Fund closures - RL360 Capital Protected GBP and USD Funds
On 21 September 2018, the remaining GBP and USD currency RL360 Capital Protected Funds will formally close.
Impacts on
Closed products with access to the Protected funds including:
The funds have been subject to a review process and a period of ongoing monitoring and it is believed that the environment of low interest rates (which provide the capital protection element) and the rising cost of options (a type of derivative which provides the equity element) have limited the potential growth, meaning that the continued running of the funds is not believed to be viable or in the best interests of policyholders.
As a result, the funds will be closed at the next quarterly roll date, 21 September 2018, at which point policyholders will be transferred into an alternative fund(s).
We have written to affected policyholders providing them with advance notice of the closures. We will write again before September providing them with more details of the alternative fund(s) we will be switching them into and the options they will then have available to their policy, including their new fund choices.
The new fund choices will include a range of cautious portfolio funds denominated in GBP and USD (collectively known as "the RL360 Multi-Asset Portfolios"). These will be daily dealing giving investors freedom to move between fund choices at any time instead of being locked into a quarterly period.
Summary of closing funds
| GBP Funds | USD Funds |
|---|---|
| Protected Deposit Bonus GBP | Protected Deposit Bonus USD |
| Protected Worldwide With Bonus GBP | Protected Worldwide With Bonus USD |
| Protected UK Index GBP | Protected US With Bonus USD |
| Protected Cash Bonus GBP | Protected Cash Bonus USD |
Sample letters issued can be viewed opposite. Where an investment adviser has been appointed to manage the fund choices on a policy, they have been written to instead of the policyholder. Servicing agents will receive a copy of the letter for their information.