Changes to our fund range

View the fund changes we've made as part of our ongoing governance reviews.

Funds on our range are subject to change. If the change significantly affects what the fund can invest in or the specific risks associated with the fund then we will write to you and your client in advance.

All other changes will be updated in the fund factsheet and our marketing material.

Recent fund changes

M&G Investments are merging the RLP/M&G Global Leaders fund into the RLP/M&G Global Themes fund.  The change to the fund will take effect on Friday 25th May 2018.

What’s changing?

  • The fund name will change to the RLP/M&G Global Themes fund.
  • The benchmark will remain as MSCI AC World Index.
  • There is no change to the fund’s annual management charge (AMC).
  • The M&G Global Themes fund aims to provide a higher total return (the combination of capital growth and income) than that of the MSCI ACWI Index over any five-year period.
  • The M&G Global Themes fund policy is to invest at least 80% of its Net Asset Value in the equity securities of companies across any sectors and market capitalisations that are domiciled in any country, including emerging markets. The Fund may also invest in collective investment schemes, other transferable securities and may hold cash for liquidity purposes. Derivatives may be used for efficient portfolio management.

 

Why are M&G Investments making this change

Following a thorough review of the M&G Global Leaders fund, it was highlighted that it had similar characteristics to the M&G Global Themes fund. M&G consider the merger to be in the best interests of investors and the recent shareholder vote upheld the decision.  

Following approval from our Investment Advisory Committee (IAC), we issued letters to all our customers invested in the RLP US Specialist (JPMorgan US) fund, to let them know that in June 2018, their assets would be moved to the RLP US Core Plus (Old Mutual North American) fund.

JPMorgan Funds Limited recently announced their intention to merge the JPMorgan US fund with the JPMorgan US Select fund. This merger will occur on 28 April 2018; before the movement of assets to the Old Mutual fund in June.

What's changing?

In accordance with the merger, on 28 April 2018 the underlying investment for the RLP US Specialist fund will change from JPMorgan US to JPMorgan US Select. This will result in the following changes:

  • The Annual Management Charge (AMC) will reduce to 1.45%.
  • The fund objective will change to invest in a portfolio of North American securities.

Following due consideration of the JPM US Select fund and as per our recent correspondence, the assets will be moved to the RLP US Core Plus (Old Mutual North American) in the week commencing 18 June 2018.

Why are we making this change?

The JPM US fund had suffered from poor long-term underperformance and sector positioning on a risk-adjusted basis. The fund’s rating was downgraded by Morningstar. The Royal London Investment Advisory Committee (IAC) raised concerns and felt recent performance provided no comfort of an upturn.

After extensive research the committee agreed with the recommendation to place the assets held in the RLP US Specialist (JPM US) fund into the RLP US Core Plus (Old Mutual North American) fund.

The movement of assets to the Old Mutual fund will proceed despite the merger of the JPMorgan US and the JPMorgan US Select fund on 28 April.

The Old Mutual North American is silver rated by Morningstar and has a strong performance track record coupled with a robust investment process.

You should be mindful that the value of your client's investment can go down as well as up, which may mean they could get back less than the amount invested.

The AMC for the underlying Columbia Threadneedle Absolute Return Bond has been reduced, so we have reduced the AMC of our RLP Columbia Threadneedle Absolute Return Bond accordingly:

Fund nameOld AMCNew AMCAdditional expenseNew Total Expense Ratio (TER)
RLP Columbia Threadneedle Absolute Return Bond 1.58% 1.38% 0.16% 1.54%

January 2018

Due to a change to clean share classes the following Fidelity funds have reduced their Annual Management Charge (AMC) as at 27 November 2017:

Fund nameOld AMCNew AMCAdditional expenseNew Total Expense Ratio (TER)
RLP/Fidelity Asia 1.95% 1.70% 0.22% 1.92%
RLP/Fidelity Emerging Europe Middle East and Africa 1.95% 1.70% 0.38% 2.08%
RLP/Fidelity Strategic Bond 1.45% 1.35% 0.19% 1.54%
RLP/Fidelity UK Select 1.95% 1.70% 0.20% 1.90%
RLP/Europe Core Plus (Fidelity European Blended) 1.95% 1.70% 0.21% 1.91%
RLP/Fidelity Special Situations Blended 1.95% 1.70% 0.19% 1.89%

M&G Investments are making changes to the RLP/M&G Global Basics fund. The change to the fund will take effect on 17th November 2017.

We have issued letters to all our customers invested in the fund detailing the change and what this means for their investment. We have also written to all advisers with clients invested in the fund with a list of those clients affected by the change.

What’s changing?

  • The fund name will change to the RLP/M&G Global Themes fund.
  • The investment policy will change to allow the fund to invest at least 80% in global equities with no restriction on sector, size or geography.
  • The benchmark will change to MSCI All Country World Index.
  • The fund’s objective will change to aim to provide a higher total return (the combination of capital growth and income) than that of the MSCI All Country World Index over any five-year period.

Why are M&G Investments making this change

This change will allow the fund managers to take full advantage of a wide range of themes developing in an ever evolving global economy.

You should be mindful that the value of your client's investment can go down as well as up, which may mean they could get back less than the amount invested.

Historic fund changes

For older fund changes go to our page of Historic fund changes.

Important note

While we make every effort to contact all affected customers about these changes, it's important that you check if any of your clients are invested in these funds and discuss any changes they may want to make as a result.

Last updated: 16 May 2018

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The Royal London Mutual Insurance Society Limited is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Registered in England and Wales number 99064. Registered office: 55 Gracechurch Street, London EC3V 0RL.