Recent fund changes

Our range of funds are subject to change. If you are directly affected by any changes we will write to you in advance.

Changes to Investment Pathway 2

Effective from 12 July 2024, the underlying investment strategy of Investment Pathway 2 is changing from RLP Annuity to RLP GRIP 1.

What is RLP GRIP 1?

RLP GRIP 1 is a multi-asset portfolio that aims to deliver growth above inflation, whilst taking a level of risk consistent with a risk rating 1 risk attitude.

Why is this changing?

On the back of our annual review of the Investment Pathways and future economic outlook we believe that RLP GRIP 1 better meets customer needs; to maintain annuity purchasing power whilst in drawdown for a short period of time.

How does this impact me?

Overall, there should be no impact to you. The Investment Pathway 2 objective remains the same. RLP GRIP 1 delivers well against key needs; to maintain annuity purchasing power whilst providing potential for growth with a small allocation to growth seeking assets.

Product charges are not changing as a result of this investment strategy change.

What if I no longer want to be invested in Pathway 2?

If you no longer want to be invested in Investment Pathway 2 then either contact your financial adviser, contact customer services on 0345 60 50 050 or log onto our online service to make an investment change.

We regularly review the funds held in the Royal London Matrix Range to ensure they remain appropriate for our customers.  A review carried out has identified several funds that are either underperforming or require changes based on the performance benchmark they are measured against or the risk category they sit in. 

The impacted funds and the type of change taking place are shown below: 


Fund Replacements 

Change  Fund Name 
Existing Fund 
Replacement Fund 
RLP UK Equity Core Plus (Close TEAMS UK Equities (1%)) 
RLP UK Equity Core Plus (JPM UK Dynamic) 
Existing Fund 
Replacement Fund 
RLP UK Equity Core Plus (Close TEAMS UK Equities (2%)) 
RLP UK Equity Core Plus (JPM UK Dynamic) 
Existing Fund 
Replacement Fund 
RLP UK Equity Core Plus (JPM UK Equity Growth) 
RLP UK Equity Core Plus (Artemis Income) 
Existing Fund 
Replacement Fund 
RLP Emerging Markets Specialist (Fidelity Emerging Markets) 
RLP Emerging Markets Specialist (First Sentier FSSA Global Emerging Markets Focus) 

Fund Name and Risk Category Changes 

The following funds are moving risk category within the Royal London Matrix Range. For further information on how these risk categories work, please click here

Current Fund Name  New Fund Name 
RLP UK Income Specialist (Fidelity MoneyBuilder Dividend)  RLP UK Income Core Plus (Fidelity MoneyBuilder Dividend) 
RLP Asia Pacific Core Plus (Stewart Investors Asia Pacific Leaders Sustainability)  RLP Asia Pacific Specialist (Stewart Investors Asia Pacific Leaders Sustainability) 

Fund Benchmark Changes 

Fund Name  Current Benchmark  New Benchmark 
RLP Global Managed Equity Specialist (Invesco Global Equity)  55% FTSE All Share, 45% FTSE AW ex UK  MSCI ACWI 
RLP Global Managed Equity Specialist (Ninety One Global Strategic Equity)  55% FTSE All Share, 45% FTSE AW ex UK  MSCI ACWI 
RLP UK Income Core Plus (Artemis Income)  FTSE 350 Higher Yield Index  FTSE All Share 
RLP UK Income Specialist (Fidelity MoneyBuilder Dividend)  FTSE 350 Higher Yield Index  FTSE All Share 

These changes will take place week commencing 14 October 2024. 
For more detail on all of these changes, please follow the link here

We regularly review the Royal London pension fund range to ensure the available funds remain appropriate to our customers.  A recent review has identified some externally managed funds that aren’t providing value for money for our customers. We have taken the decision to close these funds and redirect investments into alternative replacement funds.    
 
These fund closures also impact some lifestyle strategies that we offer.  We have taken the decision to close these lifestyle strategies and redirect investments into a replacement lifestyle strategy that closely matches the existing lifestyle strategy.  
 
If you are impacted by any of the fund or lifestyle strategy closures, you will have received a letter from Royal London providing details of the changes and when these will take place. 

How have we decided on the replacement fund? 

We looked at all available alternative funds in the Royal London range against a set of criteria to make sure we identified the closest possible match to existing investments.  Our Investment Advisory Committee (IAC) also reviewed each mapping to make sure we’d chosen the most appropriate investment option.

What’s changing?

Your investments will move from the closing fund/lifestyle strategy into a replacement fund/lifestyle strategy week commencing 5th August 2024. 

We’ll redirect any future contributions to the replacement fund/lifestyle strategy following the change. 

Any additional fund management charges you are currently paying for externally managed funds will be removed.

What options do I have?

Should you wish to review your current investment choice and request a change you can do this at any time using your online login. 

If you don’t choose a new option, we’ll move the value of your investment in the closing fund/lifestyle strategy into the replacement fund/lifestyle strategy on your behalf. We’ll also redirect any future contributions being paid to the closing lifestyle strategy into the replacement fund/lifestyle strategy. 

This change will take effect week commencing 5th August 2024 and you’ll receive an automatically generated letter confirming that your investments have been switched.  

What happens next? 

Unless you specify an alternative investment instruction the change will take effect week commencing 5th August 2024 and we’ll move the value of your investments in the closing fund/lifestyle strategy into the replacement fund/lifestyle strategy on your behalf. We’ll also redirect any future contributions being paid to the fund/lifestyle strategy into the replacement fund/lifestyle strategy. 

About the closing funds and replacements

 

Closing Fund 

Replacement Fund 

Fund Name RLP/Tilney Defensive Portfolio  RLP Governed Portfolio 3
Aim / Investment Process 

The aim of the fund is to achieve, over the long term, an investment return of income and capital growth. The fund will primarily invest in Collective Investment Schemes which have an investment focus in defensive asset classes.

Your Defensive portfolio is a well diversified portfolio, designed to achieve stable, risk adverse long term investment returns but will seek to maximise return for every unit of risk taken. The majority of your portfolio will typically be invested in Fixed Interest investments.

This fund aims to deliver above inflation growth, whilst taking a low level of investment risk relative to the other funds in the Governed Portfolio range. Investment risk is a measure of the expected volatility.

On a scale rating the investment risk of Governed Portfolios from 1 to 7, with 1 being the lowest, this fund is a 1.

The fund invests in a range of asset classes, that can include, but is not limited to equities, fixed interest, cash, property, and commodities.

Benchmark  The fund does not operate to a strict benchmark. Composite benchmark aligned to strategic asset allocation
ABI Sector  Mixed Investment 0-35% Shares  Mixed Investment 0-35% Shares 
Annual Management Charge  2.19% 1.00% 
Fund Manager  Tilney  Royal London Asset Management 

 

 

Closing Fund 

Replacement Fund 
Fund Name RLP/Tilney Growth Portfolio  RLP Governed Portfolio 8 
Aim / Investment Process 

The aim of the fund is to achieve, over the long term, an investment return of capital growth. The fund will primarily invest in Collective Investment Schemes which have an investment focus in growth asset classes.

Your Growth portfolio is a well diversified portfolio, designed to capture most of the benefits of rising investment markets and to reduce the effects of market downturns. The portfolio will seek to maximise return for every unit of risk taken. The portfolio will typically have significant exposure to equities.

This fund aims to deliver above inflation growth, whilst taking a medium to high level of investment risk relative to the other funds in the  Governed Portfolio range. Investment risk is a measure of the expected volatility. On a scale rating the investment risk of Governed Portfolios  from 1 to 7, with 1 being the lowest, this fund is a 5.  

 The fund invests in a range of asset classes, that can include, but is not limited to equities, fixed interest, cash, property, and commodities. 

