Name change to L60 Fidelity Funds Sustainable US Dollar Cash (USD) and L62 Fidelity Funds Euro Sustainable Cash (EUR)
31 Mar 2023
Fidelity International (the “Company”) has notified us of a change of name to certain Fidelity cash funds which are the underlying funds to our L60 and L62 mirror funds (the “Affected Mirror Funds”). The changes will take effect on 11 April 2023 (the “Effective Date”)
As of the Effective Date, the Company will be removing ‘Sustainable’ from the names of the underlying funds of our Affected Mirror Funds.
In line with this, we will be amending the names of our Affected Mirror Funds as follows:
|Before the Effective Date||After the Effective Date|
|L60 Fidelity Funds Sustainable US Dollar Cash (USD)||L60 Fidelity Funds US Dollar Cash (USD)|
|L62 Fidelity Funds Sustainable Euro Cash (EUR)||L62 Fidelity Funds Euro Cash (EUR)|
Reason behind the changes
Given the small universe of available issuers for money market funds, the absence of detailed legislative definition of sustainable investments, as well as evolving regulatory interpretation around fund naming conventions, the Company has decided to change the name of the underlying funds of the Affected Mirror Funds in order to future proof the strategy against any further changes to the regulatory landscape.
The change of name will not affect any of the ESG characteristics of the underlying funds or result in any change to the SFDR characterisation, which will remain Article 8. Both underlying funds will continue to maintain more than 50% of their assets in issuers with favourable ESG characteristics. However, given the high quality nature of issuers held in money market funds, over 90% of the strategy of the underlying funds is invested in issuers with favourable ESG characteristics (per Fidelity methodology).
The change of name will not have any effect to the investment objective, investment strategy or risk factors of the underlying funds of the Affected Mirror Funds.
Policyholders do not need to take any action as a result of the name change if they wish to remain invested in the Affected Mirror Funds.
We recommend that policyholders seek the advice of their usual financial adviser before making any investment decisions.
Should you have any questions regarding these changes, please contact the Investment Marketing team.