Fidelity – Changes to the Fidelity Funds

Notice to Shareholder

The Fund Manager would like to inform you of the following upcoming changes to our funds.

  1. Change of investment objective : FF Greater China Multi Asset Growth & Income Fund

With effect from 17 October 2019 or such later date as may be determined, there will be changes made to the investment objective of the FF – Greater China Multi Asset Growth & Income Fund

Table 1 provides more information on these changes, while Table 2 lists the ISINs of the affected (Singapore registered) share classes.

Please be assured that there will be no changes to the fund’s risk profile or to the fees charged by the fund as a result of these changes.

Table 1: Change of investment objective 

Current Investment Objective New Investment Objective

(effective 17 October 2019 or such later date as may be determined)

Rationale for the change
The fund aims to provide capital growth and income over the medium to longer term by investing primarily in equities and fixed income securities issued by companies that are listed in, or have their registered office in, or exercise a majority of their activity in the Greater China region, including Hong Kong, China, Taiwan and Macau, or issued by governments or quasi-governments of the same region.

The fund will actively allocate to, and within, different asset classes and geographies based on their potential to generate capital growth and income within the portfolio.

The main asset classes in which the fund will invest include Greater China equities and Greater China investment grade, and high yield bonds, including government bonds. Investments will not be required to meet minimum rating standards. The fund may invest its net assets directly in China A and B shares and/or onshore China fixed income securities listed or traded on any Eligible Market in China.

The fund may also invest in UCITS and UCIs.

Portfolio Information:

For the remaining assets, the investment manager has the freedom to invest outside the fund’s principal geographies, market sectors, currency or asset classes.

The fund may, under normal market conditions, invest up to 40% of its assets in investment grade bonds, 80% in equities, and up to 50% in high yield bonds.

In adverse market conditions the fund may invest up to 30% of its assets in cash, Money Market Instruments, and Money Market Funds.

Onshore China fixed income securities are listed or traded on any Eligible Market in China and are issued by a variety of issuers such as government,  quasigovernment, banks, financial institutions or other corporate entities established or incorporated in China or corporate entities with commercial activities in China.

The fund aims to provide capital growth and income over the medium to longer term by investing primarily in equities and fixed income securities issued by companies that are listed in, or have their registered office in, or exercise a majority of their activity in the Greater China region, including Hong Kong, China, Taiwan and Macau or issued by governments or quasi-government of the same region. China, Taiwan and Macau are considered as emerging markets.

The fund will actively allocate to, and within, different asset classes and geographies based on their potential to generate capital growth and income within the portfolio. The main asset classes in which the fund will invest include Greater China equities and Greater China investment grade bonds, and Greater China high yield bonds, including government bonds and unrated bonds. Investments will not be required to meet minimum credit rating standards. The fund may invest its net assets directly in China A and B shares and/or onshore China fixed income securities listed or traded on any Eligible Market in China. The fund may also invest in hybrid securities and contingent convertibles and seek exposure to commodities and eligible closed ended real estate investment trusts (REITS).

The Investment Manager is not restricted in its choice of companies either by size or industry.

The fund may also invest in UCITS and UCIs.

Portfolio Information:

For the remaining assets, the Investment Manager has the freedom to invest outside the fund’s principal geographies, market sectors, currency or asset classes.

Onshore China fixed income securities are listed or traded on any Eligible Market in China, and are issued by a variety of issuers such as government, quasi-government, banks, financial institutions or other corporate entities established or incorporated in China or corporate entities with commercial activities in China.

The Change is designed to clarify and enhance the disclosure relating to how the Fund is managed.

 

Table 2: Singapore registered share classes

Classes of Shares ISIN Codes
Fidelity Funds – Greater China Multi Asset Growth & Income Fund A-ACC-USD LU1366333505
Fidelity Funds – Greater China Multi Asset Growth & Income Fund A-MINC(G)-SGD LU1439103000
Fidelity Funds – Greater China Multi Asset Growth & Income Fund A-HMDIST(G)-AUD

(AUD/USD hedged)

LU1439104586
Fidelity Funds – Greater China Multi Asset Growth & Income Fund A-MINC(G)-USD LU1439102887

For more details, please read the shareholder notification.

