Historic fund changes

View a list of older fund changes we've made as part of our ongoing governance reviews.

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.

The RLP UK Ethical pension fund is changing its name to the RLP Sustainable Leaders pension fund along with the  investment and stock selection process and fund objective This change will take place week commencing 30 October 2017.

We have issued letters and an insert - Important changes to the RLP UK Ethical pension fund 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 Sustainable Leaders fund
  • The investment and stock selection process will change. Every holding within the fund will now have to meet strict ESG criteria and there will be active engagement with the companies in which we invest to champion best practise and challenge companies on ESG matters.
  • The fund’s objective will now change to the following – A UK growth fund focusing on the core themes of the environment, human welfare and sustainability to generate superior investment returns. The fund aims to provide first quartile performance over a rolling three year period measure against the UK All Companies sector. The Fund also aims to outperform the FTSE All-Share index.
  • The fund can now hold up to 20% in overseas holdings.
  • There is no change to the fund’s annual management charge (AMC), benchmark or sector.

Why are we making this change?

ESG issues such as corporate governance, board structure and management incentives arebecoming an increasingly more important aspect for ethical investors. Environmental risksand opportunities are growing and social issues such as taxation are becoming financial and reputational risks. Companies managing these ESG risks well will provide the best risk adjusted returns over the long-term in our view.

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

We’re replacing the above underlying investment and as a result, the fund will change to RLP US Core Plus (Old Mutual North American Equity) pension fund. This change will take place week commencing 30 October 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 Annual Management Charge (AMC) will reduce from 1.95% to 1.70% and the Total Expense Ratio (TER) will reduce from 2.15% to 1.90%.
  • The investment description of the underlying fund will change to the following - The fund’s investment objective is to seek to achieve long term capital growth, through the active management of a diversified portfolio invested primarily in North American stock markets. It is not proposed to concentrate investments in any one industry or sector.

Why are we making this change?

The Fidelity fund has suffered from poor long-term underperformance as well as a series of fund manager changes. Our Investment Advisory Committee (IAC) has concerns around the level of risk and positions being adopted by the fund coupled with the performance issues. After extensive analysis into all the alternative solutions available, the IAC has decided it is appropriate to replace the underlying investment with the Old Mutual North American Equity Fund. This fund is bronze rated by Morningstar and has a strong performance track record coupled with a robust investment process. We believe this fund is a more appropriate offering for a US core plus fund.

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.

We’re replacing the above underlying investment and as a result, the fund will change to RLP Europe Specialist (Columbia Threadneedle European Select) pension fund. This change will take place week commencing 30 October 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 Annual Management Charge (AMC) will reduce from 1.70% to 1.65% and the Total Expense Ratio (TER) will reduce from 1.80% to 1.73%.
  • The investment description of the underlying fund will change to the following - The fund’s investment objective is to grow the amount you invested. The fund invests at least two thirds of its assets in shares of companies in Continental Europe or companies that have significant operations there and that have growth prospects. The fund’s investment approach means it can invest significantly in particular companies, industries and countries. This means it will typically hold fewer investments than other funds.

Why are we making this change?

The Neptune fund has suffered from very poor performance over the last five years. The Royal London Investment Advisory Committee (IAC) has raised concerns with the magnitude of risk taken within the fund. In addition, Morningstar have lost confidence in the manager’s ability to add value over and above the benchmark.

After extensive analysis into alternative funds, the IAC has decided it is appropriate to replace the underlying fund with the Columbia Threadneedle European Select Fund. This fund has a strong bottom-up approach and will tend to perform better in a falling market.  Itis bronze rated by Morningstar and we believe this is a better fit for the European specialist category.

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.

On the 25 August 2017 the RLP/Baillie Gifford (50:50) Worldwide Equity pension fund has changed its name to the RLP/Baillie Gifford (60:40) Worldwide Equity pension fund. Please note that the fund charges remain the same.

On the 21 July 2017 the following funds changed their name and the Towry funds changed their fund manager to Tilney. Please note that the fund charges remain the same.

Old fund managerOld fund nameNew fund managerNew fund name
Fidelity RLP/Fidelity UK Growth Fidelity RLP/Fidelity UK Select
Fidelity RLP/Fidelity South East Asia Fidelity RLP/Fidelity Asia
JPMorgan JPMorgan Cautious Managed JPMorgan RLP/JPMorgan Global Macro Balanced
Schroder RLP/Schroder Global Real Estate Securities Schroder RLP/Schroder Global Cities Real Estate
Towry RLP/Towry Growth Portfolio Tilney RLP/Tilney Growth Portfolio
Towry RLP/Towry Defensive Portfolio Tilney RLP/Tilney Defensive Portfolio
Towry RLP/Towry Mixed Portfolio Tilney RLP/Tilney Mixed Portfolio

We are removing the RLP/CF Miton Strategic and RLP/CF Miton Special Situations pension funds from our fund range in the week commencing 9 November 2015.

Why are we removing these funds?

As part of our ongoing review process, we have identified that the underlying investment has experienced a sustained period of underperformance and no longer have confidence in the manager's investment process and ability to deliver strong future performance.

