Default Replacement Fund: OMR Schroder UK Mid 250 Fund
Closing Fund TER: 1.16%
Default Replacement Fund TER: 1.10%
Objective of Default Replacement Fund:
The Fund aims to provide long term capital growth in excess of the FTSE 250 ex Investment Trusts (Gross Total Return) index (after fees have been deducted) over a three to five year period by investing in equity and equity related securities of companies listed in the FTSE 250 Index ex Investment Trusts. The Fund is actively managed and invests at least 80% of its assets in equity and equity related securities of UK companies listed in the FTSE 250 ex Investment Trusts index. These are companies that are incorporated, headquartered or have their principal business activities in the UK. This fund invests in the underlying retail fund in order to track its performance, this means that fund performance may differ to the underlying fund.
Customers will be invested in the OMR Schroder UK Mid 250 Fund from 02/05/2024, but please note these changes may not be visible until up to 2 weeks following this date.
Default Replacement Fund: L&G Schroder UK Mid 250 Fund
Closing Fund IMC: 0.85%
Default Replacement Fund IMC: 0.66%
Objective of Default Replacement Fund:
The Fund aims to provide long term capital growth in excess of the FTSE 250 ex Investment Trusts (Gross Total Return) index (after fees have been deducted) over a three to five year period by investing in equity and equity related securities of companies listed in the FTSE 250 Index ex Investment Trusts. The Fund is actively managed and invests at least 80% of its assets in equity and equity related securities of UK companies listed in the FTSE 250 ex Investment Trusts index. These are companies that are incorporated, headquartered or have their principal business activities in the UK.
Customers will be invested in the L&G Schroder UK Mid 250 Fund from 02/05/2024, but please note these changes may not be visible until up to 2 weeks following this date.
Default Replacement Fund: L&G Schroder UK Mid 250 Fund
Closing Fund IMC: 0.78%
Default Replacement Fund IMC: 0.66%
Objective of Default Replacement Fund:
The Fund aims to provide long term capital growth in excess of the FTSE 250 ex Investment Trusts (Gross Total Return) index (after fees have been deducted) over a three to five year period by investing in equity and equity related securities of companies listed in the FTSE 250 Index ex Investment Trusts. The Fund is actively managed and invests at least 80% of its assets in equity and equity related securities of UK companies listed in the FTSE 250 ex Investment Trusts index. These are companies that are incorporated, headquartered or have their principal business activities in the UK.
Customers will be invested in the L&G Schroder UK Mid 250 Fund from 02/05/2024, but please note these changes may not be visible until up to 2 weeks following this date.
Default Replacement Fund: OMR Aegon High Yield Bond fund
Closing Fund TER: 1.20%
Default Replacement Fund TER: 0.59%
Objective of Default Replacement Fund: The investment objective is to provide a combination of income and capital growth over any 7 year period. At least 80% of the Fund will be invested in a portfolio of high yield corporate bonds issued anywhere in the world and denominated in any currency. This fund invests in the underlying retail fund in order to track its performance, this means that fund performance may differ to the underlying fund.
Customers will be invested in the OMR Aegon High Yield Bond fund from 24/04/2024, however our systems may not show this change until at least a week following the closure.
Default Replacement Fund: OMR Invesco Tactical Bond (UK) Fund
Closing Fund TER: 1.09%
Default Replacement Fund TER: 1.04%
Objective of Default Replacement Fund:
The Fund aims to achieve income and capital growth over the medium to long term (3 to 5 years plus). The Fund has a flexible allocation to corporate and government debt securities (including investment grade, non-investment grade and unrated) and cash. Depending on market conditions the Fund may invest up to 100% of its net assets in cash, cash equivalents, short-term debt securities and money-market instruments.
This fund invests in the underlying retail fund in order to track its performance, this means that fund performance may differ to the underlying fund.
Customers will be invested in the OMR Invesco Tactical Bond (UK) Fund from 24/04/2024, however our systems may not show this change until at least a week following the closure.
