Fund mergers - Invesco Irish domicile to Luxemourg domicile
During September and October 2018, Invesco will merge various Irish domicile funds into its Luxembourg funds, then close down the Irish funds*.
Impacts on
these guided-architecture products
Impacts on
open architecture products including
- PIMS
- Choice
- Select
Reason for the mergers
Invesco has a number of fund ranges domiciled in Ireland and Luxembourg and several prospectuses exist across these ranges which can cause confusion. Invesco wants to simplify this by bringing its various fund ranges under a single umbrella structure, enabling it to feature its funds within one prospectus. In order to do this Invesco will be merging its Irish funds into its Luxembourg funds, then closing down the Irish funds*. The mergers will take place over September and October 2018.
Quite a number of the receiving Luxembourg funds will be new shells and will only launch on the merger date, therefore we will not be able to offer you and your clients access to the Luxembourg receiving funds until after each merger takes place.
Action to be taken for Open-architecture policyholders
On the merger date, holdings will automatically transfer to the receiving Luxembourg fund as detailed in the Invesco fund notification document opposite, unless we are instructed otherwise before this date.
Action to be taken for Guided-architecture policyholders
There are 4 funds across the ranges that are impacted by the mergers. On or around the merger date, we will take the following action unless we are instructed otherwise before this date. For regular payment policies, premium allocations will also be redirected to the receiving fund.
Please note that we have now closed these funds to new business and switches in, but we can accept switches out up to a few days prior to the mergers.
| Fund name | Product affected | Merger date | Merger action |
|---|---|---|---|
| Invesco Asian Equity | Preference | 7 Sep | Holdings will automatically transfer to the Luxembourg fund which will launch on 7 Sep |
| Invesco Global Technology | Preference | 7 Sep | As Invesco will not continue with a Technology fund in the Luxembourg range, RL360 will add in the BlackRock GF World Technology Fund to Preference and will transfer holdings to this fund instead. This is an existing BlackRock fund |
| Invesco Sterling Bond | Preference, Oracle, Paragon, Quantum, Quantum Malaysia, LifePlan and Protected Lifestyle | 5 Oct | Holdings will automatically transfer to the Luxembourg fund which will launch on 5 Oct |
| Invesco Global High Income | Preference and Kudos | 5 Oct | Holdings will automatically transfer to the Luxembourg fund which will launch on 5 Oct |
We have written to our guided-architecture policyholders, or their appointed investment adviser, who are impacted by the mergers informing them of the action we will be taking and their option for switching to a new fund if they prefer. Servicing financial advisers will receive a sample of the letter for their information.
You can view samples of the policyholder and investment adviser letters for each merger opposite along with the Invesco notification.
* Note that 2 umbrellas in the Irish range will be unaffected by the closures; Short-Term Investments Company (Global Series Plc and Money Market Funds) and PowerShares Global Funds Ireland Plc (Exchange Traded Funds).
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For more information about Invesco visit www.Invesco.eu