Where are we moving existing investors?

We have written to all affected policyholders informing them of the change and how their investment is affected. View a copy of the letter we have issued here.

In October 2015 we're making some changes to the Target Lifestyle Strategy (Annuity), so that it can continue to meet its objective.

The strategy is designed to move from higher risk investments at the start of the plan, to lower risk investments as the customer moves towards their retirement date.

This currently means that when they reach their retirement date and want to purchase an annuity, the money will be invested in 25% deposit and 75% index linked.

What's changing?

In the final five years to retirement, the mix of investments is changing and will now be split between deposits, gilts, index linked and corporate bonds.

Currently, the investment mix at retirement date looks like this:

Annuity Retirement
RLP Deposit 25.00%
RLP Medium (10yr) Index Linked 75.00%

This is changing so at retirement date, it will look like this:

Annuity Retirement
Annuity Fund 100.00%

The Annuity Fund invests in a mixture of fixed interest and cash investments and is managed by Royal London Asset Management (RLAM) on an ongoing basis. This means the holdings within the Annuity Fund can be tactically changed to reflect current markets.

Why are we making these changes?

Since the government introduced the pension reforms in April 2015, the retirement market and the choices people make at retirement have changed. The performance of the current strategy (25% deposit, 75% index linked) has been good since 2012 and we still feel the annuity option is the most appropriate default strategy.

However, current and expected market conditions are now making it harder to confidently deliver above inflation growth in those final five years before retirement where customers are typically invested in lower-risk assets.

We're introducing a more diverse range of investments in the final five years of the lifestyle strategy through the introduction of our Annuity Fund.

In an environment of low interest rates and expensive index linked investments, we believe that investing in a mixture of deposits, gilts, index linked and corporate bonds provides more flexibility and better value for money for our customers.

Sample letters and leaflet:

We are removing the RLP/UBS UK Equity and RLP/UBS Managed Equity pension funds from our fund range with effect from 31 July 2015.

Why are we removing these funds?

UBS have made the decision to close the underlying funds and merge the assets into equivalent tracker funds. This is due to a reduction in the fund sizes of each fund which makes them no longer commercially viable to manage.

The tracker funds have different investment objectives and we feel that the best course of action is to close these funds rather than allow existing policyholders to invest in the new funds.

Where are we moving existing investors?

We have written to all affected policyholders informing them of the change and how their investment is affected. View a copy of the letter we have issued here.

Please note that the endorsement wording and notice are not relevant for group pension plans.

With effect from 17th November 2014 the charging structure on the SL HSBC Amanah Global Equity Index Fund will change to reflect changes to the charging structure of the underlying fund.

The fund management charge will reduce from 1.25% to 1.00%, however additional expenses of 0.25% will apply to the fund meaning that the Total Expense Ratio will remain the same at 1.25%.

 Fund Management ChargeTotal Expense Ratio
Old charging structure 1.25% 1.25%
New charging structure 1.00% 1.25%

There is no material impact on investors in the fund and there has been no change to the fund's objective or the assets held within the fund.

We have reduced the additional fund management charge on four of the Scottish Life/ BlackRock Aquila regional tracker funds.

The funds affected and the related charges are detailed below.

 Additional fund management charge
Fund nameOld chargeNew charge
SL/BlackRock Aquila US Equity Index 0.15% 0.00%
SL/BlackRock Aquila European Equity Index 0.15% 0.00%
SL/BlackRock Aquila Japanese Equity Index 0.15% 0.00%
SL/BlackRock Aquila Pacific Rim Equity Index 0.15% 0.00%

We have written a letter to all policyholders invested in the funds to inform them of the change.

In light of Schroders' acquisition of the Cazenove fund business earlier this year, we have renamed the Cazenove funds to reflect the Schroders name with effect from 22nd August 2014. Details of the new names are below.

Old nameNew name
SL UK Equity Core Plus (Cazenove UK Growth & Income) SL UK Equity Core Plus (Schroder Core UK Equity)
SL/Cazenove European SL/Schroder European Opportunities
SL/Cazenove Multi-Manager Diversity SL/Schroder MM Diversity
SL/Cazenove Multi-Manager Diversity Balanced SL/Schroder MM Diversity Balanced
SL/Cazenove Multi-Manager Diversity Tactical SL/Schroder MM Diversity Tactical
SL/Cazenove Multi-Manager Global (ex UK) SL/Schroder MM International
SL/Cazenove Multi-Manager UK Growth SL/Schroder MM UK Growth

We are making a number of changes to the SL/Sarasin Agrisar pension fund in response to changes Sarasin have made to the underlying fund.

We have written to all our customers invested in the fund detailing the changes and what this means for their investment.

What's changing?

  • On 4th February 2014 the Fund Management Charge was reduced from 1.83% to 1.7%. The funds additional expenses have remained the same at 0.24%.
  • On 25th August 2014 the fund’s index benchmark will change from MSCI World to MSCI ACWI.
  • On 25th August 2014 the name of the fund will change to SL/Sarasin Food & Agriculture Opportunities Pension Fund.

