Fund changes

On 19th August, Schroders Personal Wealth (SPW) decided to change their Multi-Manager funds.  

The change means SPW no longer uses third party investment managers for the Multi-Manager funds, and will instead manage the funds itself. They believe this approach is the most appropriate for delivering good long-term investment outcomes for investors. 

We’re updating the Scottish Widows funds which, in turn, invest in these Multi-Manager funds, to reflect the change. Specifically, we’re changing the funds names and aims. 

We’ll write to you if you're invested in these funds. You don’t need to do anything, as the changes will happen automatically. You can choose your own investment option any time by calling us. 

The CM Boston Company US Opportunities fund (“the fund”) previously invested in BNY Mellon US Opportunities Fund Sterling Income Shares Inc (“the underlying fund”).

On 7th September, BNY Mellon merged the underlying fund with another underlying fund, the BNY Mellon US Equity Income fund. The charges for the fund, and the overall risk profile, remain the same.

BNY Mellon believes the merger is in the best interests of the underlying funds’ investors and places investors’ money in a fund which provides better value, lower risk, and historically better performance. Please note, however, that past performance is not a guide to future performance, and fund performance can fluctuate over time.

We’ll write to you if you’re invested in this fund. You don’t need to do anything if you believe the fund will continue to meet your investment needs. You can move your investment to another fund or funds of your choice at any time.

The results of the Extraordinary General Meetings which took place on 4th September 2024 at Scottish Widows, Port Hamilton, 69 Morrison Street, Edinburgh, EH3 8YF, are shown below.  

Eleven of the twelve fund merger proposals were approved by the investors’ vote. The Regional mergers into the receiving funds will take place on 21st October 2024. The UK mergers into the receiving funds will take place on 18th November 2024.  

The North American Fund, a sub-fund of HBOS International Investment Funds ICVC, proposal to merge was not approved by the investors’ vote. As a result, we’ll re-consider the options available to the fund.

We’re making changes to some of our Life and Pension Funds which currently invest in funds that hold investments overseas and in the UK.   

What this means for some of our Life and Pension Funds investing in a fund that holds overseas investments

Our impacted Life and Pension Funds will move to invest in a different fund - either the Scottish Widows Unit Trust Managers Limited Global Growth Fund or the HBOS Investment Managers Limited International Growth Fund.   

From 21st October 2024 these life and pension funds will have new investment aims (PDF, 173KB) and their names will change (PDF, 143KB).  Customers may continue to see the old fund name on communications we send them until the names are updated.  

What this means for some of our Life and Pension Funds investing in a fund that holds UK investments

Our impacted Life and Pension UK funds will move to invest a different fund - either the Scottish Widows Unit Trust Managers Limited UK Equity Tracker Fund or the HBOS Investment Managers Limited UK Equity Tracker Fund. 

The funds will change from being actively managed, and aiming to outperform its benchmark index, to being passively managed and aiming to track its benchmark index. 

The fund manager (also known as an investment adviser) will change from Schroders to BlackRock.  

From 18th November 2024 these life and pension funds will have new investment aims (PDF, 151KB) and their names will change (PDF, 131KB). You may continue to see the old fund name on communications we send you.  

Customer notification for customers in our UK Life and Pension Funds

We’re writing to our customers invested in one or more of these life and pension funds to let them know about these changes, and to ask them to review how the life and pension funds will be invested, to make sure that the funds continue to meet their investment needs. 

The Ethical Fund in the HBOS Specialised Investment Funds ICVC operated by HBOS Investment Fund Managers Limited was identified as one we proposed to close by merger into an alternative fund. See March 2024: Proposed Fund changes.  

However, investors in the fund didn’t approve the proposal to merge the Ethical Fund with the International Growth Fund, so we’re now going to close the Ethical Fund in October 2024. 

We’re writing to those affected by the Ethical Fund closure to explain their options and we’re asking them to please let us know what they’d like to do with their investment in the closing Ethical Fund on or before 14th October 2024. 

The transaction costs incurred in selling the Fund’s assets will be paid for by the Fund and are estimated to be 0.03% of the current net asset value of the Fund. The other costs and expenses of closing the Fund will be paid for by us. 

The Scottish Widows Multi-Manager UK Equity Income Fund and Scottish Widows Multi-Manager Global Real Estate Fund CS8 are closing. These funds invest in underlying funds managed by Schroders Personal Wealth (SPW). SPW has decided to close the underlying funds, so we’re closing the funds that invest in them.   

We’ll write to you if you’re invested in these funds. If you don’t contact us to choose a new fund or funds to invest in, from 13th August we’ll move the value of your investment from the closing funds into one of the following funds: 

• Scottish Widows UK All Share Tracker Pension Fund 
• Scottish Widows UK Equity Index Fund Life Fund 
  
• SW iShares Environment & Low Carbon Tilt Real Estate Index Fund.  
  

