APT Approved Retirement Funds
Assets passing down the generations
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imagine
APPROVED
RETIREMENT FUNDS
WITH CONTROL,
FLEXIBILITY
AND CHOICE
APT Portfolio Approved Retirement Funds
Approved Retirement Funds
At Allied Pension Trustees (APT), we offer integrated solutions to the management of specialist retirement vehicles.
Our extensive information technology infrastructure and human resource capability combine to ensure that we are the
premier independent benefit services provider located in Ireland.
APT was formed in 1999 and quickly established itself as the premier independent investment firm in Ireland.
Being independent means we offer impartial investment advice.
As an investment firm authorized under the Market in Financial Instruments Directive (MIFid) we are authorised
to advise on both local and international investment products. You are therefore assured that we are acting in your
interest at all times. Our flexible Approved Retirement Fund (ARF) may therefore include investments ranging across a
wide spectrum of securities, ranging from cash fund to equity investment and everything in between.
What is an Approved
Retirement Fund?
An ARF is a post-retirement investment vehicle which
 Provides an alternative to annuity purchase
 Allows you to retain control over the investment of your retirement assets
 Allows your pension assets pass to your estate on death
 May provide you with a regular income facility
An ARF may accept transfers from occupational schemes (in certain circumstances), personal pension policies,
Personal Retirement Savings Accounts and existing ARF policies.
If at retirement you have less than €18,000 a year of guaranteed annual income, the first €119,756 of your pension
assets are invested into an Approved Minimum Retirement Fund (AMRF). An AMRF is similar to an ARF except that
withdrawals cannot be made from the original capital until you reach age 75.
Advantages of an ARF
OWNERSHIP OF YOUR MONEY
You take ownership of your money. On your death, ownership of your pension assets passes to your family or estate.
CONTROL
You own your pension assets and control how they are invested.
FLEXIBILITY
You can draw down income and capital from your fund as and when you require it.
TAX EFFICIENCY
Investments can continue to accumulate tax free within the ARF until you withdraw them, subject to some restrictions.
ARFs can also be a very tax effective means of passing wealth on within a family.
CHOICE
An ARF can invest in a wide range of asset types, both direct and collective, with the potential for your pension fund to
continue growing after you retire. You can alter the structure of your investment portfolio within the ARF at any time.
CONTINUITY
Existing assets can be transferred directly from your pension plan into your ARF. There is no need to sell your investments prior to transfer.
APT Portfolio Approved Retirement Funds
Your Pension Options at
Retirement
Traditionally, pension assets at retirement were used to provide a tax-free lump sum and an annual income by means of
annuity. The annuity income, which you were compelled to buy from a life assurance company, died with you and your
spouse.
Now, depending on your circumstances, you may opt instead to take a tax-free lump sum and invest the balance in an
Approved Retirement Fund. Upon your death, the assets remaining in your ARF can be passed to your spouse, your family,
or your estate.
Is an ARF right for you?
WHO IS ELIGIBLE?
If you have assets maturing from one of the following types of pension arrangement, you may consider choosing the APT
ARF:
 A personal pension plan
 A defined contribution occupational scheme sponsored by a company
 A Personal Retirement Savings Account (PRSA)
 An Additional Voluntary Contribution (AVC) fund
Unlike an annuity where your income level is guaranteed, you decide what level of income to draw down from your ARF
each year. If you run down your funds too quickly, you may not leave enough provision for the later years of your retirement.
If you need a stable level of income in retirement and cannot afford to see your retirement funds fluctuate, an annuity might
be a more suitable option for you.
WARNING:
The value of investments may fall as well as rise.
Your investment choices
FLEXIBILITY WITH CONTROL
Subject to a few restrictions, an ARF is a very flexible investment vehicle that can hold a very wide range of different types of
investments.
For example, with an APT ARF, you can select from all of the following:
 Pooled funds (managed funds, equity funds, protected or smoothed funds) from a selection of leading
fund managers
 Property related investments (either directly or through pooled property funds).
 Unit trusts and investment trusts
 Bonds
 Cash funds
 Your own portfolio of stocks and shares
 Commodities such as gold + silver
Of course, some investments are more flexible than others. For example, investing in not readily realisable assets or property
(where their value is a matter of an independent expert’s opinion, and they may be difficult to sell even at that value) will
limit the accessibility of your funds. Your APT Financial Services consultant can help you to personalize your ARF portfolio to
achieve the right balance of risk, return and control suitable for your individual circumstances.
WARNING:
The value of investments may fall as well as rise.
APT Portfolio Approved Retirement Funds
Why choose APT Financial
Services?
MIFID REGULATED
APT Financial Services is an investment firm regulated under the Markets in Financial Instruments Directive (MiFID)
which is a European Union law that provides harmonized regulation for investment services across the 30 member
states of the European Economic Area.
As such we are regulated by the Central Bank of Ireland and may use our authorisation to passport services across
Europe.
OUR TAILORED SERVICE
Our highly experienced consultants will work with you to tailor an investment portfolio suited to your needs – for
example, balancing risk and return, generating income in retirement, seamlessly transferring existing assets from a preretirement to a post-retirement vehicle, or simply preserving your assets for your dependents.
OUR WIDE RANGE OF INVESTMENTS
Unlike insurance companies, banks and other investment product providers who offer ARF products tied to their own
in-house investment funds, APT Financial Services has developed a bespoke ARF structure that allows you to choose
from a wide range of funds offered from competing managers, as well as offering other portfolio options such as direct
equities, property investments and commodities.
