Fund Closures - Investment Solutions Fund Range

As a result of closures by the underlying fund provider, HBOS Investment Fund Managers (“HIFML”), on 20 May 2016 we will be closing 12 CMI Investment Solutions funds.

Which funds are closing?

The funds that will be closing on 20 May 2016 are as follows:

Guided-architecture fund name Open-architecture fund name
CMI IS European Focus Scot Wid (incl CMI) European Focus Fund (IOM)
CMI IS European Strategic Scot Wid (incl CMI) European Strategic Fund (IOM)
CMI IS Far Eastern Focus Scot Wid (incl CMI) Far Eastern Focus Fund (IOM)
CMI IS Japanese Focus Scot Wid (incl CMI) Japanese Focus Fund (IOM)
CMI IS UK Focus Scot Wid (incl CMI) UK Focus Fund (IOM)
CMI IS UK Strategic Scot Wid (incl CMI) UK Strategic Fund (IOM)
CMI IS UK High Income Scot Wid (incl CMI) UK High Income Fund (IOM)
CMI IS UK Smaller Companies Alpha Scot Wid (incl CMI) UK Smaller Cos Alpha Fund (IOM)
CMI IS US Focus Scot Wid (incl CMI) US Focus Fund (IOM)
CMI IS US Strategic Scot Wid (incl CMI) US Strategic Fund (IOM)
CMI IS Diversified Income Scot Wid (incl CMI) Target Income Fund (IOM)
CMI IS International Fixed Income Scot Wid (incl CMI) Intl Fixed Inc Fund (IOM)

With immediate effect the above funds are closed to new subscriptions/switches in, however policyholders can still sell out of/switch out of the funds ahead of the closure date.

The action we will be taking

On 20 May 2016, we will transfer guided-architecture policyholders from the closing funds into an alternative from the available CMI fund ranges.

The same is true for the open-architecture policyholders, but with one exception, the Scot Wid (incl) Intl Fixed Inc Fund (IOM), all policyholders will be sold out and proceeds returned to their policy cash account.

The alternative funds have a broadly similar investment objective and in most instances have a lower annual management charge (AMC).

Policyholders invested in the closing funds have been written to. Full details, including which default fund we will transfer policy values into can be found in the sample letters opposite.

Should policyholders not wish to accept our default transfer option, they can choose to switch into any of the remaining Investment Solutions funds or any of the funds available to their policy by completing the relevant switch instruction or dealing recommendation form.