Our freestyle UK equity fund is currently managed by Schroder. Schroder’s investment team has seen a high level of turnover in recent years, and overall performance has been disappointing.
The trustee has reviewed the situation in depth and, having taken advice from its investment consultant, has decided to replace Schroder with Prudential with effect from 3 December 2007.
Prudential will aim to outperform the UK stock market by a little more than Schroder. This means that in future the fund’s performance may be more volatile, relative to the UK stock market, than it has been before.
Also, the annual investment management fee will rise slightly (from 0.4% to 0.5%). The trustee believes that the fee remains competitive in comparison with other similar funds.
If you're currently invested in the freestyle UK equity fund, and you're happy to stay in it under Prudential management, there’s no need to do anything.
If you would rather re-arrange your investments, you must make any changes by 18 November 2007 using the secure online investment change facility on our website.
The trustee has also decided to offer an additional global equity fund with effect from 1 November 2007. This new fund will be managed by Newton, and the investment management fee will be 0.45% per annum.
This fund is different from the freestyle global equity tracker, managed by Legal & General, because it attempts to outperform the return of global equity markets, rather than match them.
Further information on the new funds can be found on the website.
