For each fund that is managed by an external fund manager, we set up our own mirror fund that invests in the underlying fund. These funds are only available through our range of savings and investment plans.
As the name implies, mirror funds ‘mirror’ the performance of the underlying fund that they invest in. The unit price of the mirror fund will be different from the underlying fund. This is due to the fact that the mirror fund is launched on a different date from the underlying fund and often at a different starting price. Also, there is a small cash holding to help with fund flows and possible differences in fund charges.
Please note that there are fees charged to investments in the mirror funds that will affect their return. For further details, please refer to your product brochure.
It is important to remember that, as with most investments, the value of your investment is not guaranteed and can go down as well as up. Therefore we suggest that you only invest money that can be committed in the medium to long term. You should also bear in mind that securities held within a mirror fund may not be denominated in the currency of that mirror fund, so unit prices may fall purely on account of exchange rate fluctuations.