At Protective Life, delivering what’s promised is a decision — one we make every day — and doing the right thing is the foundation of everything we do. This is why we wish to inform you that Lord Abbett will be liquidating two of their Portfolios currently offered with our variable universal life insurance (VUL) solutions on August 1, 2019.
- Lord Abbett Series Fund Inc. Classic Stock Portfolio
- Lord Abbett Series Fund Inc. International Opportunities
As a result, on the liquidation date, the corresponding investment options will no longer be available for investment in Protective’s variable universal life products.
Details regarding Lord Abbett fund closures:
- Protective Life will mail supplements to our VUL prospectuses and letters to your affected clients explaining the fund closures and the options available to them 60 days before the Portfolio liquidations. View 60-day communication notice.
- Beginning July 1, our new business team will review new VUL policies to determine whether clients have allocated policy value to one of the liquidating Lord Abbett Portfolios, and contact financial professionals and affected clients to ask if the client would like to adjust their fund allocations.
- All programs (dollar cost averaging, allocation adjustment, portfolio rebalancing, etc.) will continue as is until July 31, 2019.
- Any investments that are not reallocated from these funds will be reallocated to the Invesco Oppenheimer V.I. Government Money Fund on August 1, 2019.
It is important to remember that Lord Abbett will begin increasing each Portfolio’s cash holdings and deviating from its stated investment objective in investment strategies and investment policies, to prepare to liquidate each Portfolio’s assets. Shortly before the liquidation date, each Portfolio will be invested entirely in cash. Your clients who remain invested in the Portfolios may bear increasing expense from the decrease in the Portfolio’s assets as other investors withdraw from the Portfolios in anticipation of the liquidation.
We encourage you to work with your clients to reallocate their investments so that their policy value allocations align with their financial plans and goals.
For more information, please contact your Protective Life representative.
Let’s deliver on our promises. Together.