Notification of merger of the underlying fund of J27 - Barings Developed and Emerging Markets High Yield Bond Fund
21 Oct 2022
We have been notified by the Directors of Baring International Fund Managers (Ireland) Limited (“Barings”) 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 fund (the “Affected Mirror 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 Mirror 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 Mirror Fund, however, please refer to the Merging Period details below.
Background to the Underlying Fund Merger
Barings has decided that the Underlying Fund Merger is in the best interests of its unitholders, in order to simplify the 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 opposite for comparative details of the Merging Underlying Fund and the Receiving Underlying Fund.
Impact to unitholders of the Affected Mirror Fund
From the Effective Date the Receiving Underlying Fund will become the underlying fund of the Affected Mirror Fund; there will be no change to the name or fund code of the Affected Mirror Fund as a result of the Underlying Fund Merger. The number and value of units held in the Affected Mirror 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 Affected Mirror 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 Affected Mirror 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 Affected Mirror Fund will resume pricing with the Receiving Underlying Fund becoming the new underlying fund link of the Affected Mirror Fund. Premium subscriptions, switching, and redemption instructions recommence from Monday 5 December 2022.
For impacted policyholders invested in this fund, these changes will happen automatically within their policy or contract and they do not need to take any action if they agree with the merger of the underlying fund of the Affected Mirror Fund.
However, they can choose to switch their current holdings in the Affected Mirror Fund and/or redirect premiums or contributions into a different fund in the FPIL range, free of charge. They can do this at any time, but if they do not wish to remain in the Affected Mirror Fund for the Underlying Fund Merger, we require 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 policyholders seek the advice of their usual financial adviser before making any investment decisions.
