Smart Fund Plan
Your investment is guarded by two protection mechanisms
Are you looking for prospects of a higher return and prepared to tie up your money for a longer period? Are you ready to take a risk? Then opt for the Smart Fund Plan, an individual life insurance (branch 23) where the return is linked to the performance of one or more investment funds. You can do so in a controlled way, thanks to two integrated protection mechanisms: the Profit Protector and the Loss Limiter. Furthermore, you invest in a tax-friendly way: you pay no tax on stock exchange and no withholding and final tax. You only pay insurance tax.
You can subscribe at any time. The minimum amount for a single premium is EUR 2,500 (including tax). In addition, you can always increase the capital invested with an additional premium starting from EUR 1,500 (including tax). Regular premiums are not possible.
Have you had to watch your profit go up in smoke after a sudden shift in market trends? The security mechanism built into your Smart Fund Plan will try to spare you the disappointment. This protection mechanism automatically transfers profits to a more defensive target fund, if the unit value of your shares increases by at least 10%.
The second protection mechanism tries to limit potential losses amidst falling markets. It uses automatic reinvestment to ensure that the entire capital is automatically transferred to a more defensive target fund when markets fall by 10% or more, compared to a predetermined reference value. This target fund is less sensitive to market fluctuations. Thanks to automatic investment, the assets are gradually reinvested in the basic fund over a 6-month period. That way you may benefit from potential new yield and market opportunities, such as lower purchasing prices. Additionally, if the unit value of a basic fund rises by 1% compared to the reference value, the latter also increases by 1% (dynamic adjustment). Accordingly, if the unit value of the basic fund decreases, the reference value will not be adjusted downwards.
Choose your own investment fund
You can choose among the nine basic funds that are currently on offer, based on your performance objectives and the financial risk you are willing to take. However, you can not choose the target fund.
For more information, see the management regulations of each investment fund.
What is in it for you?
The Smart Fund Plan seeks to achieve long term capital growth. Therefore, it does not have any end date. The return is not guaranteed and depends on the performance of the fund(s) you are investing in.
You can transfer a portion of your basic fund to the target fund and vice versa at any time, provided that:
- the transferable amount is at least EUR 1,500;
- at least EUR 1,500 remains in each fund.
A partial redemption is possible if:
- the requested surrender value amounts to at least EUR 1,500;
- at least EUR 1,500 remains in each fund.
You can undertake periodic redemptions, provided that:
- the accumulated capital amounts to at least EUR 25,000 per contract;
- you do not request over 4% capital per contract.
The contract terminates if you redeem your entire cash reserve.
But what if disaster strikes and you die before the maturity date of the contract?
When concluding the contract, you can designate a beneficiary, who will receive the capital of your Smart Fund Plan after your death:
- as part of the standard cover, the death benefit equals the total number of shares in each fund of the contract, multiplied by the value of each share at the date of liquidation;
- as part of a comprehensive coverage (under certain conditions), the death benefit equals at least the sum of all payments (including entry fees), minus any deductions.
See the terms and conditions for more details.
Insurance tax: 2% of the paid premium. You do not pay stock exchange tax, withholding tax of 27% or final tax. In the event of death, an inheritance tax may be levied.
This tax regime applies to private investors in Belgium and may be subject to change. Other categories of investors are requested to inform themselves about the tax regime applicable to them.
Entry fee: 3% of the net premium paid.
Management fee: 1-2% per annum, depending on your funds. These charges are automatically deducted from your accumulated capital.
Redemption fee: 1% of the accumulated amount during the first six years. You do not pay a redemption fee after the seventh year.
Protective mechanisms: 0.20% per annum for each active protection mechanism (or 0.40% year-on-year in total).
Costs for transfers of funds: free twice per year; for additional transfers, a fee of 1% of the value transferred is charged. You do not pay a fee for automatic transfers made by the protection mechanisms.
How can you track your investment?
Each year you will receive an overview of your contract, including a record of any bonuses granted. Easy Banking Web allows you to consult the current state of your contract at any time. You will find the underlying funds in financial reporting and at www.aginsurance.be.
What are the risks involved?
Bankruptcy of the insurer
There is a risk of capital loss in the event of bankruptcy or default of AG Insurance sa/nv. The assets of the fund associated with your contract are managed separately from the assets of the insurer. In case of bankruptcy of the insurer, its capital is first and foremost used to fulfill the commitments to the policyholders and/or beneficiaries.
The unit value depends on the performance of the underlying assets and market developments. You yourself bear the financial risk. Upon payment of the capital to the beneficiary, the unit value may be higher or lower than its value at the time you paid the premium. So keep in mind that you could lose all or parts of the investment.
In exceptional circumstances, shares might temporarily not be available for trade.
Risks associated with the management of funds
Funds are exposed to a number of risks that vary depending on the investment objective and policies of these funds (and any underlying funds). To achieve their objective, the managers of each fund invest in different asset classes and types. The ratio depends on market conditions and the fund's policies. Despite the expertise of specialists, there is a risk that the investments do not yield the expected result.
The Smart Fund Plan is a savings-based insurance (branch 23) from AG Insurance sa/nv, under Belgian law, distributed by BNP Paribas Fortis. AG Insurance sa/nv – 53 Boulevard Emile Jacqmain, B-1000 Brussels – RPM/RPR Brussels – VAT BE 0404.494.849 – www.aginsurance.be. Accredited insurance company licensed under code number 0079, under the supervision of the National Bank of Belgium, 14 Boulevard de Berlaimont, 1000 Brussels.
BNP Paribas Fortis sa/nv, 3 Montagne du Parc, B-1000 Brussels – RPM/RPR Brussels – VAT BE 0403.199.702, registered with the FSMA under n° 25.879A, 12-14 Congress, 1000 Brussels, and acting as a contractually appointed insurance agent on behalf of AG Insurance sa/nv.
For all your questions, contact any branch of BNP Paribas Fortis. In case of complaints, please contact :
- BNP Paribas Fortis sa/nv - Complaint Management - Montagne du Parc 3, 1000 Brussels;
- AG Insurance sa/nv, Service Complaints Management, E. Jacqmain 53, B - 1000 Brussels (Tel .: +32 (0) 2 664 02 00) or by email at: firstname.lastname@example.org;
- or refer to Article 21 of the General Banking Terms and Conditions.
If you are not satisfied with the solutions provided by BNP Paribas Fortis and AG Insurance, you can submit the dispute to Insurance Ombudsman, Square de Meeûs 35, B - 1000 Brussels, www.ombudsman.as or by email: email@example.com.