FRIENDS PROVIDENT INTERNATIONAL Ltd ZENITH
Liquidity: Within the first 5 years there is a penalty if you withdraw more than 10% of your initial deposit each year cumulatively. The penalty is 5% in the first year reducing by 1% each year for 5 years. For full surrender the outstanding Establishment charges have to be paid as well. After 5 years there are no restrictions on the amount that may be withdrawn
Bonuses: Upon deposit you receive an enhanced allocation as follows:
|£10,000 - £24,999
||$15,000 - 37,499
|£25,000 - £49,999
||$37,500 - 74,999
|£50,000 - £99,999
||$75,000 - 149,999
|£100,000 - £199,999
||$150,000 - 299,999
Charges: There are 2 visible charges:
- An establishment charge of 0.4% of amount deposited per quarter
for the 1st 20 quarters. After 5 years these charges cease.
There are other hidden charges, taken out before the funds are
priced and so they are not seen:
- FPIL take 1.2% pa out by reduction of the fund prices each day.
The performance of the mirror funds are therefore 1.2% pa less
than the underlying funds being mirrored.
- The funds themselves have internal charges (but have been selected
based on their net performance).
Life Insurance: There is a minimal element of life insurance in the plan so that it falls under the protection of the Isle of Man Government Policy Holders Protection Act whereby the government refund 90% of your fund if the insurance company goes into liquidation. The amount of life insurance is 1% of the value of the fund at the time you die - or when both of you die if it is in joint names.
Switching: Bear in mind that there are no charges for switching between funds and no restrictions on how long you need to remain in any fund.
Withdrawals: In the first 5 years up to 10% of the original investment can be withdrawn without penalty each year. If not used, this allowance can be rolled over to following years. After 5 years there is no limit on the amount that can be withdrawn. Withdrawals can be paid monthly, quarterly, half yearly or annually
Within the first 5 years there is a penalty if you withdraw more than 10% of your initial deposit each year cumulatively. The penalty is 5% in the first year reducing by 1% each year for 5 years. For full surrender, the outstanding Establishment charges have to be paid as well.
Their main tax advantage is that in the UK and most of Europe, investments in offshore bonds give a gross rollup. This means that they are not taxed on a yearly basis but only when a taxable event takes place, like redemption or the death of a bondholder.
Switching of assets within the Investment Account is not a tax event and therefore is a totally tax neutral activity.
Zenith Product Summary
Bank Instruction Form
Fund Transfer Form
Withdrawal / Surrender Form