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.
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.
Default Replacement Fund: OMR M&G Gilt & Fixed Interest Income
Closing Fund TER: 0.36%
Default Replacement Fund TER: 0.41%
Objective of Default Replacement Fund:
The Fund aims to provide a higher total return (the combination of capital growth and income), net of the Ongoing Charge Figure, than that of the FTSE Actuaries UK Conventional Gilts All Stocks Index over any five-year period. At least 70% of the Fund is invested, directly or through derivatives, in investment grade short, medium and long-dated gilts. These securities are issued or guaranteed by the UK government, and denominated in Sterling. 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 M&G Gilt & Fixed Interest Income funds from 11/10/2023, however our systems may not show this change until at least a week following the closure.
Default Replacement Fund: OMR Prof M&G Gilt & Fixed Interest Income
Closing Fund TER: 0.36%
Default Replacement Fund TER: 0.41%
Objective of Default Replacement Fund:
The Fund aims to provide a higher total return (the combination of capital growth and income), net of the Ongoing Charge Figure, than that of the FTSE Actuaries UK Conventional Gilts All Stocks Index over any five-year period. At least 70% of the Fund is invested, directly or through derivatives, in investment grade short, medium and long-dated gilts. These securities are issued or guaranteed by the UK government, and denominated in Sterling. 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 Prof M&G Gilt & Fixed Interest Income funds from 11/10/2023, however our systems may not show this change until at least a week following the closure.
Following full withdrawal of UK customers from OMR Carnegie Strategifond Fund we will be closing this fund with effect from 01/09/2023.
No investments in the Fund will be permitted from this date for UK customers.
On 15th August 2023, Liontrust announced a proposal to merge underlying Liontrust China Fund Fund with another one of their funds – Liontrust Emerging Markets Fund. This is due to be voted on at Extraordinary General Meeting scheduled for 01/09/2023. If the Extraordinary Resolution is passed., the merging fund will be suspended from 04/09/2023 and the merger will become effective on 08/09/2023. The decision to merge the fund has been taken by Liontrust due the size of the merging fund which has reduced to a level which is uneconomical to run as standalone entity.
We don’t feel the above replacement fund would offer the same investment characteristics as investing specifically in Chinese assets. A significant proportion of the replacement fund that Liontrust chose is invested in assets listed on other emerging markets, which we feel contradicts the strategy of the closing fund.
We feel the First State Greater China Growth fund is a better choice for our customers as it retains those investment characteristics.
Therefore, if the merger resolution is passed, customers will be invested in the OMR First State Greater China Growth from 04/09/2023, however our systems may not show this change until at least a week following the conversion.
We will provide an update to customers invested shortly explaining what this means for them and what their options are.
Following notification from the manager of the underlying fund, the OMR QI Equity 2 will be closed to new business and switches in from 31 August 2023.
Existing investors in the Fund with regular premiums set up will be able to continue, however new investments in the Fund will no longer be permitted from this date.
Default Replacement Fund: OMR EdenTree Responsible and Sustainable Managed Income Fund
Closing Fund TER: 1.52%
Default Replacement Fund TER: 0.96%
Objective of Default Replacement Fund:
The objective of the Fund is to prioritise income, with the aim of exceeding the yield of the FTSE 250 Mid-Cap Index, together with capital growth over the longer term, five years or more. The Manager will seek to achieve the investment objective by investing in a mix of equities, fixed-interest securities and cash equivalents. The Fund will maintain a bias towards equities of 60 – 85%.
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.
