September 2022 sector review - Additions and closures impacting our defined fund ranges
As part of our ongoing fund governance we have completed the third stage of our latest review, to ensure the fund choices continue to remain appropriate for your clients' investment goals.
For our September 2022 review we have looked at the Commodity and Energy, European Fixed Interest, Asia-Pacific Equity, Latin America Equity, Single Country Equity and Property sectors.
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 September 2022
We are adding a number of new funds across the products listed above, which are available for investment from September 2022. These are now featured in the fund guides published from September 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 have been written to 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 28 and 30 November 2022. 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 three new funds to the range (seven including currency variants) for the sectors below. We have also added in additional share class currency variants for two existing funds already in the range.
Sector: Equity - Asia Pacific excluding Japan
Fund name
Currency options
Morningstar category
Morningstar Star Rating***
OCF**
Fidelity Funds Asian Smaller Companies
USD
EUR
Asia ex-Japan Small/Mid Cap Equity
4 Star
1.93%
1.93%
Sector: Equity - Latin America
Fund name
Currency options
Morningstar category
Morningstar Star Rating***
OCF**
Schroder ISF Latin American
USD
EUR
Latin America Equity
5 Star
1.87%
1.87%
Sector: Equity - Single Country
Fund name
Currency options
Morningstar category
Morningstar Star Rating***
OCF**
Janus Henderson Horizon Japanese Smaller Companies
USD
EUR Hdg
JPY
Japan Equity
5 Star
1.89%
1.89%
1.88%
Schroder ISF Indian Equity
EUR #
India Equity
3 Star
1.91%
# Additional share class currency being added for fund that already exists in the range.
Sector: Property
Fund name
Currency options
Morningstar category
Morningstar Star Rating***
OCF**
Janus Henderson Horizon Global Property Equities
EUR #
Property - Indirect Property
5 Star
1.89%
# Additional share class currency being added for fund that already exists in the range.
We've removed ten funds (22 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 tables below outline the closing funds and the receiving funds we will automatically switch plan owners into.
Sector: Commodity & Energy
Closing fund
OCF**
Receiving fund
OCF**
* Ninety One Global Gold A Acc GBP - GB00B12B5S05
1.59%
BGF World Gold A2 Acc USD - LU0055631609
2.06%
Ninety One Global Gold A Acc USD - GB00B12GL767
1.59%
BGF World Gold A2 Acc USD - LU0055631609
2.06%
* Please note that the closing fund is priced in GBP, while the receiving fund is priced USD. This means that polices not denominated in USD will be subject to the normal foreign exchange movements from the point of switching into the receiving fund, and will continue for the period this fund is held.
Sector: Fixed Interest - Europe
Closing fund
OCF**
Receiving fund
OCF**
* Credit Suisse (Lux) Swiss Franc Bond B Acc CHF - LU0049527079
1.00%
Invesco Euro Corporate Bond A Acc EUR - LU0243957825
1.27%
* Please note that the closing fund is priced in CHF, while the receiving fund is priced EUR. This means that polices not denominated in EUR will be subject to the normal foreign exchange movements from the point of switching into the receiving fund, and will continue for the period this fund is held.
Sector: Equity - Asia Pacific excluding Japan
Closing fund
OCF**
Receiving fund
OCF**
Aberdeen Standard SICAV I Asian Smaller Companies A Acc USD - LU0231459107
1.99%
Fidelity Funds Asian Smaller Companies A Acc USD - LU0702159699
1.93%
* Aberdeen Standard SICAV I Asian Smaller Companies A Acc GBP - LU0231459958
1.99%
Fidelity Funds Asian Smaller Companies A Acc USD - LU0702159699
1.93%
AXA IM All Country Asia Pacific Ex-Japan Small Cap Equity QI B Acc USD - IE0004334029
1.82%
Fidelity Funds Asia Pacific Opportunities A Acc USD - LU2008162690
1.91%
AXA IM All Country Asia Pacific Ex-Japan Small Cap Equity QI B Acc EUR - IE0031069499
1.82%
Fidelity Funds Asia Pacific Opportunities A Acc EUR - LU0345361124
1.92%
* Please note that the closing fund is priced in GBP, while the receiving fund is priced USD. This means that polices not denominated in USD will be subject to the normal foreign exchange movements from the point of switching into the receiving fund, and will continue for the period this fund is held.
Sector: Equity - Latin America
Closing fund
OCF**
Receiving fund
OCF**
* CT Latin American R Acc GBP - GB0001531754
1.70%
Schroder ISF Latin American A Acc USD - LU0106259046
1.87%
CT Latin American R Acc EUR - GB00B0WJ2D10
1.70%
Schroder ISF Latin American A Acc EUR - LU0248181363
1.87%
CT Latin American R Acc USD - GB0002769866
1.70%
Schroder ISF Latin American A Acc USD - LU0106259046
1.87%
* Please note that the closing fund is priced in GBP, while the receiving fund is priced USD. This means that polices not denominated in USD will be subject to the normal foreign exchange movements from the point of switching into the receiving fund, and will continue for the period this fund is held.
Sector: Equity - Single Country
Closing fund
OCF**
Receiving fund
OCF**
Aberdeen Standard SICAV I Indian Equity A Acc USD - LU0231490524
2.06%
Schroder ISF Indian Equity A Acc USD - LU0264410563
1.88%
Aberdeen Standard SICAV I Indian Equity A Acc EUR - LU0498184596
2.06%
Schroder ISF Indian Equity A Acc EUR - LU2382958234
1.91%
* Aberdeen Standard SICAV I Indian Equity A Acc GBP - LU0231462077
2.06%
Schroder ISF Indian Equity A Acc USD - LU0264410563
1.88%
BGF Japan Small & Midcap Opportunities A2 Acc USD - LU0006061252
* Please note that the closing fund is priced in GBP, while the receiving fund is priced USD. This means that polices not denominated in USD will be subject to the normal foreign exchange movements from the point of switching into the receiving fund, and will continue for the period this fund is held.
We've removed one fund that no longer satisfies the requirements of the range. This fund is no longer available to new business plans or switches in from existing plan owners wishing to invest in the fund for the first time.
The table below outlines the closing fund and the receiving fund we will automatically switch plan owners into.
Sector: Fixed Interest - Europe
Closing fund
OCF**
Receiving fund
OCF**
* Credit Suisse (Lux) Swiss Franc Bond B Acc CHF - LU0049527079
1.00%
Invesco Euro Corporate Bond A Acc EUR - LU0243957825
1.27%
* Please note that the closing fund is priced in CHF, while the receiving fund is priced EUR. This means that polices not denominated in EUR will be subject to the normal foreign exchange movements from the point of switching into the receiving fund, and will continue for the period this fund is held.
Notes:
Information contained within these tables is sourced from Morningstar® and is correct as at 22 September 2022.
** Ongoing Charge (“OCF”) includes the Annual Management Charge plus other operational expenses, so better reflects the total costs applied to the fund.
***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.
