Client engagement process following a Matrix Fund change in July 2014
An adviser and client engagement process is currently being developed to ensure that the investment decisions made by the committee are communicated and actioned. The process will be based around the following categorisation supported by template letters and platform client lists:
Green - Fund is on watch from OBSR (e.g. a manager change and OBSR are shortly to schedule a meeting with the new manager before taking a strong view). Advisers to send letter to clients making them aware of the Matrix change. It remains approved for existing business but you would discuss with your client before any significant new business and at next client review meeting.
Amber - Fund been down rated and has been removed from the Matrix, or the fund risk profile has changed. Advisers to send letter to clients making them aware of the Matrix change Discuss at next client review meeting with a view to switching existing and future contributions. Speak to client earlier if significant new contributions scheduled before standard review meeting.
Red - Removed from Matrix due to a significant change to the fund, and urgent client review required (this will be rare)
1
Draft template letter (Amber case - due to fund down-rated and removed from Matrix)
Dear Mr. Sample
Important Change To The
M&G GLOBAL BASICS FUND
As part of my ongoing service to you, our Investment Governance Committee, with the support of external experts, regularly review and monitor a panel of accredited funds on your behalf.
This should give you confidence that we will help you make sound decisions throughout your investment journey. Regular financial advice is really important when it comes to choosing and maintaining appropriate investments for saving or planning for retirement.
An important change has taken place to the above fund in which you are invested, which I'd like to bring to your attention ahead of our next scheduled review meeting on xxxx
What has changed?
This fund has been removed from our panel of accredited funds. This means that we no longer recommend this fund for new investments.
What should you do next?
In light of this change to the fund in which you are currently invested, I suggest that we review your investment choices at your next review meeting. This may include a reassessment of your Risk Profile as well as considering if alternative options might be more suitable for you.
I also recommend that if you intend making any significant new investments before then, that you contact me on xxx before doing so.
Why has the view on this fund changed?
The fund in which you are invested has had a rating change. Following the departure of the fund manager in November 2013, and the appointment of a less experience fund manager, the fund was downgraded to 'neutral' by Morningstar OBSR (an expert fund research company). A 'neutral' rating means that, in their judgement, the fund is unlikely to deliver standout returns, but neither is it likely to seriously underperform relative to benchmark and/or peer group either.
Of course, past performance is not a guide to the future and you should be mindful that the value of your investment can go down as well as up, which may mean that in the pursuit of some growth you could get back less than the original amount invested.
I will contact you in XX to arrange our meeting. If you have any questions or wish to bring forward our review meeting then please contact me on xxx.
Yours sincerely
Mr. Adviser
Draft template letter (Amber case - due to a review of fund risk levels removed from Matrix)
Dear Mr. Sample
Important Change To The
THREADNEEDLE DEFENSIVE EQUITY & BOND FUND
As part of my ongoing service to you, our Investment Governance Committee, with the support of external experts, regularly review and monitor a panel of accredited funds on your behalf.
This should give you confidence that we will help you make sound decisions throughout your investment journey. Regular financial advice is really important when it comes to choosing and maintaining appropriate investments for saving or planning for retirement.
An important change has taken place to the above fund in which you are invested, which I'd like to bring to your attention ahead of our next scheduled review meeting on xxxx
What has changed?
This fund has been removed from our panel of accredited funds. This means that we no longer recommend this fund for new investments.
What should you do next?
In light of this change to the fund in which you are currently invested, I suggest that we review your investment choices at your next review meeting. This may include a reassessment of your Risk Profile as well as considering if alternative options might be more suitable for you.
I also recommend that if you intend making any significant new investments before then, that you contact me on xxx before doing so.
Why has the view on this fund changed?
The fund in which you are invested has had a risk level change, as assessed by Morningstar OBSR (an expert Fund research company). This is a “forward looking” assessment, so it means that in their view the fund may, in the future, be managed to a different risk level to that which you have experienced to date.
Of course, past performance is not a guide to the future and you should be mindful that the value of your investment can go down as well as up, which may mean that in the pursuit of some growth you could get back less than the original amount invested.
I will contact you in XX to arrange our meeting. If you have any questions or wish to bring forward our review meeting then please contact me on xxx.
Yours sincerely
Mr. Adviser
Draft template letter (Amber case - due to a review of fund risk levels removed from Matrix)
Dear Mr. Sample
Important Change To The
JUPITER MERLIN INCOME FUND
As part of my ongoing service to you, our Investment Governance Committee, with the support of external experts, regularly review and monitor a panel of accredited funds on your behalf.
This should give you confidence that we will help you make sound decisions throughout your investment journey. Regular financial advice is really important when it comes to choosing and maintaining appropriate investments for saving or planning for retirement.
An important change has taken place to the above fund in which you are invested, which I'd like to bring to your attention ahead of our next scheduled review meeting on xxxx
What has changed?
This fund has been removed from our panel of accredited funds. This means that we no longer recommend this fund for new investments; however, there is no urgent need to remove money from the fund.
