Changes we’re making

Changes affecting Scottish Widows OEIC or ISA customers

Changes affecting Scottish Widows OEIC or ISA customers

Changes affecting Scottish Widows OEIC or ISA customers

As we told you when we wrote to you, the Financial Conduct Authority (FCA) asked all UK Fund Managers to carry out an annual review of the funds they manage to assess the overall value delivered to customers. The 2019 report was our first assessment and was published in September 2020. The changes we’re making and how they affect your investment are covered in the letter and booklet we sent you.

You can find more detail here on the background to change as well as the future Key Investor Information documents (KIIDs) which reflect the changes we’re making to funds. These KIIDs will be on our main website from 21st June and will replace those currently at www.scottishwidows.co.uk/kiids.

Our changes

We are taking action and introducing the following changes:

  • We’re reducing the Annual Management Charge (AMC) in most of our Fund share classes from 21st June 2021.
  • We’re introducing some share classes which have a higher AMC for certain new contributions. No customer will have this higher charge applied to any of their current investment holdings and contributions.
  • We’re reducing a number of other fund and product charges, and changing the name of some of our funds to better represent their aim.
View the 2019 Assessment of Value Report

Value Assessment Report video summary

Scottish Widows Investments Director Iain McGowan explains the key content of our report.

Contact us if you have any questions which aren’t answered here, please write to us at PO Box 24177, 69 Morrison Street, Edinburgh, EH3 1HT or call us on 0345 300 2244. We’re open from Monday to Friday between 8am and 6pm.

The letter we sent you listed the funds and share classes you were invested in. You should look at the Changes We’re Making booklet to see exactly what affect our changes will have on the share class and fund you’re invested in.

Key Investor Information Documents (KIIDs) provide a summary of the key information relating to individual funds, including the risks. They have a standard format so it’s easier for you to compare different funds.

These are representative KIIDs for one of the share classes in those funds where AMCs are changing from 21st June 2021.

Fund and share class

Questions and answers

We regularly review our products and funds to ensure they provide good value.

This latest review led to us identifying a number of changes.

These changes are being implemented as quickly as possible and customers will see the benefits from 21st June 2021 onwards.

All funds and share classes have been reviewed and changes made where we considered it appropriate to provide better value. As a result, most share classes in our fund range will receive an immediate reduction to the AMC.

No share class is having its AMC increased and no customer will see an increase to charges on any of their current investments.

We have, however, ring-fenced some of our existing share classes. This means that new contributions need to meet certain eligibility criteria – most commonly, a requirement for total contributions made to be at least £75,000 - to continue to access those share classes. If the eligibility criteria are not met, new contributions would be invested in another share class which will have a higher AMC.

Reviews will take place annually and any outcomes that involve change will always be communicated, with advance notice, to any customer impacted.

We will always seek to offer the best value possible and that will be reflected in the lowest-possible charges for customers.

Changes affecting Halifax Collective Investment Plan or ISA Investor customers

Changes affecting Halifax Collective Investment Plan or ISA Investor customers

Changes affecting Halifax Collective Investment Plan or ISA Investor customers

As we told you when we wrote to you, the Financial Conduct Authority (FCA) asked all UK Fund Managers to carry out an annual review of the funds they manage to assess the overall value delivered to customers. The 2019 report was our first assessment and was published in September 2020. The changes we’re making and how they affect your investment are covered in the letter and booklet we sent you. If you’re an ISA Investor, we also sent you updated Terms and Conditions for you to review and keep.

You can find more detail here on the background to change. You can find the Key Investor Information documents (KIIDs) which reflect the changes we’re making to Halifax funds.

Our changes

We are taking action and introducing the following changes:

  • We’re reducing the Annual Management Charge (AMC) in many of our Fund share classes from 19th April 2021
  • We’re also lowering the AMC for customers who have been invested in our older share classes on the 20th anniversary of when they first invested
  • We’re introducing some share classes which have a higher AMC for certain new contributions. No customer will have this higher charge applied to any of their current investment holdings and contributions.
View the 2019 Assessment of Value Report

Value Assessment Report video summary

Scottish Widows Investments Director Iain McGowan explains the key content of our report.

Contact us if you have any questions which aren’t answered here, please write to us at PO Box 24167, 69 Morrison Street, Edinburgh, EH3 1HF or call us on 0345 366 1513. We’re open from Monday to Friday between 8am and 6pm.

The letter we sent you listed the funds and share classes you were invested in. You should look at the Changes We’re Making booklet to see exactly what affect our changes will have on the share class and fund you’re invested in. If you have an ISA with us, please also read the Terms and Conditions.

Questions and answers

We regularly review our products and funds to ensure they provide good value.

This latest review led to us identifying a number of changes.

These changes are being implemented as quickly as possible and customers will see the benefits from 19th April 2021 onwards.

All funds and share classes have been reviewed and changes made where we considered it appropriate to provide better value. As a result, many share classes in our fund range will receive an immediate reduction to the AMC.

No share class is having its AMC increased and no customer will see an increase to charges on any of their current investments.

We have, however, ring-fenced some of our existing share classes. This means that new contributions need to meet certain eligibility criteria – most commonly, a requirement for total contributions made to be at least £75,000 - to continue to access those share classes. If the eligibility criteria are not met, new contributions would be invested in another share class which will have a higher AMC.

When customers invested into our older share classes, there was no initial charge applied. Instead, it was determined that our expenses – those incurred at point of sale – would be recovered over the lifetime of a customer’s investment.

Our review has concluded that all such charges would be recovered only after an investment has been held for 20 years – at this point, all of a customer’s older holdings will be converted to new, lower-priced equivalent share classes.

Reviews will take place annually and any outcomes that involve change will always be communicated, with advance notice, to any customer impacted.

We will always seek to offer the best value possible and that will be reflected in the lowest-possible charges for customers.