Historic fund changes

We’re changing the benchmark of the RLP Global Managed fund to 35% UK Equities, 55% Global Developed Market Equities and 10% Emerging Market Equities. This change is designed to improve the long-term outcomes for our customers and will be implemented between now and the end of January 2021.
We are writing to all affected policyholders informing them of this change and how their investment is affected.

What’s changing?

• The benchmark will change from 50% FTSE All Share/50% FTSE All
World ex UK to 35% FTSE All Share/55% FTSE World/10% MSCI
Emerging Markets ESG Leaders Index.
• The investment aim will change to - The Fund aims to deliver capital growth, over an investment cycle of approximately 6 to 7 years, by investing in a diversified portfolio of UK and global equities.
• The Annual Management Charge (AMC) and the Total Expense Ratio
(TER) will remain unchanged.

Why are we replacing the benchmark?

As part of our governance process the Royal London Investment Advisory Committee (IAC) review the benchmark every three years. This move is the next step in an established direction to increase exposure to emerging markets and reduce exposure to UK equities and is in line with our current tactical position which is overweight in both global and emerging market equities and underweight in UK equities.

We’re changing the benchmark of the RLP Global Growth fund to 35% UK Equities, 55% Global Developed Market Equities and 10% Emerging Market Equities. This change is designed to improve the long-term outcomes for our customers and will be implemented between now and the end of January 2021.
We are writing to all affected policyholders informing them of this change and how their investment is affected.

What’s changing?

• The benchmark will change from 50% FTSE All Share/50% FTSE All
World ex UK to 35% FTSE All Share/55% FTSE World/10% MSCI
Emerging Markets ESG Leaders Index..
• The Investment Aim, Annual Management Charge (AMC) and Total Expense Ratio
(TER) will remain unchanged.

Why are we replacing the benchmark?

As part of our governance process the Royal London Investment Advisory Committee (IAC) review the benchmark every three years. This move is the next step in an established direction to increase exposure to emerging markets and reduce exposure to UK equities and is in line with our current tactical position which is overweight in both global and emerging market equities and underweight in UK equities.

We’re changing the benchmark of the RLP BlackRock ACS Global Blend fund to 35% UK Equities, 55% Global Developed Market Equities and 10% Emerging Market Equities. This change is designed to improve the long-term outcomes for our customers and will be implemented between now and the end of January 2021.
We are writing to all affected policyholders informing them of this change and how their investment is affected.

What’s changing?

• The benchmark will change from 50% FTSE All Share/50% FTSE All
World ex UK to 35% FTSE All Share/55% FTSE World/10% MSCI
Emerging Markets ESG Leaders Index..
• The Investment Aim, Annual Management Charge (AMC) and Total Expense Ratio
(TER) will remain unchanged.

Why are we replacing the benchmark?

As part of our governance process the Royal London Investment Advisory Committee (IAC) review the benchmark every three years. This move is the next step in an established direction to increase exposure to emerging markets and reduce exposure to UK equities and is in line with our current tactical position which is overweight in both global and emerging market equities and underweight in UK equities.

We are replacing the underlying fund held within the RLP Japan Specialist (Invesco Japan) pension fund. This is one of our Matrix Funds, a group of equity funds categorised by sector and risk relative to a benchmark index. As a result, we’re replacing the underlying fund to the Baillie Gifford Japanese fund from the week commencing 7 December 2020.

We’re writing to all affected policyholders informing them of this change and how their investment is affected. Please note that we initially communicated in August that the RLP Japan Specialist (Invesco Japan) fund would be replaced with the T. Rowe Price Japanese Equity fund however there has been a change in circumstances and we can no longer link to this fund.

What’s changing?

• The fund name will change to RLP Japan Specialist (Baillie Gifford Japanese) pension fund
• The Annual Management Charge (AMC) will reduce from 1.70% to 1.57%

Why are we replacing the underlying fund?

