Fund closures - RL360 Capital Protected GBP and USD Funds

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. 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 

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.