Closure of Templeton Global Total Return and Templeton Global Bond mirror funds

29 Dec 2022

• L04 Templeton Global Total Return (USD) (the “Affected Mirror Fund 1”)
• L03 Templeton Global Total Return (EUR) (the “Affected Mirror Fund 2”)
• L05 Templeton Global Bond (EUR) (the “Affected Mirror Fund 3”)
• L06 Templeton Global Bond (USD) (the “Affected Mirror Fund 4”)

(together the “Affected Mirror Funds 1-4”)

We continually monitor our mirror fund range in order to achieve quality and diversity for our international investors. Following a review, we will be realigning the mirror fund range that is available to policyholders. This action aims to provide an updated and comprehensive selection of mirror funds to our policyholders.

As a result, FPIL has made the decision to remove the Affected Mirror Funds 1-4 from the mirror fund range on the following dates:

We will stop accepting any new investment instruction to the Affected Mirror Funds 1-4 from 29 December 2022 onwards.

Policyholders are free to re-direct future regular premiums and switch existing investments, without charge, to any other mirror fund(s) available in the range by completing a Switch/Redirect request form, a copy of which can be found opposite, and returning it to our office or through our online services portal on or before 3pm (UK time) on the date detailed in the table below under Deadline for Alternative Instructions.

Action required by policyholders paying regular premiums into the Affected Mirror Funds 1-4:

If we do not receive alternative instructions by the Deadline, we will direct, without charge, all regular premiums received for the Affected Mirror Funds 1-4 to the mirror fund called P67 Mellon Global Bond (USD)  (the “Default Mirror Fund”) on the Effective Switch Date shown in the table below:

We select the Default Mirror 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.  We have selected P67 Mellon Global Bond (USD)  to act as the Default Mirror Fund as this shows a high level of similarity in investment objective and portfolio allocation to the Affected Mirror Funds 1-4.

Action required by policyholders with existing investments in the Affected Mirror Funds 1-4: 

Policyholders are free to switch existing investments out of the Affected Mirror Funds 1-4 at any time up to the Deadline, without charge, to other Mirror Fund(s) available in the range.  If we have not received any instruction by the Deadline, we will automatically switch existing investments in the Affected Mirror Funds 1-4 into the Default Mirror Fund on the Effective Switch Date, without charge.

Action required by policyholders who request a switch-in and/or request for additional single or regular premium into the Affected Mirror Funds 1-4: 

If a new switch-in request or request for additional single or regular premium into the Affected Mirror Funds 1-4 is submitted from 29 December 2022, we will contact policyholders or their independent financial adviser for an alternative instruction. If we are unable to contact either the policyholder or their independent financial adviser to obtain an alternative instruction we will not process it.

Please refer to the Appendix opposite for comparative information between the Affected Mirror Funds 1-4 and the Default Mirror Fund.  Full details in relation to this notification can be found in the Sample policyholder letter opposite.

We recommend that policyholders seek the advice of their usual financial adviser before making any investment decisions. 

Should you have any questions regarding these changes, please contact the Investment Marketing Team.