JANUARY 2021 SECTOR REVIEW – PROGRESSIVE ENHANCEMENT TO OUR DEFINED FUND RANGE
Progressive enhancement to our defined fund range further strengthens the variety of choices to help your clients achieve their investment goals.
We have completed the sixth stage of a review of our defined fund ranges. In this step, we have looked at Fixed Interest - US, Fixed Interest - Emerging Markets, Specialist, European Equity and Hedged/Structured Products.
Why we conduct reviews
By reviewing funds on a regular basis, using tools from independent global investment research company Morningstar®, the company that powers our interactive fund centres, we seek to identify and add funds that stand out in their respective peer groups for performance, risk/reward balance, objectives or investment style. We also look at funds that analysts at Morningstar believe will outperform their sector. Those funds you've asked to see in the range will be considered as long as they provide the necessary qualities and fit our parameters.
A review isn't just about adding funds. Importantly, we also take steps to remove funds we feel are no longer appropriate for the range. Our goal is to provide you with a best of breed range of quality funds covering a variety of sectors, regions and asset classes.
THE CHANGES FOR JANUARY 2021
We're pleased to announce the addition of a number of new funds across the products listed above, which are available for investment from January 2021. These are now featured in the fund guides published from January onwards and in the fund centres.
We've also removed some funds with immediate effect and these are now closed to new business and switches in. Existing investors affected by the removals will be written to in January providing them with two months’ notice of our intention to switch their holdings out and into an alternative fund. These clients can continue to invest in the closing fund(s) until we switch them out. Switches will take place between 17 March and 30 March 2021. Samples of these letters can be viewed opposite.
If clients are happy with our choice of receiving fund then they do not need to do anything and will be switched automatically (including redirection of any regular payment allocation where applicable). However, if they would prefer to switch to a different fund it’s very easy to do. Switches can be submitted by completing and returning a Fund switch instruction form or, if registered for online switching, conducting a switch online fast and efficiently.
Click on the sliders below to see details of the changes for each product range.
We've added five new funds to the range (12 including currency variants) from sectors Fixed Interest - US, Fixed Interest - Emerging Markets and European Equity.
We've removed nine funds (20 including currency variants) that no longer satisfy the requirements of the range. These funds are no longer available to new business plans or switches in from existing plan owners wishing to invest in the funds for the first time.
The table below outlines the closing funds and the receiving funds we will automatically switch plan owners into.
Sector: Fixed Interest – Emerging Markets
Closing fund
OCF**
Receiving fund
OCF**
Aberdeen Standard SICAV I Select Emerging Markets Bond A Acc USD – LU0132414144
1.71%
MFS Meridian Emerging Markets Debt A1 Acc USD – LU0125948108
1.52%
Aberdeen Standard SICAV I Select Emerging Markets Bond A Acc EUR Hgd – LU0376989207
1.75%
MFS Meridian Emerging Markets Debt A1 Acc EUR – LU0219422606
1.52%
Aberdeen Standard SICAV I Select Emerging Markets Bond A Acc CHF Hgd (Read below note) – LU0487189069
1.75%
MFS Meridian Emerging Markets Debt A1 Acc USD – LU0125948108
MFS Meridian Emerging Markets Debt A1 Acc USD – LU0125948108
1.52%
Pictet Emerging Local Currency Debt R Acc USD – LU0255798364
1.94%
MFS Meridian Emerging Markets Debt A1 Acc USD – LU0125948108
1.52%
Pictet Emerging Local Currency Debt R Acc EUR – LU0280437830
1.94%
MFS Meridian Emerging Markets Debt A1 Acc EUR – LU0219422606
1.52%
Invesco India Bond A Acc USD – LU0996662002
1.59%
MFS Meridian Emerging Markets Debt A1 Acc USD – LU0125948108
1.52%
Ninety One GSF Latin American Corporate Debt A Acc USD – LU0492942718
1.90%
MFS Meridian Emerging Markets Debt A1 Acc USD – LU0125948108
1.52%
Please note that there is no suitable alternative CHF or AUD share class of the receiving fund to switch into, so therefore you will be exposed to currency fluctuations on your plan.