Benchmark  The fund does not operate to a strict benchmark. Composite benchmark aligned to strategic asset allocation
ABI Sector  Mixed Investment 40-85% Shares  Mixed Investment 40-85% Shares 
Annual Management Charge  2.14%  1.00%
Fund Manager Tilney  Royal London Asset Management 

 

 

Closing Fund 

Replacement Fund 
Fund Name

RLP/Tilney Mixed Portfolio 

RLP Governed Portfolio 9 

Aim / Investment Process 

The aim of the fund is to achieve, over the long term, an investment return of income and capital growth. The fund will primarily invest in Collective Investment Schemes which primarily invest in debt and equity securities.

Your Mixed portfolio is a well diversified and balanced portfolio, designed to capture most of the benefits of rising investment markets and to reduce the effects of market downturns. The portfolio will seek to maximise return for every unit of risk taken. The portfolio will typically have significant exposure to Equities, Bonds and Commercial Property.

This fund aims to deliver above inflation growth, whilst taking a medium level of investment risk relative to the other funds in the Governed Portfolio range. Investment risk is a measure of the expected volatility. On a scale rating the investment risk of Governed Portfolios from 1 to 7, with 1 being the lowest, this fund is a 3.  

 The fund invests in a range of asset classes, that can include, but is not limited to equities, fixed interest, cash, property, and commodities. 

Benchmark  The fund does not operate to a strict benchmark. Composite benchmark aligned to strategic asset allocation 
ABI Sector  Mixed Investment 40-85% Shares  Mixed Investment 20-60% Shares 
Annual Management Charge  2.20% 1.00% 
Fund Manager  Tilney  Royal London Asset Management 

 

About the closing lifestyle strategies and replacements

  Closing Lifestyle  Replacement Lifestyle 
Fund Name  Tilney Defensive Lifestyle Strategy    Cautious Lifestyle Strategy (Target Annuity) 
Target Retirement Outcome  Lifestyle targets an Annuity end point  Lifestyle targets an Annuity end point 
Risk Level  Whilst not stated the underlying fund mappings and replacement solution indicate a Cautious risk level is appropriate.  Cautious
Fund Manager Tilney (majority manager)  Royal London Asset Management 

 

 

Closing Lifestyle 

Replacement Lifestyle 
Fund Name Tilney Growth Lifestyle Strategy    Adventurous Lifestyle Strategy (Target Annuity) 
Target Retirement Outcome  Lifestyle targets an Annuity end point  Lifestyle targets an Annuity end point 
Risk Level  Whilst not stated the underlying fund mappings and replacement solution indicate an Adventurous risk level is appropriate.  Adventurous 
Fund Manager Tilney (majority manager)  Royal London Asset Management 

 

 

Closing Lifestyle 

Replacement Lifestyle  
Fund Name Tilney Total Lifestyle Strategy  Adventurous Lifestyle Strategy (Target Annuity) 
Target Retirement Outcome  Lifestyle targets an Annuity end point  Lifestyle targets an Annuity end point 
Risk Level Whilst not stated the underlying fund mappings and replacement solution indicate an Adventurous risk level is appropriate.  Adventurous 
Fund Manager Tilney (majority manager) Royal London Asset Management 

We're making changes to the strategic asset allocation (SAA) of our Governed Portfolios (GPs) and Governed Retirement Income Portfolios (GRIPs) to help improve risk-adjusted returns and income sustainability.

Our analysis has shown that the current SAAs for the GPs and GRIPs remain efficient and are positioned well to deal with a wide range of economic scenarios, however we are proposing some small changes as outlined below: 

  • A change in the regional equity mix underlying the Governed Range to reflect a reduction in UK exposure by 5%. This is to enable portfolios to benefit from greater exposure to quality growth-oriented sectors; 
  • A reduction in property allocations by 1.25% for GPs 2,4,8 and 9, into equities to smooth allocations across the risk spectrum; and
  • A reduction in property allocations by 1.25% for GRIPs 2 and 4 into equities to smooth allocations across the GRIPs risk spectrum to ensure consistency with the GPs and coherence across our investment proposition. 

Further Details:

Regional equity mix 

The increase in exposure to Developed Markets continues our move to a broader global approach to equities and aims to provide customers with greater exposure to faster growing sectors not well represented in the UK market.  

What’s changing? 

We are changing the global equity allocation benchmark from 25% FTSE All Share: 65% FTSE World: 10% Emerging Markets ESG Leaders to 20% FTSE All Share: 70% FTSE World: 10% Emerging Markets ESG Leaders. 
 


Property

Direct property is a valuable component across the Governed Range because we believe that it improves portfolio diversification and provides exposure to strong inflation-linked returns over the long term.  
We believe the current strategic weightings are well positioned and correctly balance against long term customer outcomes. We are therefore proposing no material changes to the property allocations. 

What’s changing? 

We are reducing the property allocations in GPs 2,4,8 and 9 by 1.25% into equities to enable a smooth stepping of property allocations across the risk spectrum. 

In order to ensure consistency between the GPs and the GRIPs, we are also smoothing the property allocations across the GRIPs risk spectrum by reducing the property weighting in GRIPs 2 and 4 by 1.25% into equities. 

The proposed changes do not materially impact the risk and return profile of the concerned GPs and GRIPs. 
New SAAs for GPs and GRIPs are in the tables below: 

GPs – new SAA 

  Cautious Balanced Adventurous
  GP1 GP2 GP3 GP4 GP5 GP6 GP7 GP8 GP9
Equity  57.50%  43.75%  12.50%  71.25% 57.50%  32.50% 80.00% 71.25%  43.75% 
Property  10.00%  8.75%  5.00%  11.25%  10.00%  7.50%  12.50%  11.25%  8.75% 
Commodities  5.00%  5.00%  5.00%  5.00%  5.00%  5.00%  5.00%  5.00%  5.00% 
Global High Yield Bonds 5.00%  5.00%  7.50%  2.50%  5.00%  5.00%  2.50%  2.50%  5.00% 
UK Corporate Bonds  3.25%  5.00%  9.00%  1.50%  3.25%  6.25%  0.00%  1.50%  5.00% 
Global Corporate Bonds  1.75% 2.50% 3.50% 0.50%  1.75%  2.50%   0.00%  0.50%  2.50% 
Short Duration UK Corporate Bonds  2.50%  7.50%  12.50%  0.00%  2.50%  10.00%  0.00%  0.00%  7.50% 
UK Index Linked  2.50%  2.50%  2.50%  1.00%  2.50%  2.50%  0.00%  1.00%  2.50%
Short Duration UK Index Linked  0.00%  0.75%  2.25%  0.00%  0.00%  1.50%  0.00%  0.00%  0.75%
Short Duration Global Index Linked  0.00%  1.75%  5.25%  0.00%  0.00%  3.50%  0.00%  0.00%  1.75% 
UK Government Bonds  5.75%  5.75%  9.50%  1.50%  5.75%  6.75%  0.00%   1.50%  5.75% 
Global Government Bonds  1.75%  1.75%  3.00%  0.50%  1.75%   2.00%  0.00%  0.50%   1.75% 
Short Duration UK Government Bonds  0.00%  2.50%  10.00%  0.00%  0.00%  5.00%  0.00%  0.00%  2.50%
Absolute Return Strategies (including Cash)  5.00%  7.50%  12.50%  5.00%  5.00%  10.00%  0.00%  5.00%  7.50%

GRIPs – new SAA

  GRIP 1  GRIP 2 GRIP 3 GRIP 4 GRIP 5
Equity  12.50%  23.75%  30.00%  41.25%  50.00% 
Property  5.00%  6.25%  7.50%  8.75%  10.00%
Commodities  5.00%  5.00%  5.00%  5.00%  5.00% 
Global High Yield Bonds  5.00%  5.00%  5.00%  6.25%  6.25% 
UK High Yield Bonds  5.00%  5.00%  5.00%  6.25% 6.25%
UK Corporate Bonds  14.00%  13.00% 10.00%  7.25%  4.00% 
Global Corporate Bonds  4.00%  3.50%  3.25% .00%  .00% 
Short Duration UK Corporate Bonds  4.50%  4.50%  3.00%  2.00%  1.50% 
UK Index Linked  5.00%  5.00%  5.00%  3.75% 2.50%
Short Duration UK Index Linked  1.50%  0.75%  0.75%  0.00%  0.00% 
Short Duration Global Index Linked  3.50%  1.75% 1.75% 0.00%  0.00% 
UK Government Bonds  10.00%   10.00%  9.75%  5.00%  4.00% 
Global Government Bonds  4.00%  .75%  2.50%  2.50%  1.00%
Short Duration UK Government Bonds  11.00%  2.75%  1.50%  0.00%  0.00% 
Absolute Return Strategies (including Cash)  10.00%  10.00%  10.00%  10.00%  7.50% 

Following a full review of the M&G Recovery Fund (the “Fund”), M&G have confirmed some changes, which they believe will increase the Fund’s ability to achieve its Investment Objective and reduce the risk of “underperforming” its target benchmark, the FTSE All-Share Index (the “Index”). Underperformance occurs when the Fund’s returns are lower than those of the Index.

