Closure of A1 GBP Fund Share Class - MFS Meridian Funds
We have been informed by MFS Meridian Funds (“MFS Meridian”) of its decision to close its ‘A1’ GBP share class for two funds (the “Affected Funds”) that feature in the RL360 defined fund range, with effect 12 January 2024. MFS Meridian state that the closures are due to small fund size and anticipated lack of demand for the share class.
What does this mean?
We will be switching all holdings held within the Affected Funds into the ‘A1’ USD share class of the same funds (the “Receiving Funds”) which are available in the range applicable to the relevant plan type.
We have now closed the Affected Funds to new business and switches-in, however, existing investors can continue to hold their existing units in the Affected Funds until Wednesday 10 January 2024 (the “Switch Date“) when we will switch them out to the Receiving Funds, as detailed below.
However, as MFS Meridian will no longer accept any investment into the Affected Funds after 22 December 2023, for regular payment plans, any allocation going into the Affected Funds will be re-directed into the Receiving Funds from Thursday 21 December 2023 (the “Redirection Date”).
| Affected Funds | ISIN | Receiving Funds | ISIN |
|---|---|---|---|
| MFS Meridian Emerging Markets Debt A1 Acc GBP | LU0219432159 | MFS Meridian Emerging Markets Debt A1 Acc USD | LU0125948108 |
| MFS Meridian Global Total Return A1 Acc GBP | LU0219431771 | MFS Meridian Global Total Return A1 Acc USD | LU0219441499 |
Please note that the Affected Funds are priced in GBP, while the Receiving Funds are priced in USD. This means that plans not denominated in USD will be subject to the normal foreign exchange movements from the point of switching into the Receiving Funds, and will continue for the period the funds are held.
If plan owners are happy with our choice of Receiving Fund then they do not need to do anything. However, if plan owners would prefer to switch and/or redirect any regular payment allocation to a different fund, it's very easy to do. Switches can be submitted by completing and returning a Fund switch instruction form or, if registered for online switching, conducting a switch online fast and efficiently.
More information for the Affected Funds and the Receiving funds can be obtained from the Documents tab of the relevant product fund centre at www.rl360.com/fundcentres. Documents include factsheet, prospectus and Key investor information document which details charges, fund objective and strategy and risks associated to the funds.
Communications issued
Affected plan owners, or their appointed investment advisers, and servicing agents have been written to, notifying them of the fund closures, the action RL360 will be taking and their options should they wish to select an alternative receiving fund.