Although the bond grows through bonuses, bonus rates are not guaranteed and in exceptional circumstances could be nil.

There are no early surrender penalties that apply to the advised Investment Bond.

If your client cashes in, or makes a withdrawal, a Market Value Reduction (MVR) may be applied, which, if not made on one of the guaranteed MVR free dates, could reduce the amount they receive and they might receive back less than has been invested. A MVR may be applied if there’s a significant fall in the value of the stocks and shares, or other investments we have invested in.

Inflation will reduce what your client's investment will buy in the future.

Your client's personal tax position and the way investment bonds are taxed could change.

If your client decides to invest in a Healthy Investment Investment Bond they will be investing into our Ethical With-profits Fund, which includes a mix of stocks and shares, fixed interest bonds, commercial property and cash deposits. The mix of assets held changes over time.

We avoid investing in companies in certain industries and those whose activities are not in accord with our members’ personal values. Examples are the tobacco, armaments, alcohol and fur manufacturing industries, gambling and pornography providers and companies that manufacture products or ingredients that have been tested on animals.

We seek to invest in companies that are explicitly involved in activities that benefit society and the environment. Examples are companies that are tackling climate change, promoting a low carbon economy, promoting diversity and equal opportunities, and improving energy efficiency.

Our vision is to invest for a better future, deliver good financial returns and make a difference to society and the environment.

The Society aims to provide a consistent return by smoothing the investment return to avoid volatile fluctuations in the value of your client's investment. Smoothing may not protect them against long term or sustained falls in the value of investments.

For further information on our Ethical With-profits Fund please click here.

Reversionary bonus
A reversionary bonus is an annual bonus which, once added to your Bond, can never be taken away.

These are the reversionary bonus rates we’ve applied to our Bond:

2024 – 3.13%
2023 – 2.75%
2022 – 2.00%
2021 – 2.00%
2020 – 2.50%
2019 – 2.25%
2018 – 2.25%
2017 – 3.10%

The level of bonus depends on investment performance, our expenses and our solvency margin over the previous year as well as the Board’s expectations of future performance. The level of bonus also reflects the capital and bonus guarantees. The rate of bonus can change every year and could in exceptional circumstances be nil.

All reversionary and interim bonus rates are net of charges. The bonus rate declared is the bonus rate you receive.

Interim bonuses
Unlike declared reversionary bonus rates, which can never be changed, interim bonus rates can be increased or reduced by the Board at any point during the year. The current interim bonus rates are based on a prudent view of future investment performance, solvency and expenses over the year. Interim bonus is paid on all withdrawals made since the last reversionary bonus declaration and on death.

Terminal bonuses
A terminal bonus is an additional final bonus which may also be added on partial and full withdrawals or in the event of the death of the investor. The rate of final bonus can be changed at any time or can be withdrawn altogether.

Life cover
If your client dies the bond will pay out the higher of 101% of the amount you invested, less any withdrawals of course, or the full value your bond, including any terminal bonus payable at the date of death.

Or 100.1% of the amount invested if they were 80 or over when they invested, less any withdrawals, or the full value of the bond, plus any final bonus.

The Healthy Investment Investment Bond comes with important capital and bonus guarantees to ensure your client receives back the initial investment plus all the bonuses that have been added to the bond, less any withdrawals of course, providing they withdraw from it on one of the key anniversary dates.

The first guarantee anniversary date is on the 10th anniversary of the date they invested in the bond, and every 5th year after that.

MVRs are never applied on death. This means that if your client dies their estate is guaranteed to receive more than they have invested.

The level of bonus depends on investment performance, our expenses and our solvency margin over the previous year as well as the Board’s expectations of future performance.

The Key Information Document includes examples of what your client might receive back based on different investment scenarios. It also helps them understand the nature, risks, costs, potential gains and losses of this product and to help you and them compare it with other products.

Download our latest Key Information Document for our bond here.

Download

The Consumer Duty ensures that the needs of our members and your clients are always put first. As a mutual we’ve been committed to doing the right thing throughout our long history, however this new FCA initiative is, we believe, going to drive up standards across financial services.

As part of our commitment to supporting you, the advisers we work with, our Consumer Duty Outcome Assessment is available to help you demonstrate that by recommending our products you’re doing the right thing for your client.

Download our outcome assessment for our Investment Bond here.

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