THIS DOCUMENT IS IMPORTANT AND REQUIRES YOUR IMMEDIATE ATTENTION. IF IN DOUBT PLEASE SEEK PROFESSIONAL ADVICE.

Size: px

Start display at page:

Download "THIS DOCUMENT IS IMPORTANT AND REQUIRES YOUR IMMEDIATE ATTENTION. IF IN DOUBT PLEASE SEEK PROFESSIONAL ADVICE."

Anne Hall
5 years ago
Views:

1 <<ClientName>> <<Client Address>> <<Client Address>> September 2013 Dear Policyholder Policy Number: «Plan_No» Fund Merger and Closure of R64 Kotak Indian MultiCap. THIS DOCUMENT IS IMPORTANT AND REQUIRES YOUR IMMEDIATE ATTENTION. IF IN DOUBT PLEASE SEEK PROFESSIONAL ADVICE. We are writing to you as you are invested in the above named mirror fund. Friends Provident International Limited ( FPIL ) has been advised by Kotak Funds that a number of changes will be taking place on the underlying fund ( sub-fund ) into which the FPIL mirror fund R64 Kotak Indian MultiCap invests. Kotak Funds has advised FPIL that: the board of directors of the Company (the "Directors") has resolved to merge the sub-fund Kotak Funds Indian Multi Cap Fund (the "Merging Sub-Fund") with the sub-fund Kotak Funds India Midcap Fund (the "Receiving Sub-Fund") (the "Merger") with effect as of 04 October 2013 (the "Effective Date"). Upon the Effective Date, the assets and liabilities of the Merging Sub-Fund will be transferred to the Receiving Sub-Fund. Shares in the Merging Sub-Fund will be cancelled and the shareholders of the Merging Sub-Fund will receive a number of shares of the Receiving Sub-Fund (the "New Shares"), the total value of which will correspond to the total value of the shares held in the Merging Sub-Fund. Please note that no new subscriptions or conversions into the Merging Sub-Fund will be accepted from 27 August What will happen to my regular premiums if I am still paying into R64 Kotak Indian MultiCap? As Kotak Funds have stated they are unable to accept new investment into the underlying fund, FPIL is also no longer able to accept new investment (for both new and existing investors) into the Kotak Indian MultiCap fund, and any regular premiums will be redirected into Aberdeen Global Indian Equity (P54) (the Default Fund ) with effect from 27 August 2013, details of this fund can

2 be found below in the section entitled Notification of Fund Closure. If this is applicable to your policy, a separate confirmation will be forwarded to you shortly confirming this change. How will the Merger affect my policy? The sub-fund will be temporarily suspended from 26 September 2013 until the merger is completed on 04 October As a result of this action, FPIL will have to suspend the R64 Kotak Indian MultiCap fund from Thursday 26 September 2013 until pricing recommences. We anticipate that the first available price for this mirror fund after the merger completes will be Monday 07 October During this time we are unable to accept any instructions to purchase or redeem units in the funds. Any instructions received to purchase units will be declined, however any instructions to redeem will be held until pricing recommences and will be actioned at that time. Please note that any redemption instructions received will not be backdated to the date of receipt. What will happen after the Merger? The sub-fund name will change from Kotak Funds - India Multicap Fund to Kotak Funds - India Midcap Fund, and as a result the FPIL mirror fund name will change to Kotak Indian Midcap, effective from 04 October Following the merger, the underlying fund AMC (Annual Management Charge) is due to increase. Details of the Kotak Indian Multicap fund before the merger and those of the fund after the merger are shown in the table below: Before the Effective Date From the Effective Date Mirror Fund Kotak Indian MultiCap Kotak Indian MidCap name Mirror fund R64 R64 (unchanged) code Currency USD USD (unchanged) Investment objective of the underlying fund The Fund seeks to achieve long being invested in equity and equity linked instruments of companies registered in India and listed on major Indian stock exchanges or having a substantial proportion of business in India. The Fund aims to achieve long primarily investing at least two thirds of its total assets in equity and equity linked securities of mid capitalisation companies registered in India or deriving a significant proportion of business in India. Annual Management Charge (AMC) (underlying fund) Risk profile (determined by FPIL) The Fund aims to invest across the market capitalisation spectrum with a bias towards large and medium companies % 2.00 % 5 5 (unchanged)

