Notification of closure of the underlying fund of J58 Invesco US Equity
15 Oct 2021
We have received notification from Invesco Funds (the “Company”) of their decision to merge the underlying fund of J58 Invesco US Equity into the Invesco Global Focus Equity Fund (the “Receiving Fund”) with effect from 26 November 2021. The Company believe this to be in the best interests of investors due to challenging performance over the last number of years, with a low perspective for growth. Dealings in the underlying fund of J58 Invesco US Equity will cease to be accepted after 23 November 2021.
Consequently, the fund named above (the “Closing Fund”) will be closing. This Closing Fund will be removed from the FPIL mirror fund range from 23 November 2021 (the “Closure Date”).
With immediate effect, no new single or regular contributions will be permitted into the Closing Fund, whether from new or existing investors. Continuing regular contributions by existing investors will be permitted into the Closing Fund until the Closure Date; these ongoing contributions into the Closing Fund may not be increased from their current level.
When an FPIL fund is closed we select another fund from our internal fund range (the “Default Fund”) to act as an alternative investment for the resulting proceeds being switched out of the Closing Fund and for any future contributions that may be directed into the Closing Fund.
FPIL has taken the decision to not follow the merger and instead we have selected J77 BlackRock US Flexible Equity to act as the Default Fund for this closure, due to the Default Fund showing a higher level of similarity to the Closing Fund.
Where applicable any future regular premium or contributions into the Closing Fund will also be redirected into the Default Fund from the Closure Date.
These changes will happen automatically within your policy or contract and you do not need to take any action if you agree with the choice of Default Fund that we have selected.
However, you can choose to switch your current holdings in the Closing Fund and/or redirect your premiums or contributions, into a different fund in the FPIL range from the Default Fund if you wish to do so. You can do this at any time but if you wish to override the transfer or redirection to the Default Fund that we have selected, you must provide us with alternative instructions by 3pm UK time on 19 November 2021.
No FPIL charges will arise from these transactions.
Details of the Closing Fund and the Default Fund are set out in the table below:
Mirror Fund Name and Code
J58 - Invesco US Equity
J77 BlackRock US Flexible Equity
Investment Objective of the underlying fund
The objective of the Fund is to achieve long-term capital appreciation and to a lesser extent current income by investing primarily in equities of US companies.
The Fund shall primarily invest in securities issued by (i) companies and other entities with their registered office in the US, or (ii) companies and other entities with their registered office outside of the US but carrying out their business activities predominantly in the US or (iii) holding companies, the interests of which are predominantly invested in companies with their registered office in the US.
The US Flexible Equity Fund seeks to maximise total return.
The Fund invests at least 70% of its total assets in the equity securities of companies domiciled in, or exercising the predominant part of their economic activity in, the US.
The Fund normally invests in securities that, in the opinion of the Investment Adviser, exhibit either growth or value investment characteristics, placing an emphasis as the market outlook warrants.
Ongoing Charges Figure (OCF) of the underlying fund
Risk profile (determined by Friends Provident International for Reference only)**
* Policyholders should note that the OCF for the underlying fund of the Default Replacement Fund is higher than the OCF for the underlying fund of J58 Invesco US Equity.
** The risk/reward profile is determined by Friends Provident International from information provided by the underlying fund houses and is based on the following characteristics of the underlying fund:
• asset type; and
• geographical region.
Whilst appropriate due diligence has been carried out on the Default Fund we do not accept any liability for the future performance of this, or any other FPIL fund.
Should you have any questions regarding these changes, please contact Fund Services.