What’s changing?

Effective from Tuesday 28 May 2024 (the “Effective Date”), the Fund will be able to invest up to 20% of its Net Asset Value (“NAV”) in companies which are not considered to be “recovery companies” as defined in the Fund’s current Investment Approach. These companies will be components of the Index.

There will be no change to the Fund’s Investment Objective or to its overall risk profile. The change will not result in any immediate portfolio changes and charges remain the same.

Why is the change happening?

The Fund aims to deliver a higher total return (the combination of capital growth and income), net of the fund charge, than that of the Index over any five-year period. However, the nature of recovery investing means that the Fund’s composition may differ considerably from that of the Index. For example, the Fund may be less, or not at all, invested in a specific sector or company which is heavily represented in the Index. When these sectors or companies are performing strongly, it increases the risk of the Fund underperforming the Index.

The ability to invest in non-recovery companies will provide the fund manager with added flexibility to take tactical positions in companies or sectors within the Index that have the potential to perform strongly to reduce the risk of the Fund underperforming the Index. It should be noted that M&G only expect the Fund to invest in these companies to a limited extent and they will not exceed 20% of the Fund’s NAV at any given time. The fund manager remains committed to achieving the Fund’s objective by identifying recovery companies that can deliver long-term returns to investors.

Effective from 31 May 2024, the wording of the Investment Aim and Investment Process of the RLP Sustainable World Trust have been clarified as per the table below:

Old aim New aim

The fund aims to achieve first quartile performance over a rolling three-year period measured against its sector.

The fund aims to achieve first quartile performance over a rolling three-year period measured against its sector. Investments in the fund will adhere to the manager's ethical and sustainable investment policy.

Old investment process New investment process

The investment objective is to provide medium to long-term capital growth via worldwide investments in multiple asset classes that adhere to the manager's sustainable investment policy.

At least 50%, up to a maximum of 85%, of the fund’s assets will be invested in the shares of companies globally. These will be businesses that are listed on stock exchanges in their respective countries.

Of the remaining assets not invested in shares, at least 80% will be invested in sterling-denominated (or hedged back to sterling) investment grade corporate bonds, up to a maximum of 40% of the fund’s assets.  Sub-investment grade bonds are limited to a maximum of 2% of the fund’s assets.

The fund may invest up to 10% in other investment funds, known as collective investment schemes. Typically, only a small portion of assets will be invested in cash. The fund may also invest a small amount of its portfolio in derivatives (investments that derive their value from another closely related underlying investment) for investment purposes and efficient portfolio management (EPM).

The fund focuses on the sustainability of the products and services of the companies it invests in, as well as their standards of environmental, social and governance (ESG) management, alongside financial analysis.

Please note that fund charges remain the same.

Effective from 31 May 2024, the wording of the Investment Aim and Investment Process of the RLP Sustainable Managed Growth Trust have been clarified as per the table below:

Old aim New aim

The investment objective is to provide a total return by way of accumulated income, with some capital growth.

The fund aims to provide a total return by way of accumulated income, with some capital growth. Investments in the fund will adhere to the manager's ethical and sustainable investment policy.

Old investment process New investment process

The fund invests mainly in fixed income securities with some equities, mainly in the United Kingdom. Investments in the fund will adhere to the manager's sustainable investment policy. The fund aims to achieve first quartile performance over a rolling three-year period measured against its sector.

At least 65% of the fund will be invested in bonds (typically sterling-denominated), both government and corporate. Between 30% and 70% of the fund's investment will be in investment grade corporate bonds. A maximum of 35% of the fund will be invested in the shares of companies globally. These will be businesses that are listed on stock exchanges in their respective countries.

The remainder of the fund’s assets may be invested in a range of securities, including UK government bonds, index-linked bonds, securitisations, supranational bonds, preference shares, floating-rate notes, asset-backed securities, and bonds denominated in currencies other than sterling.

The fund may invest up to 10% in other investment funds, known as collective investment schemes. Typically, only a small portion of assets will be invested in cash. The fund may also invest a small amount of its portfolio in derivatives (investments that derive their value from another closely related underlying investment) for investment purposes and efficient portfolio management (EPM).

The fund focuses on the sustainability of the products and services of the companies it invests in, as well as their standards of environmental, social and governance (ESG) management, alongside financial analysis.

Please note that fund charges remain the same.

Effective from 31 May 2024, the wording of the Investment Aim and Investment Process of the RLP Sustainable Leaders Trust have been clarified as per the table below:

Old aim New aim

The fund aims to provide growth in the value of your investment over time, by investing predominantly in the shares of UK companies.

The fund aims to provide growth in the value of your investment over time, by investing predominantly in the shares of UK companies. Investments in the fund will adhere to the manager's ethical and sustainable investment policy.

Old investment process New investment process

The investments picked for this fund are chosen because they have a net positive benefit on society either through their products and services they offer or in the way they conduct their business. This means the fund will not invest in all areas of the market. At least 80% of the fund's investments are in the shares of UK companies. Up to 20% of the fund can be invested in shares in overseas companies. Simple avoidance means that the fund does not invest in companies whose core activities include the production of nuclear power, manufacture of armaments or animal testing for non-medical purposes. The system of scoring assesses companies according to specific criteria. This is intended to provide a balance between positive and negative factors, and allow the fund to identify the best companies in their sector

At least 80% of the fund's assets will be invested in Policy shares of UK companies which are listed on the London Stock Exchange. Where the manager believes it is in the best interests of the fund, they may invest up to 20% of the fund's assets in shares of overseas companies.

The fund may invest up to 10% in other investment funds, known as collective investment schemes. Typically, only a small portion of assets will be invested in cash.

The fund may also invest a small amount of its portfolio in derivatives (investments that derive their value from another closely related underlying investment) for efficient portfolio management (EPM).

The fund focuses on the sustainability of the products and services of the companies it invests in, as well as their standards of environmental, social and governance (ESG) management, alongside financial analysis.

Please note that fund charges remain the same.

Effective from 31 May 2024, the wording of the Investment Aim and Investment Process of the RLP Sustainable Diversified Trust have been clarified as per the table below:

Old aim New aim

The fund aims to provide first-quartile performance over a rolling three-year period measured against the IA Mixed Investment 20-60% Shares Sector. 

The fund aims to provide first-quartile performance over a rolling three-year period measured against the IA Mixed Investment 20-60% Shares Sector.  Investments in the fund will adhere to the manager's ethical and sustainable investment policy.
Old investment process New investment process

The fund invests in companies with products or services that benefit the core themes of environment, human welfare, and sustainability. Companies leading their industries in ESG performance, as assessed by our analysts, are also included in the investable universe, thereby creating a portfolio of investments that make a positive contribution to society.

A maximum of 60% of the fund's assets will be invested in the shares of companies globally. These will be businesses that are listed on stock exchanges in their respective countries. Of the remaining assets not invested in shares, at least 80% will be invested in sterling-denominated (or hedged back to sterling) investment grade corporate bonds. Sub-investment grade bonds are limited to a maximum of 5% of the fund’s assets.

The fund is required to keep at least 30% of its assets in bonds and cash.  The fund may invest up to 10% in other investment funds, known as collective investment schemes. Typically, only a small portion of assets will be invested in cash. The fund may also invest a small amount of its portfolio in derivatives (investments that derive their value from another closely related underlying investment) for investment purposes and efficient portfolio management (EPM).

