Fund Updates

Here you will find information about recent fund changes and any updated documents related to these changes. 

February 2021

Merian Smaller Companies Fund name change

Please be aware that, with effect from 15th February 2021, the Merian UK Smaller Companies Fund has been renamed the Jupiter UK Smaller Companies Fund.            

This is a name change only, there are no changes to the fund’s risk rating, investment objective and how the fund is run.

No investor action is required.

Closure of the Global Emerging Markets Fund

December 2o2o

On 15th February 2021 we will be closing the Global Emerging Markets Fund to all customers who have investments in the fund through the Select Investment Plan, Select ISA, Select Junior ISA, Select Pension and the Family Legacy Bond products. We will be contacting affected customers about this closure.

We have produced a set of frequently asked questions for customers who want further details about the planned closure.

October 2020

On 8th December 2020 we closed the Global Emerging Markets Fund to all customers who had investments in the fund through the Flexibond, Personal Pension Account, Trustee Investment Plan, and Barnett Waddingham Self Invested Pension Plan and Simplified Pension Drawdown products. 

We have produced a set of frequently asked questions for customers who want further details about this closure.

Global Emerging Marked Fund Closure Frequently Asked Questions

What changes are you making?

On 15th February 2021 we will be closing the Global Emerging Markets Fund in the Select Investment Plan, Select ISA, Select Junior ISA, Select Pension and the Family Legacy Bond to new and existing investments. 

As of 8th December 2020 the Global Emerging Markets Fund in the Flexibond, Personal Pension Account, Barnett Waddingham Self Invested Pension & Simplified Pension Drawdown Plans and Trustee Investment Plan is closed to new and existing investments.

 

Why are you closing the Global Emerging Markets Fund?

We have decided to close the Fund due to its small size, being approximately only £21 million as at the end of September 2020. 

A number of larger investors have redeemed their investments and there has been a lack of new investment into the Fund, meaning a lack of investment opportunities for the Fund overall. 

Managing such a small fund can be challenging, for example, the investment manager can struggle to diversify the Fund across a broad enough range of investments and fund costs are also spread across fewer assets than in a larger fund.  We believe therefore that it would be in the interests of all investors to terminate the Fund. 

What does this mean for me?

You will no longer be able to make payments in to the Global Emerging Markets Fund or hold any investments in it after the change.

What should I do now?

We encourage you to review your circumstances and consider which of our other funds you would like to a) move your investment to and b) where you would like to redirect any future regular payments.

These do not have to be the same funds. Details of the funds available can be viewed through our Fund Centre.

You must then let us know which funds you want to invest in – further details of how to do this are in the letter we sent you.

What will happen if I do/did nothing?

If you have investments in the Global Emerging Markets Fund through the Select Investment Plan, Select ISA, Select Junior ISA, Select Pension and the Family Legacy Bond products if we do not get any instructions from you by 9th February 2021 we will follow the terms and conditions and automatically move your current investment and redirect any future regular payments to the Global Growth Fund.

If you had investments in the Global Emerging Markets Fund through the Flexibond, Personal Pension Account, Trustee Investment Plan and Barnet Waddingham Self Invested Pension Plan and Simplified Pension Drawdown products as of 8th December 2020, in line with the policy terms and conditions, we have automatically moved your current investment and redirected any future regular contributions to the Deposit Fund.

I had investments through the Flexibond, Personal Pension Account, Trustee Investment Plan, or Barnett Waddingham Self Invested Pension Plan and Simplified Pension Drawdown products, why did you move my holding to the Deposit Fund if I do not contact you?

Our policy terms and conditions state that where we close a fund and do not get any instructions from the customer on where to switch the investment to then we would switch holdings to the Deposit fund.

I had investments through the Select Investment Plan, Select ISA, Select Junior ISA, Select Pension or the Family Legacy Bond products, why will you move my holding to the Global Growth Fund if I do not contact you?

We have chosen the NFU Mutual Global Growth Fund as the default fund for investors as we believe the objectives of this fund most closely match the objectives of the NFU Mutual Global Emerging Markets Fund. It provides exposure to international equities, including emerging markets. We strongly encourage all of our customers to take the time to consider the most appropriate action for their personal circumstances.

Will you be offering a similar fund in future?

