pERSONAL PORTFOLIO FUNDS – We’re making some changes
WHAT'S CHANGING?
- We’re reducing the amount of UK shares and UK investment grade bonds we hold within the Fund(s) and moving to a more global approach.
- We will start screening investment grade bonds in line with our responsible investing policy.
Why are these changes being made?
The Funds currently invest in shares and bonds from all over the world, however to date have favoured those in the UK. The Funds will now invest more outside of the UK, which we, as investment manager, believe should help improve your long-term returns.
We believe that moving to a global approach for the Fund means investors will benefit from increased diversification. This applies both to regional and currency exposure, increasing global investment opportunities for the investment manager. Being global will also provide a reduction in the underlying future transaction costs which will be reflected in the performance of the underlying assets.
When investing in shares, we aim to apply a screening process to reduce the Fund’s exposure to companies that are not aligned with our responsible investing policy or long-term climate commitments. We’ll now also apply this approach to the investment grade bonds.
What you need to do
Nothing. While these changes are important, there’s nothing you need to do.
When do the changes happen?
The changes will become effective on the following dates:
Fund |
Effective Date |
Personal Portfolio Defensive Fund |
3 July 2024 |
Personal Portfolio Cautious Fund |
3 July 2024 |
Personal Portfolio Balanced Fund |
3 July 2024 |
Personal Portfolio Ambitious Fund |
2 July 2024 |
Personal Portfolio Adventurous Fund |
2 July 2024 |
Fund information
Changes in detail
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Personal Portfolio Defensive Fund
The changes are shown in bold and underlined.
‘Weight’ means the percentage (%) of the Fund’s benchmark allocated to each asset class.
Current New Asset Class Current benchmark for asset class Weight Asset class New benchmark for asset class Weight Liquid Assets and Cash SONIA (Sterling Overnight Index Average) 2.00% Liquid Assets and Cash SONIA (Sterling Overnight Index Average) 2.00% Government Bonds Bloomberg Global G7 Total Return Index Value Hedged (GBP) 46.00% Government Bonds Bloomberg Global G7 Total Return Index Value Hedged (GBP) 46.00% Investment Grade Corporate Bonds Bloomberg Sterling Non-Gilts (GBP) 26.00% Investment Grade Corporate Bonds Bloomberg MSCI Global Aggregate Credit SRI Select Total Return Index Value Hedged (GBP) 26.00% High Yield Bonds Bloomberg Global High Yield Hedged (GBP) 5.00% High Yield Bonds Bloomberg Global High Yield Hedged (GBP) 5.00% Global Emerging Markets Debt Bloomberg EM Hard Currency Aggregate Sovereign Hedged (GBP) 1.00% Global Emerging Markets Debt Bloomberg EM Hard Currency Aggregate Sovereign Hedged (GBP) 1.00% UK shares MSCI United Kingdom ESG Screened Select Index (GBP) 6.50% Global shares MSCI All Countries World Index ESG Screened Select Index (GBP)
Based on the current weighting of the UK in the MSCI All Countries World Index ESG Screened Select Index (GBP), the new proportion of UK shares held will reduce from 6.50% to 0.70%.
20.00% US shares MSCI USA ESG Screened Select Index (GBP) 9.50% Europe shares MSCI Europe ex UK ESG Screened Select Index (GBP) 2.00% Japan shares MSCI Japan ESG Screened Select Index (GBP) 1.00% Pacific Basin shares MSCI Pacific Ex Japan ESG Screened Select Index (GBP) 0.50% Global Emerging Markets shares MSCI Emerging Markets ESG Screened Select Index (GBP) 0.50% The overall benchmark allocation to investment grade bonds is not changing except going forward the proportion of sterling bonds will reduce in favour of a broader range of geographical regions and associated currency exposure.
Transaction costs
These will depend on market conditions at the time the fund manager makes the changes and will be reflected in your annual Investment report. Based on current market conditions, these are estimated to be 0.14% of the net asset value of the Fund.