Sector: Specialist
Closing fund
OCF**
Receiving fund
OCF**
UBS (Lux) Equity Health Care P Acc USD - LU0085953304
2.10%
JPM Global Healthcare A Acc USD – LU0432979614
1.72%
Sector: European Equity
Closing fund
OCF**
Receiving fund
OCF**
Guinness European Equity Income C Acc USD - IE00BVYPNT70
1.99%
BGF Continental European Flexible A2 Acc USD – LU0769137737
1.82%
Guinness European Equity Income C Acc GBP (Read below note) – IE00BVYPNS63
1.99%
BGF Continental European Flexible A2 Acc EUR – LU0224105477
1.82%
Guinness European Equity Income C Acc EUR – IE00BGHQDW50
1.99%
BGF Continental European Flexible A2 Acc EUR – LU0224105477
1.82%
Invesco Pan European Equity A Acc EUR – LU0028118809
1.99%
MFS Meridian European Research A1 Acc EUR - LU0094557526
1.92%
Please note that there is no suitable alternative GBP share class of the receiving fund to switch into, so therefore you will be exposed to currency fluctuations on your plan.
Sector: Hedged/Structured Products
Closing fund
OCF**
Receiving fund
OCF**
Invesco Global Targeted Returns A Acc EUR - LU1004132566
1.57%
Invesco Global Total Return (EUR) Bond A Acc EUR – LU0534239909
1.27%
Invesco Global Targeted Returns A Acc CHF Hgd - LU1004132996
1.57%
Invesco Global Total Return (EUR) Bond A Acc CHF Hgd – LU0955866271
1.27%
Invesco Global Targeted Returns A Acc GBP Hgd (Read below note) - LU1075209020
1.57%
Invesco Global Total Return (EUR) Bond A Acc EUR – LU0534239909
1.27%
Invesco Global Targeted Returns A Acc USD Hgd (Read below note) - LU1004132723
1.57%
Invesco Global Total Return (EUR) Bond A Acc EUR – LU0534239909
1.27%
Please note that there is no suitable alternative USD or GBP share class of the receiving fund to switch into, so therefore you will be exposed to currency fluctuations on your plan.
ADDITIONS - LifePlan
We've added three new funds to the range (seven including currency variants) from sectors Fixed Interest - US and Fixed Interest – Emerging Markets.
Sector: Fixed Interest - US
Fund name
Currency options
Morningstar category
Morningstar Star Ratings*
OCF**
MFS Meridian US Corporate Bond
USD
EUR Hgd
USD Corporate Bond
3 Star
1.25%
1.25%
Sector: Fixed Interest – Emerging Markets
Fund name
Currency options
Morningstar category
Morningstar Star Ratings*
OCF**
MFS Meridian Emerging Markets Debt
USD
EUR
GBP
Global Emerging Markets Bond
4 Star
1.52%
1.52%
1.52%
Ninety One GSF Emerging Markets Corporate Debt
USD
EUR Hgd
Global Emerging Markets Corporate Bond
3 Star
1.83%
1.75%
Sector: Specialist
Fund name
Currency options
Morningstar category
Morningstar Star Ratings*
OCF**
JPM Global Healthcare
USD
Equity Healthcare
4 Star
1.72%
JPM Global Healthcare
EUR
Equity Healthcare
3 Star
1.72%
REMOVALS - LifePlan
We've removed five funds (13 including currency variants) that no longer satisfy the requirements of the range. These funds are no longer available to new business plans or switches in from existing plan owners wishing to invest in the funds for the first time.
The table below outlines the closing funds and the receiving funds we will automatically switch plan owners into.
Sector: Fixed Interest – Emerging Markets
Closing fund
OCF**
Receiving fund
OCF**
Aberdeen Standard SICAV I Select Emerging Markets Bond A Acc USD – LU0132414144
1.71%
MFS Meridian Emerging Markets Debt A1 Acc USD – LU0125948108
1.52%
Aberdeen Standard SICAV I Select Emerging Markets Bond A Acc EUR Hgd – LU0376989207
1.75%
MFS Meridian Emerging Markets Debt A1 Acc EUR – LU0219422606
1.52%
Aberdeen Standard SICAV I Select Emerging Markets Bond A Acc CHF Hgd (Read below note) – LU0487189069
1.75%
MFS Meridian Emerging Markets Debt A1 Acc USD – LU0125948108
MFS Meridian Emerging Markets Debt A1 Acc USD – LU0125948108
1.52%
Ninety One GSF Latin American Corporate Debt A Acc USD – LU0492942718
1.90%
MFS Meridian Emerging Markets Debt A1 Acc USD – LU0125948108
1.52%
Please note that there is no suitable alternative CHF or AUD share class of the receiving fund to switch into, so therefore you will be exposed to currency fluctuations on your plan.
