The Tilman Equity & Bond Fund
Aim of the Fund
The investment objective of the Tilman Equity & Bond Fund ("The Fund") is to provide long term capital growth from a portfolio of equities and bonds quoted in global markets. The Fund is actively managed by Tilman Brewin Dolphin with a low turnover of investments and the asset allocation is approximately 70% equities and 30% bonds/cash.
The Fund is structured as a unit linked investment fund and uses IBRC Assurance Company as the sponsoring life company, a subsidiary of Irish Bank Resolution Corporation Limited. Investors make their contributions through a life assurance or life policy which in turn invests monies into the Fund. The Fund qualifies under the 'gross rollup regime' under the Terms of the Finance Act, 2000.
The investment adviser for the Fund is Tilman Asset Management Limited ("Tilman Brewin Dolphin"), 3 Richview Office Park, Clonskeagh, Dublin 14. Tilman Brewin Dolphin is authorised to provide investment advice by the Central Bank of Ireland. The custodian for the Fund's assets is Goodbody Stockbrokers Nominees Limited.
Irish Bank Resolution Corporation Limited are authorised by the Department of Enterprise and Employment and they are responsible for statutory reporting, calculation of unit price, tax returns etc.Return to Fund Contents
Details of policyholder's initial investment and the charges applying are set out in the Contract Schedule, which is issued at the policy documentation stage.
Standard money laundering and policyholder ID must be provided at the outset.
If you are in any doubt as to the suitability of the investment you should discuss it in detail with your financial adviser.
The minimum investment is €50,000, either in a lump sum or in consecutive contributions over time. Unit holdings of the Fund can be through a life assurance investment policy or through a pension policy.
Policies purchased on behalf of minors will be registered in the name of a parent or guardian. There is no upper age limit for the purchase of a policy.
The fund should be considered as a longer term investment and investors should be aware that the value of the underlying investments and consequently the encashment value per policy can fall as well as rise. Investors may not receive back the full amount invested.Return to Fund Contents
The Finance Act 2000 introduced a new taxation regime for investment funds known as Gross Roll-Up which allows investments to grow without deduction of taxes within the fund. This regime applies to policies commencing on or after 1 January 2001.
You will pay tax on the profit your investment makes when the following take place:
- you encash all or part of your investment at any stage;
- you assign the policy in whole or part (with some exceptions, including to spouses)
- every 8th anniversary from the start of your investment;
- if we pay death benefits;
The tax is deducted at source by the insurance company, and paid to the Revenue following one of these events. The rate of tax payable is the life insurance exit tax rate applicable at the date of exit. This is defined as the standard rate of tax (20% for 2011) plus 3%. There are special rules for Personal Portfolio Life Policies (essentially charging an additional 20% tax on exit)
Exemptions from the charge may be available to qualifying charities, pension schemes, persons not-resident & ordinarily resident, Credit Unions, Courts Service, Life Assurance Companies and investment undertakings.
For Inheritance tax purposes the Fund is classified as an Irish Asset and any exit tax that has been deducted may be used to offset against inheritance tax. Please consult your tax advisor for further information
The rates and allowances are based on current legislation and are subject to change. Any relief that may be due is based on an individuals own circumstances
Contribution Charges per Policyholder:
- First €25,000 2%
- Next €75,000 1%
- Next €400,000 0.25%
- Thereafter 0%
- Total €2,250 Max
The above charges are applied on a cumulative basis but the maximum payable by any one policyholder is €2,250. An Annual Management charge of 1.375% will be levied on the value of the fund.Return to Fund Contents
Past performance is not a guide to future performance. The value of investments can fall and you may get back less than you invested. No investment is suitable in all cases and if you have any doubts as to an investment's suitability then you should contact a qualified financial adviser.
The opinions expressed in this article are not necessarily the views held throughout Brewin Dolphin. No Director, representative or employee of Brewin Dolphin accepts liability for any direct or consequential loss arising from the use of this document or its contents.