We have no immediate plans to replace the Global Emerging Markets Fund as only a small number of our customers chose to invest in it. However we regularly review the funds we offer to give our customers a suitable range of options of where to invest and so may add to our fund offering in future.

What if I have a query about the changes being made?

If you have any queries you can speak with your NFU Mutual Financial Adviser or phone us on 0800 622 323.

September 2020

Changes to Global Growth Fund approved

As noted in the August 2020 update we held an EGM on proposed changes to this fund on 23rd September 2020. This resulted in approval of the proposed changes. We therefore will make the changes effective from 6th October 2020.

Please see the August 2020 frequently asked questions for more information on the changes being made.

August 2020

Proposed Changes to Global Growth Fund

On 21st August 2020 we mailed all customers who have investments in the NFU Mutual Global Growth Fund about some changes we are looking to make to the fund.

We have produced a set of frequently asked questions for customers who want further details about the proposed changes.

What changes are you looking to make to the Global Growth fund?

We are proposing changes to the investment objective and investment policy of the fund. These changes will allow us to alter the way we manage the international equities assets within the Global Growth fund. Rather than investing directly in equities, the fund will instead invest in a mix of funds managed by our in-house investment team and funds managed by specialist external fund managers in an efficient and cost-effective way.

How much extra will I be charged & how are the charges deducted?

All explicit transaction costs resulting from the trading required to move to this new approach will be met by NFU Mutual.

The charges made by the external fund managers of around 0.18% p.a. will be passed on to customers. However, we will be reducing the fund annual management charge by 0.10% p.a. from 0.75% p.a. to 0.65% p.a.  This means that in future the overall ongoing charges paid by customers will increase by around 0.08% p.a. to 0.90% p.a.

Charges are deducted from the fund on a daily basis through the fund unit price.

Why are you looking to change the way you manage the Global Growth fund?

We are looking to make this change to ensure we are best placed to take advantage of future international investment opportunities. By using external investment management expertise for some of our international investments we will ensure we are best equipped to exploit the breadth of future investment opportunities across the globe.

How confident are you that this is the right change for your investors?

We are adopting this revised approach across all of the international equity investments managed by the NFU Mutual Group. We have carried out an extensive and detailed selection process to identify and appoint a number of leading international investment managers with proven track records in managing assets in different parts of the world.

Does this mean NFU Mutual won’t be responsible for my investments?

The international equity portfolio will still be closely monitored and managed by the NFU Mutual Investment Team on an ongoing basis.

The international equity portfolio will still be closely monitored and managed by the NFU Mutual Investment Team on an ongoing basis.

The following external fund managers will be used when the funds are launched. Each is considered an expert in a particular geography or style of investment management.

  • Legal & General
  • Wellington
  • Investec
  • Schroder
  • T. Rowe Price
  • Macquarie
  • Baillie Gifford
  • Capital Group
  • Lazard
  • Acadian
Is it sensible to go ahead with this change at this time?

Whilst we expect market volatility to be higher than normal for some time, we believe that there will still be opportunities to make the trades required to make the changes to the fund.  We believe that by making the changes to the fund this will ensure we are in the best possible position to take advantage of international investment opportunities in the future. 

When do you expect markets to get back to normal?

Given the impact of the Coronavirus epidemic around the globe we do not know when greater market stability will return.  We remind our customers to review their returns over the medium to long term (5+ years), if you are particularly worried about your finances, we suggest speaking to your NFU Mutual Financial Adviser.

When will these changes take place?

The transition date is the 6th October 2020 but this is subject to a successful vote by our impacted customers at an Extraordinary General Meeting (EGM) on 23rd September 2020.

How will I know the result of the EGM?

We will make an announcement on our website at nfumutual.co.uk shortly after the EGM.

What happens if the customers vote against the change?

We very much hope that our customers will vote in favour of the changes as we believe they will improve outcomes for our customers. However, if our customers vote against the change we will need to consider alternative options and will write out to our customers with further details in due course.

June 2020

Appointment of external investment managers for international assets

As per the April 2020 update we can now confirm that the transition of these international assets has completed. 

April 2020

Appointment of external investment managers for international assets

In order to ensure that we are best placed to take advantage of international investment opportunities we intend to make changes to the way we manage international assets within our Funds.

