatory   Limited accepts responsibility for       the commercial merits of a scheme
or tax changes.                            the accuracy of the information          or its performance. It does not mean
                                           contained in the offering document       the scheme is suitable for all investors
You should seek professional               of the Executive Investment Bond         nor is it an endorsement of its
advice regarding your own tax              and confirms having made all              suitability for any particular investor
circumstances.                             reasonable enquiries, that to the best   or class of investors. The Commission
                                           of Royal Skandia’s knowledge and         does not take any responsibility
Benefits under the Royal Skandia            belief there are no other facts the      for the contents of the offering
Executive Investment Bond are              omission of which would make any         document. The Commission makes
determined strictly in accordance          statement misleading.                    no representation as to its accuracy
with the relevant standard Policy                                                   or completeness, and expressly
Terms & Conditions, copies of which        Royal Skandia Life Assurance             disclaims any liability whatsoever for
are available on request from your         Limited always aims to deliver           any loss howsoever arising from or in
financial adviser in the first instance      excellent service. But if you do have    reliance upon the whole or
or at our Hong Kong office.                 any cause to complain, please write      any part of the contents of the
                                           to the Complaints Team Manager at        offering document.
Any information concerning the             our Head Office address.
offering document and the Policy                                                    If you require any further information,
Terms & Conditions are to be                                                        please contact your financial adviser
interpreted in accordance with and                                                  in the first instance or our Sales and
are governed by Isle of Man Law.                                                    Customer Support team at Royal
                                                                                    Skandia’s Hong Kong office.
Date of publication: June 2011
                             Skandia International, part of the wealth management business
                             of Old Mutual plc, is the international group of companies which
                             provides the offshore and cross-border investment solutions for the
                             Old Mutual Group.

                             Calls may be monitored and recorded for training purposes and
                             to avoid misunderstandings.

                             Royal Skandia’s Hong Kong office:
                             24th Floor, Henley Building, 5 Queen’s Road Central, Hong Kong
                             Phone: +852 3552 5888 Fax: +852 3552 5889
                             E-mail: hongkong@royalskandia.com
                             Website: www.skandiainternational.com/hk

                             Royal Skandia Life Assurance Limited is registered in the
                             Isle of Man under number 24916C.

                             Registered and Head Office:
                             Skandia House, King Edward Road, Onchan, Isle of Man
                             IM99 1NU, British Isles.
                             Phone: +44 (0)1624 655 555 Fax: +44 (0)1624 611 715.

                             Authorised by the Isle of Man Insurance & Pensions Authority




SK0234/INT11-246/June 2011
                                                                     PRODUCT KEY FACTS
                                                                  Executive Investment Bond
                                                                                                         June 2011
             This statement provides you with key information about this product.
                       This statement is a part of the offering document.
             You should not invest in this product based on this statement alone.
Quick facts
Name of insurance company:                                   Policy currency:
Royal Skandia Life Assurance Limited (‘Royal Skandia’)       HK$/US$/£/€/JPYY/S$ =
Single or regular premium:                                   Minimum investment:
Single Premium                                               £50,000 or currency equivalent
Regular premium frequency:                                   Maximum investment:
N/A                                                          N/A
Minimum premium payment term:                                Death benefit:
N/A                                                          101% of surrender value (i.e. policy value less
                                                             any applicable surrender charge (early withdrawal
Period with surrender charge                                 charge))
(early withdrawal charge):
Five to eight years from which the premium is paid
Governing law of policy:
Law of Isle of Man


What is this product and how does it work?
•   This product is an investment-linked assurance scheme (‘ILAS policy’). It is a life assurance policy issued by
    Royal Skandia. This is not a fund authorised by the SFC pursuant to the Code on Unit Trusts and Mutual
    Funds (‘UT Code’).
•   This product adopts an open platform of investment choices whereby you may choose any of the SFC
    authorised funds as the underlying funds of your ILAS policy. You may also include other assets, such as
    stocks and bonds, as the underlying assets of your ILAS policy. Please refer to page 10 of the product
    brochure for details.
•   The premiums you pay, after deduction of any applicable fees and charges of your ILAS policy, will be
    invested by Royal Skandia in the underlying funds/assets you selected and will accordingly go towards
    accretion of the value of your ILAS policy. You may also transfer your existing assets held in your name to
    Royal Skandia as a premium payment in kind. Your ILAS policy value will be calculated by Royal Skandia
    based on the performance of your selected underlying funds/assets (including the assets that are
    transferred) from time to time and the ongoing fees and charges which will continue to be deducted from
    your ILAS policy value.
•   Note, however, that all premiums you pay towards your ILAS policy, any assets that are transferred to the
    ILAS policy, and any investments made by Royal Skandia in the underlying funds/assets you selected, will
    become and remain the assets of Royal Skandia. You do not have any rights or ownership over any of those
    assets. Your recourse is against Royal Skandia only.
•   Due to the various fees and charges levied by Royal Skandia on your ILAS policy, the return on your ILAS
    policy as a whole may be lower than the return of the underlying funds/assets you selected. Please see pages
    2 and 3 for details of the fees and charges payable by you.
•   Although your ILAS policy is a life assurance policy, the amount of your death benefit is linked to the
    performance of the underlying funds/assets selected or included from time to time which are subject to
    investment risks and market fluctuations. The death benefit payable may not be sufficient for your
    individual needs.


