Changes to our Retirement funds
We’re changing the benchmarks for the Scottish Equitable Retirement fund and the Scottish Equitable BlackRock Aquila Retirement fund. These changes will be effective from 31 March 2017.
The benchmark for both funds will change from the London Inter-bank Offer Rate (LIBOR) 3 Month GBP to a composite of 75% FTSE Gilts over 15 Years TR Index and 25% LIBOR 3 month GBP.
What changes are we making?
The current benchmark for both of these retirement funds is currently the LIBOR 3 Month GBP – a short-term indicator of cash deposit rates.
From 31 March 2017, we’re adding another index, the FTSE Gilts over 15 Years TR Index, to create a composite benchmark of 75% long-dated UK government bonds and 25% cash.
This composite benchmark will be weighted to mirror the asset allocations (75% long-dated UK government bonds and 25% cash) of the underlying funds.
Why are we making these changes?
We’re making the changes to better reflect the aims and objectives of each fund and to give investors a more accurate comparison when looking at each fund’s performance.
What does this mean for investors?
Existing investors don’t need to do anything. There are no other changes to the Scottish Equitable Retirement fund and the Scottish Equitable BlackRock Aquila Retirement fund.
We’ll update our literature with these changes from 31 March 2017 onwards so you may notice both the old and new fund details in use for a time. If you would like more information, please speak to your financial adviser. You can find one in your area at unbiased.co.uk.