Fund Closure - Natixis Gateway US Equities Fund
We have been informed by Natixis International Funds (Lux) I that they intend to close their Gateway US Equities fund on 15 October 2014.
Reason for the closure
The Board of Directors has taken the decision to close the fund due to economic rationalization.
Policyholders invested via Oracle, Paragon and Quantum
We have removed the fund from the ranges with immediate effect as Natixis are no longer accepting new subscriptions. Consequently any regular premiums (where applicable), received after 23 September 2014, have been invested into an alternative North American Equity fund.
Existing holdings in the fund will be retained in the policy until 7 October 2014. After this date we will switch the holdings into the same alternative North American Equity fund.
The alternative North American Equity fund
The alternative fund will be the Janus US Twenty fund. Switching holdings to this fund will be our default course of action unless we are informed otherwise by the policyholder, or appointed investment adviser, on or before 7 October 2014.
Although the Janus US Twenty fund has performed better than the Natixis fund over the same period, it should be noted that this has been achieved through a more concentrated number of holdings with higher volatility and consequently greater risk. We therefore recommend that policyholders discuss with their financial adviser whether this is a suitable fund for their policy.
Policyholder correspondence
We have written to affected policyholders advising them of the closure. The only exception being where an investment adviser is appointed on the policy, where they will receive the letter instead of the policyholder. Servicing financial advisers linked to the relevant policies will receive a copy of the letter for their information.
Options
Should a policyholder and/or an investment adviser be unhappy with our default course of action for switching existing holdings into the Janus US Twenty fund, they can choose to switch into any other fund available to the policy free of charge. This can be done by completing and returning a Fund Switch form or, if registered as a user of our Online Service Centre and fund switching facility, by conducting a switch online on or before 7 October 2014. Alterations to the premium redirection can also be specified on the Fund Switch form or online.
Updated Investment guides for Oracle, Paragon and Quantum dated September 2014 are now available and can be viewed opposite. These include 2 new North American Equity fund choices to replace the closing Natixis fund.