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

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.

More information

For details on delayed transactions and more read our list of questions and answers.

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.

Letter

Please see an example of this letter here.

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.

Letter

Please see an example of this letter here.

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.

Old Fund Manager NameOld Fund NameNew Fund Manager NameNew Fund Name
Investec RLP Global Managed Equity Specialist (Investec Global Strategic Equity) Ninety One RLP Global Managed Equity Specialist (Ninety One Global Strategic Equity)
Investec RLP UK Small Cap Specialist (Investec UK Smaller Companies) Ninety One RLP UK Small Cap Specialist (Ninety One UK Smaller Companies)
Investec RLP/Investec Cautious Managed Ninety One RLP/Ninety One Cautious Managed
Investec RLP/Investec Emerging Markets Local Currency Debt Ninety One RLP/Ninety One Emerging Markets Local Currency Debt
Investec RLP/Investec Global Energy Ninety One RLP/Ninety One Global Energy
Investec RLP/Investec UK Special Situations Ninety One RLP/Ninety One UK Special Situations
Neptune RLP/Neptune Balanced Liontrust RLP/Liontrust Balanced
Neptune RLP/Neptune Global Alpha Liontrust RLP/Liontrust Global Alpha
Neptune RLP/Neptune Global Equity Liontrust RLP/Liontrust Global Equity
Neptune RLP/Neptune US Opportunities Liontrust RLP/Liontrust US Opportunities
Standard Life RLP/Standard Life Global Absolute Return Strategies Aberdeen Standard RLP/ASI Global Absolute Return Strategies

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:

 OldNew
FundAMCInvestment ExpensesTERAMCInvestment ExpensesTER
RLP/M&G Corporate Bond 1.45% 0.16% 1.61% 1.60% 0.00% 1.60%

RLP/M&G Global Themes

1.70% 0.17% 1.87% 1.85%
0.00% 1.85%

RLP/M&G Global Dividend

1.70% 0.16% 1.86% 1.85% 0.00% 1.85%

RLP/M&G Global High Yield Bond

1.58% 0.16% 1.74% 1.63% 0.00% 1.63%

RLP/M&G Optimal Income

1.58% 0.16% 1.74% 1.73% 0.00% 1.73%

RLP/M&G Recovery

1.70% 0.16% 1.86% 1.80% 0.00% 1.80%

RLP/M&G Strategic Corporate Bond

1.45% 0.16% 1.61% 1.60% 0.00% 1.60%

These changes will take place on the week commencing 18th 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?

More information

Read the full list of all restricted transactions and to read our questions and answers. 

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.

Letter

Please see an example of this letter here.

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.

Old Fund Manager NameOld Fund NameNew Fund Manager NameNew Fund Name
Newton RLP/Newton Multi-Asset Balanced BNY Mellon RLP/BNY Mellon Multi-Asset Balanced
Newton RLP/Newton Multi-Asset Balanced 'A' BNY Mellon RLP/BNY Mellon Multi-Asset Balanced 'A'
Newton RLP/Newton Global Income BNY Mellon RLP/BNY Mellon Global Income
Newton RLP/Newton Multi-Asset Growth BNY Mellon RLP/BNY Mellon Multi-Asset Growth
Newton RLP/Newton Multi-Asset Growth 'A' BNY Mellon RLP/BNY Mellon Multi-Asset Growth 'A'
Newton RLP/Newton Real Return BNY Mellon RLP/BNY Mellon Real Return
Letter

Please see an example of this letter here.

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’.

 

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.

This website is intended for financial advisers only and shouldn't be relied upon by any other person. If you are not an adviser please visit royallondon.com.

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. The firm is on the Financial Services Register, registration number 117672. It provides life assurance and pensions. Registered in England and Wales number 99064. Registered office: 55 Gracechurch Street, London, EC3V 0RL.