Withdrawal of Hong Kong authorisation - Threadneedle UK Select Fund
As part of a review, Threadneedle Investment Funds ICVC will cease to market its Threadneedle UK Select Fund in Hong Kong with effect 1 September 2021.
Impacts on
these defined fund range products
Impacts on
open architecture products, including:
- PIMS
- Choice
- Select
Background to withdrawal of Hong Kong authorisation
As part of an ongoing review Threadneedle Investment Funds ICVC ("Threadneedle") has determined that due to the lack of demand from investors there is limited growth potential for the Threadneedle UK Select Fund ("the Fund") in Hong Kong.
Whilst the Fund will continue to be marketed to investors in the UK and be authorised by its home regulator, the Financial Conduct Authority (FCA), Threadneedle is applying to the Securities and Futures Commission ("SFC"), the Hong Kong regulator, to withdraw authorisation to market the Fund to the public in Hong Kong.
Threadneedle has decided to stop marketing the Fund to the public in Hong Kong with effect from 1 June 2021 and will no longer accept subscriptions or conversions into the fund from the region. The formal withdrawal of authorisation will take effect from 1 September 2021, subject to SFC approval.
Action RL360 will be taking for Preference policyholders
We will also be seeking to withdraw authorisation to market the Fund ("the Investment Option") to Hong Kong Preference policyholders and have received approval from the SFC for this to take effect from 30 July 2021. We will no longer accept subscriptions and switches into the fund from Hong Kong policyholders and the fund will be removed from the fund range for Hong Kong Preference policyholders on 30 July 2021. Policyholders will be switched out of the Investment Option into an alternative fund in the range, as detailed in the table below, on 30 July 2021.
We have written to policyholders impacted by this, informing them of the action we will be taking and their option for switching to an alternative fund if they wish. Servicing advisers will receive a copy for their information.
| Closing fund details | Receiving fund details | |
|---|---|---|
| Fund name | Threadneedle UK Select C1 | BlackRock Global Funds - United Kingdom A4 Inc GBP |
| Investment Option name | Threadneedle UK Select 'C1' (GBP) | Merrill Lynch IIF United Kingdom 'A2' |
| ISIN | GB0001530236 | LU0204064025 |
| Currency | GBP | GBP |
| Annual Management Charge | 1.50% | 1.50% |
Copies of policyholder letter and shareholder notice from Threadneedle can be found opposite.
This does not impact any non-Hong Kong Preference policyholders. The Threadneedle UK Select Fund will remain fully available for investment.
Action RL360 will be taking for open-architecture products
Existing Hong Kong investors can continue to hold their shares in the fund but no further investment into the Fund can be made. The Fund is now closed to new subscriptions from Hong Kong investors, but remains fully open to rest of world investors wishing to invest for the first time or buy additional shares.