Historic 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.

2017

Due to a change to clean share classes the following Fidelity funds have reduced their Annual Management Charge (AMC) as at 27 November 2017.

Fund name Old AMC New AMC Additional expense New Total Expense Ratio (TER) 
RLP/Fidelity Asia 1.95% 1.70% 0.22% 1.92%
RLP/Fidelity Emerging Europe Middle East and Africa 1.95% 1.70% 0.38% 2.08%
RLP/Fidelity Strategic Bond 1.45% 1.35% 0.19% 1.54%
RLP/Fidelity UK Select  1.95%  1.70% 0.20%  1.90%
RLP/Europe Core Plus (Fidelity European Blended)   1.95%  1.70%  0.21%  1.91%
RLP/Fidelity Special Situations Blended  1.95% 1.70% 0.19%  1.89%

We are making a change to the RLP UK Ethical pension fund, the fund name will change to the RLP Sustainable Leaders pension fund along with the investment process and fund objective. This change will take place week commencing 30 October 2017.

We have issued letters and an insert Important changes to the RLP UK Ethical pension fund to all our customers invested in the fund detailing the change and what this means for their investment.

Why are we making this change?

We are making this change because we believe this will lead to better risk adjusted return over the long-term.

We’re replacing the above underlying investment and as a result, the fund will change to RLP Europe Specialist (Columbia Threadneedle European Select) pension fund. This change will take place week commencing 30 October 2017.

We have issued letters to all our customers invested in the fund detailing the change and what this means for their investment.

Why are we making this change?

The Neptune fund has suffered from very poor performance over the last five years. The Royal London Investment Advisory Committee (IAC) has raised concerns with the magnitude of risk taken within the fund. In addition, Morningstar have lost confidence in the manager’s ability to add value over and above the benchmark.

On the 25 August 2017 the RLP/Baillie Gifford (50:50) Worldwide Equity pension fund has changed its name to the RLP/Baillie Gifford (60:40) Worldwide Equity pension fund. Please note that the fund charges remain the same.

2016

We have recently made some changes to the assets the RLP Adventurous Managed, RLP Defensive Managed & RLP Managed pension funds can invest in.

What's changed?

We've changed the mix of investments in the Managed funds by introducing some new asset types;

  • absolute return strategies including cash,
  • commodities,
  • high yield bonds, and
  • gilts.

You can find more information about these asset types at Fund Information.

These changes also apply if you're invested in a lifestyle strategy which uses the Managed funds to plot your route to retirement.

The changes haven't affected your annual management charge.

Why did we make these changes?

The Managed funds have ongoing governance and were recently reviewed by our investment experts.

Assets perform differently, if one type is falling, others may be rising. We've added these asset types to the funds to create a broader and more diverse mix. The aim of this is to make the funds more resilient to any sudden shocks in the market.

For more information on asset types and the investment options offered by Royal London, please see A Clear and Simple Guide - Pension Investment Options or visit Fund Information.

What do you need to do?

There is no need for you to take any action at this stage; all of the changes have been made automatically. However, if you wish to do so, you can choose another investment option available to you under your plan. Full details of these can be found at Fund Information or on request.

Financial advice is really important when it comes to making any investment decisions about your retirement savings and planning for your future retirement. Although you don't need to take any action as a result of this change, you should contact your financial adviser, rather than Royal London, if you want investment advice on this matter.

If you don't have an adviser you can find details of advisers in your area by visiting unbiased.co.uk/find-an-ifa. Please note that advisers may charge for providing advice and you should confirm any costs beforehand.

Further information

If you have any general queries relating to your policy, then please call our Customer Service team on 0345 60 50 050.

2015

We are removing the RLP/UBS UK Equity and RLP/UBS Managed Equity pension funds from our fund range with effect from 31 July 2015.

Why are we removing these funds?

UBS have made the decision to close the underlying funds and merge the assets into equivalent tracker funds. This is due to a reduction in the fund sizes of each fund which makes them no longer commercially viable to manage.

The tracker funds have different investment objectives and we feel that the best course of action is to close these funds rather than allow existing policyholders to invest in the new funds.

Where are we moving existing investors?

We have written to all affected policyholders informing them of the change and how their investment is affected. View a copy of the letter we have issued here.

Please note that the endorsement wording and notice are not relevant for group pension plans.

We are removing the RLP/CF Miton Strategic and RLP/CF Miton Special Situations pension funds from our fund range in the week commencing 9 November 2015.

