What are funds and why are they important?
Funds allow you to choose how and where your money is invested. Some funds invest in shares, others in property or other types of assets.
The amount you get from your Sterling bond will depend upon the performance of the funds your bond is invested in. It is important that you choose funds that are right for your circumstances, investment objectives and attitude to risk. Over time these may change, so it is important to regularly review your fund choices. We do not charge you for changing your fund choices.
For a detailed look at all the funds available through us, and some additional information and tools that you may find useful, please scroll down to the Fund factsheets sections below.
Find out more about investing in funds
If you don't feel comfortable choosing funds that are right for you then you should consider contacting your adviser. If you don't have one you can find one near you by visiting www.unbiased.co.uk and reading reviews of financial advisers by visiting www.vouchedfor.co.uk. You may have to pay for any advice you receive.
Property Fund changes
We’ve updated the investment objectives of the Zurich-managed Property funds to allow them to invest in residential property and hotels. This is to adapt the fund to changes in the way we live with more people working from home and shopping on-line as the population grows and ages. This helps spread the risk that any individual asset class may adversely impact the fund.
Funds in Suspension or Wind Up
Russian/Ukraine conflict
As a result of the conflict in Ukraine, and the sanctions imposed by the UK, US and European Union (amongst others), it is not currently possible for fund managers to trade (buy or sell) any Russian investments.
This led to the suspension of the Sterling JPM Emerging Europe Equity funds in March 2022.
Subsequently, where it has been possible to do so, investors holdings in these funds have been switched to an alternative fund. The funds chosen were defined in customers product terms and conditions. However, they invest in different assets and offer different potential risks and returns to those of the suspended fund.
We’ve written to all affected customers confirming the changes which have taken place. We’ll write again when there is a significant change or update to the fund.
If you invested in a Sterling JPM Emerging Europe Equity fund at the time it was suspended, you’ll be affected by these changes. We recommend you review your existing fund holdings to ensure they still meet your investment needs.
If you want to invest in different funds, you’ll need to send us your instructions by completing a Fund Switch form. You can return the completed form in the post or email by attaching a scan or photograph of the signed form using the contact details on the letter.
Wind Ups
When a fund enters wind up, it’s not possible to buy or sell units in the Sterling fund (or the underlying fund it invests in). During a wind up, the fund manager will sell the remaining investments in the fund and distribute the proceeds of these sales to customers. The wind up process may take some time to complete and customers will be updated each time sales proceeds are made available in their bond, normally by way of a switch confirmation.
A list of funds that are in a wind up phase is as follows:
- Sterling Woodford Equity Income
- Sterling Woodford Equity Income 2
Following Court approval of the compensation Scheme for the underlying LF (Woodford) Equity Income fund, we have now received an initial payment. We will ensure that payments to eligible customers (via a method appropriate to the status of their plan) are made as soon as possible, though please bear with us as it may take some time to process these.
Further information can be located on the FCA website:
- Sterling Aviva Investors UK Property
- Sterling Aviva Investors UK Property 2
According to the most recently published Interim Report & Accounts (31/03/23) the underlying fund (Aviva Investors UK Property fund) has 1 property left to dispose of before the winding up of the fund can be completed.
We have previously written to all customers with investments in these funds. If you have any questions on how these wind ups may have affected your investments through us, please contact your financial adviser or call us on the number below.
Funds with Russian Exposure
Some funds, mainly emerging market funds, will have an exposure to Russia. A list of these funds, with an approximate percentage exposure to Russia, can be found in the link below:
It is not currently possible for a fund manager to buy or sell Russian investments and we are not able to predict if and when the current restrictions will be lifted.
A fund which had a larger Russian exposure have been suspended and it is not possible to switch out of this fund at present. This are detailed above in the section “Funds in Suspension or Wind Up”.
The remaining funds in the link above are global equity and emerging market funds which continue to operate as normal. Where a fund had Russian exposure any drop in value will already be reflected in current valuations. If your overall portfolio includes a range of funds, it is likely that the Russian exposure is only a small part of its overall value. Switching into, or out of, these funds will neither increase or reduce exposure to Russian investments whilst they are unable to be traded.
If you have any questions on how your funds may be impacted by events in Ukraine, please contact your financial adviser or call us on the number below.
Sterling Bond
0370 909 6010
Our opening hours are 8.30AM to 5.30PM Monday to Friday and 09.30AM to 12.30PM Saturday, excluding Bank Holidays.
We may record or monitor calls for training and quality purposes.