Russian funds
We understand that some ReAssure customers may be concerned about their policies following the recent Russian actions in Ukraine, so we’ve put together some questions and answers, which we hope will help:
I have a policy with you and I now live in Russia/Belarus/Ukraine, will there be an impact to my policy or the services you provide?
There will be no impact to your policy terms and conditions or the services we provide. However, we are unable to pay claims to Banks which have sanctions imposed. If this impacts you we will request alternative payment details. Further information in relation to who has sanctions imposed can be found on the gov.uk website.
Could the Russian Ukraine conflict impact the value of my policy?
It’s possible that the conflict could impact the stock markets, however the impact of any fluctuation will vary from policy to policy.
If you’re invested in unit-linked funds, the value of your investment is not guaranteed and can go up or down depending on investment performance. This means that if the markets fall the value of your policy could also go down.
If you’re invested in a with-profits fund, your sum assured is guaranteed, and your previous bonuses have already been added to your policy. This means they cannot be impacted by stock market falls, but future annual bonuses could be less than previous years if the stock market goes down. Similarly, if you’re entitled to a final bonus, this could also be impacted by changing investment conditions.
If you’re invested in a unitised with-profits fund, any bonuses you’ve already received from your with-profits investment have already been added to your policy. This means they cannot be impacted by stock market falls, but future annual bonuses could be less than previous years if the stock market goes down. Similarly, if you’re entitled to a final bonus, this could also be impacted by changing investment conditions.
If you’re also invested in any other unit-linked funds, the value of your investment is not guaranteed and can go up or down depending on investment performance. This means that if the markets fall the value of your investment could also go down.
If you have a non-profit protection policy, it’s set up to pay a specific amount when a specified event occurs. It’s not invested in any funds, so it won’t be affected by any falls in the stock market.
Could the Russia Ukraine conflict increase the risk of people being scammed out of their savings?
Scammers always look for opportunities to convince people to fall for their fraudulent schemes; therefore as the current tensions may cause some uncertainty and confusion, it’s possible that scammers will use it as an opportunity to prey on people.
Please be cautious if contacted by UK or overseas callers pretending to be from firms claiming that transferring your pension will give you a better income. The aim of these calls may be to gather your personal information for fraudulent use or an attempt to scam you out of your life savings.
So if you’re unexpectedly contacted regarding a pension transfer or offering a policy review then you should be extremely cautious.
You can find lots of information online about pension scams by visiting: moneyhelper, the pensions regulator or action fraud.
How can I switch funds?
If your policy is invested in funds, you can switch into other funds whenever you want. Normally, there is no charge for doing this, although some customers who switch more than 20 times in a year may have to pay a small charge. However, you can’t switch into, or out of, any of the suspended Russian-linked funds.
You can find out which funds have been suspended at our fund news page.
As this is an ongoing situation we strongly advise you to keep checking this page, where we’ll keep you updated with any fund news.
If you’d like to switch into or out of any unaffected funds, please call us on 0800 073 177.
Has this situation affected any Russian-linked funds?
Due to the impact on local market conditions of the escalating conflict between Russia and Ukraine, we have been notified by our external Fund Managers that they have suspended a number of Russian-linked funds that are available to ReAssure customers.
This means customers can’t pay in, or take money out, of any suspended Russian-linked fund. The managers of the underlying funds are keeping the suspension under continual review, but aren’t able to say how long the suspensions will be in place for.
You can find out which funds have been affected at our fund news page.
As this is an ongoing situation we strongly advise you to keep checking this page, where we’ll keep you updated with any fund news.
Which Russian-linked funds have been suspended?
At the moment, the suspended funds are:
- AL Neptune Russia & Greater Russia (GQSB, GWEB, PPB, PPB1, PPBR, TGSB)
- Neptune Russia & Greater Russia
- OMR Barings Eastern Europe
- OMR Carnegie Rysslandsfond
- OMR Invesco Emerging European (UK)
- OMR JPM Emerging Europe Equity
- OMR Jupiter Emerging Euro Opps
- OMR Liontrust Russia
- OMR ASI Eastern European
As this is an ongoing situation, we strongly advise you to keep checking our fund news page, where we’ll keep you updated with any fund news.
I’m invested in a suspended Russian-linked fund. What does this mean for me?
It means you can’t pay in, or take money out of this fund, or any other suspended Russian-linked fund.
I’m invested in a suspended Russian-linked fund and I pay regular contributions into my policy. How does this change?
