Soft closure - Fidelity Funds Asian High Yield Fund
Due to capacity constraints implemented by Fidelity, we have had to close the fund to new investors and switches-in with immediate effect.
Background
Due to the growing fund size of the Fidelity Funds Asian High Yield Fund (“the Fund”), which features in the defined fund range products shown opposite, Fidelity need to impose strict capacity constraints in order to limit flows into the Fund. Controlling inflows allows Fidelity to protect the interest of all existing investors and ensure the Fund can remain open for them as long as possible.
Fidelity first soft closed the Fund in September 2016 to new investors to stem investment into the Fund as it had experienced significant inflows relative to the size of the USD offshore Asian corporate high yield market. Since then, as the Fund has continued to grow it has outpaced the growth of the market making it necessary to impose strict capacity constraints.
Impact of the capacity constraints
RL360 is now restricted as to the amount of investment Fidelity will accept from us on behalf of our plan owners. As such, it has been necessary to close the Fund to new investors and switches-in with immediate effect.
| Fund name | ISIN |
|---|---|
| Fidelity Funds Asian High Yield A Acc USD | LU0286668453 |
| Fidelity Funds Asian High Yield A Acc EUR | LU0286668966 |
Existing investors in the Fund will be allowed to continue to invest, albeit with some restrictions. They can retain their existing holding in the Fund but we cannot accept any single, additional payments into the Fund. They can continue to invest any regular payment already allocated to the Fund, but it cannot be increased from its current allocation level (unless they have selected auto escalation that increases their premium allocation automatically each year). Should they wish to apply a single, additional payment, and/or increase regular payments if applicable, this can be applied to any other investment funds they hold, or they can choose alternative investment funds from the range available to their plan.
We have written to plan owners, or their appointed investment adviser, to notify them of the soft closure. Samples of the letters can be found opposite, which provide more information on the soft closure, investment restrictions and options for choosing an alternative fund.