COVID-19 Update

Important information about the effect of current market conditions on the performance and value of your Plan

Image of a zebra
Image of a zebra

Last updated: 09 November 2020 09:05

As you may be aware, financial markets have been experiencing a significant downturn as a result of the COVID-19 outbreak.

Stock market indices such as the FTSE 100 have fallen considerably. These indices have also become highly volatile meaning that they are fluctuating much more than usual.


How this may affect the performance of your Plan


As a result of the market downturn, and depending on the Initial Index Level of your Plan, the performance of the Plan may be affected:  

  • When your Plan matures, it may not pay you a return. 

  • If you hold a Kick-Out Plan, your Plan may not mature early. 

  • If you hold a Plan that puts your capital at risk, you may incur a loss. We are constantly monitoring stock market indices to check whether a capital loss is a possibility for any of our Plans (the vast majority of which are linked to the FTSE 100 index). Currently, none of our Plans are on course for a capital loss.  However, we will contact you if markets fall to the extent that we feel your Plan is on course to incur a capital loss.  


How this may affect the current valuation of your Plan


As a result of the market downturn and the increased volatility, the current valuation of your Plan is likely being affected: 

  • Some of our Plans, particularly our Investment Plans, are currently valuing below 100% as a result of the downturn. This is because the value (the price at which we can encash your Plan in the market) of our Investment Plans will usually fall if the underlying index (e.g. the FTSE 100) has become more volatile since the Start Date of the Plan. 

  • It is very important to remember that irrespective of your Plan’s current valuation, all of our Plans are designed to perform as stated in the Plan brochure and Key Information Document, provided that they are held for the full Term (i.e. provided that you don’t surrender your Plan early).   

  • If your Investment Plan or Deposit Plan is valuing below 100% and you surrender it early, you will incur a capital loss. Before doing so, we strongly suggest that you consult your financial adviser so that they can explain the implications of surrendering your Plan early versus holding your Plan for the full Term. 


We will continue to provide updates on this page, and we will write to you if we feel that your Plan is on course to incurring a capital loss.


If you have any questions please use your Financial Adviser as your first point of contact, otherwise please feel free to call us on +44 207 597 4065