3 Notification of Fund Closure At FPIL we continually monitor our products and fund range to ensure we are providing investors with the highest levels of professional service and, following these most recent changes made by Kotak, we have taken the decision to fully close the Kotak Indian MidCap fund, with effect from 09 January 2014 (the Closure Date ). From the Closure Date, your existing investment in the Kotak Indian MidCap fund will be switched to the Default Fund Aberdeen Global Indian Equity (P54). Details of the Kotak Indian MidCap fund and those of the Default Fund are shown in the table below: Before the Closure Date From the Closure Date Mirror Fund Kotak Indian MidCap Aberdeen Global Indian Equity name Mirror fund R64 P54 code Currency USD USD (unchanged) Investment objective of the underlying fund Annual Management Charge (AMC) (underlying fund) Risk profile (determined by FPIL) The Fund aims to achieve long primarily investing at least two thirds of its total assets in equity and equity linked securities of mid capitalisation companies registered in India or deriving a significant proportion of business in India % 1.75 % 5 5 (unchanged) The Fund s investment objective is long-term total return to be achieved by investing at least two-thirds of the Fund s assets in equities and equity-related securities of companies with their registered office in India; and/ or, of companies which have the preponderance of their business activities in India; and/or, of holding companies that have the preponderance of their assets in companies with their registered office in India. Due to the complexities of these changes, the following timetable outlines the various elements of the merger and subsequent closure: Date Change 27 August 2013 No further investments will be accepted into R64 Kotak Indian MultiCap. Any regular premiums will be redirected to Aberdeen Global Indian Equity Fund (P54). 26 September 2013 R64 Kotak Indian MultiCap suspended until the merger on 04 October October 2013 The merger and fund name change to Kotak Indian MidCap (R64).

4 07 October 2013 Anticipate the first price available following the completion of the merger. 09 January 2014 Kotak Indian MidCap fund (R64) will close. All units will be transferred to the default fund Aberdeen Global Indian Equity Fund (P54). These changes will happen automatically within your policy and you do not need to take any action. However, you can choose to switch to a different investment choice from our range of mirror funds should you wish to do so before 26 September 2013 or after the temporary suspension is lifted, and no FPIL charges will arise from this transaction. If you decide to select an alternative fund, we recommend that you seek the advice of your usual financial adviser before making any investment decisions. Fact sheets are available through the Fund Centre section of our website ( for the default fund and the alternatives funds available to you. Full details on the underlying funds into which the FPIL mirror funds invest can be found in the fund prospectuses, which are available on request. Who should I contact if I have any questions? If you have any questions regarding the operation of the mirror funds or the underlying funds, please contact our Fund Services team in the Isle of Man - fund.research@fpiom.com. If you have any questions regarding your policy with us, please contact, by either phone or , one of the following departments that correspond with your region: General telephone number: Rest of the World Team rowservicing@fpiom.com Asia-Pacific Team asiapacific@fpiom.com Latin America Team latam.servicing@fpiom.com Middle East Team me&africa@fpiom.com Yours sincerely Group Investments Friends Provident International Limited Fund prices may fluctuate and are not guaranteed. Investment involves risks. Past performance should not be viewed as a reliable guide of future performance. Please refer to the principal brochure of the scheme for details including charges and risk factors.

5 All policyholders will receive the protection of the Life Assurance (Compensation of Policyholders) Regulations 1991 of the Isle of Man, wherever their place of residence. Investors should be aware that specific investor protection and compensation schemes that may exist in relation to collective investments and deposit accounts are unlikely to apply in the event of failure of such an investment held within insurance contracts. C.C. <<AgencyName>>

Product summary. Product description. Global Wealth Manager. Death benefit. Type of policy. Lives assured. Currency. Policies.

Product summary. Product description. Global Wealth Manager. Death benefit. Type of policy. Lives assured. Currency. Policies. Global Wealth Manager Product summary Product description Type of policy Global Wealth Manager is a single premium investment plan designed for the international investor in Singapore. The plan is a life