 

  1. Change of name & investment objective : FF Global Strategic Bond Fund

With effect from 30 October 2019 or such later date as may be determined, there will be changes to the FF Global Strategic Bond Fund as follows:

  • Change in the investment objective of the FF – Global Strategic Bond Fund; and
  • Change of fund name to FF – Sustainable Strategic Bond Fund

Table 3 below provides more information on the change and table 4 lists the ISINs of the affected (Singapore registered) share classes.

As a result of the change to its investment objective, the fund may be subject to additional / increased investment risks including but not limited to risks relating to sustainable investing. There are no changes to the fees charged by the fund as a result of these changes.

 

Table 3: Summary of changes

Existing New

(Effective 30 October 2019 or such later date as may be determined)

Rationale for the change
Change of Name FF – Global Strategic Bond Fund FF – Sustainable Strategic Bond Fund The changes are in response to increasing investor attention on the sustainable characteristics of their investments.

As a result of the changes, the fund will invest in issuers with evident or improving sustainable characteristics, particularly in relation to environmental, social and governance factors. The fund will continue to actively allocate across different asset categories and sectors across fixed income markets globally.

Change in Investment Objective The fund seeks to maximise return through capital appreciation and income by primarily investing in a broad range of fixed income instruments of issuers globally. The fund will adopt an active asset allocation approach, which may include investment into high yield instruments and emerging markets. Investments will not be required to meet minimum rating standards.

The fund may also invest in UCITS and UCIs.

The fund may invest its net assets directly in onshore China fixed income securities listed or traded on any Eligible Market in China.

Portfolio information:

The Investment Manager is not restricted in his choice of investments either by region or country, market sector or industry, and will choose investments largely determined by the availability of attractive investment opportunities. Onshore China fixed income securities are listed or traded on any Eligible Market in China, and are issued by a variety of issuers such as government, quasi-government, banks, financial institutions or other corporate entities established or incorporated in China or corporate entities with commercial activities in China.

The fund seeks to maximise return through capital appreciation and income by primarily investing in a broad range of fixed income instruments of issuers globally. A minimum of 70% of the fund’s net assets will be invested in securities that maintain sustainable characteristics. Sustainable characteristics may include, but are not limited to, effective governance and superior management of environmental and social issues (‘ESG’). The Investment Manager may use data provided by internal research teams and complemented by external ESG score providers to form an assessment of the sustainable characteristics.

The fund will adopt an active asset allocation approach, which may include but not limited to investment into high yield instruments and emerging markets. Investments will not be required to meet minimum rating standards.

The fund may invest its net assets directly in onshore China fixed income securities listed or traded on any Eligible Market in China.

Portfolio information:

The fund is not subject to any limitation on the portion of its Net Asset Value that may invest in high yield securities or issuers.

Onshore China fixed income securities are listed or traded on any Eligible Market in China, and are issued by a variety of issuers such as government, quasi-government, banks, financial institutions or other corporate entities established or incorporated in China or corporate entities with commercial activities in China.

 

Table 4: Singapore registered share classes

Classes of Shares (Existing) Classes of Shares (Effective 30 October 2019) ISIN Codes
Fidelity Funds – Global Strategic Bond Fund A-ACC-USD Fidelity Funds – Sustainable Strategic Bond Fund A-ACC-USD LU1366333505
Fidelity Funds – Global Strategic Bond Fund A-GMDIST-EUR (hedged) Fidelity Funds – Sustainable Strategic Bond Fund A-GMDIST-EUR (hedged) LU1439103000

For more details, please read the shareholder notification.

 

  1. Change of name & investment objective : FF European Fund

With effect from 30 October 2019 or such later date as may be determined, there will be changes to the FF European Fund as follows:

  • Change in the investment objective of the FF – European Fund; and
  • Change of fund name to FF – Sustainable Eurozone Equity Fund

 

Table 5 below provides more information on the change and table 6 lists the ISINs of the affected (Singapore registered) share classes.

