HOW THE INTERNATIONAL PORTFOLIO BOND WORKS WITH THE COFUNDS INVESTMENT PLATFORM

Transcription

1 INTERNATIONAL PORTFOLIO BOND HOW THE INTERNATIONAL PORTFOLIO BOND WORKS WITH THE COFUNDS INVESTMENT PLATFORM This is not a consumer advertisement. It is intended for professional financial advisers and should not be relied upon by private investors.

2 INTERNATIONAL PORTFOLIO BOND A GUIDE TO THE COFUNDS INVESTMENT PLATFORM 2 THE INTERNATIONAL PORTFOLIO BOND Cofunds and Canada Life International Assurance (Ireland), CLIA(I) have an agreement for Cofunds to provide administration, custody and execution only services in relation to the funds held on the platform. This agreement allows advisers to manage all or a proportion of the assets in the International Portfolio Bond (IPB), using the functionality of the platform. The service provides policyholders with a degree of flexibility to switch funds around as their risk profile changes without having to pay frequent switch charges for dealing. Cofunds is the custodian for the platform funds you select in agreement with your client and CLIA(I) is the owner of the platform holdings. Within the terms of the bond, the policyholder has the right to receive the value of the assets held within the bond but they do not have a right of ownership of the platform holdings themselves. The bond can be set up so that the platform is one of the selected assets, in the same way that it can be used to invest directly in cash deposits, discretionary managed portfolios, structured deposits and collectives that Cofunds does not offer via the platform. Indeed, provided we have a relationship with the platform in question, it is also possible to hold investments on other platforms. The bond can invest entirely in any of the ways shown below, or a mixture of any or all of them. The detail of the assets held on the platform can be viewed through the Cofunds website. The full value of the bond can be viewed via CLIA(I) s online valuations facility accessible on the website. COFUNDS INVESTMENT PLATFORM DISCRETIONARY ASSET MANAGEMENT ACCOUNTS INTERNATIONAL PORTFOLIO BOND OFF PLATFORM COLLECTIVES AND OVERSEAS MUTUAL FUNDS DEPOSIT ACCOUNTS STRUCTURED DEPOSITS AT QUOTE STAGE ADVISERS SHOULD: Ask for a quote for an IPB. Specify the mix of assets they want to go into the bond, for example, 75% Cofunds investment platform, 20% deposits, 5% transaction account. Provide your client with a tailored platform funds key features that illustrates the charges for the selected platform funds. Please note at quote stage we do not need to know the underlying assets that will be invested. We only need to know the percentage that will be invested on the Cofunds Platform.

3 INTERNATIONAL PORTFOLIO BOND A GUIDE TO THE COFUNDS INVESTMENT PLATFORM 3 WHAT WE WILL INCLUDE IN THE ILLUSTRATION We will issue quotes showing a single line for an investment on the platform. The quote will not show the detail of the underlying funds on the platform. As we now need to disclose a platform charge that is separate from any product or fund charges, you must give us an aggregate Annual Management Charge for the portfolio you have recommended together with the platform charge that applies to the investment amount. We will use the AMC you have specified plus the platform charge or a nominal AMC of 1.0% plus the platform charge that will apply. Any off platform assets available through CLIA(I) will be illustrated in the normal fashion, showing the charges negotiated by us with the fund provider that are applicable to the investment. AT NEW BUSINESS STAGE ADVISERS SHOULD GET THE APPLICANTS TO: Complete a Personal, Corporate or Trustee Application Form, specifying the mix of assets they want to go into the bond, for example, 75% Cofunds investment platform, 20% deposits, 5% transaction account. Complete an Investment Adviser Appointment Form to enable you to manage the off platform bond assets, including the transaction account, on your client s behalf. Complete a Platform and Financial Adviser Appointment Form to enable you to manage the platform funds on your client s behalf. WHEN THE BOND IS SET UP You should already have a relationship with Cofunds. It is easy to register with Cofunds online We will set up a standard International Portfolio Bond, but at the same time, we will issue instructions to Cofunds to set up a bond specific account on the platform. We will then send the investment amount to Cofunds and once the investment shows on the platform, you will be able to deal in the platform funds you have agreed with your client. Please note we do not have access to the Cofunds Platform. It is your responsibility to place your client s trades on the Cofunds Platform. MANAGING LIQUIDITY IN THE BOND Step 1 Complete the Investment Variation Form specifying the monetary amount required to be transferred from the Platform to the bond s transaction account. Step 2 Access the Cofunds Platform, complete disinvestment and place proceeds into the Cofunds Trading Account. Step 3 We will request the monetary amount specified on the Investment Variation Form to be transferred from the Cofunds Trading Account to the IPB transaction account. Step 4 Confirmation sent to policyholder when transaction is complete. If there is insufficient cash in the Cofunds Trading Account the transfer will not complete. Managing the IPB s transaction account liquidity is an on-going activity. Please refer to the Investors Guide to the Transaction Account for further information.

4 4 INTERNATIONAL PORTFOLIO BOND A GUIDE TO THE COFUNDS INVESTMENT PLATFORM DISINVESTING FROM THE COFUNDS PLATFORM All disinvestment instructions must be sent to us to process. This can be an Investment Variation Form sent to us to move money from the Cofunds Platform to the bond s transaction account to cover bond charges, policyholder s regular withdrawals or to purchase an asset off platform. It can also be a Surrender Request Form to pay money to the policyholder by way of disinvestment from the Cofunds Platform. We will process these requests by contacting Cofunds and specifying the amount required. It is essential that you ensure that sufficient money is available in the Cofunds Trading Account before submitting the instructions to us or the request will be rejected. The Cofunds Adviser website has links to our adviser site, which has all of the relevant product literature. Customers will appoint Cofunds on a non-discretionary asset management basis and you, as a discretionary or advisory manager, via the Platform and Financial Adviser Appointment Form. Canada Life International Assurance (Ireland) will carry out dealing for all asset types that are not currently on the platform. If you have any queries please contact us on +44 (0) (we may record and monitor calls, call charges will vary) or [email protected]

5 For further information about Canada Life International Assurance (Ireland), please visit or call us on +44 (0) Legal & General International (Ireland) Limited trading as Canada Life International Assurance (Ireland), registered in Ireland no Registered office: Irish Life Centre, Lower Abbey Street, Dublin 1, Ireland. Telephone: +44 (0) Fax: +44 (0) Member of the Association of International Life Offices. Canada Life Limited is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Canada Life International Limited and CLI Institutional Limited are Isle of Man registered companies authorised and regulated by the Isle of Man Insurance and Pensions Authority. Canada Life International Assurance Limited and Canada Life International Assurance (Ireland) are authorised and regulated by the Central Bank of Ireland. This paper is made from recycled materials ID R