Fund merger - Amundi Funds Equity India infrastructure fund
Amundi has announced its intention to merge its Amundi Funds Equity India Infrastructure fund into the Amundi Funds SBI FM Equity India fund with effect from 31 May 2019.
Impacts on
these guided-architecture products
Impacts on
open architecture products including
- PIMS
- Choice
- Select
Reason for the merger
Following the company merger of Pioneer Investments with Amundi Group in July 2017. Amundi is carrying out a rationalisation of its products to provide a streamlined fund range across the enlarged Amundi Group. The Equity India fund is one of the funds it has decided to merge as part of the rationalisation.
Action to be taken for Open-architecture policyholders
On the merger date, holdings will automatically transfer to the receiving "Amundi Funds SBI FM Equity India fund" as detailed in the Amundi notification document opposite.
Action to be taken for Guided-architecture policyholders
We have closed the merging fund to new business and switches in with immediate effect. Existing investors can continue to invest in the fund until Thursday 23 May 2019, at which point their holdings will be automatically switched, and any regular premium allocation redirected into the Schroder ISF Indian Equity fund (the “alternative fund”).
The receiving fund proposed by Amundi as part of the merger is not in our fund range and there are limited options for infrastructure funds investing in India, so the alternative fund we have selected to transfer holdings into is an Indian equity fund, which continues to provide your clients with exposure to companies conducting business in India. The selected alternative fund has lower fund charges and a similar risk profile.
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.
| Fund name | Product affected | Merger date | Merger action |
|---|---|---|---|
| Amundi Fund Equity India Infrastructure AU-C USD - LU0334875175 | Quantum, Oracle, Paragon, Quantum Malaysia, Regular Savings Plan & Regular Savings Plan Malaysia. | 31 May 2019 | Holdings will be switched into Schroder ISF Indian Equity A Acc USD - LU0264410563 |
You can view samples of the policyholder and investment adviser mailings opposite, along with the Amundi notification.
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For more information about Amundi Asset Management visit www.amundi.lu