Ex-Scottish Legal Life Unit-Linked Fund Closures
Scottish Friendly has an ongoing commitment to monitor investment funds where customers hold monies. Some of these funds now have small amounts invested or are not performing to expectations. Consequently Scottish Friendly have taken the decision to close some of the funds and provide a default replacement in line with the policy terms and conditions.
The funds to be closed include:
SLL UK Perpetual Growth Fund
SLL UK Pension Growth Fund
Both funds directly invest in the Invesco Perpetual UK Growth Fund. The replacement fund chosen has an equivalent level of risk to the fund being replaced. Alternatively, customers may choose to switch to one or more other available funds. Information on those funds can be found below. Note that there are different fund options depending on whether the product affected is a life or pension product.
Closure information
The list of funds being closed, their replacements and fund closure dates are listed below:
| Fund to be closed | Replacement Fund | Closure date |
| SLL UK Perpetual Growth Fund | SLL UK Tracker Fund | 27 March 2020 |
| SLL UK Pension Growth Fund | SLL UK Pension Fund | 27 March 2020 |
| SLL UK Perpetual Growth Fund (Tax Exempt) | SLL UK Tracker Fund (Tax Exempt) | 27 March 2020 |
Life Product Fund range
The following funds are available to life product policyholders:
SLL UK Tracker Fund
SLL UK Tracker Fund (Tax Exempt)
The SLL UK Tracker Fund (and the Tax Exempt equivalent) is a unit linked life fund which invests solely in the L&G UK Index Trust provided by Legal & General Investment Managers. The L&G UK Index Trust aims to provide growth by tracking the performance of the FTSE All-Share Index. It will invest almost entirely in UK company shares and closely match those that make up the FTSE All-Share Index. The SLL UK Tracker Fund should be considered a medium to long term investment, ideally five years or more. Therefore, it may not be appropriate for investors who plan to withdraw their money within five years.
The performance of the fund to 31 December 2019 is as follows:
| Cumulative returns | 1 year | 3 years | 5 years |
| SLL UK Tracker Fund | 14.4% | 15.1% | 29.9% |
| SLL UK Tracker Fund (Tax Exempt) | 18.0% | 19.1% |
37.9% |
The annual management charge for the fund is 1.0% p.a.
SLL Managed Fund and SLL Managed Fund (Tax Exempt)
The SLL Managed Fund (and the Tax Exempt equivalent) is a unit linked life fund managed by Scottish Friendly and invests directly in a range of funds managed by Legal & General Investment Managers. The SLL Managed Fund invests in the funds listed below.
| Legal & General Fund | Proportion Invested |
| L&G UK Index Trust | 48% |
| L&G US Index Trust | 15% |
| L&G European Index Trust | 8% |
| L&G Fixed Interest Trust | 29% |
The SLL Managed Fund aims to provide growth by investing in a range of both UK and overseas equities. The funds will invest in UK, US and European company shares and bonds. The SLL Managed Fund should be considered a medium to long term investment, ideally five years or more. Therefore, it may not be appropriate for investors who plan to withdraw their money within five years.
The performance of the fund to 31 December 2019 is as follows:
| Cumulative returns | 1 year | 3 years | 5 years |
| SLL Managed Fund | 15.4% | 18.3% | 37.7% |
| SLL Managed Fund (Tax Exempt) | 18.8% | 23.5% |
49.1% |
The annual management charge for the fund is 1% p.a.
SLL With-Profits Fund
The SLL With-Profits Fund is aims to achieve long-term growth from a mixed managed fund where premiums are pooled with those of other clients and investment performance is linked to a portfolio of stock market, property, cash and bond assets. Additionally, returns are smoothed to reduce some of the ups and downs of the stock market. The fund earns returns through regular annual bonuses applied to the value of the policy. A final terminal bonus may also apply.
The performance of the fund to 30 September 2019 is as follows:
| SLL With-Profits Fund | 1 year | 3 years | 5 years |
| Cumulative returns | 2.5% | 7.7% | 13.2% |
The annual management charge for the fund is approx 1.15% p.a
Pension Product Fund range
The following funds are available to pension product policyholders:
SLL Pension UK Tracker Fund
The SLL Pension UK Tracker Fund is a unit linked life fund which invests solely in the L&G UK Index Trust provided by Legal & General Investment Managers. The L&G UK Index Trust aims to provide growth by tracking the performance of the FTSE All-Share Index. It will invest almost entirely in UK company shares and closely match those that make up the FTSE All-Share Index. The SLL Pension UK Tracker Fund should be considered a medium to long term investment, ideally five years or more. Therefore, it may not be appropriate for investors who plan to withdraw their money within five years.
The performance of the fund to 31 December 2019 is as follows:
| SLL Pension UK Tracker Fund | 1 year | 3 years | 5 years |
| Cumulative returns | 18.1% | 19.1% | 36.5% |
The annual management charge for the fund is approx 1% p.a
SLL Pension Managed Fund
The SLL Pension Managed Fund is a unit linked life fund managed by Scottish Friendly and invests directly in a range of funds managed by Legal & General Investment Managers. The SLL Pension Managed Fund invests in the funds listed below.
| Legal & General Fund | Proportion Invested |
| L&G UK Index Trust | 48% |
| L&G US Index Trust | 15% |
| L&G European Index Trust | 8% |
| L&G Fixed Interest Trust | 29% |
The SLL Pension Managed Fund aims to provide growth by investing in a range of both UK and overseas equities. The funds will invest in UK, US and European company shares and bonds. The SLL Pension Managed Fund should be considered a medium to long term investment, ideally five years or more. Therefore, it may not be appropriate for investors who plan to withdraw their money within five years.
| SLL Pension UK Tracker Fund | 1 year | 3 years | 5 years |
| Cumulative returns | 18.9% | 23.3% | 48.6% |
The annual management charge for the fund is 1% p.a.
SLL Pension Managed Fund
The SLL Pension Deposit Fund is a unit-linked life fund which invests solely in the L&G Cash Trust provided by Legal & General Investment Manager. The L&G Cash Trust aims to maintain capital and to provide a return in line with money market rates, before charges. The fund will generally invest in short term deposits, certificates of deposit, government bonds (predominantly UK) issued in pounds sterling (a type of loan which pays interest). This fund is not the same as a bank or building society account and is not protected under the UK deposit protection scheme. It is appropriate for investors looking to add a cash element to their portfolio or those who wish to invest for a short period of time.
| SLL Pension Deposit Fund | 1 year | 3 years | 5 years |
| Cumulative returns | -0.2% | -0.7% | -1.6% |
The annual management charge for the fund is 1% p.a.