Fund Closure of L52 HDFC (EIFF) Equity Fund & L53 HDFC (EIFF) Balanced Advantage Fund
26 December 2018
In November 2018, the Isle of Man Financial Services Authority issued an Insurance (Conduct of Business) (Long Term Business) Code 2018 (“The Code”) and a Guidance for unit linked single premium bonds - suitability of assets to policyholders (“The Guidance Note”). The Code and the Guidance Note require insurers to consider the acceptability of an asset for a particular product and target market. These will become effective from 1 January 2019.
To comply with the Code and the Guidance Note, Friends Provident International Limited (“Friends Provident International”) have undertaken a review to ensure that Mirror Funds are suitable investments for policyholders of unit linked products.
L52 HDFC (EIFF) Equity fund and L53 HDFC (EIFF) Balanced Advantage Fund are funds which invest into underlying funds suitable for sophisticated investors only. Friends Provident International view that the funds cannot be considered as an acceptable investment for our target market. As a result, we have taken the decision that with effect from 31 December 2018 (the “Effective Date”), we will no longer accept new investment (for both new and existing investors) into the L52 HDFC (EIFF) Equity fund and L53 HDFC (EIFF) Balanced Advantage Fund. Any regular premiums will be redirected into P54 Aberdeen Global Indian Equity(the “Default Fund”) from the Effective Date, where possible. However if your policy is already holding the maximum 10 funds, any regular premiums will be redirected into the fund with the largest holding within your policy.
The funds will fully close with effect from 29 March 2019 (the “Closure Date”), and will not accept any further investments from this closure date. Any remaining holdings in L52 HDFC (EIFF) Equity fund and L53 HDFC (EIFF) Balanced Advantage Fund as at the Closure Date will be switched into the Default Fund on that date.
Details of the closing funds and the Default Fund are set out in the tables below.
|
Before 29 March 2019 |
From 29 March 2019 |
|
|
Mirror Fund name |
HDFC (EIFF) Equity Fund |
Aberdeen Global Indian Equity |
|
Mirror Fund code |
L52 |
P54 |
|
Name of corresponding underlying fund |
Emerging India Focus Fund (HEF Fund) |
Aberdeen Global - Indian Equity |
|
Currency of Mirror Fund |
USD |
USD |
|
Currency of underlying fund |
USD |
USD |
|
Investment objective and investment policy/strategy of the underlying fund |
To generate capital appreciation / income from a portfolio, predominantly invested in equity & equity related instruments. There is no assurance that the investment objective of the Scheme will be realized. |
The Fund’s investment objective is long term total return to be achieved by investing at least two-thirds of the Fund’s assets in equities and equity-related securities of companies with their registered office in India; and/ or, of companies which have the preponderance of their business activities in India; and/or, of holding companies that have the preponderance of their assets in companies with their registered office in India. |
|
Ongoing Charges Figure (OCF) of the underlying fund |
0.10% |
2.05%* |
|
Risk profile (determined by Friends Provident International for reference only) |
5 |
5 |
|
Before 29 March 2019 |
From 29 March 2019 |
|
|
Mirror Fund name |
HDFC (EIFF) Balanced Advantage Fund |
Aberdeen Global Indian Equity |
|
Mirror Fund code |
L53 |
P54 |
|
Name of corresponding underlying fund |
Emerging India Focus Fund (HPF Fund) |
Aberdeen Global - Indian Equity |
|
Currency of Mirror Fund |
USD |
USD |
|
Currency of underlying fund |
USD |
USD |
|
Investment objective and investment policy/strategy of the underlying fund |
To provide long term capital appreciation / income from a dynamic mix of equity and debt investments. There is no assurance that the investment objective of the Scheme will be realized. |
The Fund’s investment objective is long term total return to be achieved by investing at least two-thirds of the Fund’s assets in equities and equity-related securities of companies with their registered office in India; and/ or, of companies which have the preponderance of their business activities in India; and/or, of holding companies that have the preponderance of their assets in companies with their registered office in India. |
|
Ongoing Charges Figure (OCF) of the underlying fund |
0.10% |
2.05%* |
|
Risk profile (determined by Friends Provident International for reference only) |
5 |
5 |
* The OCF for the default fund is higher than the OCF on the closing funds, however there are other funds available to you.
Should you have any questions regarding these changes, please contact International Funds & Investments.