Sector: Specialist
Closing fund
OCF**
Receiving fund
OCF**
UBS (Lux) Equity Health Care P Acc USD - LU0085953304
2.10%
JPM Global Healthcare A Acc USD – LU0432979614
1.72%
Sector: Hedged/Structured Products
Closing fund
OCF**
Receiving fund
OCF**
Invesco Global Targeted Returns A Acc EUR - LU1004132566
1.57%
Invesco Global Total Return (EUR) Bond A Acc EUR – LU0534239909
1.27%
Invesco Global Targeted Returns A Acc CHF Hgd - LU1004132996
1.57%
Invesco Global Total Return (EUR) Bond A Acc CHF Hgd – LU0955866271
1.27%
Invesco Global Targeted Returns A Acc GBP Hgd (Read below note) - LU1075209020
1.57%
Invesco Global Total Return (EUR) Bond A Acc EUR – LU0534239909
1.27%
Invesco Global Targeted Returns A Acc USD Hgd (Read below note) - LU1004132723
1.57%
Invesco Global Total Return (EUR) Bond A Acc EUR – LU0534239909
1.27%
Please note that there is no suitable alternative USD or GBP share class of the receiving fund to switch into, so therefore you will be exposed to currency fluctuations on your plan.
ADDITIONS - Protected Lifestyle
We've added four new funds to the range (eight including currency variants) from sectors Fixed Interest - US, Fixed Interest – Emerging Markets and Specialist.
The table below outlines the closing fund and the receiving fund we will automatically switch plan owners into.
Sector: Fixed Interest - US
Fund name
Currency options
Morningstar category
Morningstar Star Ratings*
OCF**
MFS Meridian US Corporate Bond
USD
EUR Hgd
USD Corporate Bond
3 Star
1.25%
1.25%
Sector: Fixed Interest – Emerging Markets
Fund name
Currency options
Morningstar category
Morningstar Star Ratings*
OCF**
MFS Meridian Emerging Markets Debt
USD
EUR
GBP
Global Emerging Markets Bond
4 Star
1.52%
1.52%
1.52%
Ninety One GSF Emerging Markets Corporate Debt
USD
EUR Hgd
Global Emerging Markets Corporate Bond
3 Star
1.83%
1.75%
Sector: Specialist
Fund name
Currency options
Morningstar category
Morningstar Star Ratings*
OCF**
JPM Global Healthcare
USD
Equity Healthcare
4 Star
1.72%
JPM Global Healthcare
EUR
Equity Healthcare
3 Star
1.72%
REMOVALS - Protected Lifestyle
We've removed two funds that no longer satisfy the requirements of the range. These funds are no longer available to new business plans or switches in from existing plan owners wishing to invest in the funds for the first time.
The table below outlines the closing funds and the receiving funds we will automatically switch plan owners into.
Sector: Specialist
Closing fund
OCF**
Receiving fund
OCF**
UBS (Lux) Equity Health Care P Acc USD - LU0085953304
2.10%
JPM Global Healthcare A Acc USD – LU0432979614
1.72%
Sector: Hedged/Structured Products
Closing fund
OCF**
Receiving fund
OCF**
Invesco Global Targeted Returns A Acc USD Hgd (Read below note) - LU1004132723
1.57%
Invesco Global Total Return (EUR) Bond A Acc EUR – LU0534239909
1.27%
Please note that there is no suitable alternative USD share class of the receiving fund to switch into, so therefore you will be exposed to currency fluctuations on your plan.
Notes:
Information contained within these tables is sourced from Morningstar® and is correct as at 12 January 2021.
* Morningstar® awards a Star rating based on historic returns adjusted for risk and charges, with the top 10% of funds in a category awarded a 5 Star and the bottom 10% a 1 Star.
** Ongoing Charge (“OCF”) includes the Annual Management Charge plus other operational expenses, so better reflects the total costs applied to the fund.
