Fund Rationalisation - RL360 Capital Protected Funds
Following a review, we will be closing a number of our internal Capital Protected Funds on 21 March 2014
Impacts on
these products
Closed products with access to the Protected funds including:
Following the economic crisis that began in 2008 we decided to review the funds as we have witnessed a marked increase in the cost of options and, at the same time, interest rates on deposits have languished at all time lows for a prolonged period.
Additional complications have arisen recently in that regulatory authorities have introduced new regulations regarding the trading of derivatives. The changes have resulted in increased costs of trading; the burden of which falls most heavily on the smaller sub-funds that lack the economies of scale and therefore impact the overall potential returns for underlying investors.
Given this external environment, costs involved and overall economic trends, we have determined it is no longer possible or practical to operate some sub-funds.
Which funds will still be available?
All funds will close with the exception of the following:
EUR Currency Fund Range
Protected Cash Bonus
Protected Europe Index 95% - 100%
USD Currency Fund Range
Protected Cash Bonus
Protected Deposit Bonus 95% - 100%
Protected US With Bonus 95% - 100%
Protected Worldwide With Bonus 95% - 100% *
GBP Currency Fund Range
Protected Cash Bonus
Protected Deposit Bonus 95% - 100%
Protected UK Index 95% - 100%
Protected Worldwide With Bonus 95% - 100% *
* Additionally, we will be removing exposure to the Nasdaq 100 index within the Protected Worldwide With Bonus fund. The fund will be modified to be equally spread among the remaining markets; the FTSE100, the S&P500, the Nikkei 225 and the Eurostoxx 50.
Affected policyholders have been written to advising that their holding in a closing fund will be automatically transferred to the Protected Cash Bonus fund of the relevant currency during the March 2014 quarterly roll, unless they advise otherwise by completing and returning a Fund Switch Instruction form. If they hold a fund which is remaining open, they will not be switched, they will remain in that fund.
Full details of the closures are available within the sample letters which can be viewed opposite.