Pictet fund merger - Absolute Return Global Diversified Fund with Multi Asset Global Opportunities Fund

We wish to inform you that the Board of Directors of Pictet (the “Fund”) has decided to merge the Pictet – Absolute Return Global Diversified Fund (the “Absorbed Fund”) with the Pictet – Multi Asset Global Opportunities Fund (the “Absorbing Fund”).The effective date for this merger will be 30 March 2016 (the “Effective Date”).

Purpose of the merger

The Board of Directors of the Fund has decided that merging the Funds is in shareholders’ best interests. It has taken this decision as it feels that the value of the Absorbed Fund's assets is too low to be managed efficiently, which makes it difficult to continue managing the portfolio effectively. The merger will have no material impact on the Absorbing Fund but will allow it to increase the assets under management.

How the merger affects your clients’ policies

On 22 February 2016 Pictet stopped accepting subscriptions into the fund. As a result we redirected all regular premiums currently being allocated to the fund to the Invesco Global Targeted Returns Fund. Unfortunately we had no option but to do this ahead of our formal communication to you.

On 11 March 2016 we will start to transfer existing policy holdings from the Pictet fund into the Invesco fund (we do this in advance in order to meet dealing cut-offs and avoid submitting large redemption requests near, or on, the day of the merger).

We selected the Invesco Global Targeted Returns Fund to receive switches, as Pictet’s alternative fund is not currently available and it has the same currency options available. The Invesco fund sits in the Hedged/Structured Product sector like the Pictet fund and has outperformed the Pictet fund in terms of the last 2 years performance with a lower risk rating. It also has a lower Annual Management Charge of 1.40% per annum.

Alternative fund choice

If you are not happy with your clients’ holdings being transferred into the Invesco Global Targeted Returns Fund then you can choose to switch into any other fund available to their policy.

You can provide alternative instructions either by submitting a completed Fund switch instruction form, or if registered a registered user of our Online Service Centre and fund switching facility, conducting a switch and premium redirection online.

We have issued letters to Lifeplan, Oracle, Paragon, Protected Lifestyle, Protected Lifestyle Lebanon and Quantum policyholders affected by the merger. Where an investment adviser is appointed, they will receive our notification instead of the policyholder. Servicing financial advisers attached to these policies will receive a copy of the letter for their information.

Sample letters can be viewed opposite.