Fund closures - RL360 Safe Combination Series 1 - 7 Funds
On 21 September 2018, the funds will close and policyholders will be transferred into a GBP cash deposit fund.
Impacts on
- Income & Growth Bonus Bond Series 4, 5 and 6
- Select Income & Growth Bond
- Select Income & Growth Bond Series 2
The 'Income & Growth Bonus Bond' and 'Select Income & Growth Bond', were limited issue bonds originally launched under our Scottish Life International brand. They provided access to a short term investment, the return of which was based on the performance of a particular stock market between a set commencement and maturity date (typically 5 or 6 years). The Safe Combination Funds were made available as an alternative fund choice upon the maturity of that investment.
The funds are a sub-set of the RL360 Capital Protected Fund Range which will formally close in September 2018.
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 Safe Combination Series 1 - 7 Funds will be closed at the next quarterly roll date, 21 September 2018, at which point policyholders will be transferred into a GBP cash deposit fund.
We have written to invested policyholders informing them of the action we will be taking. As the Safe Combination funds are quarterly dealing, policyholders can choose to surrender their policy any time after the next quarterly roll date or remain invested in the GBP Cash Fund. The cash fund invests in short term money market instruments and is daily dealing so policyholders will no longer be locked into a quarterly period before they can access their money.
Sample letters 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.