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: OMR SVM UK Opportunities Fund
Closing Fund TER: 1.41%
Default Replacement Fund TER: 1.42%
Objective of Default Replacement Fund:
The objective of this Fund is to achieve capital growth over the long term (5 years or more) and it aims to outperform the MSCI United Kingdom IMI (or any successor index). Performance is measured on a monthly basis over rolling 5 year periods after all fees and costs are deducted.
The Fund will invest at least 80% in equities and equity related instruments in UK companies. From time to time, when particular opportunities are identified, or the ACD considers it appropriate, the Fund may invest in other permitted transferable securities.
The Fund will seek to invest in the full range of opportunities available to it, which will include shares on the Alternative Investment Market. 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 merging fund will be suspended from 05/02/2024. Customers will be invested in the new fund from 09/02/2024, however their switches will not process until at least a week following the conversion.
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.
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.
We wrote over a year ago to let customers know that a number of funds they held with underlying investment in Russia had been suspended. The Barings Eastern Europe Fund (which we referred to as the OMR Barings Eastern Europe in our previous letter) was one of these funds.
The Fund Manager of the underlying fund, Barings, has decided to transfer the available assets, which weren’t linked to Russia, from this fund to a new fund called the Barings Eastern Europe II Fund. This new fund will not be suspended, therefore we will be able to add units back into policies for the equivalent value in the OMR Barings Eastern Europe, after which customers will be able to transact on this new fund.
Please note that because customers will still have some money invested in the original OMR Barings Eastern Europe Fund which holds Russia linked underlying assets, the existing restrictions on what they can and can’t do will still apply to this holding.
We are aiming to have all relevant payments calculated and made to customer plans by the end of July. A further letter will be issued once the payment has been made.
The Fund Manager (Fulcrum Asset Management LLP) has advised that they have closed the underlying fund that is held by the OMR Fulcrum Risk Premia Fund on 26/06/2023. As a result, the closing OMR fund will be closed to new business immediately. We will provide an update to customers invested shortly explaining what this means for them and what their options are.
The fund manager has decided to suspend the underlying fund with immediate effect. Contributions and withdrawls are not accepted by the fund manager from 15/06/2023. We will write to all impacted customers to explain what this means for them and what there options are.
We can confirm that we are expecting to receive a fourth payment from Aviva which we will be passing on to customers shortly after.
Those customers still invested in the impacted funds will have their payments added to their plans in the following replacement funds:
OMR Aviva UK Property Feeder > OMR abrdn UK Real Estate
OMR Prof Aviva UK Property Feeder > OMR Prof Deposit
Aviva Investors UK Prop Feeder (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.