The IAC raised concerns about the consistent underperformance from Invesco whereas the Baillie Gifford fund offers a strong performance track record and a significant reduction in charges.

We are replacing the underlying fund held within the RLP Japan Core Plus (Schroder Tokyo) pension fund. This is one of our Matrix Funds, a group of equity funds categorised by sector and risk relative to a benchmark index. As a result, we’re replacing the underlying fund to the Baillie Gifford Japanese Income Growth fund from the week commencing 7 December 2020.
We have written to all affected policyholders informing them of the change and how their investment is affected.

What’s changing?

• The fund name will change to RLP Japan Core Plus (Baillie Gifford Japanese Income Growth) pension fund
• The Annual Management Charge (AMC) will reduce from 1.70% to 1.57%
• The Total Expense Ratio (TER) will reduce from 1.86% to 1.58%

Why are we replacing the underlying fund?

The IAC raised concerns about the consistent underperformance from Schroders coupled with the retirement of a fund manager with a proven track record. The Baillie Gifford fund offers a strong performance track record and a significant reduction in charges.

We are replacing the underlying fund held within the RLP UK Equity Specialist (Invesco UK Growth) pension fund. This is one of our Matrix Funds, a group of equity funds categorised by sector and risk relative to a benchmark index. As a result, we’re replacing the underlying fund to the Fidelity UK Opportunities fund from the week commencing 7 December 2020.
We have written to all affected policyholders informing them of the change and how their investment is affected.

What’s changing?

• The fund name will change to RLP UK Equity Specialist (Fidelity UK Opportunities) pension fund
• The Annual Management Charge (AMC) will reduce from 1.60% to 1.34%
• The Total Expense Ratio (TER) will reduce from 1.76% to 1.51%

Why are we replacing the underlying fund?

The IAC raised concerns about the consistent underperformance from Invesco whereas the Fidelity fund offers a strong performance track record and a significant reduction in charges.

The RLP Property Fund was put into deferral on 30 March 2020. This meant that some transactions were deferred over this period. The decision has now been made to end this restricted period.

What's changing?

Our property surveyors removed the material uncertainty clause from their valuations at the mid-September valuation date. This follows guidance from the Royal Institute of Chartered Surveyors as property market transactions are returning to pre-COVID levels providing sufficient transactional evidence on which to base valuations. This means we can remove the restrictions on the fund with effect from 29 September 2020. 

If any of your client’s transactions were affected by these restrictions, then we will contact both you and your client to discuss the next steps.

Why are we making this change?

The COVID-19 pandemic meant that the valuers weren’t seeing the level of market transactions that enabled them to confidently value the properties owned by the fund and due to this they attached a material uncertainty clause to their property valuations (MUC). They have now removed this clause, and this has allowed us to remove the restrictions that had been in place during this period.

We are replacing the underlying fund held within the RLP Emerging Markets Specialist (Stewart Investors Global Emerging Markets Leaders) pension fund. This is one of our Matrix Funds, a group of equity funds categorised by sector and risk relative to a benchmark index. As a result, we’re replacing the underlying fund to the Fidelity Emerging Markets fund from the week commencing 2 November 2020.

We have written to all affected policyholders informing them of the change and how their investment is affected.

What’s changing?

• The fund name will change to RLP Emerging Markets Specialist (Fidelity Emerging Markets) pension fund
• The Annual Management Charge (AMC) will reduce from 1.80% to 1.70%

Why are we replacing the underlying fund?

The IAC raised concerns about the consistent underperformance from Stewart Investors, coupled with the fund being soft closed meaning no new Royal London customers could invest. The Fidelity fund offers a strong performance track record and opens the fund up to all members.

We are replacing the underlying fund held within the RLP UK Equity Specialist (Schroder UK Alpha Plus) pension fund. This is one of our Matrix Funds, a group of equity funds categorised by sector and risk relative to a benchmark index. As a result, we’re replacing the underlying fund to the Baillie Gifford UK Equity Alpha fund from the week commencing 2 November 2020.

