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Update - Global Strategic Balanced broker fund

The Strategic Growth fund, the underlying fund to the Global Strategic Balanced broker fund, has now formally moved into Compulsory Winding-Up/Liquidation.

Impacts on
these defined fund range products

Summary of suspension

In 2013, the Global Strategic Balanced broker fund was suspended as a result of the underlying fund link, the Strategic Growth fund ("the underlying fund"), having to temporarily suspend trading following receipt of a large number of redemption requests. The Directors and administrators of the underlying fund worked on realising assets in order to provide liquidity to settle the redemption requests. Whilst around 20% of the assets were able to be sold, it was identified that the remaining assets held by the underlying fund were illiquid, meaning there would be difficulty in selling these assets to realise any value.


What has happened since?

As there was insufficient liquidity in the underlying fund to continue to operate, the underlying fund was formally moved into Administration Management. Joint administration managers ("JAMs") from Grant Thornton, Guernsey, were appointed by the Royal Court of Guernsey ("the Court") on 24 April 2015 to investigate the underlying fund to assess its potential future and whether it could continue to operate.


The underlying fund is a cell of The Global Mutual Fund PCC Limited ("the Company"). With effect from 12 February 2009, United Asset Management ("UAM") were the appointed Investment Adviser of the Company. The JAMs were appointed to investigate all cells under the Company, along with others from the same fund group (collectively "the Companies").


It took a number of years for the JAMs to finish their investigations for all cells of the Companies and, unfortunately, concluded that there was no future for the the cells of the Company.


Compulsory Winding-up/Liquidation

On 31 October 2018, the Court made an order upon application of the JAMs which closed the Administration Management and placed the Company in Compulsory Winding-Up. The Court ordered:


  • Approval of the JAMs additional further costs as detailed in the Appendix 3 of the JAMs Final Report;
  • The discharge of the JAMs from office to be effective on issuing the Second Addendum to the registered shareholders;
  • That the Company (and other Companies under their Administration Management) be wound up pursuant to section 406(i) and 408 of the Companies (Guernsey) Law, 2008 and that James Toynton and Alan John Roberts be appointed as Joint Liquidators ("JLs");
  • Approval of the JLs' proposed fees as detailed in Appendix 3 of the JAMs' Final Report.

The JAMs issued a number of reports for shareholders during their early investigations and a Final Report was issued dated 29 June 2018 detailing their conclusions. Subsequent to this, the JAMs received further representations from deVere and also representatives of the Company and two Addendum's were issued with matters of clarification and/or correction in relation to the Final Report.


Recovery for investors

Whilst the liquidation is ongoing at this stage, unfortunately it looks unlikely that there will be any recovery for investors.


However, if you are an affected policyholder you should contine to ensure we have your current address on record, even if you have surrendered your policy, should any payout materialise. We will only know the final outcome once the liquidation process has concluded.


Shareholder reports

Reports issued by the JAMs are only available to shareholders. If you are an affected policyholder who was invested in the Global Strategic Balanced broker fund we can provide copies of the JAMs shareholder reports to you. Please contact us by email on csc@rl360.com with your request, quoting your policy number.