If a portion of your regular contribution is currently paid into a suspended fund, it will be redirected and paid into a deposit fund instead.
if you’d rather your money didn’t go into the deposit fund, we can redirect it into a different fund of your choosing.
Call us on 0800 073 177 to redirect into a different fund.
Why have you redirected my contributions into a deposit fund?
We decided that it was best to choose a fund with a low-risk rating, which minimises the risk of investment loss as a result of stock market fluctuations, whilst offering limited opportunities for growth. You should be aware that because the fund is likely to offer low returns, it’s possible that any investment growth might not be enough to cover policy charges and your fund value could go down over time.
I’m invested in a suspended Russian-linked fund and I receive regular withdrawals from my policy. How does this change?
If you currently receive regular withdrawals from your policy: we’ll continue your withdrawals by taking the money from your other funds – if you don’t want us to do this, please call to let us know. If you don’t have enough money in your other funds, your withdrawals will stop.
I’m invested in a suspended fund and I want to take a one-off withdrawal from my policy. Can I still do this?
This may be possible if you have enough money in your other funds – and your policy allows you to do this.
Check your terms and conditions to find out or call us on 0800 073 1777 and we’ll check for you.
I’m invested in a suspended fund and I want to switch out of it. Can I still do this?
Unfortunately, it’s not possible to switch out of, or into, any suspended fund.
I’m invested in a suspended fund and I want to take the money out of my pension to choose a retirement option. Is this possible?
You won’t be able to take all the money from your pension right now, but you may be able to take some of it – if your pension allows you to do this.
Check your terms and conditions or call us on 0800 073 1777 and we’ll check for you.
I’m invested in a suspended fund and my investment life policy is due to mature soon. Will this change anything?
You won’t be able to take all the money from your policy right now, but you may be able to take some of it – if your policy allows you to do this.
Check your terms and conditions or call us on 0800 073 1777 and we’ll check for you.
I’m invested in a suspended fund and I need to make a health claim. What should I do?
You should still make the claim. We’ll keep you updated with its progress, and if it’s admitted we’ll tell you what your options are.
If the policyholder has passed away, should I still make a claim?
Yes, you should contact us to tell us about their death. If their policy has a sum assured, it will be paid in full and will be unaffected by the fund suspensions. Claims based on the policy value may be affected, as the available policy value may have reduced because of the fund suspensions.
What happens to my money in the suspended fund?
It will stay in this fund for the time being. Right now, we can’t tell you how long this will be for, or what’s going to happen to your money in the future. But you should check our homepage for any new stories, and our fund news page for any updates on individual funds.
Will I ever get my money back from the suspended Russian-linked fund?
The fund is managed by an external fund manager, who made the decision to suspend it following the Russian invasion of Ukraine and the knock-on effect this had on local financial markets.
We can’t predict what will happen to the fund in the future, and any decisions relating to it will be made by the external fund manager. However, there is a risk that people invested in the fund may never get their money back. If you’re unsure how this outcome would affect your financial position, we recommend you get independent professional advice from a regulated Financial Adviser.
I’m invested in a suspended fund. Will I still pay the usual charges?
Policy charges will continue as usual, but we’ll stop taking fund charges from the suspended funds.
Can you provide me with financial advice?
We can provide you with information about your policy but we aren’t authorised to provide financial advice. We recommend you get independent professional advice from a regulated Financial Adviser if you’re unsure what to do. A Financial Adviser can make a personal recommendation based on your individual circumstances and the options available to you. If you don’t have an adviser, you can find one at unbiased.co.uk. You may have to pay for any advice you receive.
Is ReAssure strong enough to deal with falling stock markets?
ReAssure Limited is part of the Phoenix Group. The assets the Phoenix Group has available to meet its liabilities are in excess of the level required by our regulator, the Financial Conduct Authority.
I’ve seen a recent unit statement for my policy and noticed that the suspended Russian fund/s is still showing, but with a zero value. Is this right?
While the suspensions are in place, any suspended Russian-linked fund that you’re invested in will show zero units and value, while all your other funds will show the correct, up-to-date value of your investment.
This means your total policy value will not include any value from a suspended Russian-linked fund.
Your letter stated that my commission would stop entirely from any affected policies. Is this right?
When we wrote to you, we weren’t entirely sure how your commission would be affected by this unique situation. So we thought it was safer to warn you about the worst possible scenario, just in case that’s what ended up happening.
We now know that only your commission from the suspended Russian-linked funds will stop. This means commission payments will continue from affected policies, but you won’t get as much as you got before. If you missed out on any commission from unaffected funds in the meantime, this will also be paid back to you.