What should you do next?
In light of this change to the fund in which you are currently invested, I suggest that we review your investment choices at your next review meeting. This may include a reassessment of your Risk Profile as well as considering if alternative options might be more suitable for you.
I also recommend that if you intend making any significant new investments before then, that you contact me on xxx before doing so.
Why has the view on this fund changed?
The fund in which you are invested has had a risk level change, as assessed by Morningstar OBSR (an expert Fund research company). This is a “forward looking” assessment, so it means that in their view the fund may, in the future, be managed to a different risk level to that which you have experienced to date.
Of course, past performance is not a guide to the future and you should be mindful that the value of your investment can go down as well as up, which may mean that in the pursuit of some growth you could get back less than the original amount invested.
I will contact you in XX to arrange our meeting. If you have any questions or wish to bring forward our review meeting then please contact me on xxx.
Yours sincerely
Mr. Adviser
Draft template letter (Amber case - due to a review of fund risk levels removed from Matrix)
Dear Mr. Sample
Important Change To The
7IM AAP MODERATELY ADVENTUROUS FUND
As part of my ongoing service to you, our Investment Governance Committee, with the support of external experts, regularly review and monitor a panel of accredited funds on your behalf.
This should give you confidence that we will help you make sound decisions throughout your investment journey. Regular financial advice is really important when it comes to choosing and maintaining appropriate investments for saving or planning for retirement.
An important change has taken place to the above fund in which you are invested, which I'd like to bring to your attention ahead of our next scheduled review meeting on xxxx
What has changed?
This fund has been removed from our panel of accredited funds. This means that we no longer recommend this fund for new investments; however, there is no urgent need to remove money from the fund.
What should you do next?
In light of this change to the fund in which you are currently invested, I suggest that we review your investment choices at your next review meeting. This may include a reassessment of your Risk Profile as well as considering if alternative options might be more suitable for you.
I also recommend that if you intend making any significant new investments before then, that you contact me on xxx before doing so.
Why has the view on this fund changed?
The fund in which you are invested has had a risk level change, as assessed by Morningstar OBSR (an expert Fund research company). This is a “forward looking” assessment, so it means that in their view the fund may, in the future, be managed to a different risk level to that which you have experienced to date.
Of course, past performance is not a guide to the future and you should be mindful that the value of your investment can go down as well as up, which may mean that in the pursuit of some growth you could get back less than the original amount invested.
I will contact you in XX to arrange our meeting. If you have any questions or wish to bring forward our review meeting then please contact me on xxx.
Yours sincerely
Mr. Adviser
Draft template letter (Amber case - due to a review of fund risk levels moved to a different risk category)
Dear Mr. Sample
Important Change To The
7IM AAP MODERATELY CAUTIOUS FUND
As part of my ongoing service to you, our Investment Governance Committee, with the support of external experts, regularly review and monitor a panel of accredited funds on your behalf.
This should give you confidence that we will help you make sound decisions throughout your investment journey. Regular financial advice is really important when it comes to choosing and maintaining appropriate investments for saving or planning for retirement.
An important change has taken place to the above fund in which you are invested, which I'd like to bring to your attention ahead of our next scheduled review meeting on xxxx
What has changed?
This fund has been moved to a different risk category. This means that we no longer recommend this fund for new investments for Conservative investors; however, there is no urgent need to remove money from the fund.
What should you do next?
In light of this change to the fund in which you are currently invested, I suggest that we review your investment choices at your next review meeting. This may include a reassessment of your Risk Profile as well as considering if alternative options might be more suitable for you.
I also recommend that if you intend making any significant new investments before then, that you contact me on xxx before doing so.
Why has the view on this fund changed?
The fund in which you are invested has had a risk level change, as assessed by Morningstar OBSR (an expert fund research company). This is a "forward looking" assessment, so it means that in their view the fund is no longer suited for a Conservative risk profile, and is now deemed suitable for clients who are of a Balanced Risk Profile.
Of course, past performance is not a guide to the future and you should be mindful that the value of your investment can go down as well as up, which may mean that in the pursuit of some growth you could get back less than the original amount invested.
I will contact you in XX to arrange our meeting. If you have any questions or wish to bring forward our review meeting then please contact me on xxx.
Yours sincerely
Mr. Adviser
Draft template letter (Amber case - due to a review of fund risk levels moved to a different risk category)
Dear Mr. Sample
Important Change To The
HENDERSON CAUTIOUS MANAGED FUND
As part of my ongoing service to you, our Investment Governance Committee, with the support of external experts, regularly review and monitor a panel of accredited funds on your behalf.
This should give you confidence that we will help you make sound decisions throughout your investment journey. Regular financial advice is really important when it comes to choosing and maintaining appropriate investments for saving or planning for retirement.
An important change has taken place to the above fund in which you are invested, which I'd like to bring to your attention ahead of our next scheduled review meeting on xxxx