Changes to R25 Invesco Asia Infrastructure
Friends Provident International Limited (“Friends Provident International”) has been notified by Invesco Global Asset Management DAC (“The Company”) of the forthcoming merger of the above named fund.
The merger will take effect from 06 July 2018 (“The Effective Date”). The Company has confirmed:
“The Merging Fund is invested primarily in the Asian infrastructure sector while the Receiving Fund has a more diversified investment remit to the broader Asian equity market. It is envisaged but not guaranteed that Shareholders of the Merging Fund should be able to benefit from the broader market opportunities of the Receiving Fund and a better risk adjusted return due to the diversification benefits of gaining exposure to other sectors than just Asian infrastructure. In addition, a larger pool of assets in the Receiving Fund post-merger should help to reduce the on-going charges of the Receiving Fund over time.
“The intention is to merge the Shareholders in the Merging Fund into the exact same Share class in the Receiving Fund. For the avoidance of doubt, apart from the investment objectives and policies and investment sub-delegation arrangements which are different, the Management Company, the Investment Manager, the key service providers (such as the Depositary, the Administration Agent and the Auditors), naming of the Share class, the Base Currency, and the operational features (such as Business Days, Dealing Cut-off Point, Settlement Date, NAV calculation, distribution policy and Reports) are the same for the Merging Fund and the Receiving Fund.”
The changes that will be made to the above named fund are detailed in the tables below.
| Before 06 July 2018 | After 06 July 2018 | |
| Fund Name | Invesco Asia Infrastructure | Invesco Asia Opportunities Equity |
| Fund Code | R25 | R25 |
| Underlying Fund Name | Invesco Asia Infrastructure A USD Acc | Invesco Asia Opportunities Equity A USD Acc |
| Underlying ISIN | LU0243955886 | LU0075112721 |
| On-going Charges | 2.02% | 2.05% |
| Currency | USD | USD |
| Investment Objective and Investment Policy of the Underlying Fund | The Fund aims to achieve long-term capital growth from investments in a diversified portfolio of Asian securities of issuers which are predominantly engaged in infrastructure activities. The Fund shall primarily invest (at least 70% of the net asset value of the Fund) in equity and debt securities denominated in any convertible currency issued by Asian companies predominantly active in the infrastructure sector. “Asian companies” shall mean companies listed in an Asian stock market and having their registered office in an Asian country or established in other countries but carrying out their business activities predominantly in Asia or holding companies investing predominantly in equity of companies having their registered office in an Asian country. Up to 30% of the NAV of the Fund may be invested in aggregate in cash and cash equivalents, Money Market Instruments, equity and equity related instruments or debt securities (including convertible debt) issued by companies and other entities not meeting the above requirement. Less than 30% of the NAV of the Fund may be invested in debt securities. The Fund may use derivatives (including but not limited to futures, forwards, non-deliverable forwards, swaps and complex options structures) for hedging and efficient portfolio management purposes. Such derivatives may also incorporate derivatives on derivatives (i.e. forward dated swaps, swap options). However, financial derivative instruments will not be extensively used for investment purposes (i.e. entering into financial derivative instruments to achieve the investment objectives). For details of the related risk factors applicable to the Merging Fund, please refer to section A2. | The Fund aims to provide long-term capital growth from a diversified portfolio of investments in Asian companies, with the potential for growth, including investments in small to medium-sized companies with a market capitalisation of less than USD 1 billion. The Fund shall invest primarily (at least 70% of the net asset value of the Fund) in equity or equity-related securities issued by companies with their registered office in an Asian country or with their registered office outside of Asia but carrying out their business activities predominantly in Asia or holding companies, the interests of which are predominantly invested in companies with their registered office in an Asian country. Up to 30% of the NAV of the Fund may be invested in cash and cash equivalents, Money Market Instruments, equity and equity related instruments issued by companies and other entities not meeting the above requirement or debt securities (including convertible debt) of issuers worldwide. The Fund will have a flexible approach to country allocation covering investments in Asia including the Indian subcontinent but excluding Japan and Australasia. There is no requirement as to the geographical spread of the Fund’s investments. Investors should not assume that the assets of the Fund will at all times include investments from each country in the Asia region. The Fund may use derivatives (including but not limited to futures, forwards, non-deliverable forwards, swaps and complex options structures) for hedging and efficient portfolio management purposes. Such derivatives may also incorporate derivatives on derivatives (i.e. forward dated swaps, swap options). However, financial derivative instruments will not be extensively used for investment purposes (i.e. entering into financial derivative instruments to achieve the investment objectives). For details of the related risk factors applicable to the Receiving Fund, please refer to section A2. |
To facilitate the merger of the underlying funds into which the above named fund invests, dealing on the above named fund will be temporarily suspended for 3 days from 04 July 2018 to 06 July 2018. Please note that instructions received for the above named fund after 5pm (UK time) cut off time on 03 July 2018 will not transact until the next available dealing date of 09 July 2018.
Should you have any questions regarding these changes, please contact International Funds & Investments.