The fund focuses on the sustainability of the products and services of the companies it invests in, as well as their standards of environmental, social and governance (ESG) management, alongside financial analysis.

Please note that fund charges remain the same.

Effective from 31 May 2024, the wording of the Investment Aim and Investment Process of the RLP Sustainable Corporate Bond Trust have been clarified as per the table below:

Old aim New aim

The fund’s investment objective is to achieve a total return (a combination of capital growth and income) over the medium term, which should be considered as a period of 3-5 years.

The fund aims to achieve a total return (a combination of capital growth and income) over the medium term, which should be considered as a period of 3-5 years. Investments in the fund will adhere to the manager's ethical and sustainable investment policy.
Old investment process New investment process

Typically, the fund’s assets will be invested 80% in a diversified portfolio of sterling-denominated bonds issued by corporates and supranational institutions. The fund may also invest in global bonds, government bonds and cash. Investments in the fund will adhere to the manager's sustainable investment policy

Typically, a minimum of 80% of the fund’s assets will be invested in a diversified portfolio of sterling-denominated (or hedged back to sterling) investment grade corporate and supranational bonds.

The remainder of the fund’s assets may be invested in a range of securities, including government bonds, index-linked bonds, securitisations, convertible debt, investment without an investment grade credit rating, preference shares, floating-rate notes, asset-backed securities and bonds denominated in currencies other than sterling.

The Fund may invest up to 10% in other investment funds, known as collective investment schemes. Typically, only a small portion of assets will be invested in cash. The fund may also invest a small amount of its portfolio in derivatives (investments that derive their value from another closely related underlying investment) for investment purposes and efficient portfolio management (EPM).

The fund focuses on the sustainability of the products and services of the companies it invests in, as well as their standards of environmental, social and governance (ESG) management, alongside financial analysis.

Please note that fund charges remain the same.

Effective from 31 May 2024, the wording of the Investment Aim and Investment Process of the RLP / Jupiter Ecology fund have been clarified as per the table below:

Old aim New aim

The objective of the fund is to achieve long-term capital appreciation together with a growing income consistent with a policy of protecting the environment.

The fund's objective is to provide long-term capital growth (at least five years) with the prospect of income by investing in companies whose core products and services address global sustainability challenges.
Old investment process New investment process

The fund's investment policy is to invest in equities worldwide in companies which demonstrate a positive commitment to the long-term protection of the environment.

At least 70% of the fund is invested in shares of companies based anywhere in the world whose core products and services address global sustainability challenges. Up to 30% of the fund may be invested in other assets, including shares of other companies, open-ended funds (including funds managed by Jupiter and its associates), cash and cash-type assets. Companies must meet both a comprehensive financial assessment and environmental and social criteria, including looking at a full range of ethical exclusions.

Please note that fund charges remain the same.

Effective from 31 May 2024, the wording of the Investment Aim and Investment Process of the RLP / JPMorgan Global Macro Sustainable fund have been clarified as per the table below:

Old aim New aim

The fund aims to provide positive investment returns over a rolling 3-year period in all market conditions by investing in securities globally, using Financial Derivative Instruments where appropriate, with a volatility level typically lower than two-thirds of the MSCI All Country World Index (Total Return Net). A positive return is not guaranteed over this, or any time period and a capital loss may occur.

The fund aims to provide positive investment returns over a rolling three-year period in all market conditions by investing globally in a portfolio that is positioned towards securities with positive environmental, social and governance (ESG) characteristics, using derivatives where appropriate.
Old investment process New investment process

The fund will primarily invest in Debt Securities (which may include Below Investment Grade Bonds and Unrated Securities), Convertible Bonds, Equity securities (which may include smaller companies) and short-term securities. The Investment Manager seeks to achieve the stated targets / objectives. There can be no guarantee the objectives / targets will be met.

The manager uses an investment process based on macro research to identify global investment themes and opportunities. It is a flexible and focused approach to take advantage of global trends and changes through traditional and non-traditional assets. A fully integrated, risk management framework provides detailed portfolio analysis.

The fund invests in securities exhibiting positive ESG characteristics by adhering to ESG exclusions and positioning the portfolio towards issuers with positive ESG characteristics.

Please note that fund charges remain the same.

Effective from 31 May 2024, the wording of the Investment Aim and Investment Process of the RLP / Fidelity Sustainable Emerging Markets Equity fund have been clarified as per the table below:

Old aim New aim

The fund aims is to achieve long term capital growth.

The fund aims to achieve long term capital growth
Old investment process New investment process

The fund will invest at least 70% in equities (and their related securities) of companies having their head office or exercising a predominant part of their activity in Emerging Markets globally including Asia, Latin America, Europe, Middle East and Africa according to the MSCI Emerging Markets (Net Total Return) Index and which maintain sustainable characteristics. The fund is actively managed. The Investment Manager identifies suitable opportunities for the fund utilising in-house research and investment capabilities. The fund aims to hold a concentrated portfolio, investing in 30-50 companies or other types of investment.

The fund invests at least 70% of its assets in equities of companies that are listed, headquartered, or do most of their business, in developing markets including countries in Latin America, Asia, Africa, Eastern Europe and the Middle East. The fund may also invest in money market instruments on an ancillary basis.

The fund invests at least 70% of its assets in securities of companies with favourable environmental, social and governance (ESG) characteristics and up to 30% in securities of issuers with improving ESG characteristics. 

The fund will invest less than 30% of its assets (directly and/or indirectly) in China A and B Shares (in aggregate). 

The fund invests in a limited number of securities (generally between 20 to 80 under normal market conditions). The manager aims to outperform the benchmark.

In actively managing the fund, the manger considers growth and valuation metrics, company financials, return on capital, cash flows and other measures, as well as company management, industry and economic conditions, and other factors.

It also considers ESG characteristics when assessing investment risks and opportunities. In determining favourable ESG characteristics, the manager takes into account ESG ratings provided by Fidelity or external agencies.

Please note that fund charges remain the same.

Effective from 31 May 2024, the wording of the Investment Aim and Investment Process of the RLP Pacific Tilt fund have been clarified as per the table below:

Old aim New aim

The fund aims to deliver returns in line with the benchmark, whilst reducing its carbon intensity and improving the ESG and Responsible Investment profile, relative to the benchmark.

The fund aims to deliver returns in line with the benchmark, while looking to achieve carbon intensity of at least 30% lower than that of the Index and considering a company’s ability and willingness to transition and contribute to a lower carbon economy.
Old investment process New investment process

The fund invests in equities from all economic sectors within the Pacific region - mainly Japan, Hong Kong, Singapore and Australia.

The fund primarily invests in equities from all economic sectors within the Pacific region - mainly Japan, Australia, Taiwan, South Korea, Hong Kong, and Singapore. Responsible investment and environmental, social and governance insights are incorporated into the investment process.

Please note that fund charges remain the same.

Effective from 31 May 2024, the wording of the Investment Aim and Investment Process of the RLP Japan Tilt fund have been clarified as per the table below:

Old aim New aim

The fund aims to deliver returns in line with the benchmark, whilst reducing its carbon intensity and improving the ESG and Responsible Investment profile, relative to the benchmark.

The fund aims to deliver returns in line with the benchmark, while looking to achieve carbon intensity of at least 30% lower than that of the Index and considering a company’s ability and willingness to transition and contribute to a lower carbon economy.
Old investment process New investment process

The fund invests in the shares of Japanese companies from all economic sectors. From time to time, the fund may invest in cash and other investments the manager considers appropriate.

The fund invests in the shares of Japanese companies from all economic sectors. From time to time, the fund may invest in cash and other investments the manager considers appropriate. Responsible investment and environmental, social and governance insights are incorporated into the investment process.

Please note that fund charges remain the same.

