24 August 2019

Platinum Bond Plus

This product is no longer available to new customers

Platinum Bond Plus is a lump-sum ‘with-profits’ investment, which is designed to help your money to grow over the medium to long term (5 years or more). It is no longer available to new investors, but if you have already invested in our with-profits Bond, below are a few useful reminders about your investment, which covers:

  • An overview of how the 'profits' are shared out with investors
  • The current Bonus Rates and MVR rates which may apply
  • The latest performance, and information about how we are managing your money
  • A reminder of the charges which apply

It’s important to remember that this type of investment carries a degree of risk and its value can fall as well as rise, so you may get back less than you put in.

How the profits are shared out

  • When you make an investment in Platinum Bond Plus, your money is pooled together with lots of other investors’ money in our ‘with-profits fund’. This fund is managed by a team of experienced investment professionals.
  • The fund's investment strategy is to achieve growth in the value of the fund by investing in a wide range of assets, comprising of UK and overseas shares, government and other bonds, property, cash, alternative and other investments.
  • And because some of us want to invest for longer than others, we also have to make sure that everyone who invests in the ‘with profits fund’ is paid out a fair value for their investment when they come to cash it in.
  • So, any profits from the investments made by our expert Fund Managers are added back to the ‘with profits fund’. And then shared-out amongst all the investors, by adding bonuses to their investments.
  • Your returns are ‘smoothed’ over time, so that you are cushioned from the daily ups and downs of the stock market. In this way, with-profits investments are suitable for long-term investors looking for the prospect of better returns than are typically available on cash savings while not wanting full exposure to stock market volatility. However, unlike cash savings, the cash-in value of your investment may go down as well as up and you could get back less than you have invested. Please also read the Market Value Reduction section of this guide.
  • We add annual bonuses and review these on a regular basis. Annual bonuses allocate part of the profits of the fund to policyholders, increasing your bond value. Details of bonuses and market value reductions are shown on your annual statement.

Annual Bonus

The Annual Bonus rate for the first year of your investment is guaranteed. After the first year the rate of Bonus you receive may vary.

Final Bonus

When you cash in your Bond, or in the event of death a Final Bonus may also be applied, to make sure you are paid-out a fair value for your investment at the time. Details of any Final Bonus will be included on your annual statement. Or, if you request a valuation of your Bond over the phone, we’ll include this for you as part of the valuation.

Market Value Reduction (MVR)

When you cash in your Bond a Market Value Reduction (MVR) may be applied, to make sure you are paid-out a fair value for your investment at the time. An MVR will not be applied in the event of death.

Due to the current economic climate & market conditions, as from 14th February 2013, there are no MVRs being applied on Platinum Bond Plus policies.

Download Adobe Acrobat

You can find out more about MVRs and these rates, by reading our brochure
(Documentation will open as a PDF in a new windows).

Investment term

Platinum Bond Plus is a medium to long-term investment and there’s no fixed end date, so you can invest for as long as you like.

Income

You can make withdrawals from this investment, to give you a ‘regular income’. Up to 5% each year of the total amount you invested at the time without needing to pay any tax straight away.

Cashing in

You can cash in all, or just part of, your investment at any time. When you do, we need to ensure you are paid a fair value for your investment at that time, by applying a Final Bonus, to ‘top-up’ your investment, or a Market Value Reduction (MVR), which would reduce the value of your Bond. You should also remember that if you make a partial withdrawal this will reduce the value of your investment.

Death benefit

Platinum Bond Plus is also a life assurance policy. We guarantee to pay, on the death of the life assured (the person covered by the plan), 101% of the plan value together with any further bonuses added at that time. For Platinum Bond policies, the death benefit will not be lower than the premiums you have paid less any amounts of money you have withdrawn from your policy.

Statements

We will send you a statement once a year, on the anniversary of your investment, to let you know how it’s performing. Your statement will tell you whether an Annual Bonus has been added to your investment and the current Bonus Rate at the time, or whether any MVR applies at the time, if you were to cash in your investment.

You can request a valuation of your investment at any time by calling us on 03456 057777.

How has the with-profits fund, and Platinum Bond Plus, been performing?

Investment returns

It’s important to remember that past performance is not a reliable indicator of future performance, but if you’d invested £10,000 in Platinum Bond Plus during the last fifteen years, this table shows you what you would have got back.

Duration of investment at 1 April 2016 (years)Surrender value as at 1 April 2016 (£)Rate of return obtained on premiums paid (% pa)
5 13,144 5.6
6 14,147 6.0
7 17,022 7.9
8 14,578 4.8
9 13,749 3.6
10 15,507 4.5
11 17,486 5.2
12 19,244 5.6
13 22,050 6.3
14 19,753 5.0
15 19,615 4.6
16 18,845 4.0

Asset mix (as at 31 December 2015)

The with-profits fund is made up of a variety of different types of investments (assets).

How we manage your investment

We produce a document called ‘The Principles and Practices of Financial Management’ which explains your investment. You can find the latest version here.

We also produce a ‘customer friendly’ version of ‘The Principles and Practices of Financial Management’ which you may prefer.

When you invest in Platinum Bond Plus we make some charges for looking after and managing your money, to give it the best chance of achieving your investment goals.

Here is a summary of some of the important information.

Please note there is a one-off charge of 4% for making an investment in Platinum Bond Plus on ‘day one’ of your investment. This is calculated as a percentage of the amount you invest.

In addition to this one-off charge, the yearly expenses of managing your Bond are deducted from the investment profits of our with-profits fund before bonuses are determined. The annual management charges applied to your Bond are detailed in the below table:

Entry date after Annual management charge
1 July 1998 0.25%
1 April 2002 0.50%
28 July 2003 0.75%

We aim to keep these charges to a minimum and we will notify you if there are any changes.

What about tax?

Platinum Bond Plus can be a tax-efficient way to invest. In summary:

  • Your basic rate of income tax and capital gains tax liability will be covered by us, for any growth of the investments in the ‘with-profits fund’. You are not able to recover this tax.
  • If you choose to make withdrawals from this investment, to give you a ‘regular income’, you can do so up to 5% each year of the total amount you invested, without needing to pay any tax straight away.

You will find more information about taxation in our brochure, “Key Features of The Co-operative Platinum Bond Plus” which you received when you invested.

 

Download Adobe Acrobat

In addition to the above information, the attached product guide is intended to provide you with an ‘at a glance’ guide to the most important features of your Platinum Bond Plus policy:
(Documentation will open as a PDF in a new window).

Talk to us:

03456 057777

Open 8am - 8pm, Mon - Fri and 8am - 5pm on Saturday
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The Royal London Mutual Insurance Society Limited is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Registered in England and Wales number 99064. Registered office: 55 Gracechurch Street, London, EC3V 0RL. RL Marketing (CIS) Limited is authorised and regulated by the Financial Conduct Authority. Registered in England and Wales number 3390839. Registered office: 55 Gracechurch Street, London, EC3V 0RL. RLUM Limited is authorised and regulated by the Financial Conduct Authority. Registered in

England and Wales number 2369965. Registered office: 55 Gracechurch Street, London, EC3V 0RL.

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