Effective Date
The changes will become effective on 3 July 2024.
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Personal Portfolio Cautious Fund
The changes are shown in bold and underlined.
‘Weight’ means the percentage (%) of the Fund’s benchmark allocated to each asset class.
Current New Asset Class Current benchmark for asset class Weight Asset class New benchmark for asset class Weight Liquid Assets and Cash SONIA (Sterling Overnight Index Average) 2.00% Liquid Assets and Cash SONIA (Sterling Overnight Index Average) 2.00% Government Bonds Bloomberg Global G7 Total Return Index Value Hedged (GBP) 31.50% Government Bonds Bloomberg Global G7 Total Return Index Value Hedged (GBP) 31.50% Investment Grade Corporate Bonds Bloomberg Sterling Non-Gilts (GBP) 19.50% Investment Grade Corporate Bonds Bloomberg MSCI Global Aggregate Credit SRI Select Total Return Index Value Hedged (GBP) 19.50% High Yield Bonds Bloomberg Global High Yield Hedged (GBP) 5.00% High Yield Bonds Bloomberg Global High Yield Hedged (GBP) 5.00% Global Emerging Markets Debt Bloomberg EM Hard Currency Aggregate Sovereign Hedged (GBP) 2.00% Global Emerging Markets Debt Bloomberg EM Hard Currency Aggregate Sovereign Hedged (GBP) 2.00% UK shares MSCI United Kingdom ESG Screened Select Index (GBP) 13.50% Global shares MSCI All Countries World Index ESG Screened Select Index (GBP)
Based on the current weighting of the UK in the MSCI All Countries World Index ESG Screened Select Index (GBP), the new proportion of UK equity held within the benchmark will reduce from 13.50% to 1.40%.
40.00% US shares MSCI USA ESG Screened Select Index (GBP) 15.00% Europe shares MSCI Europe ex UK ESG Screened Select Index (GBP) 4.50% Japan shares MSCI Japan ESG Screened Select Index (GBP) 2.00% Pacific Basin shares MSCI Pacific Ex Japan ESG Screened Select Index (GBP) 1.00% Global Emerging Markets shares MSCI Emerging Markets ESG Screened Select Index (GBP)
4.00% The overall benchmark allocation to investment grade bonds is not changing except going forward the proportion of sterling bonds will reduce in favour of a broader range of geographical regions and associated currency exposure.
Transaction costs
These will depend on market conditions at the time the fund manager makes the changes and will be reflected in your annual Investment report. Based on current market conditions, these are estimated to be 0.11% of the net asset value of the Fund.
Effective Date
The changes will become effective on 3 July 2024.
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Personal Portfolio Balanced Fund
The changes are shown in bold and underlined.
‘Weight’ means the percentage (%) of the Fund’s benchmark allocated to each asset class.
Current New Asset Class Current benchmark for asset class Weight Asset class New benchmark for asset class Weight Liquid Assets and Cash SONIA (Sterling Overnight Index Average) 2.00% Liquid Assets and Cash SONIA (Sterling Overnight Index Average) 2.00% Government Bonds Bloomberg Global G7 Total Return Index Value Hedged (GBP) 21.50% Government Bonds Bloomberg Global G7 Total Return Index Value Hedged (GBP) 21.50% Investment Grade Corporate Bonds Bloomberg Sterling Non-Gilts (GBP) 14.50% Investment Grade Corporate Bonds Bloomberg MSCI Global Aggregate Credit SRI Select Total Return Index Value Hedged (GBP) 14.50% High Yield Bonds Bloomberg Global High Yield Hedged (GBP) 5.00% High Yield Bonds Bloomberg Global High Yield Hedged (GBP) 5.00% Global Emerging Markets Debt Bloomberg EM Hard Currency Aggregate Sovereign Hedged (GBP) 2.00% Global Emerging Markets Debt Bloomberg EM Hard Currency Aggregate Sovereign Hedged (GBP) 2.00% UK shares MSCI United Kingdom ESG Screened Select Index (GBP) 18.50% Global shares MSCI All Countries World Index ESG Screened Select Index (GBP)
Based on the current weighting of the UK in the MSCI All Countries World Index ESG Screened Select Index (GBP), the new proportion of UK equity held within the benchmark will reduce from 18.50% to 1.90%.
