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Fund Closure - BNY Mellon Vietnam, India & China fund

We have been informed by BNY Mellon that they intend to close their BNY Mellon Vietnam, India & China Fund (the 'Fund') on 6 December 2013.

Impacts on
these products

The closure affects our Oracle, Paragon and Quantum (post 2010) guided architecture fund ranges as we feature both the EUR and USD share classes of the Fund.


Why is BNY Mellon closing the Fund

BNY Mellon constantly reviews the structure and position of its funds. As part of this process BNY Mellon has concluded that the small size of the Fund may be preventing it from achieving the economies of scale in ongoing operating costs that would best serve the interest of investors in the Fund.


What happens now?

We will no longer accept investments into the Fund from new investors, and the Fund will be formally removed from the Oracle, Paragon and Quantum (post 2010) fund ranges with immediate effect. Existing investors can continue investing in the Fund until 26 November 2013 at which stage they will need to switch into an alternative fund available to their policy. Regular premiums (if applicable) will also be redirected.


Alternative fund in the absence of switch instructions

Where we do not receive alternative switch instructions from the policyholder or investment adviser, the alternative fund we will switch them into is the Ashburton Chindia Equity fund (USD share class).


Whilst the alternative does not provide explicit exposure to companies based in Vietnam, it is one of the closest alternatives available within the range. The Ashburton Chindia Equity fund is a USD only denominated fund, therefore investors in the EUR share class have been advised to consider how switching from a EUR denominated fund to a USD one may impact on their overall policy portfolio in terms of currency risk.


Letters have been issued to affected policyholders, or their appointed investment advisers, with copies to their servicing agents advising them of the fund closure. The fund managers notification and sample letters can be viewed opposite.