These changes reflect recent changes made by Sarasin to the underlying fund and have no effect on the management or objective of the fund or the value of investments in the fund.

If you'd like further information on the Investment Advisory Committee (IAC) summarising the outcome of the last meeting including access to the full minutes from all of the previous meetings then visit our Investment Advisory Committee section.

Further details of our investment proposition can be found in Our investment options section.

The total expense ratio (TER) applied to this fund reduced to 1.78% from 1.88% with effect from 1 April 2014. A mailing was issued to customers invested in this fund on the 25 March 2014.

We replaced the underlying investment and as a result the fund changed to the SL UK Income Specialist (Fidelity MoneyBuilder Dividend) pension fund. This change took place from week commencing 26 May 2014.

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

What changed?

  • The Annual Fund Management Charge (AFMC) was reduced from 1.70% to 1.30%.
  • The Total Expense Ratio (TER) decreased from 1.88% to 1.47%. The TER is a measure of the overall cost of a fund to the investor and includes the AFMC plus any audit, custodian, registration or compliance fees paid out of the fund's assets.
  • The investment description of the underlying fund changed to be the following - The fund's investment objective is to achieve a combination of income and long term capital growth from a portfolio primarily made up of investments in the UK, including ordinary shares, preference shares, convertibles and fixed interest securities.

Why did we make this change?

The fund manager had left Invesco Perpetual and our Investment Advisory Committee (IAC) had concerns around the new manager's process and ability to deliver outperformance given the large amount of assets the fund currently holds. After extensive analysis into all the alternative solutions available, the IAC decided it was appropriate to replace the underlying investment with the Fidelity MoneyBuilder Dividend fund.

This fund is bronze rated by Morningstar OBSR (an independent fund research company) and has a strong performance track record whilst maintaining very similar characteristics to the Invesco Perpetual Income fund.

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 change took effect from week commencing 26 May 2014.

We are removing the SL Investec UK Blue Chip and SL Investec UK Blue Chip 'A' pension funds from our fund range with effect from week commencing 17 March 2014.

Why are we removing these funds?

Investec have made the decision to close the underlying Investec UK Blue Chip fund and merge the fund's assets into the Investec UK Alpha fund. This is based on their belief that in future, customers will want a different type of UK equity fund with a more focused style.

The UK Alpha fund has a different investment objective and is also more expensive than the Investec UK Blue Chip. We, therefore, feel that the best course of action is to close the fund rather than allow existing policyholders to invest in the new fund.

Where are we moving existing investors?

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

Due to our continued good relationship with our fund manager partners, we are able to reduce the charges for various funds within the Scottish Life fund range.

The new annual management charges, the related total expenses and the effective date of the change are as follows:

Fund nameNew SL additional chargeNew SL additional expensesEffective date
(week commencing)
SL Europe Specialist (Neptune European Opportunities) 0.70% 0.73% 17/03/2014
SL/Neptune Balanced 0.70% 0.80% 17/03/2014
SL/Neptune Global Equity 0.70% 0.75% 17/03/2014
SL/Neptune US Opportunities 0.70% 0.74% 17/03/2014
SL/Jupiter European Special Situations 0.70% 0.99% 26/03/2014
SL/Jupiter Ecology 0.70% 0.75% 26/03/2014
SL/Jupiter Financial Opportunities 0.70% 0.98% 26/03/2014
SL/Jupiter India 0.70% 1.04% 26/03/2014
SL/Jupiter Merlin Balanced Portfolio 0.70% 1.65% 26/03/2014
SL/Jupiter Merlin Growth Portfolio 0.70% 1.69% 26/03/2014
SL/Jupiter Merlin Income Portfolio 0.70% 1.56% 26/03/2014
SL/Jupiter Merlin Worldwide Portfolio 0.70% 1.78% 26/03/2014
SL Japan Core Plus (Schroder Tokyo) 0.70% 0.86% 02/04/2014
SL UK Equity Core Plus (Schroder UK Equity) 0.70% 0.86% 02/04/2014
SL UK Equity Specialist (Schroder UK Alpha Plus) 0.70% 0.85% 02/04/2014
SL/Schroder Global Property Securities 0.70% 0.87% 02/04/2014
SL/Schroder Income Maximiser 0.70% 0.86% 02/04/2014
SL/Schroder US Mid Cap 0.70% 0.87% 02/04/2014
SL/Invesco Perpetual Corporate Bond 0.45% 0.64% 09/04/2014
SL/Invesco Perpetual Distribution 0.63% 0.82% 09/04/2014
SL/Invesco Perpetual Global Bond 0.45% 0.64% 09/04/2014
SL/Invesco Perpetual Monthly Income Plus 0.58% 0.77% 09/04/2014
SL Global Managed Equity Specialist (Investec Global Free Enterprise) 0.70% 0.82% 16/04/2014
SL UK Small Cap Specialist (Investec UK Smaller Companies) 0.70% 0.80% 16/04/2014

We have written to all affected policyholders informing them of the change.

Last updated: 19 Nov 2015

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.