55.00% US shares MSCI USA ESG Screened Select Index (GBP) 19.50% Europe shares MSCI Europe ex UK ESG Screened Select Index (GBP) 5.00% Japan shares MSCI Japan ESG Screened Select Index (GBP) 3.00% Pacific Basin shares MSCI Pacific Ex Japan ESG Screened Select Index (GBP) 1.00% Global Emerging Markets shares MSCI Emerging Markets ESG Screened Select Index (GBP) 8.00% The overall benchmark allocation to investment grade bonds is not changing except going forward the proportion of sterling bonds will reduce in favour of a broader range of geographical regions and associated currency exposure.
Transaction costs
These will depend on market conditions at the time the fund manager makes the changes and will be reflected in your annual Investment report. Based on current market conditions, these are estimated to be 0.09% of the net asset value of the Fund.
Effective Date
The changes will become effective on 3 July 2024 .
-
Personal Portfolio Ambitious Fund
The changes are shown in bold and underlined.
‘Weight’ means the percentage (%) of the Fund’s benchmark allocated to each asset class.
Current New Asset Class Current benchmark for asset class Weight Asset class New benchmark for asset class Weight Liquid Assets and Cash SONIA (Sterling Overnight Index Average) 2.00% Liquid Assets and Cash SONIA (Sterling Overnight Index Average) 2.00% Government Bonds Bloomberg Global G7 Total Return Index Value Hedged (GBP) 8.50% Government Bonds Bloomberg Global G7 Total Return Index Value Hedged (GBP) 8.50% Investment Grade Corporate Bonds Bloomberg Sterling Non-Gilts (GBP) 7.50% Investment Grade Corporate Bonds Bloomberg MSCI Global Aggregate Credit SRI Select Total Return Index Value Hedged (GBP) 7.50% High Yield Bonds Bloomberg Global High Yield Hedged (GBP) 4.00% High Yield Bonds Bloomberg Global High Yield Hedged (GBP) 4.00% Global Emerging Markets Debt Bloomberg EM Hard Currency Aggregate Sovereign Hedged (GBP) 3.00% Global Emerging Markets Debt Bloomberg EM Hard Currency Aggregate Sovereign Hedged (GBP) 3.00% UK shares MSCI United Kingdom ESG Screened Select Index (GBP) 25.50% Global shares MSCI All Countries World Index ESG Screened Select Index (GBP)
Based on the current weighting of the UK in the MSCI All Countries World Index ESG Screened Select Index (GBP), the new proportion of UK equity held within the benchmark will reduce from 25.50% to 2.60%.
75.00% US shares MSCI USA ESG Screened Select Index (GBP) 26.50% Europe shares MSCI Europe ex UK ESG Screened Select Index (GBP) 7.00% Japan shares MSCI Japan ESG Screened Select Index (GBP) 3.50% Pacific Basin shares MSCI Pacific Ex Japan ESG Screened Select Index (GBP) 1.50% Global Emerging Markets shares MSCI Emerging Markets ESG Screened Select Index (GBP)
11.00% The overall benchmark allocation to investment grade bonds is not changing except going forward the proportion of sterling bonds will reduce in favour of a broader range of geographical regions and associated currency exposure.
Transaction costs
These will depend on market conditions at the time the fund manager makes the changes and will be reflected in your annual Investment report. Based on current market conditions, these are estimated to be 0.06% of the net asset value of the Fund.
Effective Date
The changes will become effective on 2 July 2024.
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Personal Portfolio Adventurous Fund
The changes are shown in bold and underlined.
‘Weight’ means the percentage (%) of the Fund’s benchmark allocated to each asset class.