                                                         1
                                                                                Executive Investment Bond

What are the key risks?
Investment involves risks. Please refer to the principal brochure for details
including the risk factors.
•   Credit and insolvency risks – This product is a life assurance policy issued by Royal Skandia. Your investments
    are subject to the credit risks of Royal Skandia.
•   The underlying funds/assets which you may choose can have very different features and risk profiles. Some
    may be of high risk and may not be subject to any regulations. Please read the offering documents of the
    underlying funds/assets involved (which can be available from Royal Skandia) for details. You must ensure
    that you fully understand the nature of and the risks associated with any underlying funds/assets. You are also
    strongly urged to seek independent financial and other advice before making such investment decisions.
•   Early surrender/withdrawal penalty (Early withdrawal charge) – This ILAS policy is designed to be held for
    a medium/long term period. Early surrender or withdrawal of the policy may result in a significant loss of
    principal (premiums). Poor performance of underlying funds/assets may further magnify your investment
    losses, while all charges are still deductible.
•   Market risks – Investment return of this ILAS policy is contingent upon the performance of the underlying
    funds/assets and therefore there is a risk of capital loss.
•   Foreign exchange risks – The investment returns of the ILAS policy may be subject to foreign exchange
    risks as some of the underlying funds/assets may be denominated in a currency which is different from that
    of your ILAS policy.
•   Asset transfer risk – If you transfer your existing assets held in your name to Royal Skandia as a premium
    payment in kind, the title to your assets will be transferred to and become assets of Royal Skandia. This
    means you will then cease to have any legal ownership or beneficial interest in the transferred assets. Any
    cost incurred in effecting such transfer may be borne by you. Please note that depending on the asset class
    and legal process involved in transferring the title of the assets, it may take a long time to complete the
    asset transfer arrangement.

Is there any guarantee?
•   This product does not have any guarantee of repayment of principal (premiums). You may not get back the
    full amount of premiums you pay and may suffer investment losses.

What are the fees and charges?
Royal Skandia reserves the right to vary the administration charge and investment dealing charge with not less
than one month prior written notice or such shorter period of notice in compliance with the relevant regulatory
requirements.
Scheme level
The table below shows the details of the fees and charges of the charging structures A1 and B1 which are
available for your choice under the Executive Investment Bond.

                      Applicable rate         Deducted from             Applicable rate          Deducted from
Charging structure                         A1                                                B1
Establishment         0.25% per quarter for   Policy value in arrears   0.5% per quarter for     Policy value in arrears
charge                the first year only,    on each quarterly         the first year only,     on each quarterly
                      based on the higher     date by debiting the      based on the higher      date by debiting the
                      of (1) the premium      transaction account.      of (1) the premium       transaction account.
                      paid or (2) the value                             paid or (2) the value
                      of the underlying                                 of the underlying
                      assets in respect of                              assets in respect of
                      the relevant premium.                             the relevant premium.
                      A separate first year                              A separate first year
                      period will apply for                             period will apply for
                      each additional                                   each additional
                      premium paid in the                               premium paid in the
                      future.                                           future.
                                                                                                              (continued)

                                                         2
                                                                               Executive Investment Bond
What are the fees and charges? (Cont.)

                     Applicable rate          Deducted from            Applicable rate          Deducted from
Charging Structure                       A1                                                    B1
Administration       £48 per quarter          Policy value in arrears £96 per quarter           Policy value in arrears
charge                                        on each quarterly                                 on each quarterly
                                              date by debiting the                              date by debiting the
                                              transaction account.                              transaction account.
 Regular policy      0.3% per quarter,       Policy value in arrears   0.425% per quarter       Policy value in arrears
 management          based on the higher     on each quarterly         for 5 years and nil      on each quarterly
 charge              of (1) the premium      date by debiting the      thereafter, based on     date by debiting the
                     paid or (2) the value   transaction account.      the higher of (1) the    transaction account.
                     of the underlying                                 premium paid or (2)
                     assets in respect of                              the value of the
                     the relevant premium.                             underlying assets in
                     The charge will apply                             respect of the
                     separately in respect                             relevant premium.
                     of each additional                                The charge will apply
                     premium paid in the                               separately in respect
                     future.                                           of each additional
                                                                       premium paid in the
                                                                       future.

