Notification of merger of the underlying fund of R117 - Barings Developed and Emerging Markets High Yield Bond Fund
31 Oct 2022
We have been notified by the Directors of Baring International Fund Managers (Ireland) Limited (the “Company”) of the following upcoming merger of the underlying fund of the above named investment-linked policy sub-fund ("ILP sub-fund").
The Company has advised of the decision to merge Barings Developed and Emerging Markets High Yield Bond Fund, a sub-fund of Barings Global Umbrella Fund (the “Merging Underlying Fund”), which is the underlying fund of the above named ILP sub-fund, into Barings Developed and Emerging Markets High Yield Bond Fund, a sub-fund of Barings Umbrella Fund plc (the “Receiving Underlying Fund”) (the “Underlying Fund Merger”) with effect from 2 December 2022 (the “Effective Date”).
The Affected ILP sub-fund is now closed to new investors and switches-in until 5 December 2022 when the merger has completed. Existing unitholders can continue to invest in the Affected ILP sub-fund, however, please refer to the Merging Period details below.
Background to the Underlying Fund Merger
The Company has decided that the Underlying Fund Merger is in the best interests of its unitholders, in order to simplify the Company’s fund offering and improve the client experience. From the Effective Date, it is expected that the Merging Underlying Fund unitholders will pay the same or lower fees, charges and expenses for their holdings in their new shares of the Receiving Underlying Fund.
Investment objective and policy
The investment policies, investment strategies, and risk profile of the Merging Underlying Fund and the Receiving Underlying Fund are materially the same, and it is the current intention of the Underlying Investment Managers to manage the Receiving Underlying Fund in the same manner as the Merging Underlying Fund immediately after the merger.
Please refer to the Appendix in the cient communication opposite for comparative details of the Merging Underlying Fund and the Receiving Underlying Fund.
Impact to unitholders of the ILP sub-fund
From the Effective Date the Receiving Underlying Fund will become the underlying fund of the ILP sub-fund; there will be no change to the name or fund code of the ILP sub-fund as a result of the Underlying Fund Merger. The number and value of units held in the ILP sub-fund following the merger will be equal to the holding prior to the Effective Date. No change to the unit holding will be appreciable on policies that remain invested in the ILP sub-fund during the merger.
The Merging Period
The Merging Underlying Fund will continue to accept subscription, switching and redemption requests until Monday 28 November 2022; following the Effective Date, dealing in the Receiving Underlying Fund will be permitted from Monday 5 December 2022. In line with this, a merging period (the “Merging Period”) will apply to the ILP sub-fund, during which time premium subscriptions, switching or redemption instructions will not be processed, and the fund will not be priced. The Merging Period being from 12pm UK time Friday 25 November 2022 ending Monday 5 December 2022.
Following the completion of the Merging Period, the ILP sub-fund will resume pricing with the Receiving Underlying Fund becoming the new underlying fund link of the ILP sub-fund. Premium subscriptions, switching, and redemption instructions recommence from Monday 5 December 2022.
If you currently invest in this fund, these changes will happen automatically within your policy or contract and you do not need to take any action if you agree with the merger of the underlying fund of the ILP sub-fund.
You can however choose to switch your current holdings in the ILP sub-fund and/or redirect your premiums or contributions into a different fund in the FPIL range, free of charge. You can do this at any time, but if you do not wish to remain in the ILP sub-fund for the Underlying Fund Merger, you must provide us with alternative instructions by 12pm UK time Friday 25 November 2022.
Should you have any questions regarding these changes, please contact the Investment Marketing Team.
We recommend that you seek the advice of your usual financial adviser before making any investment decisions.
