Notification of changes to the underlying fund of R11 Aberdeen Global Emerging Markets Smaller Companies

24 December 2018

We have been notified by Aberdeen Global (“The Company”), of the decision to remove the Capacity Management Charge applicable to the underlying fund, into which the above named fund invests. This came into effect on 03 December 2018. As a result, Friends Provident International has made the decision to accept new investment into the above named fund, with effect from 13 December 2018 (the “Effective Date”).

Below are the key areas for your attention, which we have extracted from the shareholder circular of the underlying fund of R11 Aberdeen Global Emerging Markets Smaller Companies.

According to the Charges and Expenses section of the Prospectus, a Capacity Management Charge of up to 5% of the Gross Investment Amount will be levied for certain Share Classes and will be collected for the benefit of the relevant sub-fund of the Company. Currently this charge amounts to 2% for Classes A, C, I and X of the Fund. The Capacity Management Charge applies to all investments into the relevant Share Class, except in relation to investments resulting from reinvested dividends.

The Capacity Management Charge was introduced on the 11 March 2013 as a measure to manage the high inflows into a series of sub-funds of the Company, including the underlying fund, to ensure the quality of the investments held in the portfolios was maintained and the interests of existing investors was protected.

Since the introduction of such charge, the size of the underlying fund has significantly reduced and therefore the capacity constraints are no longer existing.

After due consideration, the Board of Directors has therefore decided to remove the Capacity Management Charge applicable to the various Share Classes of the underlying fund with effect from 3 December 2018.

The removal of the Capacity Management Charge will apply to all new investments (including switches and “top-up” subscriptions) made into the underlying fund on or after 3 December 2018.

Should you have any questions regarding these changes, please contact International Funds & Investments.

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