Changes to the European Equity Select Portfolio

As part of our ongoing governance, we regularly monitor and review the blend of funds within each of our Select Portfolios.

Following recommendations from Morningstar OBSR, we've made some changes to our European Equity Select Portfolio. On 5 August 2014, the Scottish Equitable Schroder European Alpha Plus (PDF - 181kb)(Opens new window) and Scottish Equitable Lazard European Alpha (PDF 181kb)(Opens new window) funds were removed from the portfolio.

In addition, the Scottish Equitable Henderson European Selected Opportunities (PDF 181kb)(Opens new window) has been added into the portfolio.

This means that, from 5 August 2014, weightings for new investment into the European Equity Select Portfolio are as follows:

Scottish Equitable fund name Weightings up to 5 August 2014 New Weightings from 5 August 2014 Morningstar OBSR rating*
European Equity Tracker 30.1% 30.1% Not rateable
Henderson Selected Opportunities 19.0% Silver
Schroder European Opportunities 16.6% 22.0% Bronze
Jupiter European Special Situations 15.6% 16.0% Silver
BlackRock European Dynamic** 13.0% 12.9%
Schroder European Alpha Plus 14.6% Bronze
Lazard European Alpha 10.0% Bronze

*Morningstar OBSR ratings are shown for the underlying funds and are correct as at 31 July 2014. Morningstar OBSR doesn't rate passive funds.

** Please note, the Scottish Equitable BlackRock European Dynamic is currently closed to new investment however is still held by the European Equity Select Portfolio.

Why did Morningstar OBSR recommend the change?

Morningstar OBSR gave the following explanation for its recommendations:

‘We are suggesting the removal of the Schroder European Alpha Plus fund following a manager change on the fund. We already have Steve Cordell in the portfolio and we do not wish to increase our exposure to the Schroder European team further. Additionally, we suggest the removal of the Lazard European Alpha fund. This has become a lower conviction holding. We have chosen to introduce the Henderson European Selected Opportunities fund into the Portfolio which is a fund used across our portfolios. Jon Bennett is an experienced manager who has established a good track record managing the European Selected Opportunities fund. He has an unconstrained approach and can take large sector bets in the fund but we think it is a good addition in a diversified fund blend. The Henderson European Opportunities fund has a Morningstar OBSR Analyst Rating of Silver.’

The additional disclosable yearly charges/expenses for the European Equity Select Portfolio will remain at 0.75%.

The additional disclosable yearly charges/expenses may change when funds are replaced, added or removed from the portfolios or weightings between funds are changed. We reserve the right to vary the additional charges/expenses at any time without prior notification.

The value of these investments can fall as well as rise for a number of reasons, for example market and currency movements. You may get back less than originally invested.