CMI Global Investor charges
The charges when investing in CMI Global Investor can include product charges, fund
charges and third party charges. Please click on the options below for more information:
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.
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Level option
|
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Bond charge
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0.28% per quarter, of each investment or current bond value* if greater (0.236%
for investments over £250k) |
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Service charge including 20 transactions each year
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£71.50 (US$107.50; €107.50) per quarter |
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Additional transactions
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£36.00 (US$54.00; €54.00) each |
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Early encashment charge
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8% of each investment or bond value at the time of encashment if greater, reducing by 0.25% per quarter
over 8 years to 0% |
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Additional valuations
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£71.50 (US$107.50; €107.50) each |
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Initial option
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Initial charge
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8% of initial investment (7.50% for investments over £250k) |
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Service charge including 20 transactions each year
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£107.50 (US$161.50; €161.50) per quarter |
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Additional transactions
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£36.00 (US$54.00; €54.00) each |
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Additional valuations
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£71.50 (US$107.50; €107.50) each |
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5 year option
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Bond charge
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0.449% of each investment, payable quarterly, for the first five years only (0.427%
for investments over £250k) |
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Service charge including 20 transactions each year
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£107.50 (US$161.50; €161.50) per quarter |
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Additional transactions
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£36.00 (US$54.00; €54.00) each |
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Early encashment charge
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8% of each investment or bond value at the time of encashment if greater, reducing by 0.4% per quarter
over 5 years to 0% |
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Additional valuations
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£71.50 (US$107.50; €107.50) each |
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Tiered option
|
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Bond charge
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Quarterly charge levied on each investment or current bond value* if greater of:
0.16% for investments between £100,000 and £199,999
0.10% for investments between £200,000 and £299,999
0.0675% for investments between £300,000 and £500,000. |
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Charge for initial commission
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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. |
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Service charge including 20 free transactions each year
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Nil |
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Additional transactions
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£36 (US$54; €54) each. |
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Early encashment charge
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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. |
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Additional valuations
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£71.50 (US$107.50; €107.50) each. |
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Enhanced allocation option
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Bond charge
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0.510% of each enhanced investment, payable quarterly, for the first five years only (0.477% for investments over £250,000). |
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Initial allocation
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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. |
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Service charge including 20 free transactions each year
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£107.50 (US$161.50; €161.50) per quarter. |
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Additional transactions
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£36 (US$54; €54) each. |
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Early encashment charge
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9% of each enhanced investment or bond value at encashment if greater, reducing by 0.45% per quarter over five years to 0%. |
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Additional valuations
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£71.50 (US$107.50; €107.50) 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.
The following fund charges apply to your CMI Global Investor and are deducted from
the investment:
-
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.
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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.
Please note that discounted investment terms only apply where the assets are held
by CMI Insurance Company Limited.
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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.
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 £36.00 (US$ 54.00; €54.00) each.
Any third party charges that apply to your policy are deducted from the CMI Global
Investor cash account. These may include:
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.
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.
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.
Some banks charge a telegraphic transfer fee when sending money to us. Any telegraphic
transfer fees are paid through the cash account.
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.
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.
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.