Shareholder notice on multi-asset portfolios

Direct investors only - please disregard if you have invested through a financial adviser or investment platform

We are writing to notify you of changes to certain share classes issued by the above-named sub-funds of the company which are set out in this letter. We received confirmation from the Financial Conduct Authority (FCA) on 19 June 2019 that the changes we propose do not impact the ongoing authorisation of the company. The changes will be effective from 13 September 2019.
 

Conversion of share classes

We have reviewed the existing shares classes of the sub-funds listed above which are available to investors. We have decided that it is in the best interests of investors in certain share classes to convert their holdings to share classes in the same sub-fund, and of the same type (i.e. income or accumulation, as applicable) but with a lower annual management charge.

We intend to do this by moving your investment from our ‘R’ (retail) share class to our ‘S’ (Super –Clean) share class.

This letter sets out the changes to the share classes we intend to effect and your rights as a shareholder. We have amended the Prospectus to allow us to undertake mandatory conversions where we consider this to be in the best interest of shareholders. It is our understanding that there will be no tax implications on the conversion of certain investors’ holdings in the R-Class to the S-Class.

To help show you how the costs of the new shares compare with your current ones, we have put together the below tables. AMC stands for annual management charge; it is the fixed annual amount we charge for managing your sub-funds. The total amount you pay each year is higher than this AMC because there are other, variable costs (mainly trading costs and taxes) that are paid to third parties. Combined with the AMC, these variable costs make up the ongoing charges figure (OCF), a standardised way to judge the cost of one fund against another. We have included the latest OCF for your current share class being the ‘R-Class’ and for the ‘S-Class’ shares as a guide to what the total cost of your investment will look like after the conversion.

 

Your current total costs are:

Sub-fund

R-Class AMC

 

Other charges

 

Total OCF

Rathbone Multi-Asset Enhanced Growth Portfolio^

1.50%

+

0.25%

=

1.75%

Rathbone Multi-Asset Strategic Growth Portfolio^

1.50%

+

0.16%

=

1.66%

Rathbone Multi-Asset Total Return Portfolio^

1.50%

+

0.10%

=

1.60%

OCF for accumulation shares. OCF calculation date: ^30.09.18. The OCF includes the charges for the underlying funds held in the product.
 

Your new total costs will be:

Sub-fund

S-Class AMC

 

Other charges

 

Total OCF

Rathbone Multi-Asset Enhanced Growth Portfolio^

0.50%

+

0.25%

=

0.75%

Rathbone Multi-Asset Strategic Growth Portfolio^

0.50%

+

0.16%

=

0.66%

Rathbone Multi-Asset Total Return Portfolio^

0.50%

+

0.10%

=

0.60%

OCF for accumulation shares. OCF calculation date: ^30.09.18. The OCF includes the charges for the underlying funds held in the product.

Full information regarding the rights and charges attaching to all shares classes can be found in the Company’s Prospectus.

 

Your options

We are required to give you notice of the changes, and this letter forms this notice. You are not required to take any action as a result of this letter. Your holdings in the R-Class in the above-mentioned sub-funds will be automatically converted to the S-Class in the same sub-fund as set out in the table above with effect from 13 September 2019. 

If you do not wish for your R-Class shares to be transferred to S-Class shares, you are reminded that you have the right to redeem your shares by making a request to redeem, or alternatively please inform us if you do not wish to have your holdings converted. This information must be received by 17:00 on 30 August 2019.

As ever, if you would like more information or further clarification please give us a call on 020 7399 0399 or email us at rutm@rathbones.com. We are happy to help.

 

Kind Regards

Mike Webb, Chief Executive Officer
Rathbone Unit Trust Management Limited