Why are we removing these funds?

As part of our ongoing review process, we have identified that the underlying investment has experienced a sustained period of underperformance and no longer have confidence in the manager's investment process and ability to deliver strong future performance.

Where are we moving existing investors?

We have written to all affected policyholders informing them of the change and how their investment is affected. View a copy of the letter we have issued here.

In October 2015 we're making some changes to the Target Lifestyle Strategy (Annuity), so that it can continue to meet its objective.

The strategy is designed to move from higher risk investments at the start of the plan, to lower risk investments as the customer moves towards their selected retirement date.

This currently means that when they reach their retirement date and want to purchase an annuity, the money will be invested in 25% deposit and 75% index linked.

What's changing?

In the final five years to retirement, the mix of investments is changing and will now be split between deposits, gilts, index linked and corporate bonds reflecting the asset allocation of the Annuity Fund.

Currently, the investment mix at retirement date looks like this:

Annuity Retirement RLP Deposit 25.00%
RLP Medium (10yr) Index Linked 75.00%

This is changing so at retirement date, it will look like this:

Annuity Retirement Annuity Fund 100.00%

Your questions answered

Q. What does my lifestyle strategy look like at the moment?

Your lifestyle strategy moves from higher risk investments at the start of your plan, to lower risk investments as you approach your selected retirement date.

The strategy does this by investing in our Governed Portfolios and regularly switching until, at the retirement date; your fund is invested in 25% deposit and 75% index linked.

The investment mix of your lifestyle strategy has been designed to target annuity purchase at your selected retirement date.

The fund factsheet on our website will show you what your lifestyle strategy looks like at the moment. The factsheet shows the journey your investments will take to your selected retirement date.

The change to the strategy is happening in October but the strategy will only start investing in the Annuity Fund when you're five years from your selected retirement date.

Q. Why are you making these changes?

Since the government introduced the pension reforms in April 2015, the retirement market and the choices people make at retirement have changed. The performance of the current strategy (25% deposit, 75% index linked) has been good since 2012 but current and expected market conditions are now making it harder to confidently deliver above inflation growth in those final five years before retirement where customers are typically invested in lower-risk assets.

We're introducing a more diverse range of investments in the final five years of your lifestyle strategy by using the Annuity Fund. In an environment of low interest rates and expensive index linked investments, we believe that investing in a mixture of deposits, gilts, index linked and corporate bonds provides more flexibility and better value for money for our customers who want to purchase an annuity at retirement.

Investment returns may fluctuate and are not guaranteed. This means that the value of your investment can go down as well as up and you might not get back the value of your original investment.

Q. What is the Annuity Fund investment mix?

The Annuity Fund invests in a mixture of deposits, gilts, index linked and corporate bonds.

Q. Are you likely to change this again before I retire?

Yes. The Annuity Fund is managed by Royal London Asset Management (RLAM) on an ongoing basis and the asset allocation will be altered regularly to take market conditions into account.

Q. When will this change affect me?

Five years from your selected retirement date, your investments will gradually start to switch (i.e. monthly) into the Annuity Fund. When you reach your retirement date, your fund will be 100% invested in the Annuity Fund.

Q. I'm within 5 years to retirement already, what happens to my current investments?

If you're already within five years of your selected retirement date, we'll switch your investments for you. The new investment mix will depend on the amount of time you have left to your selected retirement date. On the switch date the value of your pension pot will not be affected; it will stay the same.

Q. Will the cost of my plan change?

No, there will be no change to your Annual Management Charge (AMC).

Q. If I have other pension plans with Royal London; does this apply to them all?

You will receive separate letters for each pension plan that is affected by these changes. If you're unsure how your other plans are invested, please call us and we can check for you.

Q. Do I have to do anything?

No, in October we'll switch the investments automatically; you don't have to do anything.

Q. If I don't want to purchase an annuity when I retire, what other options are available to me?

You can choose another investment option available to you under the plan. Full details of these can be found at My Pension.

There are three sets of Target Strategies to choose from, each with five risk-graded versions featuring both passive and active equity management styles to choose from.

We currently offer the following Target Lifestyle Strategies:

  • Target annuity purchase
  • Target income drawdown
  • Target cash for small pots

Our Target Lifestyle Strategies have been specially created to provide a consistent approach that is regularly monitored and automatically updated.

Financial advice is really important when it comes to making any investment decisions about your retirement savings and planning for your future retirement.

