Closure of FPIL L15 Indian Equity 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	HSBC Indian Equity	JPMorgan India Smaller Companies (USD)
Fund code	L15	L86
Currency	USD	USD
Investment objective of the underlying fund	The sub-fund aims to provide long-term total return by investing in a portfolio of Indian equities. The sub-fund invests, in normal market conditions, a minimum of 90% of its net assets in equities and equity equivalent securities of companies which are domiciled in, based in, or carry out the larger part of their business activities in, India. From 26 May 2021, the sub-fund may also invest in eligible closed-ended Real Estate Investment Trusts (“REITs”). The sub-fund normally invests across a range of market capitalisations. The sub-fund will not invest more than 30% of its net assets in a combination of participation notes and convertible securities. The sub-fund will not invest more than 10% of its net assets in REITs. The sub-fund may use financial derivative instruments for hedging and cash flow management (for example, Equitisation). However, the sub-fund will not use financial derivative instruments extensively for investment purposes. The financial derivative instruments the sub-fund is permitted to use include, but are not limited to, futures and foreign exchange forwards (including non-deliverable forwards). Financial derivative instruments may also be embedded in other instruments in which the sub-fund may invest. Financial derivative instruments may also be used for efficient portfolio management purposes. The sub-fund may enter into Securities Lending transactions for up to 29% of its net assets, however this is not expected to exceed 25%. The sub-fund is actively managed and does not track a benchmark. The sub-fund has an internal or external target to outperform the reference benchmark, S&P / IFCI India Gross. The Investment Adviser will use its discretion to invest in securities not included in the reference benchmark based on active investment management strategies and specific investment opportunities. It is foreseen that a significant percentage of the sub-fund's investments will be components of the reference benchmark. However, their weightings may deviate materially from those of the reference benchmark. Any deviations with respect to the benchmark are monitored within a comprehensive risk framework, which includes monitoring at security & sector level. The deviation of the sub-fund’s performance relative to the benchmark is also monitored, but not constrained, to a defined range.	The investment objective of the Fund is to provide investors with long-term capital growth by investing primarily (i.e. at least 70% of its total net asset value) in equity securities of small to medium-sized companies in India. Small to medium-sized companies are defined as companies with market capitalisation that are equal to the bottom quartile of shares listed on the Indian stock exchanges. The Fund is not subject to any limitation on the portion of its total net asset value that may be invested in any sector. The Investment Manager seeks to assess the negative impact presented by certain environmental, social and governance factors on issuers in which the Fund may invest. While these factors are considered, securities of issuers which may be negatively impacted may be purchased and retained by the Fund. The Fund may also invest in derivatives such as forward contracts, options, warrants and futures for investment purposes. The investment objective, policy and investment restrictions and guidelines of the Fund may, subject to the approval of the Trustee and/or the SFC (as applicable), vary from time to time when the Manager considers appropriate in the circumstances.
Ongoing Charges Figure (OCF) of the underlying fund	1.90% The ongoing charges figure is based on last year’s expenses for the year ending 31/03/2020. Charges may vary from year to year.	1.80% The ongoing charges figure is based on expenses for the year ended 30 September 2020 and may vary from year to year.
Risk profile* (determined by Friends Provident International for reference only)	5	5

* 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.