Closure of the Scottish Equitable Henderson Japan Capital Growth fund

On the 1 April 2015, we closed the Scottish Equitable Henderson Japan Capital Growth fund and transferred all existing investors into the Japanese Equity Select Portfolio.

We’ve written to all those affected to tell them about this closure.

Why have we closed the fund?

We constantly review the funds in our range to ensure they continue to meet their long term objectives.

There are several reasons why we’ve closed the fund:

  • Henderson changed the manager of the fund, the benchmark and the investment objective.
  • It also changed what the fund can invest in to include smaller companies, which can be riskier.
  • The performance of the fund has been disappointing, as is reflected in its recent downgrade by Morningstar OBSR.

The combination of these factors meant we had less confidence that this fund would continue to meet the needs of our investors.

Why the Japanese Equity Select Portfolio?

We chose this fund as an alternative because it’s similar to Scottish Equitable Henderson Japan Capital Growth fund in terms of its risk, objectives and what it invests in.

The Japanese Equity Select Portfolio(Opens new window) is a multi-manager portfolio. It aims to provide long-term growth by investing in a number of high-quality Japanese equity funds from different managers, as recommended by independent researchers Morningstar OBSR.

How does this affect investors?

New investors will not be able to invest in the Scottish Equitable Henderson Japan Capital Growth fund and no new contributions from existing investors can be made into the fund.

For existing investors, we automatically transferred their existing investment and any future contributions, into the Japanese Equity Select Portfolio on 1 April 2015. The fund charge reduced from 1.00% to 0.75%. We’ve written to them to tell them and to give them the option to transfer into another fund of their choice if they want to.