Various changes and fund closure impacting the SPILA Funds fund range

REVIEW OF THE SPILA FUNDS FUND RANGE 

(applicable to rest of world designated policyholders)

We have recently performed a review of the internally managed SPILA Funds available to rest of world designated policyholders*. Each of the SPILA Funds has a single externally managed underlying fund in which it invests. These underlying funds were reviewed in order to ensure that they remain appropriate to the investment objectives and risk profiles of the SPILA Funds, and to ensure that the fund range continues to provide policyholders with a range of credible investment options.

Following the review, a number of changes will be made to the underlying fund links of the SPILA Funds. The changes will take effect from 18 June 2025 (the “Effective Date”) and should ensure that the SPILA Funds continue to provide credible exposure to the various asset classes, sectors, regions and themes in the current fund range.
 

CHANGE TO ANNUAL MANAGEMENT CHARGE

The annual management charge (“AMC”), which is a deduction on each SPILA Fund by RL360 for maintaining the funds, has not been reviewed since they were launched. We have determined that, in order to continue to offer a range of high quality funds, we will need to increase the AMC to reflect changing costs on the underlying funds to the SPILA Funds. Therefore, the AMC will increase to 1.30% on each SPILA Fund on the Effective Date, with the exception of Dollar Deposit, Sterling Deposit and Euro Deposit, which will remain at 1.00% AMC. The AMC will continue to be reflected within the published unit prices of the SPILA funds.
 

CHANGES TO MAXIMUM CURRENT EXTERNAL FUND FEE ("EXTERNAL FUND FEE")

The external underlying funds to the SPILA Funds available each charge their own annual management charge, which is deducted from the respective SPILA Fund and reflected in the fund price. We provide an overview of these charges in a Fund Fee Schedule document, advising of the maximum external fund fee for each fund.

As a result of changes to the underlying funds, we will update the Fund Fee Schedule to reflect the actual external fund charges applicable on the Effective Date, as opposed to previously, where the document stated the maximum external fund fee. Once updated, the document will be found in the Literature Downloads section of the SPILA Funds fund centre webpage.

CLOSURE OF THE UK BLUE CHIP FUND

Additionally, we have made the decision to close the SPILA UK Blue Chip fund (the “Closing Fund”) and to switch all plans invested into the SPILA UK Equity fund (the “Receiving Fund”) on the Effective Date. Any regular premium currently being allocated to the Closing Fund will also be redirected to the Receiving Fund at this time. Both funds invest in the UK equity market and are similar in terms of investment objective, risk profile and attributes, so there is little justification to maintain both funds in the fund range.

We have now closed the Closing Fund to new business and switches in with immediate effect. Existing investors can remain invested until the date we switch them. 

Details of the investment objective for both the Closing Fund and the Receiving Fund can be found in the Appendix at the end of our Sample policyholder letter which can be found opposite. 

If policyholders are happy with the switch of holdings (and regular premium redirection if applicable), then they do not need to take any action as the changes will take place automatically within their plan.

However, if policyholders would prefer to switch holdings and/or redirect regular premium allocation to a different fund available to their plan, it’s free and very easy to do. If they would like this to happen before the Effective Date, we must receive alternative instructions by 12 noon UK time on 17 June 2025. Instructions can be submitted by completing and returning a Fund switch instruction form or, if registered for online switching, by conducting a switch online, fast and efficiently. 

We recommend that policyholders consult their usual financial adviser before making any investment decisions.

Notification of the changes and fund closure has been sent to all rest of world designated policyholders invested in the SPILA Funds, primarily by email, with letters sent by post where we do not hold a valid email, and to those who prefer to receive letters by post. Servicing agents have also been notified. A sample of the policyholder letter can be found opposite.
 

* Excludes the recently segregated SPILA Funds applicable to Hong Kong designated policyholders.