Default Replacement Fund: OMR Schroder UK Mid 250 Fund
Closing Fund IMC: 0.92%
Default Replacement Fund IMC: 1.30%
Objective of Default Replacement Fund:
The Fund aims to provide long term capital growth in excess of the FTSE 250 ex Investment Trusts (Gross Total Return) index (after fees have been deducted) over a three to five year period by investing in equity and equity related securities of companies listed in the FTSE 250 Index ex Investment Trusts. The Fund is actively managed and invests at least 80% of its assets in equity and equity related securities of UK companies listed in the FTSE 250 ex Investment Trusts index. These are companies that are incorporated, headquartered or have their principal business activities in the UK. This fund invests in the underlying retail fund in order to track its performance, this means that fund performance may differ to the underlying fund.
The closing fund will be suspended from 14/03/2024.
Customers will be invested in the OMR Schroder UK Mid 250 Fund from 22/03/2024, however our systems may not show this change until at least a week following the closure.
We can confirm that we are expecting to receive a first payment from M&G which we will be passing on to customers shortly after.
Those customers invested in the impacted funds will have their payments added to their plans in the following replacement funds:
OMR M&G Feeder of Property Portfolio > OMR L&G UK Property Feeder
AL M&G Property > AL abrdn Property
M&G Feeder of Property Portfolio (Life&Pension)> L&G Property Feeder
We will be issuing a letter to customers shortly after the units have been added to plans. We expect to receive further payments in future and will provide further information when we do.
Default Replacement Fund: J O Hambro Capital Management UK Dynamic Fund
Closing Fund IMC: 0.84%
Default Replacement Fund IMC: 0.68%
Objective of Default Replacement Fund:
The Fund’s investment objective is to achieve capital growth over a rolling seven to ten year period as well as providing income. The Fund’s target is to have a return greater than the FTSE All-Share Total Return Index (12pm adjusted), which is used in the calculation of performance fees. The Fund will aim to achieve this objective through investing at least 90% of the Fund in the shares of companies listed on either of the two primary markets of the London Stock Exchange: the Main Market (FTSE) and the Alternative Investment Market (AIM). At all times at least 75% of the Fund is invested in the shares of companies that are domiciled, incorporated or have a significant portion of their business in the UK. Customers will be invested in the J O Hambro Capital Management UK Dynamic Fund from 27/01/2024, however our systems may not show this change until at least a week following the closure.
M&G Investments have notified us that they have suspended trading on the property funds with immediate effect whilst they complete the process of closing those funds (subject to regulatory approval).
M&G have explained that property funds have been less popular over the last few years and their property funds have experienced sustained outflows, resulting in the funds being smaller. M&G believe that these outflows will continue, and possibly accelerate in the future. As the funds reduce in size, it is necessary to sell larger properties and buy smaller ones. This incurs high transaction costs which negatively impact the performance of the fund.
M&G consider closing the funds to be the best option and expect the closure process to take 18 months. There is no guarantee that this timeframe is achievable and ReAssure will provide updates as the activity progresses.
We will provide an update to ReAssure customers invested in impacted funds explaining what this means for them and what options are available to them.
M&G Investments have notified us that they have suspended trading on the property funds with immediate effect whilst they complete the process of closing those funds (subject to regulatory approval).
M&G have explained that property funds have been less popular over the last few years and their property funds have experienced sustained outflows, resulting in the funds being smaller. M&G believe that these outflows will continue, and possibly accelerate in the future. As the funds reduce in size, it is necessary to sell larger properties and buy smaller ones. This incurs high transaction costs which negatively impact the performance of the fund.
M&G consider closing the funds to be the best option and expect the closure process to take 18 months. There is no guarantee that this timeframe is achievable and ReAssure will provide updates as the activity progresses.
We will provide an update to ReAssure customers invested in impacted funds explaining what this means for them and what options are available to them.
