Schroder have made some changes to the Schroder Global Climate Change Fund and the Schroder Corporate Bond Fund.
We link to these funds through the CM Schroder Global Climate Change life and pension funds and the CM Schroder
Corporate Bond life and pension funds.
CM Schroder Global Climate Change funds
A Schroder shareholder meeting on 18 September 2014 approved the merger of the Schroder Global Climate Change Fund into the Schroder QEP Global Core Fund.
The Schroder Global Climate Change Fund focussed on companies which benefit from efforts to accommodate or limit the impact of global climate change. The Schroder QEP Global Core Fund has no bias to any particular industry or sector and does not focus specifically on global climate change matters when investing. Instead it invests in a diversified portfolio of shares listed on global equity markets.
We have updated the CM Schroder Global Climate Change life and pension funds’ aim and the accompanying fund risks to reflect the changes to the underlying Schroder fund. The name of the CM Schroder Global Climate Change life and pension funds will be updated at a later date.
We are writing to all customers and trustees who are invested in these CM funds, and we’ll be writing to their attached agents as soon as we can thereafter.
The Annual Management Charge (AMC) for the relevant CM life and pension funds will be reduced as follows:
- CM Schroder Global Climate Change Life Fund – AMC reduces from 1.95% to 1.55%.
- CM Schroder Global Climate Change Pension Fund – AMC reduces from 1.95% to 1.55%.
To reflect the way the new merged fund is invested, we are changing the CM Schroder Global Climate Change funds’ aims as follows:
Previous CM Schroder Global Climate Change Fund aim:
The fund’s investment objective is to provide capital growth primarily through investment in equities and securities of worldwide issuers which will benefit from efforts to accommodate or limit the impact of global climate change. Investment will be primarily in directly held transferable securities. The Fund may also invest in collective investment schemes, cash, deposits, derivatives, warrants and money market instruments.
New CM Schroder Global Climate Change Fund aim:
Schroder describe their fund’s aim as follows: the Fund’s investment objective is to achieve the optimum overall return of capital and income in sterling terms through flexible global investment management. The Fund will invest internationally in equities quoted on recognised stock exchanges. The Fund may also invest in a wide range of investments including transferable securities, collective investment schemes, warrants and money market instruments.
We have now added a new fund risk to reflect the changes made by Schroder. In addition to the risks already identified for these funds, we have added our Derivatives (DV) risk. The full list of relevant investment risks is now as follows:
This fund uses derivatives and forward transactions for specific investment purposes, as well as for hedging and other efficient portfolio management purposes. Their use may lead to higher volatility.
EM (Emerging Markets):
This fund invests in emerging markets so might invest in stockmarkets which are generally less well regulated than those in the UK. This may result in a greater risk that the value of the units might go down. The investments in these markets might also be bought and sold infrequently therefore resulting in large changes in their prices.
This fund invests in company shares (often referred to as ‘equities’). Investing in company shares generally has the potential for higher capital growth over the longer term than investing in say, corporate bonds and other fixed interest securities. However there might be considerable fluctuations in equity prices and there is a greater risk that the value of the investment will fall.
Exchange rate changes might cause the value of any overseas investment to go up or down.
SC (Smaller Companies):
This fund invests in smaller companies whose shares tend to be bought and sold less frequently than larger companies. There may be large changes in the prices of their shares and their value could fall by large amounts. The price variations of smaller companies might be greater than those of large companies.
CM Schroder Corporate Bond funds
The Schroder Corporate Bond Fund is being merged into the Schroder UK Corporate Bond Fund (formerly the Cazenove UK Corporate Bond Fund) from 27 September 2014. This also received approval at a shareholder meeting on 18 September 2014.
The two merging Schroder funds are very similar in investment style and risk profile. This merger has no impact on the CM Schroder Corporate Bond life and pension funds. We are not changing our fund aims, risks or charges.