CMI Global Investor charges

Product charges

You can choose from five competitive charging options when setting up your CMI Global Investor.

Please note you cannot change the charging option selected after the investment date. With the exception of the bond charge and the early encashment charge, the charges are reviewed annually in line with inflation.

Level option
Bond charge	Quarterly charge on each investment or current bond value* if greater of: 0.1% for investments between £100,000 and £249,999. 0.048% for investments over £250,000 and £500,000.
Charge for initial commission	These rates don't include any charge for initial commission. For every 1% initial commission that is taken, the quarterly charge will be increased by 0.033%.
Service charge including 20 transactions each year	£75.50 (US$113.50; €113.50) per quarter.
Additional transactions	£37.50 (US$56.50; €56.50) each
Early encashment charge	If you fully encash your bond within the first eight years there will be an early encashment charge. This will be equal to the outstanding quarterly charges you would have paid in the first eight years, if you hadn't cashed in your bond.
Additional valuations	£75.50 (US$113.50; €113.50) each.
Initial option
Initial charge	2% of initial investment for investments between £100,000 and £249,999. (1.5% for investments between £250,000 and £500,000).
Charge for initial commission	The above rates assume that no initial commission has been taken. Any initial commission taken will be added to the initial charge on a 1:1 basis.
Service charge including 20 transactions each year	£113.00 (US$169.50; €169.50) per quarter.
Additional transactions	£37.50 (US$56.50; €56.50) each.
Additional valuations	£75.50 (US$113.50; €113.50) each.
5 year option
Bond charge	For the first five years only, there is a quarterly charge on each investment of: 0.125% for investments between £100,000 and £249,999. 0.09% for investments between £250,000 and £500,000.
Charge for initial commission	These rates do not include any charge for initial commission. For every 1% initial commission that is taken, the quarterly charge will be increased by 0.061%.
Service charge including 20 transactions each year	£113.00 (US$169.50; €169.50) per quarter.
Additional transactions	£37.50 (US$56.50; €56.50) each.
Early encashment charge	If you fully encash your bond within the first five years, there will be an early encashment charge. This will be equal to the quarterly charges you would have paid if you hadn't cashed in your bond.
Additional valuations	£75.50 (US$113.50; €113.50) each.
Tiered option
Bond charge	Quarterly charge on each investment or current bond value* if greater of: 0.175% for investments between £100,000 and £149,999 0.16% for investments between £150,000 and £199,999 0.10% for investments between £200,000 and £299,999 0.0675% for investments between £300,000 and £500,000.
Charge for initial commission	Option 1 – Any initial commission taken (up to 3%) will be matched by an initial charge on a 1 for 1 basis. So, if 3% initial commission is taken then there will be a 3% initial charge. Option 2 – Initial commission will result in an establishment charge taken quarterly in arrears as a percentage of the investment for the first three years, and a decreasing early encashment charge will apply in the first three years. The total of the establishment charges will be slightly greater than the amount of commission taken, to allow for the delay in payment, compared to option 1 above.
Service charge including 20 free transactions each year	Nil
Additional transactions	£37.50 (US$56.50; €56.50) each.
Early encashment charge	None, if option 1 above is used for initial commission. If option 2 above is selected, then the outstanding establishment charges will be taken from the fund value.
Additional valuations	£75.50 (US$113.50; €113.50) each.
Enhanced allocation option
Bond charge	For the first five years only, there is a quarterly charge on the value of each enhanced investment of: 0.510% for investments between £100,000 and £249,999. 0.477% for investments between £250,000 and £500,000.
Initial allocation	The allocation rate is 107%, less any initial commission taken. So, if 3% initial commission is taken, this will result in an allocation rate of 104% being applied to the investment amount.
Service charge including 20 free transactions each year	£113.00 (US$169.50; €169.50) per quarter.
Additional transactions	£37.50 (US$56.50; €56.50) each.
Early encashment charge	9% of each enhanced investment or bond value at encashment if greater, reducing by 0.45% per quarter over five years to 0%.
Additional valuations	£75.50 (US$113.50; €113.50) each.

*We calculate the current bond value by taking the average of the previous quarter's valuation (or initial valuation, if appropriate) and the value of the bond before deduction of any fees on the bond valuation date.

Transactions
A transaction is either a 'buy' or a 'sell'. A switch within the same fund management company will be treated as one transaction. A 'placement in a fund' a 'fund withdrawal' or a 'fund closure' are each regarded as an individual transaction, whereas a renewal of a deposit on existing terms with the same institution does not.

Fund charges

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

• 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.

• 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 is a percentage of the fund value each year and varies according to the fund. 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.

  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.

Switch charges

All transactions between Clerical Medical funds are currently free of charge. The first 20 transactions each year between external funds are also free of charge. Additional transactions are charged at £37.50 (US$ 56.50; €56.50) each.

Third party charges

Any third party charges that apply to your policy are deducted from the CMI Global Investor 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 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.

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 Global 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 (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 Global Investor cash account on the valuation dates.

Notice account charges

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