Closure of S225 NBAD Conservative Managed Fund and S227 NBAD Dynamic Managed Fund

06 Jan 2023

APPLICABLE ONLY TO POLICYHOLDERS WITH A NBAD SAVINGS PLAN

• S225 NBAD Conservative Managed Fund
• S227 NBAD Dynamic Managed Fund

(together the “Merging Mirror Funds”)

We have received notification from the directors of OneShare plc (“the Company”), that they are proposing a merger of the underlying funds of the above Merging Mirror Funds.  

An Extraordinary General Meeting (“EGM”) of shareholders has been convened for 23 January 2023 for the purpose of considering and voting on the proposed merger. The Company is proposing to merge the underlying merging funds into the FAB Balanced Allocation fund (a sub-fund of OneShare plc). This is the underlying fund of our mirror fund named S226 NBAD Balanced Managed Fund (the “Receiving Mirror Fund”).

If the EGM receives a sufficient majority vote, the proposed merger date of the underlying merging funds has been set to take place on 7 February 2023. 

Background to the proposed merger

The Company believes that the merger of the underlying merging funds is in the best interest of investors, as  it will combine three funds with small assets under management into a single fund with a larger and more competitive fund volume and more efficient and cost-effective portfolio management.

As the style of the underlying merging funds and the underlying receiving fund range through Cautious to Balanced to Growth, there are differences in the risk/reward profile  of each underlying fund, however, all three funds aim to provide long-term total returns and each fund’s investment strategy is to invest primarily in collective investment schemes which provide exposure principally to equities, debt securities, money market instruments, currencies and/or alternative investments. The investment portfolios and investment processes of the underlying merging funds and the underlying receiving fund are similar. Please refer to the Appendix in the sample policyholder letter opposite for a comparison summary between the underlying merging funds and the underlying receiving fund.

The impact of the merger on our NBAD mirror funds

Should the proposed merger receive all its required approvals, we will be taking the following action in respect of our NBAD Merging Mirror Funds ahead of the underlying merging funds merger date. On 31 January 2023, existing holdings will be switched, and any premium allocation redirected, into the following Receiving Mirror Fund. Once complete, the Merging Mirror Funds will be formally closed on 2 February 2023:

The Receiving Mirror Fund will also undergo a name change with effect from 31 January 2023, to better reflect the name of the underlying fund. The new name will be S226 FAB Balanced Allocation (USD).

Please note that once the Merging Mirror Funds have closed, the Receiving Mirror Fund will be the only fund available to the NBAD Savings Plan.

What if the underlying fund mergers aren't approved?

Should the underlying merging funds not receive their necessary approvals to merge, the merger of our NBAD mirror funds will not proceed and we will cancel the switches, premium redirections and closure of the Merging Mirror Funds. 

However, we will proceed with a name change on all three NBAD mirror funds, in order to better reflect the name of the current underlying funds, following the rebrand of National Bank of Abu Dhabi ("NBAD") to First Abu Dhabi Bank ("FAB") in 2017:

A sample of the policyholder letter opposite provides full details of the proposed mergers and the action we will be taking for policyholders.