We've given more information about the replacement funds and other investment options available to your plan, including their aims, risks and charges.

From 19th August, we’re changing the underlying fund the Scottish Widows Multi-Manager Global Real Estate Securities Fund invests in, from the SPW Multi-Manager Global Real Estate Securities Fund to the iShares Environment & Low Carbon Tilt Real Estate Index Fund. 

We’ll also change the name of the fund from the Scottish Widows Multi-Manager Global Real Estate Securities Fund to the SW iShares Environment & Low Carbon Tilt Real Estate Index Fund. 

Any regular payments to the fund will continue to be invested as usual. 

We’ll write to you if you’re invested in this underlying fund. You don’t need to do anything if you believe the fund will continue to meet your investment needs. You can move your investment to another fund or funds of your choice at any time.

Funds compared 

The investment aim of the Fund, and the updated Fund are shown below.

Scottish Widows Multi-Manager Global Real Estate Securities Fund (current Fund) - Fund Aim

The fund aims to achieve long-term growth by investing principally in a globally diversified portfolio of shares of listed companies, real estate investment trusts (REITs) and other investments, the activities of which include the ownership, management and/or development of global real estate. The portfolio’s investments will be managed by a number of fund managers. Fund managers are selected and assets are allocated in conjunction with Russell Investment Group.

SW iShares Environment & Low Carbon Tilt Real Estate Index Fund (updated Fund) - Fund Aim

The aim of the Fund is to provide a return on your investment (generated through an increase in the value of the assets held by the Fund) by tracking closely the performance of the FTSE EPRA/NAREIT Green Low Carbon Target Index. (the “Benchmark Index”). Although the Fund aims to achieve its investment objective, there is no guarantee that this will be achieved. The Fund’s capital is at risk meaning that the Fund could suffer a decrease in value and the value of your investment would decrease as a result.

Proposed OEIC and ISA Fund changes – Regional Funds

Following review and discussion with Schroder Investment Management Limited, the investment adviser of the Funds, we remain confident in the investment strategy for the eight Regional funds listed below but believe they would benefit from investment through global markets. We are therefore proposing fund mergers to investors in these eight Regional funds.

Proposed OEIC and ISA Fund changes – UK Funds

Following a review of our fund range as part of our 2022 Assessment of Value report, we’ve considered the options to improve outcomes for investors. We are therefore proposing fund mergers to investors in the four UK Funds listed below.

On 7th October 2024, BlackRock will be appointed as the investment adviser of the UK Merging funds in place of Schroders.

These proposed changes require approval from OEIC and ISA investors in the funds. We’re mailing investors with details of the change and asking them to vote. To make the proposed changes, we need approval from 75% of the investors who vote.

If investors approve the proposal:

• We’ll move investment in the Regional Funds to their Receiving Funds on 21st October 2024.
• We’ll move investment in the UK Funds to their Receiving Funds on 18th November 2024.
• The value of investors’ holdings in the Merging fund will be used to buy shares in the Receiving fund.

We don’t expect that the merger will constitute a disposal of Shares in the Merging Fund for UK capital gains tax purposes. Relevant clearances from HMRC have been received.

The tables below provide key dates along with links to the relevant Voting Documents which provide detailed information on our proposed changes.

Key Dates:

• Before 25th June 2024 - we’ll send letters to customers invested in the Regional funds, asking them to vote.
• Before 6th August 2024 - we’ll send letters to customers invested in the UK funds, asking them to vote.
• 2nd September 2024 - deadline for return of Proxy Voting forms (the details are on the form supplied to each investor).
• 4th September 2024 - Extraordinary General Meetings will take place at Scottish Widows, Port Hamilton, 69 Morrison St, Edinburgh, EH3 8YF. Investors will find the time of the Extraordinary General Meeting for their fund(s) in their letter. A full list of the funds, and the times of the EGMs, can be found in the Fund details table below.
• 6th September 2024 - the result of the investor votes will be available and we’ll update the table below.
• 14th or 15th October 2024 – deadline for switching Regional funds (varies by fund).
• 11th or 12th November 2024 - deadline for switching UK funds (varies by fund).
• 21st October 2024 - subject to investor approval, the changes detailed in the respective Voting Documents will become effective for the Regional funds.
• 18th November 2024 - subject to investor approval, the changes detailed in the respective Voting Documents will become effective for the UK funds.

Detailed Fund Information

To access the latest investment documentation for the funds, for example Key Investor Information Documents (KIIDs), Supplementary Investor Information Documents (SIIDs) and prospectuses please visit:

Scottish Widows funds
Halifax funds.

You can find the new KIID for the Scottish Widows UK Equity Tracker Fund Class A Accumulation fund here (PDF, 852KB).

The results of the Extraordinary General Meetings which took place on 18th April 2024 at Scottish Widows, Port Hamilton, 69 Morrison Street, Edinburgh, EH3 8YF, are shown below. 

