Closure and disinvestment of BNP Paribas mutual funds on the RL360 platform
We have been notified by BNP Paribas Asset Management (“BNP Paribas”) of its strategic decision to no longer offer its range of mutual funds through the RL360 platform and has requested RL360 to disinvest from its funds by the end of September 2022.
THE IMPACT TO OUR DEFINED FUND RANGE PRODUCTS
This impacts two BNP Paribas funds, of which one or both feature in our defined fund range products listed opposite:
- BNP Paribas Brazil Equity CC Acc USD
- BNP Paribas Islamic Fund Equity Optimiser CC Acc USD
(together the “Closing Funds”)
With immediate effect, BNP Paribas will no longer accept subscriptions into the Closing Funds from RL360, only redemptions will be accepted.
The action we will be taking
We have now removed the funds from our fund range and will no longer accept regular premiums, switches-in or lump sum top ups into the Closing Funds from new or existing plan owners.
With effect from 4 August 2022 (the “Regular Premium Redirection Date”), any regular premium allocation going into the Closing Funds has been redirected into alternative funds in the range (the “Receiving Funds”) to ensure regular premiums continue to be fully invested.
We will switch existing holdings from the Closing Funds into the Receiving Funds on 28 September 2022 (the "Switch Date").
The table below details the Closing Funds and the selected Receiving Funds across the defined fund range products.
| Product | Closing Fund (and ISIN) | Receiving Fund (and ISIN) |
|---|---|---|
| Regular Savings Plan (Incl. Malaysia), Quantum (incl. Malaysia), Oracle and Paragon | BNP Paribas Brazil Equity CC Acc USD (LU0265266980) | Schroder ISF Latin American A Acc USD (LU0106259046) |
| Regular Savings Plan (Incl. Malaysia), Quantum (incl. Malaysia), Oracle, Paragon and LifePlan | BNP Paribas Islamic Fund Equity Optimiser CC Acc USD (LU0245286777) | HSBC Islamic Global Equity Index AC USD (LU0466842654) |
| Protected Lifestyle | BNP Paribas Islamic Fund Equity Optimiser CC Acc USD (LU0245286777) | Aberdeen Standard Liquidity (Lux) USD A2 Acc (LU0049014870) |
| LifePlan Lebanon | BNP Paribas Islamic Fund Equity Optimiser CC Acc USD (LU0245286777) | UBS (Lux) Money Market USD Sustainable (LU0006277684) |
If plan owners, or appointed investment advisers managing the investment options for clients, are happy with our selected Receiving Funds they do not need to take any action. If they would prefer, they can choose an alternative fund from the range available to their product by sending in a completed switch form or, if registered for online switching, by conducting an online switch through our Online Service Centre.
Impacted policyholders, or their appointed investment advisers, have been written to about the fund closures. Servicing agents will receive a copy for their information.
A sample of the letters issued, which contains more details, can be found opposite.
THE IMPACT TO OUR PORTFOLIO BOND PRODUCTS
BNP Paribas' decision will also impact any BNP Paribas mutual fund holdings in our portfolio bonds. Investors have the choice to place a deal instruction by 5pm (UK time) on 23 September 2022 to move their holdings to another asset of their choice. If we do not receive instructions from investors or their appointed adviser by this date, we will place a redemption instruction and proceeds will be paid back into the cash account on the investors' bond.
From 4 August 2022, we will no longer be able to place subscriptions into any BNP mutual fund. Currently any structured notes/deposits bought and sold on the second hand market are unaffected and will not have to be sold.