CGNU is rationalising its retail investment fund range, following the merger of Norwich Union and CG...
CGNU is rationalising its retail investment fund range, following the merger of Norwich Union and CGU, reducing its range from 47 funds down to 30, says Ruth Alexander in Investment Week.
The group is rolling in 17 unit trusts which are under the CGU PPT banner into the existing Norwich Union Oeic. It is also moving 10 GA unit trusts into the Oeic at the same time.
In many cases, either the initial or annual management fees will be reduced. In no case will fund charges be increased. Many of the Norwich Union Oeic subfunds have a 0% or a 4% initial charge.
The initial charge on PPT UK Growth, PPT UK & General, PPT Europe Growth, PPT Equity Income, PPT Managed, and PPT Homemaker are all 4%.
The annual management charge on PPT UK Growth and PPT Europe Growth will fall from 1.25% to 1% when they merge into Norwich UK Growth and Norwich European Equity, respectively.
On the PPT Japan Growth, the PPT North America Growth and the PPT Far Eastern Growth, that charge will be reduced to 1.25% when they merge into their respective funds: Norwich Japan Growth, Norwich US Growth, and Norwich Oriental Growth.
Five of the PPT funds will be simply renamed in the CGNU Oeic as no equivalent Norwich fund exists. PPT High Yield will become Norwich UK Income Opportunities, PPT Global Success will be renamed Norwich Global Success, PPT Monthly Income Plus will become Norwich Monthly Income Plus, while PPT UK Index Tracking will be named Norwich Blue Chip Tracking.
The GA Gonda fund will also only undergo a re-naming, when it becomes the Norwich Income & Growth Oeic subfund.
Once investors are within the Oeic umbrella they will be able to switch between sub-funds free of charge, if this is between sub-funds with the same prevailing charge.
The Norwich UK Ethical, UK Index Tracking, UK Corporate Bond, Higher Income Plus, and Property Trust Oeic sub-funds will also be unchanged by the rationalisation process.
The group will ask its unit holders and shareholders to vote on the rationalisation, and if their approval is gained, the procedure will be completed by 27 May. Subsequent Isa subscriptions will be subject to a minimum of £250, rather than the current £100.
If an investor wishes to start regular monthly subscriptions, the minimum will be £50 rather than £250 as at present. For switching and withdrawal, the minimum residual amount for any one fund will be raised to £500, not the current £250.
As far as the switching and withdrawal of Peps are concerned, the minimum residual amount for any one fund will be raised from £250 to £500.
The six NU socially responsible funds, in the NU Sustainable Futures Oeic will remain unchanged as will the NU Master Trust, an internal fund of funds unit trust.
No preferred charging model
To 1,552 families and businesses
HL and Liberty SIPP slowest
Lifetime and annual allowances