Notification of closure of R168 and R169 Schroder European Sustainable Value

19 Sep 2023

Notification of closure of investment-linked policy (“ILP”) sub-funds:

           R168 Schroder European Sustainable Value (USD HDG) and
           R169 Schroder European Sustainable Value (SGD HDG)

(the “Affected ILP sub-funds”) 

We have received notification from the board of directors of the Schroder International Selection Fund (the “Company”) that it will be merging their Schroder International Selection Fund - European Sustainable Value (the “Merging Underlying Fund”), with its Schroder International Selection Fund - Global Sustainable Value (the “Receiving Underlying Fund”), following a review of their range.

The Merging Underlying Fund, in its currency variants, is the underlying fund of the Affected ILP sub-funds, in their currency variants. The underlying fund merger will take effect on 8 November 2023 (the “Underlying Fund Merger Effective Date”).  

As we do not have an ILP sub-fund in the FPIL range which is linked to the Receiving Underlying Fund, we have therefore taken the decision to switch holdings and redirect future regular premiums from the Affected ILP sub-funds into an alternative ILP sub-fund in the range, as detailed in the below table:

*Please note that R169 Schroder European Sustainable Value (SGD HDG) is priced in Singapore Dollar, while the Default Replacement ILP sub-fund is priced in USD. 

We select the Default Replacement ILP sub-fund based on various factors which include but are not limited to (1) investment objective and strategy, (2) assets mix, (3) risk profile and (4) currency denomination. Please refer to the Appendix in the Sample Client Communication opposite for comparative information between the Affected ILP sub-funds and the Default Replacement ILP sub-fund.

With immediate effect we will no longer accept any new instructions to switch in, or request to increase existing regular premium payments, to the Affected ILP sub-fund.

The Merging Underlying Fund will not accept any additional subscriptions from 10 October 2023. Accordingly, with effect from 9 October 2023 (the “Redirection Date”) any premium allocation which would usually be applied to the Affected ILP sub-funds will be automatically redirected to the Default Replacement ILP sub-fund.

All holdings in the Affected ILP sub-funds will be switched into the Default Replacement ILP sub-fund with effect from 30 October 2023 (the “Effective Date”), in line with the cut-off date imposed by the Merging Underlying Fund for redemptions of 31 October 2023, ahead of the Underlying Fund Merger Effective Date. 

These changes will happen automatically within affected policies/contracts and policyholders do not need to take any action if they agree with the choice of Default ILP sub-fund that we have selected.  Policyholders can choose to switch their current holdings, and/or redirect regular contributions if applicable, into a different ILP sub-fund in the FPIL range.  This can be done at any time, however in order to override the transfer of existing holdings to the Default Replacement ILP sub-fund, we require alternative instructions by the following dates: 

• Redirection of future regular premiums: 3pm UK time on 6 October 2023
• Switch of current holdings: 3pm UK time on 26 October 2023

There will be no FPIL charges associated with these transactions.

Factsheets for the available FPIL ILP sub-funds can be found via our interactive Fund Centre research tool.  Full details on the underlying funds into which the FPIL ILP sub-funds invest can be found in the corresponding fund prospectus, which is available on request from the respective fund manager.

Whilst appropriate due diligence has been carried out on the Default ILP-sub-fund we do not accept any liability for the future performance of this, or any other FPIL ILP sub-fund. 

Should you have any questions regarding this notification, please contact the Investment Marketing Team.