What changes have been made?
We have made the decision to introduce new series of the With-Profits fund which are available through our Shrewd Savings Plan ISA (SSP ISA) from the 2nd October 2017. These series will have no increased charges but a different annual bonus rate will apply. This change will only affect you if you make additional investments into your plan after the 2nd October 2017.
How do these changes affect me?
If you make additional investments into your plan after the 2nd October 2017 then this money will be invested into the newly created series that carries a different annual bonus rate. If you have a regular investment set up with us then as long as this does not increase this will continue to be invested in the original series. If your regular investment increases then the increase will be invested into the new series. Any money invested prior to the 2nd October 2017 is unaffected and remains invested in the original series.
What is the reasoning behind this change?
Introducing the new With-Profits series of units has been done so we treat existing and future investments made by our customers fairly. Currently all investments in your Shrewd Savings Plan ISA are paid the same annual bonus rate.
This change will allow us to pay a different annual bonus rate for new money invested on or after 2nd October 2017. This means we can ensure the annual bonus rate paid on that new money is fair. Had we not acted it is likely that new money would have adversely affected the annual bonus rates paid to money already invested, due to the continued historic low interest rate environment. You can be confident that as a mutual we will pay annual and final bonus rates that fairly reflect the investment returns we earn on our investments.
What options are open to me?
If you are invested in the SSP ISA product, this change does not affect your current investment; this continues to be invested in the original With-Profits series. You can still pay more money into your plan, although this will be invested in the new series after 2nd October 2017. If you have further money to invest and this decision affects your plans then call us on 0800 622 323 and then option 3 or contact your local NFU Mutual Financial Adviser.