Effective from 31 May 2024, the wording of the Investment Aim and Investment Process of the RLP Global Sustainable Equity fund have been clarified as per the table below:

Old aim New aim

The fund’s performance target is to outperform, after the deduction of charges, the MSCI All Countries World Net Total Return Index GBP (the “Index”) by 2.5% p.a. over rolling 3-year periods

The fund's performance target is to outperform, after the deduction of charges, the MSCI All Countries World Net Total Return index GBP by 2.5% a year over rolling three-year periods. Investments in the fund will adhere to the manager's ethical and sustainable investment policy.
Old investment process New investment process

The fund invests in a limited number of companies from developed and emerging markets that the fund manager believes can create wealth for shareholders but are currently undervalued. Suitable companies are identified by first using in-house screening tools to reduce the investment universe of 3,000+ shares to around 600 that the fund manager believes have the potential to create shareholder wealth. A "deeper dive" analysis is then performed to identify what they believe to be the very best, attractively priced companies for investment.

The fund focuses on the sustainability of the products and services of the companies it invests in as well as their standards of environmental, social & governance (ESG) management, alongside financial analysis. The fund manager avoids investing in tobacco and armament manufacturers, nuclear power generators, and companies that conduct animal testing (other than for purposes

of human or animal health and/or where it is required by law or regulation). This exclusion policy helps to avoid companies the fund manager believes expose investors to unacceptable financial risk resulting from poor management of ESG issues.

At least 80% of the fund will be invested in the shares of companies globally, both in developed and emerging markets. These will be companies that are deemed to make a positive contribution to society.

The fund may invest up to 10% in other investment funds, known as collective investment schemes. The fund may invest up to 20% in other transferable securities, money market instruments, cash, and deposits. The fund may use derivatives, but for efficient portfolio management purposes only.

The fund focuses on the sustainability of the products and services of the companies it invests in, as well as their standards of environmental, social and governance (ESG) management, alongside financial analysis.

The manager avoids investing in tobacco and armament manufacturers, nuclear-power generators, and companies that conduct animal testing (other than for purposes of human or animal health, and/or where it is required by law or regulation). This exclusion policy helps to avoid companies the manager believes expose investors to unacceptable financial risk resulting from poor management of ESG issues. The fund’s ethical and sustainable investment policy may change from time to time to reflect new developments and research in the field of sustainable investment.

Please note that fund charges remain the same.

Effective from 31 May 2024, the wording of the Investment Aim and Investment Process of the RLP Far East (Ex Japan) Tilt fund have been clarified as per the table below:

Old aim New aim
The fund aims to deliver returns in line with the benchmark, whilst reducing its carbon intensity and improving the ESG and Responsible Investment profile, relative to the benchmark. The fund aims to deliver returns in line with the benchmark, while looking to achieve carbon intensity of at least 30% lower than that of the Index and considering a company’s ability and willingness to transition and contribute to a lower carbon economy.
Old investment process New investment process
This equity fund invests in companies in the Far East, excluding Japan. The manager takes the view that key economic indicators for global economic activity have a strong effect on this market place and therefore follows the global and Pacific region markets closely. This equity fund invests in companies in the Far East, excluding Japan. The manager takes the view that key economic indicators for global economic activity have a strong effect on this marketplace and therefore follows the global and Pacific region markets closely.  Responsible investment and environmental, social and governance insights are incorporated into the investment process.

Please note that fund charges remain the same.

Effective from 31 May 2024, the wording of the Investment Aim and Investment Process of the RLP American Tilt fund have been clarified as per the table below:

Old aim New aim
The fund aims to deliver returns in line with the benchmark, whilst reducing its carbon intensity and improving the ESG and Responsible Investment profile, relative to the benchmark. The fund aims to deliver returns in line with the benchmark, while looking to achieve carbon intensity of at least 30% lower than that of the Index and considering a company’s ability and willingness to transition and contribute to a lower carbon economy.
Old investment process New investment process
The fund manager will invest primarily in the constituents of the FTSE USA Index, which consists of North America's leading companies. The fund manager will invest primarily in the constituents of the FTSE USA Index, which consists of North America's leading companies. Responsible investment and environmental, social and governance insights are incorporated into the investment process.

Please note that fund charges remain the same.

Effective from 31 May 2024, the wording of the Investment Aim and Investment Process of the RLL American Tilt fund have been clarified as per the table below:

Old aim New aim
The fund aims to deliver returns in line with the benchmark, whilst reducing its carbon intensity and improving the ESG and Responsible Investment profile, relative to the benchmark. The fund aims to deliver returns in line with the benchmark, while looking to achieve carbon intensity of at least 30% lower than that of the Index and considering a company’s ability and willingness to transition and contribute to a lower carbon economy.
Old investment process New investment process
The fund manager will invest primarily in the constituents of the FTSE USA Index, which consists of North America's leading companies. The fund manager will invest primarily in the constituents of the FTSE USA Index, which consists of North America's leading companies. Responsible investment and environmental, social and governance insights are incorporated into the investment process.

Please note that fund charges remain the same.

We’re improving how we talk about risk within our Governed Portfolios.

To improve the understanding of the risk taken within our Governed Portfolios we’re making some enhancements to our factsheets.  There is no change to our overall objectives. The key aim of each Governed Portfolio – to deliver above inflation growth for a given level of risk – remains the same. The changes improve how we describe the risk taken in our portfolios. 

The changes to our factsheets are summarised as follows:

Changes to the investment objective section

We are introducing a portfolio risk number (in relation to other Governed Portfolios) ranging from 1 to 7 – where 1 is the lowest rating and 7 is the highest.  This should help you evaluate the level of risk your chosen Governed Portfolio is taking in relation to the rest of the range.

We have also added additional text detailing the asset classes that may be used as part of asset allocation processes.

Changes to the ‘Who is this portfolio designed for?’ section

We have introduced an investment risk level ranging from Low through to High to help you understand the general level of risk that is being taken by your portfolio.

We are maintaining a customer attitude to risk that aligns with our existing practice (Adventurous, Balanced, Cautious).

Effective from 27th March, the following changes to the RLP Sustainable Managed Income Trust fund have taken place: 
 

  • The name has changed to RLP Sustainable Corporate Bond Trust
  • The Aim and Investment Process of the fund have been updated as per the table below: 
Old Aim  New Aim 
The investment objective is to produce a consistently higher level of income 
relative to typical cash deposit interest rates. 
The fund’s investment objective is to achieve a total return (a combination of capital growth and income) over the medium term, which should be considered as a period of 3-5 years. 
Old Investment Process  New Investment Process 
The fund invests predominantly in a diverse portfolio of fixed interest securities 
issued by corporates, governments and supranational institutions, and cash. 
Investments in the fund will adhere to the manager's sustainable investment policy. 
Typically, the fund’s assets will be invested 80% in a diversified portfolio of sterling-denominated bonds issued by corporates and supranational institutions. The fund may also invest in global bonds, government bonds and cash. Investments in the fund will adhere to the manager's sustainable investment policy. 

Please note that fund charges remain the same. 

UBS Asset Management has notified us that its Global Optimal fund, which represents 50% of the underlying holding of the RLP/UBS Global Blend (50:50) fund, is closing.  As a result, we’ve decided to remove the RLP/UBS Global Blend (50:50) and RLP/UBS Global Blend (50:50) ‘A’ fund from our fund range and switch all customer’s investment into the RLP Global Equity fund.  

What’s changing?  

  • Customer’s investment will move from the RLP/UBS Global Blend (50:50) fund to the RLP Global Equity fund. 
  • The Annual Management Charge (AMC) will reduce from 1.60% to 1.00%* 
  • The RLP Global Equity fund includes a similar range of assets and has the same geographical split between UK and overseas equities (50:50). 
  • The RLP Global Equity fund is also in the same ABI sector as the RLP/UBS Global Blend (50:50) fund - the Global Equities sector. 

*the ‘A’ version of this fund is capped at 1% so the AMC will remain the same.  

When is this change happening? 

UBS Asset Management plan to close their fund on 22 March 2024 so we will need to ensure customers invested in RLP/UBS Global Blend (50:50) either directly or via a Governed Portfolio are moved into the RLP Global Equity fund before this date. Therefore, customers will be switched into RLP Global Equity from 12th March and will receive an automatically generated switch letter confirming that their investment has been switched.