You should contact your financial adviser, rather than Royal London, if you want advice on changing your investments. Please note that advisers may charge for providing advice and you should confirm any costs beforehand.

Q. If I want to switch funds, when do I need to do this by?

This change is happening in October, but you can choose another investment option before or after that date.

Financial advice is really important when it comes to making any investment decisions about your retirement savings and planning for your future retirement. You should contact your financial adviser, rather than Royal London, if you want advice on changing your investments. Please note that advisers may charge for providing advice and you should confirm any costs beforehand.

Q. If I don't have a financial adviser, who do I contact?

If you don't have an adviser you can find details of advisers in your area by visiting unbiased.co.uk/find-an-ifa. Please note that advisers may charge for providing advice and you should confirm any costs beforehand.

Q. If I have any further queries, how can I contact you?

Please call us on 0345 60 21 872 if you have any further queries. Lines are open from 8am to 6pm, Monday to Thursday and 8am to 5pm on Fridays.

Additional Q&As for trustees/employers

Q. I'm not sure if the Target Lifestyle Strategy (Annuity) is still the right choice for our default solution?

Our Target Lifestyle Strategies offer a choice of three different retirement end points targeting cash, annuity or drawdown. There are five risk-graded versions of each strategy with both passive and in-house active equity options to choose from and all benefit from our ongoing Investment Governance support.

This allows you to make investment decisions based on risk profile, asset allocation and desired customer outcomes and be confident that a governance process is in place to ensure the strategy selected continues to meet its objective.

Benefits of the Target Lifestyle Strategies

  • Targeted outcomes
  • Dynamic asset allocation
  • Meets charge cap rules for scheme defaults
  • Governance at no extra cost
  • Automatic switching and updates

Please call us on 0345 60 21 872 if you have any further queries. Lines are open from 8am to 6pm, Monday to Thursday and 8am to 5pm on Fridays.

You should contact a financial adviser, rather than Royal London, if you want advice on changing investments. Please note that advisers may charge for providing advice and you should confirm any costs beforehand.

2014

With effect from 17th November 2014 the charging structure on the SL HSBC Amanah Global Equity Index Fund will change to reflect changes to the charging structure of the underlying fund.

The fund management charge will reduce from 1.25% to 1.00%, however additional expenses of 0.25% will apply to the fund meaning that the Total Expense Ratio will remain the same at 1.25%.

Fund Management Charge Total Expense Ratio Old charging structure 1.25% 1.25%
New charging structure 1.00% 1.25%

There is no material impact on investors in the fund and there has been no change to the fund's objective or the assets held within the fund.

We have reduced the additional fund management charge on four of the Scottish Life/ BlackRock Aquila regional tracker funds.

The funds affected and the related charges are detailed below.

Additional fund management charge Fund Name Old Charge New Charge SL/BlackRock Acquila US Equity Index  0.15% 0.00% 
SL/BlackRock Acquila European Equity Index 0.15% 0.00%
SL/BlackRock Acquila Japanese Equity Index 0.15% 0.00%
SL/BlackRock Acquila Pacific Rim Equity Index 0.15% 0.00%

In light of Schroders' acquisition of the Cazenove fund business earlier this year, we have renamed the Cazenove funds to reflect the Schroders name with effect from 22nd August 2014.

Details of the new names are below.

Old name New name SL UK Equity Core Plus (Cazenove UK Growth & Income) SL UK Equity Core Plus (Schroder Core UK Equity)
SL/Cazenove European  SL/Schroder European Opportunities 
SL/Cazenove Multi-Manager Diversity SL/Schroder MM Diversity 
SL/Cazenove Multi-Manager Diversity Balanced SL/Schroder MM Diversity Balanced
SL/Cazenove Multi-Manager Diversity Tactical SL/Schroder MM Diversity Tactical
SL/Cazenove Multi-Manager Global (ex UK) SL/Schroder MM International
SL/Cazenove Multi-Manager UK Growth SL/Schroder MM UK Growth

We are making a number of changes to the SL/Sarasin Agrisar pension fund in response to changes Sarasin have made to the underlying fund.

We have written to all our customers invested in the fund detailing the changes and what this means for your investment.

What's changing?

  • On 4 February 2014 the Fund Management Charge was reduced from 1.83% to 1.7%. The funds additional expenses have remained the same at 0.24%.
  • On 25 August 2014 the fund's index benchmark will change from MSCI World to MSCI ACWI.
  • On 25 August 2014 the name of the fund will change to SL/Sarasin Food & Agriculture Opportunities Pension Fund.