We have written to all affected policyholders informing them of the change and how their investment is affected.

What’s changing?

• The fund name will change to RLP UK Equity Specialist (Baillie Gifford UK Equity Alpha) pension fund
• The Annual Management Charge (AMC) will reduce from 1.70% to 1.50%
• The Total Expense Ratio (TER) will reduce from 1.86% to 1.51%
Why are we replacing the underlying fund?
The IAC raised concerns about the consistent underperformance from Schroders coupled with above average charges making it difficult to justify the fund from a value for money perspective. The Baillie Gifford fund offers a strong performance track record and a significant reduction in charges.

The following funds and fund managers changed their name in July.  Please note that the fund charges remain the same.

We've replaced the underlying fund held within the RLP Global Blend Core Plus (Rathbone Global Alpha) pension fund. This is one of our Matrix Funds, a group of equity funds categorised by sector and risk relative to a benchmark index. As a result, we’ve replaced the underlying fund to the RLP Global Growth fund from the week commencing 29 June 2020.

We have written to all affected policyholders informing them of the change and how their investment is affected.

What’s changed?

• The fund name will change to RLP Global Blend Core Plus (RLP Global Growth) pension fund
• The Annual Management Charge (AMC) has reduce from 1.45% to 1.00%
• The Total Expense Ration (TER) has reduced from 2.2% to 1.87%

Why have we replaced the underlying fund?

The IAC raised concerns about the consistent underperformance from Rathbone coupled with above average charges making it difficult to justify the fund from a value for money perspective. After numerous engagements with Rathbones to discuss the reasons for performance the IAC agreed to bring the management of the fund in-house. This will result in a significant reduction in charges with no change to the fund objective.

After discussions with M&G we are pleased to announce the following reductions to the Total Expense Ratio (TER) of the following funds:

These changes will take place on the week commencing 18^th May. 

The RLP Property Fund has been put into deferral effective from 30 March2020. This means that some transactions will be temporarily restricted from the fund. This decision has been made in the long-term interest of our customers as a whole and we will continue to closely monitor the fund and provide updates throughout this restricted period.

What’s changing?

Some transactions which involve the Property Fund will be delayed for a period of up to six months. This delay does not apply to normal retirement claims, death claims or income requirements in drawdown. 

Why are we replacing the underlying fund?

We've seen increasing uncertainty related to the valuation of property fund assets due to the impact of the Covid-19 virus. This has caused a number of Property funds across the industry to suspend dealing. Our property surveyors have confirmed that going forward their valuations will include a material uncertainty clause. This, combined with reduced transactions in the market, means there is an increase in the likelihood of unfair outcomes to customers and has led to our decision to suspend the fund for direct investment. Throughout this period our focus is on ensuring the best possible customer outcomes, keeping these in line with both customer expectations and fairness across customers in different situations.

We are replacing the underlying fund held within the RLP UK Equity Specialist (Artemis UK Special Situations) pension fund. This is one of our Matrix Funds, a group of equity funds categorised by sector and risk relative to a benchmark index. As a result, we’re replacing the underlying fund to the Baillie Gifford UK Equity Alpha fund from the week commencing 23 March 2020.

We have written to all affected policyholders informing them of the change and how their investment is affected.

What’s changing?

• The fund name will change to RLP UK Equity Specialist (Baillie Gifford UK Equity Alpha) pension fund
• The Annual Management Charge (AMC) will reduce from 1.70% to 1.50%
• The fund’s new underlying investment objective is to outperform (after deduction of costs) the FTSE All-Share Index by at least 2% per annum over rolling five-year periods. The performance objective stated is not guaranteed. 
  
  

Why are we replacing the underlying fund?

The IAC raised concerns about the consistent underperformance of the Artemis fund over a significant period of time. After extensive analysis into alternative funds, the IAC decided it’s appropriate to replace the underlying fund with the Baillie Gifford UK Equity Alpha fund as it has a strong performance track record coupled with a robust investment process.