How have we decided on the replacement fund?  

We looked at all available alternative funds in the Royal London range against a set of criteria to make sure we identified the closest possible match to your existing investment.  Our Investment Advisory Committee (IAC) also reviewed the mapping to make sure we’d chosen the most appropriate fund.

About the funds 

Both the RLP/UBS Global Blend (50:50) fund and the RLP Global Equity fund invest in a similar way and use similar geographical benchmarks – investing around 50% of assets in UK equities and 50% in overseas (excluding UK) equities.

  RLP/UBS Global Blend (50:50)   RLP Global Equity  
Aim The fund aims to achieve long term capital growth through active management of a diversified portfolio invested 50% UK equities, 50% global equities.   The fund is designed to achieve long term capital growth by investing in a mixture of company shares both within the UK and overseas. Approximately 50% of the fund is invested within the UK, with the remainder invested overseas.   
Benchmark   50% FTSE All Share Index (UK Equities), 50% MSCI World ex UK Index (Overseas excluding UK Equities)   50% FTSE All Share Index (UK Equities), 50% FTSE World ex UK Index (Overseas excluding UK Equities)  
Annual Management Charge   1.60%   1.00%  
Fund Manager   UBS Asset Management   Royal London Asset Management  

An example of the letter issued to customers can be found here.

For further details of the RLP Global Equity fund please refer to the RLP Global Equity fund factsheet

If you would like any further information on how this affects you, please contact us on 0345 605 0050

This notice is for those who are not invested in the RLP Global Equity Select fund via a Royal London Governed Range Portfolio or Lifestyle.

Royal London Asset Management (RLAM) has notified us that their Global Equity Select fund is nearing capacity and will suspend future investment soon.

Consequently, we’re stopping any further investment into the RLP Global Equity Select fund from 18 April 2024 (or the actual date in which RLAM suspends new investment if this is prior to 18 April 2024).


What’s changing?

Customers will remain invested in RLP Global Equity Select until the fund is soft closed on 18 April 2024. At this point, any future premiums will be redirected to a new fund called RLP Global Equity Diversified (Redirected). This fund is only accessible for customers impacted by the soft closure.

Customers will see both funds held on annual statements, Online Service and the Mobile App. If a customer chooses to switch out of RLP Global Equity Select after it has been soft closed, they will not be able to reinvest in the fund.

What is the difference between the funds?

Both the RLP Global Equity Select fund and the RLP Global Equity Diversified (Redirected) fund are targeted to outperform the MSCI World Index, and your fund charge will remain the same. The RLP Global Equity Select is more concentrated and will ordinarily hold 25-45 stocks, whereas the RLP Global Equity Diversified (Redirected) fund will invest in 175-225 stocks. Both funds are managed by the same fund manager and supporting team.

  RLP Global Equity Select RLP Global Equity Diversified (Redirected)

About the

fund

The fund aims to deliver long-term capital growth by investing in a portfolio of global equities, diversified by country, sector and life cycle. The equities in which the fund invests may be from both developed and emerging market countries and from any sector, industry or market capitalisation.

Unconstrained in approach, the fund gives no consideration to the composition of the Index in the construction of the portfolio which, having typically 25 to 45 holdings, is concentrated in nature.

The fund aims to deliver long-term capital growth by investing in a portfolio of global equities, diversified by country, sector and life cycle. The equities in which the fund invests may be from both developed and emerging market countries and from any sector, industry or market capitalisation.

Investing in currently undervalued companies that the manager believes can create wealth for shareholders, the fund typically has 175 to 225 holdings.

Benchmark MSCI World Net Total Return Index MSCI World Net Total Return Index

Annual

Management Charge

1.00% 1.00%

Fund

Manager

Peter Rutter Peter Rutter

An example letter can be found here.

For further details of RLP Global Equity Diversified ‘Redirected’ fund please refer to the RLP Global Equity Diversified fund factsheet.

We have prepared some supplementary questions and answers around the change that you can view here.

If you would like any further information on how this affects you, please contact us on  0345 646 0416.

Royal London Asset Management (RLAM) have taken the decision to close their Global Equity Select fund to new money. This fund is the underlying vehicle invested in by RLP Global Equity Select.

As a result of this closure, we are required to make some changes for customers invested in RLP Global Equity Select. To do this, we will group the customers invested in the fund into two types:

  • Variable – This group is classified as holding the fund through a lifestyle strategy or through the equity overcode function in the Governed Range.
  • Fixed – This group covers everyone else and includes customers who have invested in this fund directly or through a non-Governed Range portfolio. 

Variable allocation customers will be moved into a new fund, RLP Global Equity Blend, week commencing 25/03. When these customers are moved into the new fund their current holdings will also be moved, meaning they will not lose their existing holding in RLAM’s Global Equity Select strategy. The new fund will then invest any future premiums into the Global Equity Diversified strategy. A factsheet will soon be available for RLP Global Equity Blend. This fund will be available to all customers after the variable customers are moved in.

Fixed customers will remain invested in RLP Global Equity Select until the fund is soft closed, at some point in the future. At which point any future premiums will be redirected to a new fund called RLP Global Equity Diversified (Redirected). This fund is only accessible for customers impacted by the soft closure. Customers will see both funds held on annual statements, Online Service and the Mobile App. If a customer chooses to switch out of RLP Global Equity Select after it has been soft closed, they will not be able to reinvest in the fund.

The requirement to separate customers into two different groups and moving Variable customers into a new fund comes from the outcome of TAA, rebalancing and lifestyling within the Governed Range. This can lead to flows in and out of the RLP fund which can’t be done in a closed fund.

Letters have been issued to affected variable customers/advisers/employers to advise where appropriate and fixed customers/advisers/employers will be notified once the fund is soft closed.  

An example letter can be found here.

Please also see the factsheet for the RLP Global Equity Blend fund.

If you would like any further information on how this affects you, please contact us on 
0345 646 0416

After discussions with Invesco we are pleased to announce the following reductions to the Total Expense Ratio of the following funds:

Fund Old TER New TER
RLP Asia Pacific Core Plus (Invesco Asian) 1.90% 1.85%
RLP Global Managed Equity Specialist (Invesco Global Equity) 1.77% 1.72%
RLP/Invesco Corporate Bond 1.50% 1.45%
RLP/Invesco Distribution 1.77% 1.72%
RLP/Invesco Global Bond 1.62% 1.57%
RLP/Invesco High Income 1.87% 1.82%
RLP/Invesco Monthly Income Plus 1.67% 1.62%

Background

After undertaking a review of their UK authorised fund range, abrdn has taken the decision to merge the abrdn Global Absolute Return Strategies fund (the Merging Fund) into the abrdn Diversified Growth and Income fund (the Continuing Fund).

This decision was made as the merging fund has reduced in size over recent years and has not delivered the intended target performance for investors. The Continuing Fund is managed in a different way, but aims to deliver a similar performance target and outcome for investors compared to the Merging Fund. The Continuing Fund has performed better over both the short and long term after costs.

What’s changing?

  • The fund name will change to RLP/abrdn Diversified Growth and Income.
  • The Annual Management Charge (AMC) will reduce from 1.70% to 1.45% and the Total Expense Ratio (TER) will increase from 1.81% to 1.90%.

Next Steps

Customers invested in the RLP/ASI Global Absolute Return Strategies fund will receive a letter with further information regarding this change.

Documentation on our website relating to this change will be updated shortly.

What’s changing?

On 22 March 2022, we were notified by Fidelity that they were temporarily suspending all transactions into their Emerging Europe, Middle East and Africa fund, which the above Royal London pension fund links to. This was due to the sanctions imposed on Russia affecting market trading conditions.

Fidelity has lifted the suspension on transactions into this fund which means the newly renamed RLP/Fidelity Sustainable Emerging Markets Equity fund will be re-opened to new money from 15/08/2023. 

