We re changing our fund range

Transcription

1 We re changing our fund range We regularly review the funds that we offer our clients. Following recent reviews we ve decided to close the funds detailed below. We re closing the M&G funds below to remove duplicate funds from our range. Clients will still be invested in the same underlying fund, and some may benefit from lower fund charges. Closing a fund is not an option we take lightly, but it s sometimes done, if our conviction in a fund s ability to generate good and consistent outcomes for customers has deteriorated significantly. We ve also provided details of our suggested replacement funds, and the dates that we intend to close the funds. These dates may change. Our Fund Guides will be updated to reflect these changes at pru.co.uk/fund_guides We ll write to clients investing in any of the closing funds. If they need to make a decision we ll give them six weeks to choose to: Move their investment into any of the other funds within their product range. They ll need to complete and return the form we ve included in their letter by the date given. Once we receive their form, we ll move their investment and any future contributions into the fund they ve chosen. Do nothing. At the closure date we ll move their investment and any future contributions into our suggested replacement fund. funds closing dates Life Funds Closing 22 June 2018 M&G Corporate Bond Fund M&G Gilt and Fixed Interest Income Fund Closing 27 July 2018 Aviva Investors UK Property Fund JP Morgan US Select Fund (previously JP Morgan US Fund) Jupiter UK Growth Fund M&G UK Equity Income Fund Newton Continental European Fund Standard Life Global Absolute Return Strategies Fund Pension Funds Closing 22 June 2018 M&G Corporate Bond Fund M&G Gilt and Fixed Interest Income Fund M&G UK Equity Income Fund Closing 27 July 2018 JP Morgan US Select Fund (previously JP Morgan US Fund) Jupiter UK Growth Fund Standard Life Global Absolute Return Strategies Fund This is just for UK advisers please don t show it to your clients

2 Life Aviva Investors UK Property Fund in the Aviva Investors UK Property Fund. That fund aims to carry on Property Investment Business and to manage the cash raised from investors for investment in the Property Investment Business. In doing so, that fund s aim is to obtain returns via income and capital appreciation. L&G UK Property Fund The investment strategy of the fund is to buy units in the L&G UK Property Fund. This fund aims to carry on Property Investment Business and to manage cash raised from investors for investment in the Property Investment Business. In doing so, the objective of the fund is to achieve income and capital growth through investing generally in commercial property. JP Morgan US Select Fund (previously JP Morgan US Fund) The investment strategy of this fund is to purchase units in the JP Morgan US Select Fund. This fund aims to invest in a portfolio of North American securities for capital growth without any distribution target. The fund seeks to assess the impact of environmental, social and governance factors (including accounting and tax policies, disclosure and investor communication, shareholder rights and remuneration policies) on the cash flows of many companies in which it may invest to identify issuers that the Investment Manager believes will be negatively impacted by such factors relative to other issuers. These determinations may not be conclusive and securities of such issuers may be purchased and retained by the fund. North American Fund in the CF North American Qualified Investor Scheme Fund. That fund aims to achieve long-term capital growth by investing in North American securities. Jupiter UK Growth Fund in the Jupiter UK Growth Fund. That fund aims to obtain long term capital growth by investing in any economic sector principally in the United Kingdom. Invesco Perpetual UK Growth Fund in the Invesco Perpetual UK Growth Fund. That fund aims to achieve capital growth by investing mainly in shares of companies listed in the UK. 2

3 Life M&G Corporate Bond Fund in the M&G Corporate Bond Fund. That fund aims to provide income and capital growth. At least 70% of the fund is invested in sterling-denominated corporate debt instruments. The fund s exposure to corporate debt may be gained through the use of derivatives. Derivatives may also be used for efficient portfolio management. Any currency exposures within the fund may be managed by currency hedges into sterling. The fund may also invest in collective investment schemes, other transferable securities and other debt instruments (including corporate debt and government and public securities denominated in any currency), cash, near cash, other money market securities, warrants and other derivative instruments. 2 Corporate Bond Fund in the M&G Corporate Bond Fund. That fund aims to provide income and capital growth. At least 70% of the fund is invested in sterling-denominated corporate debt instruments. The fund s exposure to corporate debt may be gained through the use of derivatives. Derivatives may also be used for efficient portfolio management. Any currency exposures within the fund may be managed by currency hedges into sterling. The fund may also invest in collective investment schemes, other transferable securities and other debt instruments (including corporate debt and government and public securities denominated in any currency), cash, near cash, other money market securities, warrants and other derivative instruments. 2 M&G Gilt and Fixed Interest Income Fund in the M&G Gilt & Fixed Interest Income Fund. That fund aims to provide income and capital growth. At least 70% of the fund is invested in short, medium or long-dated gilts according to the fund manager s view at any given moment of the likely course of interest rates and trend of the gilt market. The fund s exposure to gilts may be gained through use of derivatives. Derivatives may also be used for efficient portfolio management. The fund may also invest in collective investment schemes, other transferable securities, other debt instruments, cash, near cash, other money market instruments, warrants and other derivative instruments. Fixed Interest Fund in the M&G Gilt & Fixed Interest Income Fund. The fund aims to provide income and capital growth. At least 70% of the fund is invested in short, medium or long-dated gilts according to the fund manager s view at any given moment of the likely course of interest rates and trend of the gilt market. The fund s exposure to gilts may be gained through the use of derivatives. Derivatives may also be used for efficient portfolio management. The fund may also invest in collective investment schemes, other transferable securities, other debt instruments, cash, near cash, other money market securities, warrants and other derivative instruments. 3