The following funds and fund managers will change their name in October. Please note that the fund charges remain the same.

Columbia Threadneedle, the manager of the underlying asset has closed this fund effective 26 July 2019. As a result, we’re switching existing and future plan investments into the RLP Absolute Return Government Bond fund.

We have written to all affected policyholders informing them of the change and how their investment is affected

Why are we making this change?

After reviewing their range of funds, Columbia Threadneedle Investments, the manager of the underlying asset, decided to close the fund due to its relatively small size, giving the following explanation:

“The Fund’s assets have fallen to a level which makes it economically unviable to manage and we consider that the Fund is unlikely to attract new investors. On this basis, we believe closure of the Fund is in the best interests of investors and we have received permission from the Financial Conduct Authority to take this action.”

As the underlying asset is no longer available, we have chosen to switch your investment to the RLP Absolute Return Government Bond fund as we believe this provides the closest match to your current investment and is also available at a lower charge.

More information about this fund change can be found in the letter attached.

JPMorgan have made some changes to the JPM Global Macro Balanced Fund which is the underlying fund for the RLP/JPMorgan Global Macro Balanced pension fund.

What's changing?

• The name of the fund will change to RLP/JPMorgan Global Macro
• The benchmark will change to ICE 1 month GBP Libor.
• The aim / objective of the fund will change to the following: the fund aims to provide positive investment returns over a rolling 3 year period in all market conditions by investing in securities globally, using Financial Derivative Instruments where appropriate, with a volatility level typically lower than two-thirds of the MSCI All Country World Index (Total Return Net). A positive return is not guaranteed over this or any time period and a capital loss may occur.

Why are we making this change?

The fund has moved to a more flexible investment strategy that makes greater use of derivatives for downside protection and has the potential for better performance in changing and adverse market conditions and therefore higher prospects for growth.  

The RLP Emerging Markets Equity Tracker fund is changing its name to RLP Emerging Markets ESG Leaders Equity Tracker fund.  The name change will take effect week commencing 18  March 2019

What’s changing?

• The fund name will change to RLP Emerging Markets ESG Leaders Equity Tracker fund
• The investment objective has changed  to – “The Fund aims to track the net total return of the MSCI Emerging Markets ESG Leaders Index. The Fund will invest primarily in the securities that make up the MSCI Emerging Markets ESG Leaders Index and instruments that provide exposure to these securities. The Index provides coverage of companies in emerging markets which have high environmental, social and governance (ESG) scores relative to their sector peers.”

Why are we making this change?

The fund is benchmarked against an MSCI Index and MSCI have changed the name of the index and we have changed our fund name to reflect this. The fund will continue to track the same index but the name has been updated to include ‘Leaders’.

On the 30th November the following funds and fund managers will change their name. Please note that the fund charges remain the same.

We are replacing the underlying fund held within the RLP UK Equity Core Plus (Schroder UK Equity) pension fund and the RLP UK Equity Core Plus (Schroder Core UK Equity) pension fund. These are both Matrix Funds, a group of equity funds categorised by sector and risk relative to a benchmark index. As a result, the underlying fund for both will change to the RLP UK Equity Core Plus (JPM UK Equity Growth) pension fund from the week commencing 3 December 2018.

We have written to all affected policyholders informing them of the change and how their investment is affected

What’s changing?

• The fund name will change to the RLP UK Equity Core Plus (JPM UK Equity Growth)
• The Annual Management Charge (AMC) will remain at 1.70%
• The fund’s investment objective is to provide long-term capital growth through investment primarily in a growth style biased portfolio of UK companies.

Why are we making this change?

The Royal London Investment Advisory Committee (IAC) raised concerns about the consistent underperformance of the Schroder funds over significant time periods. After extensive analysis into alternative funds, the IAC has decided it is appropriate to replace the underlying fund with the JPM UK Equity Growth fund.

The JPM UK Equity Growth fund has a strong performance track record coupled with a robust investment process. 

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:

January 2018