Notification of closure of the underlying fund of L59 Fidelity Sterling Cash Fund

24 Feb 2022

Friends Provident International Limited ("FPIL") has received notification from Fidelity International Limited (“Fidelity”) of its decision to close the Fidelity Funds - Sterling Cash Fund, which is the underlying fund of the L59 - Fidelity Sterling Cash Fund (the “Closing Mirror Fund”), by way of liquidation on 10 May 2022. Fidelity believe this to be in the best interests of investors, due to the fact that the current level of assets under management does not provide for sufficient scale and is not expected to grow in the near future. Ahead of the closure, Fidelity have advised that further subscriptions and switches in are no longer being accepted. 

Consequently, L59 – Fidelity Sterling Cash Fund will close and will be removed from the FPIL mirror fund range. We have taken the decision to close the mirror fund on 12 April 2022 (“the Closure Date”) prior to the underlying fund closure. This is because Fidelity have stated that the underlying fund will commence an orderly wind-down of the portfolio ahead of the closure, moving proceeds into cash or cash equivalents; as a result it may no longer follow the strategy of the fund as laid out in the prospectus. 

When an FPIL fund is closed, we select another fund from our internal fund range (the “Default Mirror Fund”) as an alternative investment for the resulting proceeds and regular contributions. The Default Mirror Fund selected is M65 – Ninety One GS Sterling Money

As the underlying fund to the Closing Mirror Fund has stopped accepting subscriptions, no new single or regular contributions will be permitted into the Closing Mirror Fund, whether from new or existing investors. 

Any regular contributions that were being allocated into the Closing Mirror Fund are now being redirected into the Default Mirror Fund. 

If you are happy to invest in the Default Mirror Fund, you do not need to do anything. 

However, you can choose to switch your current holdings, and/or redirect your regular contributions if applicable, into a different fund in the FPIL range should you wish. You can do this at any time, but if you want to override the transfer of your existing holding to the Default Mirror Fund, you must provide us with alternative instructions by 3pm UK time on 8 April 2022. 

No FPIL charges will arise from these transactions.

Details of the Closing Fund and the Default Fund are set out in the table below:

Closing Mirror Fund

Default Mirror Fund

Mirror Fund Name and Code

L59 - Fidelity Sterling Cash Fund

M65 - Ninety One GS Sterling Money

Investment Objective of the underlying fund

The fund aims to provide a return in line with money market rates, with capital security and liquidity being Primary considerations. *The fund will invest at least 70% in UK Pounds Sterling denominated Money Market Instruments, reverse repurchase agreements and deposits. *The fund has the freedom to invest in other assets permitted under the EU Money Market Fund regulation and ancillary liquid assets.

The fund aims to give holders of the relevant Shares access to income at wholesale Eurocurrency market interest rates in Sterling. The fund seeks to achieve its objective by investing in short-term deposits and other short-term financial instruments available on the Eurocurrency markets and on the relevant domestic markets (where interest is earned free of withholding tax). The deposits shall have a maximum maturity of six months and certificates of deposit and other short term financial instruments (including bank acceptances, commercial paper, liquid short-term debt securities including treasury bills, bonds, floating rate notes and other debt securities) shall have a maximum residual maturity of twelve months.

Ongoing Charges Figure (OCF) of the underlying fund



Risk profile (determined by FPIL for Reference only)*



* The risk/reward profile is determined by FPIL from information provided by the underlying fund houses and is based on the following characteristics of the underlying fund: volatility; asset type; and geographical region.

The risk/reward profile will be reviewed and, if appropriate, revised at least yearly by FPIL as a result of our ongoing research analysis. The information given in the risk/reward profile is for reference only.

Whilst appropriate due diligence has been carried out on the Default Mirror Fund we do not accept any liability for the future performance of this, or any other FPIL fund.

Should you have any questions regarding these changes, please contact our Investment Marketing team.