Changes to the North American Equity Select Portfolio

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

As part of our ongoing governance, along with independent research consultant Morningstar OBSR, we regular monitor and review the blend of funds within each Select Portfolio.

As part of this governance, we’ve made some changes to our North American Equity Select Portfolio (PDF - 181kb)(Opens new window). From 13 May 2014, the Scottish Equitable M&G American fund (PDF - 181kb)(Opens new window) will be removed from the portfolio.

This means that, from 13 May 2014, weightings for new investment into the North American Equity Select Portfolio will be as follows:

Scottish Equitable fund name Existing weightings up to 13 May 2014 (%) New weightings from 13 May 2014 (%) Morningstar OBSR rating*
J.P. Morgan US Equity 17.5% 22% Silver
Schroder US Mid Cap 20% 21% Gold
M&G American 15% - Neutral
AXA Framlington American Growth 15% 17% Bronze
North American Tracker 32.5% 40% Not rateable

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

Why did Morningstar OBSR recommend the change?

Following Morningstar OBSR's Analyst Ratings Meeting on 13 March 2014, they recommended that the M&G American fund, which is the underlying fund to the Scottish Equitable M&G American fund, be downgraded from a Bronze rating to Neutral.

At the time Morningstar OBSR said:

‘We are concerned that stock selection has been weaker over recent years and the fund’s return profile has been more volatile than we would have expected. There have also been more changes in the team than we would ideally like to see. Consequently we believe it is prudent to lower the fund’s rating to Neutral reflecting the reduction in our overall conviction.'

Following this, Morningstar OBSR has now recommended the removal of the fund from the North American Equity Select Portfolio.

The additional disclosable yearly charges/expenses for the North American Equity Select Portfolio will remain 0.70%.

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.

If you would like us to inform you about changes to this fund, or any of our funds or fund ranges you can sign-up for our monthly email alert service.