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Fund mergers - Fidelity Multi Asset funds

Fidelity has advised of their intention to merge the assets of the Fidelity Multi Asset Defensive, Strategic and Growth funds and the Fidelity Wealthbuilder fund into equivalent funds in the Fidelity Multi Asset Open fund range, effective in three tranches in February and March 2019.

Impacts on
these guided-architecture products

Impacts on
open architecture products including

  • PIMS
  • Choice
  • Select

Reason for the mergers

On 31 May 2018, Fidelity made some changes to the investment policies of the Fidelity Multi Asset fund range. The purpose of these changes was to allow the portfolio manager to make greater use of the experience and specialisms of a number of investment management companies (including Fidelity) and to enable the funds to benefit from holding underlying investments in a wider range of asset classes and investment styles.


Subsequently, each of the five Fidelity Multi Asset funds now has very similar holdings to its equivalent fund within the Fidelity Multi Asset Open fund range and the ongoing charges are either identical or comparable. Given the similarity of the investment policies, the portfolio managers investment allocation decisions across the two ranges are closely aligned.


Fidelity has advised that the increased fund size of the funds in the Fidelity Multi Asset Open fund range following the proposed mergers would enable them to pass on a reduction in the ongoing charges for investment in the funds. Therefore Fidelity believe that the mergers are in the best interests of investors.


Action to be taken for Open-architecture policyholders

On the merger date, holdings will automatically transfer to the receiving Fidelity Multi Asset Open fund as detailed in the Fidelity fund notification document opposite, unless we are instructed otherwise before this date.


Action to be taken for Guided-architecture policyholders

There are 2 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

Fidelity Multi Asset Strategic A Acc GBP - GB00B1M29V45

Quantum, Oracle, Paragon, Quantum Malaysia, LifePlan and Protected Lifestyle

8 March 2019

Holdings will automatically transfer into Fidelity Multi Asset Open Strategic A Acc GBP - GB00B8WR7L45

Fidelity Wealthbuilder A Acc GBP - GB00B8FDN994

Kudos

22 February 2019

The fund will be removed from the Kudos fund range with immediate effect


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 the Fidelity Multi-Asset Strategic fund merger opposite along with the Fidelity notification.


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For more information about Fidelity visit www.fidelity.co.uk