Notification of various changes to Fidelity Funds
Fidelity Funds ("Fidelity") have notified us of various upcoming changes to its sub-funds (the “Funds”). These changes will take effect from 11 August 2023 (the “Effective Date”)
AVAILABLE IN OUR DEFINED FUND RANGE PRODUCTS
The Funds can be found in our defined fund range products Oracle, Paragon, Quantum (including Malaysia variants), Regular Savings Plan (including Malaysia variants), LifePlan, Kudos, Protected Lifestyle and Preference (including Hong Kong).
SUMMARY OF THE CHANGES
RECLASSIFICATION OF SUB-FUNDS FROM ARTICLE 6 TO ARTICLE 8 UNDER THE SUSTAINABLE FINANCE DISCLOSURE REGULATION ("SFDR").
From the Effective Date the investment policies of the following Funds will be enhanced with additional disclosure relating to sustainable investing and promoting Environmental, Social and Governance ("ESG") characteristics. After a thorough analysis of the investment policy and process of the Funds, it is intended to classify the Funds as Article 8 products within the meaning of the SFDR and in accordance with Fidelity's Sustainable Investing Framework.
The Funds invest in at least 50% of assets in securities of issuers with favourable environmental, social and governance ESG characteristics and the Investment Manager also considers ESG characteristics when assessing investment risks and opportunities. In determining favourable ESG characteristics the Investment Manager takes into account the ESG ratings provided by Fidelity or external agencies. Through the investment management process the Investment Manager aims to ensure that the investee companies follow good governance practices.
The funds adhere to the Fidelity Sustainable Investing Framework standards.
In light of the reclassification to Article 8 products within the meaning of the SFDR, these Funds are also subject to additional sustainable investing risks as detailed in the Hong Kong notification opposite.
| ISIN | Fund Name |
|---|---|
| LU0702159772 | Fidelity Funds Asian Smaller Companies A Acc EUR |
| LU0702159699 | Fidelity Funds Asian Smaller Companies A Acc USD |
There will be no material change or increase in overall risk profile of these Funds following these modifications, and these modifications do not have a material adverse impact on Shareholders' rights or interests (including changes that may limit Shareholders' ability in exercising their rights).
UPDATE TO INVESTMENT POLICY
From the Effective Date the investment objective and policy of the below Fund will be updated to include enhanced disclosures to align the Fund with other special situations strategies offered by the Investment Manager and provide investors with more transparency on the investment approach. In particular, the disclosures will be enhanced to clarify that the Fund aims to achieve capital growth over the long term and that investments will be across a range of small, medium and larger sized companies and special situations equities include shares in companies which are undervalued and whose recovery potential is not recognised by the market. In addition, the disclosures that “investments other than special situations equities and equities of smaller growth companies: up to 25%” will be removed to simplify the disclosures. There is no material change to the way in which the Fund is managed.
| ISIN | Fund Name |
|---|---|
| LU0054237671 | Fidelity Funds Asian Special Situations A Inc USD |
UPDATE RELATED TO INVESTMENTS IN SPACs
From the Effective Date, the prospectus will reflect that the Funds listed below may invest up to 5% of their assets in Special Purpose Acquisition Companies ("SPACs").
The investment strategy of the affected Funds will not change and there are no changes to the investment process. This enhanced disclosure does not change the risk profile of the Funds.
The enhanced disclosure has been added following a European Securities Markets Authority's statement in July 2021. Only funds with enhanced disclosure are allowed to hold less than 5% in SPACs. Funds without the enhanced disclosure are not allowed to have any SPAC exposure.
| ISIN | Fund Name |
|---|---|
| LU0054237671 | Fidelity Funds Asian Special Situations A Inc USD |
| LU0345361124 | Fidelity Funds Asia Pacific Opportunities A Acc EUR |
| LU2008162690 | Fidelity Funds Asia Pacific Opportunities A Acc USD |
| LU0594300096 | Fidelity Funds China Consumer A Acc EUR |
| LU0594300179 | Fidelity Funds China Consumer A Acc USD |
| LU0905233846 | Fidelity Funds Global Multi Asset Income A Acc USD |
| LU0048584097 | Fidelity Funds Global Thematic Opps A Inc USD |
| LU0261946445 | Fidelity Funds Sustainable Asia Equity A Acc EUR |
| LU0261947096 | Fidelity Funds Sustainable Asia Equity A Acc USD |
This update does not represent a material change to the investment strategy of the Funds or their investment management.
CHANGE OF BENCHMARK TO FIDELITY FUNDS EURPOEAN SMALLER COMPANIES FUND
The below Fund will change its benchmark, which is included in the Prospectus. The investment strategy will not change and there is no change to the investment process. The index provider will stop producing the EMIX Smaller European Companies Index on 31 July 2023. As a result, the benchmark for the Fund will be changed to the MSCI Europe Small Cap Index (Net) ahead of the cessation date.
| Former benchmark (discontinued) | New benchmark |
|---|---|
| EMIX Smaller European Companies Index | MSCI Europe Small Cap Index (Net) |
Fidelity believes that these amendments are not expected to result in any significant changes to the way in which the Fund is currently managed or their risk profile. Please refer to the Fidelity Notification opposite for full details of the changes and the revised investment policy.
AVAILABLE IN OUR OPEN-ARCHITECTURE PRODUCTS
The Funds feature in our open-architecture products and will be subject to the changes detailed in the Fidelity Notification opposite.
For more information regarding Fidelity International funds visit www.fidelity.co.uk