In addition to the name change there are some further changes to the fund: 

  • Investment Objective - This has changed from ‘the fund aims to achieve long term capital growth’ to ‘the fund aims to increase the value of investments over a period of 5 years or more’.
  • Performance Benchmark - The fund’s performance benchmark has changed to MSCI Emerging Markets TR index from the MSCI Emerging EMEA NR Index.  The new benchmark is representative of the geographical locations the fund will invest in.
  • Sustainable Process - The fund is part of the Fidelity Sustainable Family of funds and adheres to the Fidelity Sustainable Family framework under which at least 70% of the fund’s net assets will be invested in companies deemed to maintain sustainable characteristics. Investments with sustainable characteristics are those which the Investment Manager believes have effective governance and management of environmental and social issues, and deliver long-term sustainable outcomes through positive societal impact.

Why has the suspension been lifted?

The Financial Conduct Authority (FCA) has put in place regulation aimed at ‘protecting investors in authorised funds following the Russian invasion of Ukraine’ which is referred to as ‘side pockets’. This now means that fund managers are able to create side pockets and move suspended assets (in this case assets held within Russia, Ukraine and Belarus) into a newly created share class, while leaving the remaining assets open and available to be valued and traded as normal.

The creation of the side pocket allows fund managers to continue managing the fund in keeping with its new investment objective. As an investor, you’ll benefit from the ongoing performance of the fund’s non-Russian assets as normal, while still keeping an interest in the suspended Russian assets through the creation of the new side pocket. Any switch out of the fund will also remove the units held in the Russian assets.

What impact do these changes have?

Since February 2022, following the Russian invasion into Ukraine, the total value of the RLP/Fidelity Sustainable Emerging Markets Equity fund has fallen by approximately 40%. This is primarily due to the value of Russian assets falling following sanctions imposed on trading Russian assets. If these sanctions were to be lifted in the future, then by withdrawing from the fund now your clients would lose any potential recovery in value. Please remember that like any other investment, the value of the non-Russian assets in the fund can go down as well as up.

You are now able pay money into this fund if you wish. Due to change of fund objective and benchmark, you may wish to review whether this fund is still suitable for you.

What about any regular contributions that have been paid into this fund?

Any regular contributions received after 22 March 2022, which would normally have been allocated to the RLP/Fidelity Emerging Europe Middle East and Africa fund, would instead have been allocated to the RLP Deferral Alternate fund while restrictions applied to the fund.  
 
The RLP Deferral Alternate fund invests in money market instruments. These may include cash, bank deposits and very short-term fixed interest investments. There may be periods when the return available from money market instruments is less than the plan charge which will result in a negative return from this fund. 
 
For those who have rebalancing in place, these payments will automatically move into the new RLP/Fidelity Sustainable Emerging Markets Equity fund the next time your policy is rebalanced after restrictions are lifted. 
 
For those who do not have rebalancing in place, these payments will remain in the RLP Deferral Alternate fund unless we receive alternative instructions for this money, which can be done at any time.

Further information

For details of the RLP/Fidelity Sustainable Emerging Markets Equity fund please see the factsheet available on this page.

For further information about these changes, please see the following communication (opens in a new window) from Fidelity.

If you would like any further information on how this affects you, please contact us on 0345 605 0050.

What’s changing?

On 2 March 2022, we were notified by JPMorgan that they were temporarily suspending all transactions in or out of their Emerging Europe Equity fund, which the above Royal London pension fund links to. This was due to the sanctions imposed on Russia affecting market trading conditions.

JPMorgan has lifted the suspension on transactions out of their fund which means that, from 15/08/2023, you can access the money you have invested in the RLP/JPMorgan Emerging Europe Equity fund. However, this fund remains closed to new premiums (both single and regular) and switches in. 

Why has the suspension been lifted?

The Financial Conduct Authority (FCA) has put in place regulation aimed at ‘protecting investors in authorised funds following the Russian invasion of Ukraine’ which is referred to as ‘side pockets’. This now means that fund managers are able to create side pockets and move suspended assets (in this case assets held within Russia, Ukraine and Belarus) into a newly created share class, while leaving the remaining assets open and available to be valued and traded as normal.

The creation of the side pocket allows fund managers to continue managing the fund in keeping with its existing investment objective. As an investor, you’ll benefit from the ongoing performance of the fund’s non-Russian assets as normal, while still keeping an interest in the suspended Russian assets through the creation of the new side pocket. Any switch out of the fund will also remove the units held in the Russian assets.

What impact does this change have?

Since February 2022, following the Russian invasion into Ukraine, the total value of the RLP/JPMorgan Emerging Europe Equity fund has fallen by approximately 72%. This is primarily due to the value of Russian assets falling following sanctions imposed on trading Russian assets. If these sanctions were to be lifted in the future, then by withdrawing from the fund now you would lose any potential recovery in value. Please remember that like any other investment, the value of the non-Russian assets in the fund can go down as well as up.

Transactions out of the fund will no longer be delayed and will take place according to our standard terms and conditions.

What about any regular contributions that have been paid into this fund?

Any regular contributions received after 2 March 2022, which would normally have been allocated to the RLP/JPMorgan Emerging Europe Equity fund, would instead have been allocated to the RLP Deferral Alternate fund while restrictions applied to the fund.

The RLP Deferral Alternate fund invests in money market instruments. These may include cash, bank deposits and very short-term fixed interest investments. There may be periods when the return available from money market instruments is less than the plan charge which will result in a negative return from this fund.

This will continue whilst the JP Morgan fund remains closed to new money, unless we receive alternative instructions, which can be done at any time.

Further information

For details of the RLP/JPMorgan Emerging Europe Equity fund, please see the factsheet available on this page.

For further information about these changes, please see the following communication (opens in a new window) from JPMorgan.

If you would like any further information on how this affects you, please contact us on 0345 605 0050.

We’re changing the benchmark of the RLL Global Managed Pension fund to 25% UK Equities, 65% Global Developed Market Equities and 10% Emerging Market Equities. This change is designed to improve the long-term outcomes for our customers and will be implemented week commencing 12th July 2023. 

What’s changing? 

  • The benchmark will change from ‘ABI UK – Global Equities –life sector average’ to ‘25% FTSE All Share Index, 65% FTSE World Index & 10% MSCI Emerging Markets ESG Leaders Index’. 
  • The investment aim will change from ‘The fund is designed to outperform it’s benchmark’ to ‘The fund aims to deliver capital growth, over an investment cycle of approximately 6 to 7 years, by investing in a diversified portfolio of UK and global equities’’. 
  • The Annual Management Charge (AMC) and Total Expense Ratio (TER) will remain unchanged. 

Why are we replacing the benchmark? 
 
As part of our governance process, we review the benchmark at least every three years to ensure it remains appropriate. This change aligns the geographical focus of the fund to appropriate benchmark indices.  

We’re changing the benchmark of the RLP Global Managed Pension fund to 25% UK Equities, 65% Global Developed Market Equities and 10% Emerging Market Equities. This change is designed to improve the long-term outcomes for our customers and will be implemented week commencing 12th June 2023.

What’s changing?

  • The benchmark will change from 35% FTSE All Share, 55% FTSE World & 10% MSCI Emerging Markets ESG Leaders Index to 25% FTSE All Share, 65% FTSE World and 10% MSCI Emerging Markets ESG Leaders Index.
  • The investment aim will change from ‘The fund is designed to outperform it’s benchmark’ to ‘The Fund aims to deliver capital growth, over an investment cycle of approximately 6 to 7 years, by investing in a diversified portfolio of UK and global equities’.
  • The Annual Management Charge (AMC) and Total Expense Ratio (TER) will remain unchanged.

Why are we replacing the benchmark?

As part of our governance process, we review the benchmark at least every three years to ensure it remains appropriate. This change is the next step in an established direction to increase exposure to global markets.

We’re changing the benchmark of the RLP Global Growth Pension fund to 25% UK Equities, 65% Global Developed Market Equities and 10% Emerging Market Equities. This change is designed to improve the long-term outcomes for our customers and will be implemented week commencing 12th June 2023.

What’s changing?

