coutts managed funds

• We are reducing the amount of UK equity we hold within the Fund and moving to a more global approach.
• We currently screen equities from a responsible investing perspective, we will now also be doing this on investment grade bonds.

Moving to a global approach

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.

Introduction of screening on investment grade bonds

When investing in equities 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 bond part of the benchmark.

Nothing. While these changes are important, there’s no action for you to take.

The changes will become effective on the following dates:

RBS Investment Funds ICVC Prospectus

The changes to the benchmark are shown in bold and underlined.

‘Weight’ means the percentage (%) of the Fund’s benchmark allocated to each asset class.

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 10.00% to 1.00%.

Transaction costs

The associated transaction costs will depend on market conditions at the time of the repositioning, and will be reflected in your annual costs and charges reporting.  Based on current market conditions, such costs are estimated to be 0.01% of the net asset value of the Fund.

Effective Date

The changes will become effective on 25 June 2024 (the “Effective Date”).

The changes to the benchmark are shown in bold and underlined.

‘Weight’ means the percentage (%) of the Fund’s benchmark allocated to each asset class.

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 16.00% to 1.40%.

Transaction costs

The associated transaction costs will depend on market conditions at the time of the repositioning, and will be reflected in your annual costs and charges reporting.  Based on current market conditions, such costs are estimated to be 0.02% of the net asset value of the Fund.

Effective Date

The changes will become effective on 25 June 2024 (the “Effective Date”).

The changes to the benchmark are shown in bold and underlined.

‘Weight’ means the percentage (%) of the Fund’s benchmark allocated to each asset class. 

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 22.00% to 1.90%.

Transaction costs

The associated transaction costs will depend on market conditions at the time of the repositioning, and will be reflected in your annual costs and charges reporting.  Based on current market conditions, such costs are estimated to be 0.03% of the net asset value of the Fund.

Effective Date

The changes will become effective on 26 June 2024 (the “Effective Date”).

The changes to the benchmark are shown in bold and underlined.

‘Weight’ means the percentage (%) of the Fund’s benchmark allocated to each asset class.  

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 30.00% to 2.60%.

Transaction costs

The associated transaction costs will depend on market conditions at the time of the repositioning, and will be reflected in your annual costs and charges reporting.  Based on current market conditions, such costs are estimated to be 0.04% of the net asset value of the Fund.

Effective Date

The changes will become effective on 28 June 2024 (the “Effective Date”).

The changes to the benchmark are shown in bold and underlined.

‘Weight’ means the percentage (%) of the Fund’s benchmark allocated to each asset class.  

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 36.00% to 3.20%.

Transaction costs

The associated transaction costs will depend on market conditions at the time of the repositioning, and will be reflected in your annual costs and charges reporting.  Based on current market conditions, such costs are estimated to be 0.05% of the net asset value of the Fund.

Effective Date

The changes will become effective on 25 June 2024 (the “Effective Date”).

The changes to the benchmark are shown in bold and underlined.

‘Weight’ means the percentage (%) of the Fund’s benchmark allocated to each asset class.  

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 40.00% to 3.50%.

Transaction costs

The associated transaction costs will depend on market conditions at the time of the repositioning, and will be reflected in your annual costs and charges reporting.  Based on current market conditions, such costs are estimated to be 0.05% of the net asset value of the Fund.

Effective Date

The changes will become effective on 25 June 2024 (the “Effective Date”).

No. The changes will not result in you having to pay Capital Gains Tax (CGT).

The changes to the benchmark are shown in bold and underlined.

‘Weight’ means the percentage (%) of the Fund’s benchmark allocated to each asset class. 

Effective Date

The changes will become effective on 1 July 2024 (the “Effective Date”).

The changes to the benchmark are shown in bold and underlined.

‘Weight’ means the percentage (%) of the Fund’s benchmark allocated to each asset class. 

Effective Date

The changes will become effective on 1 July 2024 (the “Effective Date”).

The changes to the benchmark are shown in bold and underlined.

‘Weight’ means the percentage (%) of the Fund’s benchmark allocated to each asset class. 

Effective Date

The changes will become effective on 1 July 2024 (the “Effective Date”).

To implement these changes we need to sell some existing investments and buy some new ones. We call this ‘repositioning’. Any associated transaction costs (brokerage, transaction taxes and commission) will be deducted from the value of the Fund. The percentage of the Fund’s portfolio being repositioned and estimated transaction costs are set out in the “Changes in Detail” section.

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 £1 and £5.  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. 

There will be no change to the stated risk profile of the Fund as a result of these changes.

No.  The Funds will be managed by the same expert team at Coutts, the investment manager of the Funds.

Yes. The amount of UK shares the Funds invest in will reduce and will be replaced by global shares.

No. The changes will not result in you having to pay Capital Gains Tax (CGT).

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.

No. The change will be managed by Coutts as investment manager to the Funds.

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. It is important to note that the sale of any portion of the Fund holding could trigger a potential Capital Gains Tax liability.

Yes, you will.

As at 29th February 2024, the regional exposure of the MSCI All Countries World Index ESG Screened Select Index is: 

You can find more information on our responsible investing policy and exclusions policy and in the Fund’s prospectus.