Previously, all investment management of our Funds was carried out by our investment management team, including the international element of our Funds. Over the past two years we have strengthened our in-house investment management team and are now planning to utilise external investment management expertise for some of our international investments.

Why have you decided to make this change to the way you manage international assets in future?

We are making this change to ensure we are best placed to take advantage of future international investment opportunities. Using external investment management expertise for some of our international investments we will ensure we are best equipped to exploit the breadth of investment opportunities across the globe.

How confident are you that this is the right change for your investors?

We are in the process of adopting this revised approach across all of the £4.2 billion of international investments managed by the NFU Mutual Group, as at 31st December 2019. We have carried out an extensive and detailed selection process to identify and appoint a number of leading international investment managers with proven track records in managing assets in different parts of the world. We believe that this gives our new approach the best possible opportunity to deliver for our customers.

Does this mean NFU Mutual won’t be responsible for my investments?

The international equity portfolio will be closely monitored and managed by the NFU Mutual investment team on an ongoing basis.

Is it sensible to go ahead with the transition at this time?

Whilst we expect market volatility to be higher than normal for some time, we believe that there will still be opportunities to make the trades required to transition albeit it may take longer than in more normal times. By going ahead with the transition this will ensure we are in the best possible position to take advantage of international investment opportunities in the future.  We will ensure that each part of the transition is made in the best long-term interests of our customers.

When do you expect markets to get back to normal?

Given the impact of the Coronavirus epidemic around the globe we do not know when greater market stability will return.  We remind our customers to review their returns over the medium to long term (5+ years), if you are particularly worried about your investments, we recommend speaking to your NFU Mutual Financial Adviser.

How long will the transition take?

We will look to start the transition around 20th April 2020, but it may start after this date and the transition will be completed gradually over a number of weeks or months as market conditions permit.

How will I know when the transition has been completed?

We will make an announcement on our website at nfumutual.co.uk

Standard Life Investments UK Real Estate fund suspension

Due to unprecedent market volatility that we are currently experiencing due to the continued spread of Coronavirus Standard Life have made the decision to suspend the UK Real Estate Fund. This has been made to ensure that all investors are protected but means that no further monies, including regular payments can be made into the fund or withdrawals made at the present time. Please see more information on this in this document [PDF: 119KB] which further explains the rationale and impacts of the closure. We will continue to keep you updated with any changes to this position.

September 2019

Change to funds offered through Select ISA and Select Investment Plan

A letter sent out in September 2019 outlined the changes to funds offered through our Select ISA and Select Investment Plan, these changes include:

  • Updates to investment policy, strategy and/or objective wording
  • The introduction of fund benchmarks which where appropriate are linked to well-known indices or formalising the peer sector as the benchmark

Updated Prospectuses and Key Information Document for these funds are now available. 

Product Funds Covered  Prospectus
NFU Mutual Portfolio Funds OEIC Mixed Portfolio 20-60% Shares Fund
Mixed Portfolio 40-85% Shares Fund
Mixed Portfolio Max 100% Shares Fund
Download [PDF: 420KB]
NFU Mutual OEIC Gilt and Corporate Bond Fund
UK Growth Fund
Global Growth Fund
UK Equity Income Fund
Global Emerging Markets Fund
Download [PDF: 516KB]

 

Fund  Key Investor Information Document
Mixed Portfolio 20-60% Shares Fund Download [PDF: 67KB]
Mixed Portfolio 40-85% Shares Fund Download [PDF: 65KB]
Mixed Portfolio Max 100% Shares Fund Download [PDF: 66KB]
Gilt and Corporate Bond Fund Download [PDF: 80KB]
UK Growth Fund Download [PDF: 76KB]
Global Growth Fund Download [PDF: 77KB]
UK Equity Income Fund Download [PDF: 77KB]
Global Emerging Markets Fund  Download [PDF: 76KB] 

Gilt and Corporate Bond AMC reduction

Effective from 30th September 2019 the AMC (Annual Management Charge) on our Gilt and Corporate Bond fund will be reduced from 0.75% to 0.50% per annum.

This has been implemented following a review of the AMC’s of our funds against the average for funds of this type in the industry.

Upon review we felt that our fund was slightly out of line with the market average and we have made the decision to lower the fund charge.

We will continue to monitor the charges of our funds to ensure that they remain competitive in the market and offer fair value for our customers.