Bonus Growth Funds
The Bonus Growth Fund Range was formally closed on 1 December 2015. All holdings were transferred into an alternative fund from the existing SPILA internal fund range.
The Bonus Growth funds were the primary fund range available to the Bonus Growth Portfolio Bonds which were sold internationally by Scottish Provident International Life Assurance Limited prior to 2009. The Bonus Growth Portfolio Bond is now closed to new business.
How did the funds work?
The aim of each Bonus Growth fund was to provide a secure investment which guaranteed that any growth was protected. In meeting this objective the funds invested in a mix of equities for growth, and guaranteed growth stocks (GGSs) to consolidate any investment gains made. The guarantee was that in a particular year, the ‘Guarantee Year’, the fund value would be calculated using the highest ever bid price achieved since the fund was launched. This was called the Guaranteed Minimum Bid Price. Upon maturity of each fund the policyholder had the opportunity to reinvest the proceeds into a fund from the existing SPILA internal fund range.
Following a review it was identified that due to a number of years of volatile equity market performance, reducing interest rates and the overall size of the Bonus Growth funds decreasing, it was becoming very limiting for the investment managers to manage the Bonus Growth funds according to their intended investment objectives. The decision was therefore made to close the Bonus Growth Funds on 1 December 2015.
The Bonus Growth fund performance bulletins opposite provide the final performance measures of each fund and shows the bid prices used to calculate the transfer values at the point of closure.
Click here to view details of the mailing issued to policyholders regarding the 1st December 2015 Bonus Growth Fund closures.