  • The benchmark will change from 35% FTSE All Share, 55% FTSE World & 10% MSCI Emerging Markets ESG Leaders Index to 25% FTSE All Share, 65% FTSE World and 10% MSCI Emerging Markets ESG Leaders Index.
  • The Annual Management Charge (AMC) and Total Expense Ratio (TER) will remain unchanged.

Why are we replacing the benchmark?

As part of our governance process, we review the benchmark at least every three years to ensure it remains appropriate. This change is the next step in an established direction to increase exposure to global markets.

We’re changing the benchmark of the RLP BlackRock ACS Global Blend Pension fund to 25% UK Equities, 65% Global Developed Market Equities and 10% Emerging Market Equities. This change is designed to improve the long-term outcomes for our customers and will be implemented week commencing 12th June 2023.

What’s changing?

  • The benchmark will change from 35% FTSE All Share, 55% FTSE World & 10% MSCI Emerging Markets ESG Leaders Index to 25% FTSE All Share, 65% FTSE World and 10% MSCI Emerging Markets ESG Leaders Index.
  • The Annual Management Charge (AMC) and Total Expense Ratio (TER) will remain unchanged. 

Why are we replacing the benchmark?

As part of our governance process, we review the benchmark at least every three years to ensure it remains appropriate. This change is the next step in an established direction to increase exposure to global markets.

The following fund name changes took place in November:

Old Fund Name New Fund Name
RLP UK Mid Cap Specialist (Franklin UK Midcap) RLP UK Mid Cap Spec (FTF Martin Currie UK Midcap)
RLL Index Linked RLL UK Index Linked
RLP Index Linked RLP UK Index Linked
RLP International Government Bond RLP Global Government Bond

 

Please note that the fund charges remain the same.

The following fund name changes took place in May:

 

Old Fund Name New Fund Name
RLP/JPMorgan Global Macro RLP/JPMorgan Global Macro Sustainable
RLP/Liontrust Global Equity RLP/Liontrust Global Innovation

Please note that the fund charges remain the same.

Royal London have made changes to the RLP Cash Plus and RLP Enhanced Cash Plus funds

The names of the funds will change as per below. This is as a result of RLAM changing the names of their equivalent funds to closer align to their investment process.

Old Fund Name New Fund Name
RLP Cash Plus RLP Short Term Fixed Income
RLP Enhanced Cash Plus RLP Short Term Fixed Income Enhanced

The description of the fund objectives will also change. The objectives themselves aren’t changing and the funds will continue to be managed with the same process they have previously, however the changes below provide more clarity around the process.

RLP Short Term Fixed Income

The Fund’s investment objective is to achieve a total return over rolling 12-month periods by mainly investing in cash and cash equivalents and government securities. The Fund’s performance target is to outperform, before the deduction of charges, the Bank of England Sterling Overnight Interbank Average (SONIA) by 0.5% per annum over rolling 12-month periods.

A minimum of 50% of the Fund will be invested in a combination of money market instruments, including cash, time deposits, certificates of deposit and commercial paper and floating rate notes. Government bonds are also included in this segment of the Fund. In exceptional circumstances the Fund may invest up to 100% in money market instruments.

The Fund will also invest in a range of securities, including corporate bonds and supranational & agency bonds, asset backed securities and/or transferable securities. The Fund may also make use of reverse repurchase agreements. 

The Fund may also hold a small amount of its portfolio in derivatives (investments that derive their value from another closely related underlying investment) for the purposes of efficient portfolio management.

RLP Short Term Fixed Income Enhanced

The Fund is actively managed, meaning that the manager will use their expertise to select investments to meet the objective. The Fund’s performance target is to outperform, before the deduction of charges, the Bank of England Sterling Overnight Interbank Average (SONIA) by 0.5% per annum over rolling 12-month periods.

The Fund will invest at least 70% in Short Term Fixed Income Securities. Short Term Fixed Income securities are instruments, which will have a duration of 0-18 months. In a normal market environment these instruments can be easily and quickly liquidated. Examples of these include money market instruments, government bonds and corporate bonds.

A minimum of 50% of the Fund will be invested in a combination of money market instruments, including cash, time deposits, certificates of deposit and commercial paper, floating rate notes and government bonds. In exceptional circumstances the Fund may invest up to 100% in money market instruments.

The Fund will also invest in a range of other securities, which includes corporate bonds and supranational & agency bonds, covered bonds and/or transferable securities. The Fund may also hold derivatives (investments that derive their value from another closely related underlying investment) for the purposes of efficient portfolio management.

The respective factsheets will be updated will be updated with these details soon

After discussions with Dimensional we are pleased to announce the following reductions to the Total Expense Ration of the following funds:

  Old New
Fund AMC Investment Expenses TER AMC Investment Expenses TER

RLP/Dimensional Emerging Markets

Core Equity

1.33% 0.09% 1.42% 1.31% 0.09% 1.40%

RLP/Dimensional Global

Targeted Value

1.40% 0.04% 1.44% 1.35% 0.04% 1.39%

RLP/Dimensional UK

Core Equity

1.11% 0.05% 1.16% 1.10% 0.05%  1.15%

On 22 March 2022, we were notified by Fidelity that they were suspending new money being invested in their Emerging Europe, Middle East and Africa fund which the above Royal London pension fund links to. This is due to the ongoing situation in Ukraine affecting market trading conditions.

Fidelity note:

Due to the unprecedented situation regarding the war in Ukraine, normal market trading conditions have been significantly impaired.  Fidelity International, like many other asset managers, has experienced challenges in terms of liquidity across a number of its impacted funds, including the proportion of securities currently not tradeable, which have been significantly marked down.

It is always our duty to act in the best interests of all investors and ensure fair treatment. To do this, we need to make sure that all assets continue to be valued appropriately and that all trading activity on behalf of clients is done at a fair price.

Given the current circumstances and having looked in-depth at the options available to us to protect the interests of existing shareholders, we have decided to temporarily close the Fidelity Emerging Europe, Middle East and Africa Fund (OEIC) to new subscriptions and switches-in. Existing clients in the Fund can continue to redeem or switch out of the Fund as usual.

The outcome of this is we must also suspend new money into the RLP/Fidelity Emerging Europe, Middle East and Africa fund until the suspension on the underlying fund is lifted. This delay does not apply to members looking to exit the fund.

For further details please refer to our Q&A

For details of the RLP/Fidelity Emerging Europe, Middle East and Africa Fund, please see the factsheet available on this page.

Please also see our RLP Deferral Alternate fund factsheet

If you would like any further information on how this affects you, please contact us on 0345 605 0050.

On 28 February 2022, we were notified by JPM that they were suspending dealing on their Emerging Europe Equity fund which the above Royal London pension fund links to. This is due to having the majority of its’ investments in Russian stocks and shares and the country recently closing their stockmarket due to the current conflict with Ukraine.

What’s changing?

The outcome of this is we must also suspend trading on the RLP/JPMorgan Emerging Europe Equity fund until the suspension on the underlying fund is lifted. This means that some transactions will be temporarily restricted from the fund (for up to one month). This delay does not apply to normal retirement claims, death claims or income requirements in drawdown. 

Why JPMorgan are making this change:

Due to the escalating conflict between Russia and the Ukraine, local market trading conditions are not currently operating as they normally would do and accordingly, we are unable to manage the fund in accordance with the investment objective and policy. Given these current market conditions, and in order to protect the interests of existing shareholders, JPMorgan Funds Limited has suspended the JPM Emerging Europe Equity Fund. Unfortunately, we are unable to say how long the fund will be suspended for, but the decision will be reviewed on an ongoing basis.

Will the fund charges continue to be taken?

JPMorgan have removed the investment charge from the fund during the suspension period leading to a reduction of 0.75%. The Royal London product/admin charge will continue to be taken during this period as we continue to administer and price the fund on a daily basis.

For further details please refer to our Q&A

For details of the RLP/JPMorgan Emerging Europe Equity fund, please see the factsheet available on this page.

Please also see our RLP Deferral Alternate fund factsheet

If you would like any further information on how this affects you, please contact us on 0345 605 0050.