Investment           £15 per sale or         Policy value by      £15 per sale or               Policy value by
dealing charge       purchase of each        debiting the         purchase of each              debiting the
                     underlying asset.       transaction account. underlying asset.             transaction account.

Surrender charge 6% during the first         Policy value on the       8.5% during first        Policy value on the
(Early withdrawal year, reducing by          working day the           quarter, reducing by     working day the
charge)           0.75% each year to         surrender request is      0.425% each quarter      surrender request is
                  nil after 8 years,         processed by              to nil after 5 years,    processed by
                  based on the higher        debiting the              based on the higher      debiting the
                  of (1) the premium         transaction account.      of (1) the premium       transaction account.
                  paid or (2) the value                                paid or (2) the value
                  of the underlying                                    of the underlying
                  assets in respect of                                 assets in respect of
                  the relevant                                         the relevant
                  premium.                                             premium.
                  The charge will apply                                The charge will apply
                  separately in respect                                separately in respect
                  of each additional                                   of each additional
                  premium paid in the                                  premium paid in the
                  future.                                              future.
Currency dealing     Currently waived        N/A                       Currently waived         N/A
charge*

Please refer to ‘Charges that may apply to your Executive Investment Bond’ page 17 of the product
brochure for details of the charges.
*Any costs incurred by Royal Skandia in converting any sum from one currency to another for a transaction
 may be deducted from the amount available for the transaction. In addition, Royal Skandia may levy a
 currency dealing charge but this is not currently applied.




                                                        3
                                                                                                     Executive Investment Bond

  What are the fees and charges? (Cont.)
  Underlying funds/assets level
  You should note that the underlying funds/assets of the investment options may have separate charges on
  management fee, performance fee, bid-offer spread and/or switching fee. You do not pay these fees directly –
  either (1) the fees will be deducted and such reduction will be reflected in the unit price of the underlying
  funds/assets or (2) units will be redeemed from your investment options to pay these fees. For details, please
  refer to the offering document of the underlying funds/assets which is available from your financial adviser
  and/or the principal brochure of Executive Investment Bond which is available from Royal Skandia.


  What if you change your mind?
  Cooling-off period
  •     Cooling-off period is a period during which life insurance policyholders may cancel their policies and get
        back their original investments (subject to market value adjustment) within the earlier of 21 days after the
        delivery of the policy or issue of a notice to you or your representative. Such notice should inform you of the
        availability of the policy and expiry date of the cooling-off period. Please refer to the cooling off initiative
        issued by Hong Kong Federation of Insurers from time to time for reference.
  •     You have to tell your insurer by giving a written notice. Such notice must be signed by you and received
        directly by Royal Skandia at 24th Floor, Henley Building, 5 Queen’s Road Central, Hong Kong.
  •     You may get back the amount you paid, or less if the value of the investment options chosen has gone down.

  Insurance company’s information
  Royal Skandia Life Assurance Limited                                Phone: 3552 5888
  Address: 24th Floor, Henley Building,                               Fax:     3552 5889
           5 Queen’s Road Central, Hong Kong.                         Email: hongkong@royalskandia.com
                                                                      Website: www.skandiainternational.com/hk

   Important
  Royal Skandia is subject to the prudential regulation of the Insurance Authority. However, the Insurance Authority
  does not give approval to individual insurance products, including the Executive Investment Bond referred to in
  this statement.
  If you are in doubt, you should seek professional advice.
  The SFC takes no responsibility for the contents of this statement and makes no representation as to its accuracy
  or completeness.




Calls may be monitored and recorded for training purposes and to avoid misunderstandings.
Royal Skandia’s Hong Kong office: 24th Floor, Henley Building, 5 Queen’s Road Central, Hong Kong.
Phone: +852 3552 5888 Fax: +852 3552 5889 E-mail: hongkong@royalskandia.com
Royal Skandia Life Assurance Limited is registered in the Isle of Man under number 24916C. Registered and Head Office: Skandia House, King Edward Road,
Onchan, Isle of Man, IM99 1NU, British Isles. Phone: +44 (0)1624 655 555 Fax: +44 (0)1624 611 715.
Authorised and regulated by the Isle of Man Insurance & Pensions Authority.


SK7578/INT11-073/June 2011
                                                                           4

								
To top