RL360 Fund Closure - Fidelity Funds Asia Pacific Property Fund

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Fund Closure - Fidelity Funds Asia Pacific Property A Acc (EUR) Fund

Fidelity fund managers have announced their intention to close their Fidelity Funds Asia Pacific Property A Acc (EUR) Fund on 18 December 2013.

Impacts on
these products

Why is Fidelity closing this fund?

Fidelity have taken the decision to close this fund in light of the fact that the total size of the investment in the share class continues to be small and is not expected to grow in the near future. Fidelity believes that it is not in the best interest of investors to continue to manage share classes that are too small, mainly because of administrative cost inefficiencies.

What this means?

Fidelity have announced that the fund will no longer accept subscriptions from new or existing investors, therefore the fund will be formally removed from the Quantum, Oracle and Paragon fund ranges with immediate effect.

Any regular premiums will be redirected into the Henderson Horizon Asia Pacific Properties A2 Acc (USD) Fund, effective immediately.

It is important to point out that the Henderson fund is denominated in USD as opposed to the Fidelity fund which is in EUR.

Policyholders can continue to hold their existing units in the Fidelity Funds Asia Pacific Property Fund A Acc (EUR) Fund up until the 11 December 2013, at which stage they will be switched into the Henderson Horizon Asia Pacific Properties A2 Acc (USD) Fund, unless an alternative instruction has been provided.

The fund objectives for each of the closing Fidelity fund and the alternative Henderson Horizon fund are detailed below:

Fidelity Funds Asia Pacific Property A Acc (EUR)

The fund aims to achieve a combination of income and long-term capital growth primarily from investments in securities of companies principally engaged in the real estate industry and other real estate related investments in the Asia Pacific region, including Australia, Japan and New Zealand.

Annual Management Charge 1.50%

Henderson Horizon Asia Pacific Property Equities A2 Acc (USD)

The investment objective of the Asia-Pacific Property Equities Fund is to seek long-term capital appreciation by investing at least 75% of its total assets in the quoted equities of companies or Real Estate Investment Trusts (or their equivalents) having their registered offices in the Asia-Pacific Region and listed or traded on a regulated market, which derive the predominant part of their revenue from the ownership, management and/or development of real estate in the Asia-Pacific Region.

Annual Management Charge 1.20%

Letters have been issued to affected policyholders, or their appointed investment advisers, with copies to their servicing agents advising them of the fund closure. The fund managers notification and sample letters can be viewed opposite.