4 Life M&G UK Equity Income Fund in the M&G Dividend Fund. That fund invests mainly in a range of UK equities with the aim of achieving a steadily increasing income stream. The fund will target a yield higher than that of the FTSE All-Share Index*. Subject to this, the aim will be to maximise total return (the combination of income and growth of capital). M&G Dividend Fund in the M&G Dividend Fund. That fund invests mainly in a range of UK equities with the aim of achieving a steadily increasing income stream. The fund will target a yield higher than that of the FTSE All-Share Index*. Subject to this, the aim will be to maximise total return (the combination of income and growth of capital). Newton Continental European Fund The investment strategy of the fund is to purchase units in the Newton Continental European Fund. That fund aims to achieve capital growth from a portfolio of predominantly European securities. European Fund in the CF European Qualified Investor Scheme Fund. That fund aims to achieve capital growth through investment in a range of European (excluding UK) securities, mainly equities. Standard Life Global Absolute Return Strategies Fund in the Standard Life Global Absolute Return Strategies Unit Trust. That Trust aims to deliver a positive absolute return in the form of capital growth over the medium to longer term in all market conditions. The level of return the Trust aims to generate over rolling three year periods is equivalent to cash plus five per cent a year, gross of fees. Invested capital is however at risk and there is no guarantee that the objective will be attained over this or any time period. Invesco Perpetual Global Targeted Returns Fund The investment strategy of the fund is to buy units in the Invesco Perpetual Global Targeted Returns Fund. That fund aims to achieve a positive total return in all market conditions over a rolling 3 year period. The fund targets a gross return of 5% per annum above UK 3 month LIBOR (or an equivalent reference rate) and aims to achieve this with less than half the volatility of global equities, over the same rolling 3 year period. There is no guarantee that the fund will achieve a positive return or its target and an investor may not get back the full amount invested. The fund seeks to achieve its objective by using a range of investment strategies and techniques to invest actively in a broad selection of asset classes across all economic sectors worldwide. These asset classes will include equities, equity related securities, debt securities (including those issued by corporate bodies, governments and/or supranational institutions), warrants, collective investment schemes (including but not limited to exchange traded.

5 Pensions JP Morgan US Select Fund (previously JP Morgan US Fund) The investment strategy of this fund is to purchase units in the JP Morgan US Select Fund. This fund aims to invest in a portfolio of North American securities for capital growth without any distribution target. The fund seeks to assess the impact of environmental, social and governance factors (including accounting and tax policies, disclosure and investor communication, shareholder rights and remuneration policies) on the cash flows of many companies in which it may invest to identify issuers that the Investment Manager believes will be negatively impacted by such factors relative to other issuers. These determinations may not be conclusive and securities of such issuers may be purchased and retained by the fund. North American Fund in the CF North American Qualified Investor Scheme Fund. That fund aims to achieve long-term capital growth by investing in North American securities. Jupiter UK Growth Fund in the Jupiter UK Growth Fund. That fund aims to obtain long term capital growth by investing in any economic sector principally in the United Kingdom. Invesco Perpetual UK Growth Fund in the Invesco Perpetual UK Growth Fund. That fund aims to achieve capital growth by investing mainly in shares of companies listed in the UK. M&G Corporate Bond Fund in the M&G Corporate Bond Fund. That fund aims to provide income and capital growth. At least 70% of the fund is invested in sterling-denominated corporate debt instruments. The fund s exposure to corporate debt may be gained through the use of derivatives. Derivatives may also be used for efficient portfolio management. Any currency exposures within the fund may be managed by currency hedges into sterling. The fund may also invest in collective investment schemes, other transferable securities and other debt instruments (including corporate debt and government and public securities denominated in any currency), cash, near cash, other money market securities, warrants and other derivative instruments. 2 Corporate Bond Fund in the M&G Corporate Bond Fund. That fund aims to provide income and capital growth. At least 70% of the fund is invested in sterling-denominated corporate debt instruments. The fund s exposure to corporate debt may be gained through the use of derivatives. Derivatives may also be used for efficient portfolio management. Any currency exposures within the fund may be managed by currency hedges into sterling. The fund may also invest in collective investment schemes, other transferable securities and other debt instruments (including corporate debt and government and public securities denominated in any currency), cash, near cash, other money market securities, warrants and other derivative instruments. 2 5