Eight of the nine fund merger proposals were approved by the investors’ vote. The mergers into the receiving funds will take place on 24th June 2024. 

The Ethical Fund, a sub-fund of HBOS Specialised Investment Funds ICVC, proposal to merge was not approved by the investors’ vote. As a result, the fund will be closed in due course.

Japan’s financial markets close on various days throughout the year to mark national holidays. In 2024 the holidays fall on Monday 29th April and then 2 consecutive business days - Fri 3rd May and Mon 6th May 2024. 

What this means for customers 

OEICS AND ISAS 

Our three Japanese OEIC funds, which invest exclusively in Japanese equities, will be unavailable for trading on these dates. These funds are: 

• Halifax Japanese Fund 
• Scottish Widows Japan Growth Fund 
• Scottish Widows Japan Equity Fund 

Any investors in these OEICs, including those invested via an ISA, who want to buy or sell ahead of the first market closure should submit their instructions before the following cut off points: 

Any investors in these OEICs, including those invested via an ISA, who want to buy or sell ahead of the second market closure should submit their instructions before the following cut off points: 

Proposed OEIC and ISA Fund changes

Following a review of our fund range as part of our 2022 Assessment of Value report, we’ve considered the options to improve outcomes for investors and intend to close 9 funds in our range. We are therefore proposing fund mergers to investors in those funds. 

We believe the outcome of the merger proposal is in the interests of our investors, as the funds have not delivered value as intended in accordance with their investment objectives.

These proposed changes require approval from OEIC and ISA investors in the funds. We’re therefore mailing investors with details of the change and asking them to vote. To make the proposed changes, we need approval from 75% of the investors who vote.

If investors approve the proposal: 

• We’ll move their investment in current funds (the Merging Funds) to the alternative funds (the Receiving Funds) on 24th June 2024.  
• The value of investors’ holdings in the Merging fund will be used to buy shares in the Receiving fund.    

We don’t expect that the merger will constitute a disposal of Shares in the Merging Fund for UK capital gains tax purposes. Relevant clearances from HMRC have been received. 

The tables below provide key dates and details of the impacted funds along with links to the relevant Voting Documents which provide detailed information on our proposed changes.  

Key Dates:

• Before 15th March 2024 - We’ll send letters to customers invested in the affected funds, asking them to vote. 
• 16th April 2024 - Deadline for return of Proxy Voting forms (the details are on the form supplied to each investor). 
• 18th April 2024 - Extraordinary General Meetings will take place at Scottish Widows, Port Hamilton, 69 Morrison St, Edinburgh, EH3 8YF. Investors will find the time of the Extraordinary Meeting for their fund(s) in their letter. A full list of the funds, and the times of the EGMs, can be found in the Fund details table below.
• 22nd April 2024 - The result of the investor votes will be available and we’ll update the table below. 
• 17th or 18th June 2024 - Deadline for switching (varies by fund). 
• 24th June 2024 - Subject to investor approval, the changes detailed in the respective Voting Documents will become effective. 
   

Funds impacted

Detailed Fund Information 

To access the latest investment documentation for the funds, for example Key Investor Information Documents (KIIDs), Supplementary Investor Information Documents (SIIDs) and prospectuses please visit : 
Scottish Widows funds 
Halifax funds. 

You can find the new KIID for the Scottish Widows UK Equity Tracker Fund Class A Accumulation fund here (PDF, 852KB).

Halifax ISA Terms & Conditions  

You can find information on Halifax ISA Terms & Conditions here (PDF, 302KB).

Life and Pension investors  

Some of our Life and Pension customers invest in Life and Pension funds which currently invest in the underlying funds shown in the table above and are therefore affected by this change. The underlying funds shown in the table above are expected to close on 24th June 2024. This means we need to make some changes to these Life and Pension funds.  

The affected Life and Pension funds will have new investment aims from 24th June 2024 and their names will change in the future (PDF, 195KB). We’ll add the date here as soon as it’s available. Customers may continue to see the old fund names on communication we send until the names are updated. We’re writing out to let our impacted Life and Pension customers know about these changes. Here you can find full details of the aims and risks (PDF, 311KB) of each fund.

Life and Pension customers don’t need to do anything if they believe the change meets their investment needs and objectives after the changes. It’s important to review the changes to the way the Fund will be invested and the associated risks. 

We regularly review our SW Life and Pension funds to ensure they remain appropriate to customers. 

From 31st May 2024 we’re closing the following: 

• SW CT Global Bond CS1 
• SW CT Global Bond CS7 
• SW CT Global Bond 1CSW 
• SW CT Global Bond CSW 
• SW CT Global Bond CS8 

These shouldn’t be considered for investment. 

We’ll write to you if you’re invested in this fund because we need you to choose a new investment option. If you don’t choose one, we’ll move the value of your investment to another investment option on your behalf, along with any ongoing contributions you make to the closing Fund.