Withdrawal of Hong Kong authorisation for Threadneedle UK domiciled funds
Threadneedle Investment Funds ICVC and Threadneedle Specialist Investment Funds ICVC have advised that they are to cease the marketing of a number of UK domiciled funds to the public in Hong Kong with immediate effect and to apply to the Hong Kong regulator for withdrawal of the authorisation of the funds with effect from 29 June 2018.
Impacts on
this guided-architecture product
Funds affected
The following sub-funds of Threadneedle Investment Funds ICVC (the "funds")
- Threadneedle American Retail Acc GBP
- Threadneedle European Select Retail Acc GBP
Reason for the decision to seek withdrawal of authorisation
The authorised corporate director of Threadneedle Investment Funds ICVC have concluded that, as part of its business strategy, it will focus its marketing strategies for Hong Kong investors on Luxembourg domiciled funds rather than UK domiciled funds. Columbia Threadneedle already markets a range of its Luxembourg domiciled funds to the public in Hong Kong and this is expected to expand going forward. As a result, the marketing activities relating to the public in Hong Kong for the funds will cease with immediate effect and the Securities and Futures Commission ("SFC") authorisation of the funds will be withdrawn, subject to receiving SFC approval.
When will the withdrawal of authorisation of the funds take effect?
The withdrawal of authorisation will take effect as of 29 June 2018 (the "Effective Date")
What happens next?
With immediate effect we have stopped accepting new subscriptions from Hong Kong investors, including switching instructions, into the funds.
Hong Kong policyholders currently invested in the funds via Preference can remain invested until 26 June 2018 at which point we will formally close the fund and transfer policyholders into an alternative fund in the range as follows:
| Name of Closing Fund | Name of Receiving Fund |
|---|---|
| Threadneedle America Retail Acc GBP GB0001530566 | Schroder ISF US Large Cap A Dis USD LU0006306889 |
| Threadneedle European Select Retail Acc GBP GB0001529345 | BGF US Dollar Reserve H A2 GBP LU0297945965 |
The receiving fund for the Threadneedle America Retail Acc GBP has a similar investment objective and investment risks which are comparable to that of the closing fund.
There is no equivalent alternative fund to Threadneedle European Select Retail Acc GBP in the Preference fund range so a money market fund in the same currency denomination has been selected as the receiving fund.
Alternative fund choices
If policyholders are not happy with their holdings being transferred into the selected receiving funds then they can choose to switch into any other fund available to their policy that are authorised for Hong Kong investors.
They can provide alternative instructions either by submitting a completed Fund switch instruction form or, if a registered user of our Online Service Centre and fund switching facility, conducting a switch online.
We have issued letters to any Hong Kong policyholders in the above product affected by the closure. 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.
A copy of the shareholder notification and sample letters can be viewed opposite.
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For more information about Columbia Threadneedle Investments visit www.columbiathreadneedle.co.uk