6 Pensions M&G Gilt and Fixed Interest Income Fund in the M&G Gilt & Fixed Interest Income Fund. That fund aims to provide income and capital growth. At least 70% of the fund is invested in short, medium or long-dated gilts according to the fund manager s view at any given moment of the likely course of interest rates and trend of the gilt market. The fund s exposure to gilts may be gained through use of derivatives. Derivatives may also be used for efficient portfolio management. The fund may also invest in collective investment schemes, other transferable securities, other debt instruments, cash, near cash, other money market instruments, warrants and other derivative instruments. Fixed Interest Fund in the M&G Gilt & Fixed Interest Income Fund. The fund aims to provide income and capital growth. At least 70% of the fund is invested in short, medium or long-dated gilts according to the fund manager s view at any given moment of the likely course of interest rates and trend of the gilt market. The fund s exposure to gilts may be gained through the use of derivatives. Derivatives may also be used for efficient portfolio management. The fund may also invest in collective investment schemes, other transferable securities, other debt instruments, cash, near cash, other money market securities, warrants and other derivative instruments. M&G UK Equity Income Fund in the M&G Dividend Fund. That fund invests mainly in a range of UK equities with the aim of achieving a steadily increasing income stream. The fund will target a yield higher than that of the FTSE All-Share Index*. Subject to this, the aim will be to maximise total return (the combination of income and growth of capital). M&G Dividend Fund in the M&G Dividend Fund. That fund invests mainly in a range of UK equities with the aim of achieving a steadily increasing income stream. The fund will target a yield higher than that of the FTSE All-Share Index*. Subject to this, the aim will be to maximise total return (the combination of income and growth of capital).

7 Pensions Standard Life Global Absolute Return Strategies Fund in the Standard Life Global Absolute Return Strategies Unit Trust. That Trust aims to deliver a positive absolute return in the form of capital growth over the medium to longer term in all market conditions. The level of return the Trust aims to generate over rolling three year periods is equivalent to cash plus five per cent a year, gross of fees. Invested capital is however at risk and there is no guarantee that the objective will be attained over this or any time period. Invesco Perpetual Global Targeted Returns Fund The investment strategy of the fund is to buy units in the Invesco Perpetual Global Targeted Returns Fund. That fund aims to achieve a positive total return in all market conditions over a rolling 3 year period. The fund targets a gross return of 5% per annum above UK 3 month LIBOR (or an equivalent reference rate) and aims to achieve this with less than half the volatility of global equities, over the same rolling 3 year period. There is no guarantee that the fund will achieve a positive return or its target and an investor may not get back the full amount invested. The fund seeks to achieve its objective by using a range of investment strategies and techniques to invest actively in a broad selection of asset classes across all economic sectors worldwide. These asset classes will include equities, equity related securities, debt securities (including those issued by corporate bodies, governments and/or supranational institutions), warrants, collective investment schemes (including but not limited to exchange traded. * FTSE International Limited ( FTSE ) FTSE. FTSE is a trade mark of the London Stock Exchange Group companies and is used by FTSE International Limited under licence. All rights in the FTSE indices and/or FTSE ratings vest in FTSE and/or its licensors. Neither FTSE nor its licensors accept any liability for any errors or omissions in the FTSE indices and/or FTSE ratings or underlying data and no party may rely on any FTSE indices, ratings and/or data underlying data contained in this communication. No further distribution of FTSE Data is permitted without FTSE s express written consent. FTSE does not promote, sponsor or endorse the content of this communication. 7

8 pru.co.uk is a trading name of The Assurance Company Limited, which is registered in England and Wales. This name is also used by other companies within the Group. Registered office at Laurence Pountney Hill, London ECR 0HH. Registered number 155. Authorised by the Regulation Authority and regulated by the Financial Conduct Authority and the Regulation Authority. FCLO /2018