EXPERIENCE
We are pension specialists, dedicated to giving our clients broad based, impartial advice based on a thorough
understanding of your individual circumstances and requirements.
COMPETITIVE CHARGES
Our charging structure is simple, transparent and highly competitive. We will tell you up front what our fees are going
to be, with no complicated jargon or hidden charges.
OUR INDEPENDENCE
As a Qualifying Fund Manager, APT Financial Services administers its own ARFs. We are not dependent on product
providers’ administration systems or processes. Ours is a distinctive service proposition based on excellence through
people and technology.
APT online
APT online offers a robust interactive benefits portal for YOUR APPROVED RETIREMENT FUND
Investors are issued with PIN’s which allows you to access your account online in a secure and transparent environment
at www.alliedpensions.com
 Full contribution & investment histories
 Download to excel & word documents
 Choice of multiple investment managers
 On line fund switching
 Investment performance measurement
www.alliedpensions.com
Features include
APT Portfolio Approved Retirement Funds
Your questions answered
HOW MUCH CAN I INVEST?
There is no minimum investment required. You can top up your ARF with further investments provided these come
from an approved source, for example, the proceeds of another maturing pension arrangement.
CAN I TAKE OCCASIONAL WITHDRAWALS?
Yes. You can make occasional withdrawals from your ARF at any time. The availability of funds for withdrawal from an
ARF will of course depend on the nature and liquidity of the assets held within it.
CAN I TAKE A REGULAR INCOME?
Yes. A regular income facility is available to make payments to your bank account every month, or less frequently, as
required.
ARE THERE RESTRICTIONS ON THE KIND OF INVESTMENTS I CAN MAKE WITH MY ARF FUNDS?
Yes. Using ARF funds for certain transactions may create a tax liability on the ARF holder, for example:
 Loans to the ARF holder or a connected person
 Buying or selling property connected with the ARF holder, their family or their business
 Investments such as works of art, jewelry, vintage cars or yachts
This list is not exhaustive; your APT Financial Services consultant will be able to give you more information in this
regard.
HOW IS MY ARF TAXED?
Under current tax rules, while the growth in your ARF is free of tax, withdrawals are subject to income tax at your
marginal rate, USC and PRSI. Withdrawals to buy an annuity or to transfer to another ARF are not taxed.
If you are aged 60 or over, you must pay the tax and social insurance contribution associated with a mandatory notional
draw down equal to 5% of the value of your fund in each tax year. This is referred to as an “imputed distribution”.
Any actual distributions in the year will be deducted from this ‘imputed’ distribution.
APT Financial Services will make the necessary deductions and remit them to Revenue on your behalf.
CAN I ASSIGN MY ARF AS SECURITY FOR BORROWINGS?
Any assignment of ARF assets is treated as a distribution, that is, it triggers an income tax liability. It is therefore not
advisable to assign your ARF assets to another person.
HOW ARE THE ASSETS HELD?
Whilst you are the beneficial owner of all of the assets in your ARF, the manner in which they are held will depend on
the nature of the assets. Under the terms of our firm’s authorisation from the Central Bank, we are required to comply
with stringent regulations regarding the safeguarding of clients’ assets, including how we handle client money and
other investment instruments.
 Units in unit trusts or pension unit funds are bought directly from the fund managers by APT Financial Services on
behalf of clients.
 Generally, securities (such as stocks and shares) are held in a designated nominee account with an appointed
stockbroker.
 Direct property investments can be invested through the APT Unit Trust whereby APT holds the property in a trustee
capacity. The title deeds of the property will be deposited with a solicitor.
What happens when I die?
The money in your ARF belongs to you and may be bequeathed as part of your estate. The tax treatment of distributions
from your ARF after your death depends on who inherits the funds, as follows:
Income Tax
Inheritance Tax
Your spouse
No
No
Child under 21 No
Child over 21
Yes
On the subsequent death of your spouse, the ARF may
be passed to your children or others. In this event...
Inheritance Tax
Yes
Income Tax
Child under 21 No
No
Child over 21
No
OthersYesYes
Yes
Yes
OthersYesYes
Can I transfer my APT Financial Services ARF to another ARF?
Yes. Transferring all or part of your ARF funds to another ARF (held by another Qualifying Fund Manager) is not treated as
a distribution and so does not lead to a tax charge.
What does it cost?
There is an initial fee charged on the value of the funds to be invested to cover the cost of setting up your ARF and
transferring the funds from your previous pension arrangements.
The initial fee is calculated as follows;
ChargeEffective Charge
A once off set up charge based on the following sliding scaleValue
on first €0.75m of assets2.00%€15,000
€0.75m
on next €1.0m of assets0.30%€3,000
€1.75m
on next €1.0m of assets0.15%€1,500
€2.75m
on next €1.0m of assets0.75%€750
€3.75m
on next €1.0m of assets0.38%€468.75
€5.0m
Assets over €5m0.19%€281.25
2.00%
1.02%
0.70%
0.54%
0.41%
Thereafter, an annual fee is charged by APT of 0.5% of the value of the assets under management.
Fund manager charges are payable in addition.
There may also be specific transaction costs associated with certain types of direct investment, for example, on property
deals or share transactions through your stockbroker.
Allied Pension Trustees
Apex Business Centre · Blackthorn Road · Sandyford · Dublin 18 · Ireland
telephone 01 206 3010 · email [email protected]
www.alliedpensions.com
APT Financial Services Ltd. T/A Allied Pensions Trustees is regulated by the Central Bank of Ireland.