Current New Asset Class Current benchmark for asset class Weight Asset class New benchmark for asset class Weight Liquid Assets and Cash SONIA (Sterling Overnight Index Average) 2.00% Liquid Assets and Cash SONIA (Sterling Overnight Index Average) 2.00% UK shares MSCI United Kingdom ESG Screened Select Index (GBP) 33.00% Global shares MSCI All Countries World Index ESG Screened Select Index (GBP)
Based on the current weighting of the UK in the MSCI All Countries World Index ESG Screened Select Index (GBP), the new proportion of UK equity held within the benchmark will reduce from 33% to 3.5%.
98.00% US shares MSCI USA ESG Screened Select Index (GBP) 34.00% Europe shares MSCI Europe ex UK ESG Screened Select Index (GBP) 9.00% Japan shares MSCI Japan ESG Screened Select Index (GBP) 5.00% Pacific Basin shares MSCI Pacific Ex Japan ESG Screened Select Index (GBP) 2.00% Global Emerging Markets shares MSCI Emerging Markets ESG Screened Select Index (GBP)
15.00% Transaction costs
These will depend on market conditions at the time the fund manager makes the changes and will be reflected in your annual Investment report. Based on current market conditions, these are estimated to be 0.03% of the net asset value of the Fund.
Effective Date
The changes will become effective on 2 July 2024.
FREQUENTLY ASKED QUESTIONS
Got a question? Our FAQs might have the answer.
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Will there be a change in who’s managing my money?
No. The Funds will be managed by the same expert team at Coutts, the investment manager of the Funds.
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Will I see a change in how my money is invested?
Yes. The amount of UK shares (and bonds, where relevant) the Funds invest in will reduce and will be replaced by global shares (and bonds, where relevant).
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Will there be any cost to me?
Yes. To make these changes we need to sell some existing investments and buy some new ones. Any associated transaction costs (brokerage, transaction taxes and commission) will be deducted from the value of the Fund.
We can’t confirm what these exact costs will be. However, we can give you an estimate. Based on an investment of £10,000, the extra one off cost would be between £3 and £14. The actual cost would depend on the fund in which you’re invested.
All legal, advisory, and administrative costs and expenses associated with implementing these changes will be met by us and not by the Fund.
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Will I have any tax to pay as a result of the changes?
No. The changes will not result in you having to pay Capital Gains Tax (CGT).
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Will there be a transition period?
No. Each Fund will become fully managed to the new benchmark on the same day as the Effective Date as set out in the “When do the changes happen” section above.
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What is the impact on the risk profile of the Funds?
There will be no change to the risk profile of the Funds. This is because no changes are being made to the overall amount being invested in shares or bonds.
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Is there anything I need to do?
No. The change will be managed by Coutts as investment manager to the Funds.
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What can I do if I don’t want these changes made to my investment?
Changes will be made on the dates outlined in the section “When do the changes happen?”. You can withdraw your money and/or transfer it to another provider at any time. You’ll need to withdraw and/or have transferred it to another provider before the benchmark change happens for the Fund you hold (either 2nd or 3rd July). It is important to note that the sale of any portion of the Fund holding could trigger a potential Capital Gains Tax liability.
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After the changes will I hold the same number of units?
Yes.
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What is the regional exposure of the MSCI All Countries World Index ESG Screened Select Index?
As at 29th February 2024, the regional exposure of the MSCI All Countries World Index ESG Screened Select Index is:
North America 65% Europe ex UK 13% UK 3% Emerging Markets 10% Pacific Basin 3% Japan 6% -
Where can I find more information on the responsible investing policy and exclusions policy?
You can find more information on our responsible investing policy and exclusions policy on the Coutts website and in the Fund’s prospectus.
SPEAK TO OUR TEAM
If you'd prefer to speak to us, you can call the Help and Support team on 020 7770 0000. Our lines are open Monday to Friday, from 9.30am to 5.00pm. We're closed Bank Holidays. All calls with Coutts are recorded for training and monitoring purposes.
