Notification of changes to the underlying funds of L60 Fidelity US Dollar Cash Fund and L62 Fidelity Euro Cash Fund
29 Jun 2022
We have been notified by Fidelity International (the “Company”) of the following changes which impact the Fidelity Funds – US Dollar Cash Fund and Fidelity Funds - Euro Cash (together the “Underlying funds”), which are the underlying funds of the following mirror funds:
- L60 Fidelity US Dollar Cash Fund
- L62 Fidelity Euro Cash Fund
("together the Affected Mirror Funds")
Re-classification from Article 6 to Article 8
The Company has conducted a thorough analysis of the investment policy and investment process of the Underlying funds, and has decided that with effect from 16 August 2022 (the “Effective Date”), the Company will re-classify the Underlying funds to Article 8 (“Re-classification”) under Regulation (EU) 2019/2088 on sustainability-related disclosures in the financial services sector (“SFDR”), in accordance with Fidelity’s Sustainable Investing Framework (as detailed in the Underlying funds prospectus).
Implication of the changes
Following the Re-classification, the English names of the Underlying funds will be amended to include the word Sustainable, and their investment objectives will be enhanced with further sustainability-related disclosures regarding the promotion of environmental and social characteristics pursuant to Article 8 of the SFDR. However, the enhanced disclosures do not represent a material change to the investment strategy or investment policy of the Underlying funds.
Additionally, there will be no change in the fee level or costs of the repurposed Underlying funds, following the implementation of the changes detailed in this notice. The costs and/or expenses incurred in connection with the changes detailed in this notice will be borne by FIL Fund Management Limited, the Investment Manager (and/or any of its affiliates within FIL Group) of the Underlying funds of the Affected Mirror funds.
In line with the above changes to the Underlying funds, the name and investment objective of each Affected Mirror Fund will be amended as follows:
| Before the Effective Date | After the Effective Date | |
| Affected Mirror Fund 1 name | L60 Fidelity US Dollar Cash Fund | L60 Fidelity Funds Sustainable US Dollar Cash (USD) |
| Affected Mirror Fund 1 investment objective | The fund invests principally in US Dollar denominated Money Market Instruments, reverse repurchase agreements and deposits. The fund is actively managed without reference to an index. | The fund invests principally in US Dollar denominated Money Market Instruments, reverse repurchase agreements and deposits. The fund is part of the Fidelity Sustainable Family of Funds and adopts a Sustainable Focused strategy under which a minimum of 70% 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 (b) Fidelity Sustainable Family of Funds” of the Underlying fund’s Prospectus. The fund is actively managed without reference to an index. |
| Before the Effective Date | After the Effective Date | |
| Affected Mirror Fund 2 name | L62 Fidelity Euro Cash Fund | L62 Fidelity Funds Sustainable Euro Cash (EUR) |
| Affected Mirror Fund 2 investment objective |
The fund invests principally in Euro denominated Money Market Instruments, reverse repurchase agreements and deposits. The fund is actively managed without reference to an index. | The fund invests principally in Euro denominated Money Market Instruments, reverse repurchase agreements and deposits. The fund is part of the Fidelity Sustainable Family of Funds and adopts a Sustainable Focused strategy under which a minimum of 70% 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 (b) Fidelity Sustainable Family of Funds” of the Underlying fund’s Prospectus. The fund is actively managed without reference to an index. The fund invests principally in US Dollar denominated Money Market Instruments, reverse repurchase agreements and deposits. The fund is part of the Fidelity Sustainable Family of Funds and adopts a Sustainable Focused strategy under which a minimum of 70% 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 (b) Fidelity Sustainable Family of Funds” of the Underlying fund’s Prospectus. The fund is actively managed without reference to an index. |
Impacted policyholders and advisers have been notified about the above changes by email or letter. Policyholders do not need to take any action if they are happy to remain invested in the Affected Mirror Funds, but are free to switch to any other mirror fund available to their policy should they wish to.
