Smart Invest Portfolio
The potential of an investment fund, the benefits of life insurance
Are you aiming for an attractive return without investing directly in financial markets? And do you want to ensure the well-being of your loved ones through a branch 23 life insurance? Then choose the Smart Invest Portfolio, an individual life insurance (branch 23), where the return is linked to the performance of one or more investment funds. You can look at the Smart Invest Portfolio as a basket that you fill with one or more Smart Invest Bons, which are funds with a fixed duration.
Depending on the selected Smart Invest Bon, the net amount of your investment (the amount invested without tax) is fully or partially protected.
With a Smart Invest Bon you can respond to current investment trends, since the yields of the investment funds are linked to underlying assets such as stock market indexes, stock baskets and funds.
Favourable tax regime
Take advantage of tax benefits of your investment insurance (see also section Taxation).
How does the Smart Invest Portfolio work?
Upon subscription, you select one or more Smart Invest Bons. These are funds with a fixed duration that are linked to the performance of one or more underlying assets (indexes, funds, currencies, etc.). Each investment fund is assigned a risk classification from 1 to 7, depending on the potential volatility of the assets (bonds, shares, etc.) contained in the funds. Of course, you must consider your investor profile when making your choice. The recommended investment horizon is at least equal to the duration of the selected Smart Invest Bon(s).
At maturity of the fund, the accrued value is automatically transferred to the standby fund. This fund offers no capital guarantee, but was selected based on its original investment policy (quantitative management), its attractive yield potential and its conservative nature. If you subsequently reinvest in a new Smart Invest Bon, you do not pay insurance tax anymore. However, you still need to pay entry fees.
During the term, you can always transfer money from your underlying fund to standby fund or another underlying fund.
Compartments within the Smart Invest Portfolio
The Smart Invest Portfolio is divided into two compartments: one featuring funds that are committed to a certain yield at maturity and one where they are not. The compartments are activated when you subscribe to an investment fund, and remain active as long as there is at least one fund left.
What is in it for you?
Depending on the selected Smart Invest Bon, the net amount of your investment is fully or partially protected. The potential yield depends on the performance of the Smart Invest Bon funds. At maturity, the amount is transferred to the standby fund. If you sell shares in the standby fund, you will receive the equivalent value of the shares at that time. Moreover, you can withdraw all or part of the capital in your contract at any time. Redemption of the total value of your Smart Invest Portfolio terminates the contract.
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 Invest Portfolio 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: only 2% of the premium, including entry fees.
- compartment without commitments: no withholding tax in case of redemption or internal transfer to another fund within the Smart Invest Portfolio contract, regardless of duration;
- compartment with commitments: possible withholding tax in case of redemption or internal transfer within the first eight years from the activation of this compartment.
The activation date of the compartment with commitments is indicated in the contract documents.
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: 2.50% of the net premium invested or net reserve transferred.
Management fee: maximum 1.50% per annum for your chosen fund. These charges are automatically included in the unit value of the fund. The management fee of the standby fund amounts to a maximum of 1% annually.
Redemption fee: 1% of the theoretical surrender value of the contract. However, no compensation is due on the theoretical surrender value corresponding to a surrender:
- of units of the standby fund;
- of units of a mutual fund with fixed maturity during the last year of the fund;
- of the final value at maturity of an investment fund with a fixed duration.
Transfer fees between funds from your Smart Invest Portfolio contract:
- a fund with a fixed term to another new fund (Smart Invest Bon) with an agreed duration: no exit fees from the original fund but entry fees into the new fund with a fixed term;
- a fund with a fixed term to the waiting/standby/holding/hold fund: 1% redemption fee of the value transferred is charged from the original fund. You do not pay a fee if the transfer is done in the last year or at maturity of the fund. No entry fees are charged in the standby fund.
What are the risks involved?
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.
Risk of derivatives
Factors such as rate changes and market volatility influence the intermediate unit value of the underlying funds.
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 Smart Invest Portfolio is an investment insurance (branch 23) from AG Insurance, limited company under Belgian law, distributed by BNP Paribas Fortis. The unit value of the funds can be consulted at www.aginsurance.be or through Easy Banking. 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 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 - 3 Montagne du Parc, 1000 Brussels; - AG Insurance sa/nv, Service Complaints Management, 53 Boulevard Emile Jacqmain, 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, 35 Square de Meeûs, B - 1000 Brussels, www.ombudsman.as or by email: email@example.com.