These changes reflect recent changes made by Sarasin to the underlying fund and have no effect on the management or objective of the fund or the value of investments in the fund.

If you'd like further information on the Investment Advisory Committee (IAC) summarising the outcome of the last meeting including access to the full minutes from all of the previous meetings then visit our Investment Advisory Committee section.

We replaced the underlying investment and as a result the fund changed to the SL UK Income Specialist (Fidelity MoneyBuilder Dividend) pension fund.

This change took place from week commencing 26 May 2014.

What's changed

  • The Annual Fund Management Charge (AFMC) was reduced from 1.70% to 1.30%.
  • The Total Expense Ratio (TER) decreased from 1.88% to 1.47%. The TER is a measure of the overall cost of a fund to the investor and includes the AFMC plus any audit, custodian, registration or compliance fees paid out of the fund's assets.

The investment description of the underlying fund changed to be the following: The fund's investment objective is to achieve a combination of income and long term capital growth from a portfolio primarily made up of investments in the UK, including ordinary shares, preference shares, convertibles and fixed interest securities.

The total expense ratio (TER) applied to this fund reduced to 1.78% from 1.88% with effect from 1 April 2014. A mailing was issued to customers invested in this fund on the 25 March 2014.

We are removing the SL Investec UK Blue Chip and SL Investec UK Blue Chip 'A' pension funds from our fund range with effect from week commencing 17 March 2014.

Why are we removing these funds?

Investec have made the decision to close the underlying Investec UK Blue Chip fund and merge the fund's assets into the Investec UK Alpha fund. This is based on their belief that in future, customers will want a different type of UK equity fund with a more focused style.

The UK Alpha fund has a different investment objective and is also more expensive than the Investec UK Blue Chip. We, therefore, feel that the best course of action is to close the fund rather than allow existing policyholders to invest in the new fund.

Where are we moving existing investors?

We have written to all affected policyholders informing them of the change and how their investment is affected. 

Due to our continued good relationship with our fund manager partners, we are able to reduce the charges for various funds within the Scottish Life fund range.

The new annual management charges, the related total expenses and the effective date of the change are as follows:

Fund Name New SL additional charge New SL additional Expenses Effective date (week commencing)
SL Europe Specialist (Neptune European Opportunities) 0.70% 0.73% 17/03/2014
SL/Neptune Balanced 0.70% 0.80% 17/03/2014
SL/Neptune Global Equity 0.70% 0.75% 17/03/2014
SL/Neptune US Opportunities 0.70% 0.74% 17/03/2014
SL/Jupiter European Special Situations 0.70% 0.99% 26/03/2014
SL/Jupiter Ecology 0.70% 0.75% 26/03/2014
SL/Jupiter Financial Opportunities 0.70% 0.98% 26/03/2014
SL/Jupiter India 0.70% 1.04% 26/03/2014
SL/Jupiter Merlin Balanced Portfolio 0.70% 1.65% 26/03/2014
SL/Jupiter Merlin Growth Portfolio 0.70% 1.69% 26/03/2014
SL/Jupiter Merlin Income Portfolio 0.70% 1.56% 26/03/2014
SL/Jupiter Merlin Worldwide Portfolio 0.70% 1.78% 26/03/2014
SL Japan Core Plus (Schroder Tokyo) 0.70% 0.86% 02/04/2014
SL UK Equity Core Plus (Schroder UK Equity) 0.70% 0.85% 02/04/2014
SL UK Equity Specialist (Schroder UK Alpha Plus) 0.70% 0.86% 02/04/2014
SL/Schroder Global Property Securities 0.70% 0.87% 02/04/2014
SL/Schroder Income Maximiser 0.70% 0.86% 02/04/2014
SL/Schroder US Mid Cap 0.70% 0.87% 02/04/2014
SL/Invesco Perpetual Corporate Bond 0.45% 0.64% 09/04/2014
SL/Invesco Perpetual Distribution 0.63% 0.82% 09/04/2014
SL/Invesco Perpetual Global Bond 0.45% 0.64% 09/04/2014
SL/Invesco Perpetual Monthly Income Plus 0.58% 0.77% 09/04/2014
SL Global Managed Equity Specialist (Investec Global Free Enterprise) 0.70% 0.82% 16/04/2014
SL UK Small Cap Specialist (Investec UK Smaller Companies) 0.70% 0.80% 16/04/2014