Closed With Profits funnd - good or bad?

Chris_P_2

My father has an L&G bond. A recent statement said that the fund is now closed. The current bonus rate is 2%.

Is the closure good or bad for him?

As people eventually encash their bonds would any terminal bonus for him increase?

What are the implications of it being closed?

Linton

The closure of itself should not affect him directly other than he cannot buy new units. It may mean that L&G pay less attention to the fund in the future. A bonus rate of 2% sounds reasonable right now, whether it would look so good in a year or two's time, who knows? If he isnt already doing it I suggest he monitors the peformance, including the terminal bonus,.
When bonds are closed you get the terminal bonus applicable at the time, so people leaving shouldnt affect him directly.

dunstonh

Is the closure good or bad for him?

Neither good nor bad. It is just an investment fund closing.

As people eventually encash their bonds would any terminal bonus for him increase?

Most likely outcome is that it will take 20-30 years to decline and the old life book will likely be sold to one of the providers that buys dead books and runs them down. Over time, they consolidate the different funds to avoid overlap.