Notification of closure of various investment-linked policy sub-funds
05 Mar 2025
We regularly review the ILP sub-funds available in our FPIL fund range to ensure that policyholders continue to have access to a high quality and diverse range of funds, to help them meet their investment goals. The review process considers the performance and risk profile of funds within the range to determine whether they continue to provide the right outcomes for investors and remain appropriate for our products. Within this process we will consider the closure of ILP sub-funds that no longer meet certain requirements and also the launch of new ILP sub-funds that will provide new investment opportunities.
Results of our recent review
We have recently completed a review of a number of our sectors with the ILP sub-funds range and as a result we are closing nineteen of our existing ILP sub-funds (together the “Closing ILP sub-funds”). These amendments to the range sit within the Asia-Pacific Equity, European Bond, Global Emerging Markets Equity, Hedge/Structured Products and Responsible Investing sectors.
The Closing ILP sub-funds will be removed from the FPIL ILP sub-fund range on 12 June 2025 (the “Closure Date”). From the date of this letter onwards, we will stop accepting any new instructions to switch into the Closing ILP sub-funds.
What will happen to existing holdings in, and any regular contributions being allocated into, the Closing ILP sub-funds?
When a FPIL fund is closed we select another fund from our internal fund range (a “Default Replacement ILP sub-fund”) to act as an alternative investment for the resulting proceeds being switched out and for any regular contributions that are currently being allocated into a closing ILP sub-fund.
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 note in some circumstances the Default Replacement ILP sub-fund selected may be a currency/money market ILP sub-fund where we do not have a similar fund in the range to a closing fund and therefore has a different risk/reward profile; or it may be a similar fund, however, is denominated in a different currency. In such circumstances, this will be shown in the Appendix.
Please refer to the Appendix in the sample client communication opposite for details of the Closing Funds and the chosen Default Replacement ILP sub-funds.
Whilst appropriate due diligence has been carried out on the Default Replacement ILP sub-funds we do not accept any liability for the future performance of these, or any other FPIL ILP sub-fund.
Until the Closure Date, only continuing regular contributions will be permitted into the Closing ILP sub-funds up until the redirection date on 4 June 2025 (the “Redirection Date”). These ongoing contributions may not be increased from their current level.
All holdings in the Closing ILP sub-funds will be switched into the corresponding Default Replacement ILP sub-funds from the Closure Date.
These changes will happen automatically to the policy or contract and policyholders do not need to take any action if they agree with the choice of Default Replacement ILP sub-fund(s) that we have selected. If policyholders wish to override the transfer or redirection to the Default Replacement ILP sub-fund that we have selected, we must receive an alternative instruction by 3pm UK time on 3 June 2025.
No FPIL charges will arise from these transactions.
Should you have any questions regarding these changes, please contact the Investment Marketing Team.
