Closure of FPIL M84 Franklin US Government Fund

28 May 2021

We continually monitor our fund range to ensure that funds remain appropriate. Following a review, we will be realigning the fund range that is available to our unit-linked products. This will result in the closure of some of our FPIL funds, as well as the selection of new FPIL funds that we feel are appropriate to achieve the quality and diversity required by our international investors.

Consequently, the fund named above (the “Closing Fund”) into which you are currently invested and/ or into which you are making ongoing contributions will be closing. This Closing Fund will be removed from the FPIL mirror fund range from 31 August 2021 (the “Closure Date”). From the Closure Date no new single or regular contributions will be permitted into the Closing Fund, whether from new or existing investors. From the date of this letter, only continuing regular contributions will be permitted into the Closing Fund until the Closure Date. These ongoing contributions into the Closing Fund may not be increased from their current level.

When an FPIL fund is closed we select another fund from our internal fund range (the “Default Fund”) to act as an alternative investment for the resulting proceeds being switched out of the Closing Fund and for any future contributions that may be directed into the Closing Fund.

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

	Closing Fund	Default Fund
Fund name	Franklin US Government	Fidelity US Dollar Bond
Fund code	M84	L85
Currency	USD	USD
Investment objective of the underlying fund	The Fund's investment objective is income and safety of principal. The Fund seeks to achieve its objective primarily through a policy of investing in debt obligations issued or guaranteed by the US government and its agencies, including purchasing mortgage- and asset-backed securities. The Fund will have an allocation to fixed income securities of at least 75%. The Fund may invest 100% of its assets in transferable securities and Money Market Instruments issued or guaranteed by the US Government, its agencies and related entities, in accordance with the applicable risk diversification requirements contained in Appendix B "Investment Restrictions", including but not limited to, the United States Treasury, the U.S. Federal Reserve, the Government National Mortgage Association (GNMA), and up to 20% in both the Federal Home Loan Mortgage Corporation (Freddie Mac) and the Federal National Mortgage Association (FNMA). The Fund may use financial derivative instruments for the purpose of efficient portfolio management and interest rate hedging. Such financial derivative instruments may include, inter alia, swaps, forwards and futures contracts (including, but not limited to, futures on interest rates). The Fund may also make distribution from capital, net realised and net unrealised capital gains as well as income gross of expenses. Whilst this might allow more income to be distributed, it may also have the effect of reducing capital.	The fund invests principally in US Dollar denominated debt securities. A minimum of 50% of the fund’s net assets will be invested in securities deemed to maintain sustainable characteristics, as described in the section entitled “1.3.2(a) Fidelity Sustainable Investing Framework” above. The fund will consider a wide range of environmental and social characteristics on an ongoing basis. Environmental characteristics include but are not limited to climate change mitigation and adaptation, water and waste management, biodiversity, while social characteristics include but are not limited to product safety, supply chain, health and safety and human rights. Environmental and social characteristics are analysed by Fidelity’s fundamental analysts and rated through the use of sustainability research and ratings. The fund is actively managed. The Investment Manager will, when selecting investments for the Fund and for the purposes of monitoring risk, consider the ICE BofA Q4AR Custom Index (a custom USD Aggregate Bond index) (the “Index”) as the Index constituents best represent the characteristics the fund is seeking to gain exposure to. When monitoring risk, the Investment Manager references the Index for the purpose of setting internal guidelines. These guidelines represent overall levels of exposure relative to the Index and do not imply that the fund will invest in the Index constituents. Where the fund invests in securities that are included in the Index its allocation to those securities is likely to differ from the Index allocation. The Investment Manager has a wide degree of freedom relative to the Index with regards to investment selection and it may invest in issuers, sectors, countries and security types not included in the Index in order to take advantage of investment opportunities. It is expected that over long time periods, the fund’s performance will differ from the Index. However, over short time periods, the fund’s performance may be close to the Index, depending on market conditions. The fund’s performance can be assessed against its Index. Shareholders’ attention is drawn to the fact that the Index is not an index which integrates environmental and social considerations. Instead, the fund promotes environmental and social characteristics by adhering to the Fidelity Sustainable Investing Framework, as described above.
Ongoing Charges Figure (OCF) of the underlying fund	1.28% The ongoing charges are based on the expenses for the year ending 31 December 2020. This figure may vary from year to year.	1.05% The ongoing charges figure is based on expenses for the year ending 30/04/2020. This figure may vary from year to year.
Risk profile* (determined by Friends Provident International for reference only)	2	3

* The risk/reward profile is determined by Friends Provident International 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 Friends Provident International 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 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 International Funds & Investments.