Moving to new unit-linked funds post transfer

What if I didn’t make an investment choice?

The automatic investment option

If you did not make an investment choice, your savings were invested in the relevant automatic option for your policy type, which has been chosen because we believe it is appropriate for the needs of most policyholders.

On the date of transfer

If you hadn’t made an investment choice, your savings were moved into a secure cash investment on the date of transfer, 1 January 2020, to give you more time to make a decision. While your savings are in the secure cash investment, the unit price is guaranteed not to decrease below the price at the date of transfer, though they will not be protected against the effects of inflation. This is a temporary fund which will be closed by 31 December 2020. No other investments can be made into this fund.

For six months up to 30 June 2020

If you didn't send your Investment Choice Form back to us by 30 June, your money will begin to transition into the automatic option depending on your policy type:

*UK Pension: Investing by Age strategy – click here for more details about this fund

*UK Life: Multi-Asset Moderate fund – click here for more information about our multi-asset funds.

*If you have an International policy please call us on +44 1296 386242 to discuss how this effects your policy.

From 1 July 2020

To minimise the impact of market fluctuations, your money will move into Investing by Age gradually over the following six months. You will be fully invested in Investing by Age by 31 December 2020.

Investing by Age

How to make a different investment choice

How to make a different investment choice from 1 July 2020

Investment Fund Choice

Even though your savings have started to move into the Investing by Age strategy, you don’t have to continue with this route. To choose a different investment route you can:

  1. Continue to have your savings move gradually out of the Secure Cash fund but into a different fund(s), by completing a new Investment Investment Choice form telling us what funds you would like to choose and the transition period in which you want us to move your savings -please note that you are able only to choose the 1 month or 3 month transition period. As part of your savings have already been moved into the automatic investment option, if you want to move these savings into your new fund choice, you will also need to complete a Switch Form; or
  2. Stop the gradual move of your savings out of the Secure Cash fund and switch all your savings immediately into fund(s) of your choice – this will cancel your original investment choice, including the automatic investment option if you did make a choice

More information on deciding between a shorter and longer timeline can be found below.

Click here to look at your investment options

Click here for a *UK Pension Investment Choice Form.

Click here for a *UK Life Investment Choice Form.

Click here for a Switch Form

*If you have an International policy please call us on +44 1296 386242 to discuss how to log your choice

Investment Timeline Choice

You can choose how quickly or gradually you would like your savings to move from the secure cash investment into your chosen fund or funds. If you make your investment choice after 1 July 2020, you are only able to choose a 1 or 3 month investment timeline.

Why might you choose a shorter timeline?

If you choose a shorter timeline, your savings will be fully invested in your chosen investment option more quickly. Depending on your choice, that might mean they are better protected from the effects of inflation and will have more potential to grow.

However, your savings will not be protected from a loss in value as they would be in the secure cash investment. There is also more potential for your savings to be affected by a sudden fall in the market.

Why might you choose a longer timeline?

You might want to choose a more gradual transition if you are concerned about the risk of a market downturn. This is because spreading your investments over time reduces the risk of investing the whole amount immediately before a market fall, and can ensure that more of your money benefits from cheaper prices if the market falls.

The longer timeline means your savings will remain for longer in the secure cash investment, where they will be protected from losses but their value may not keep pace with inflation. You may also miss out on growth if markets rise over the transfer period.

Secure Cash Fund

The Secure Cash fund is not an investment option and was created as part of the proposal with Equitable Life, to give policyholders the opportunity to make their investment choices.

It is not possible to extend the time your savings are in this fund, as this is a temporary fund only open for the maximum of a year from transfer. The fund will be closed by 31 December 2020. No other investments can be made into this fund.

What happens to future Contributions?

We will invest future contributions into the same unit-linked funds you choose for your savings. You can change this at any point in the future.

Depending on your contract type, if you don’t currently pay into your policy, you may be able to restart your contributions. Click here to download a new direct debit form or call on 0330 159 1530 to discuss how you can do this.