 

As a result of the change to its investment objective, the fund may be subject to additional / increased investment risks including but not limited to risks relating to sustainable investing.. There are no changes to the fees charged by the fund as a result of these changes.

 

Table 5: Summary of changes

Existing New

(Effective 30 October 2019 or such later date as may be determined)

Rationale for the change
Change of Name FF European Fund FF – Sustainable Eurozone Equity Fund The Changes are in response to increasing investor attention on the sustainable characteristics of their investments. As a result of the Changes, the fund will invest in issuers with evident or improving sustainable characteristics, particularly in relation to environmental, social and governance factors within the Economic and Monetary Union (“EMU”).

The fund will focus on quality companies within each sector and mainly in high returns, durable franchises with solid growth prospects and value-creating capital allocation decisions. Due to the material extent of the Changes to the way the Fund is managed and invests, the portfolio rebalancing will take place within a period of five Business Days after the Effective Date.

Change in Investment Objective The fund aims to achieve long-term capital growth by investing principally in equity securities of companies which have either their head office in or are quoted on stock exchanges of a European Union (EU) member state or a European Economic Area (EEA) member state. The fund may also invest up to 25% of its net assets in non- EU/ EEA equity markets (other OECD countries and emerging markets).

Subject to the above, the Investment Manager is free to select any company regardless of size or industry. Typically, the fund will concentrate its investments in a more limited number of companies and therefore the resulting portfolio will be less diversified.

The fund aims to achieve long-term capital growth from a portfolio principally made up of equity securities in countries which are members of the Economic and Monetary Union (EMU) and denominated in Euro. A minimum of 70% of the fund’s net assets will be invested in equity securities that maintain sustainable characteristics. Sustainable characteristics may include, but are not limited to, governance and superior management of environmental and social issues (‘ESG’).  The Investment Manager may use data provided by internal research teams and complemented by external ESG score providers to form an assessment of their sustainable characteristics.

 

Table 6: Singapore registered share classes

Classes of Shares (Existing) Classes of Shares (Effective 30 October 2019) ISIN Codes
Fidelity Funds – European Fund A-ACC-EUR Fidelity Funds – Sustainable Eurozone Equity Fund A-ACC-EUR LU0238202427

For more details, please read the shareholder notification.

 

  1. Appointment of Geode Capital Management (“Geode”) as Sub-manager for four funds

With effect from 28 October 2019 or such later date as may be determined, the Investment Manager of the fund and its delegates will appoint Geode as its delegate with discretionary authority over some of the assets (max 30%) of the following Fidelity Funds:

  • FF – Global Multi Asset Income Fund
  • FF – Growth & Income Fund
  • FF – SMART Global Moderate Fund
  • FF – SMART Global Defensive Fund

We believe that the depth of Geode’s experience, combined with their disciplined investment process, sophisticated technology and robust infrastructure, make it a suitable sub-investment manager for the Funds. We further believe this appointment to be in the best interest of the shareholders, as it will facilitate the ability to deliver strong risk-adjusted returns through reducing unwanted style biases, targeting specific risk factors more efficiently and enhancing returns. This flexibility supports the aim to continually seek the best outcomes for investors and the appropriate levels of diversification.

 

There is no change to the investment objective, risk profile or to the fees that you currently pay as a result of this change.

The list of the affected share classes registered for distribution in Singapore and their respective ISINS are listed in Table 7 below.

Table 7: Singapore registered share classes

Classes of Shares ISIN Codes
FF – Global Multi Asset Income Fund A-MDIST-EUR LU1563521951
FF – Global Multi Asset Income Fund A-ACC-USD LU0905233846
FF – Global Multi Asset Income Fund A-ACC-EUR LU1116430247
FF – Global Multi Asset Income Fund A-MINCOME(G)-SGD (SGD/USD hedged) LU1391767313
FF – Global Multi Asset Income Fund A-QINCOME(G)-SGD LU0905234570
FF – Global Multi Asset Income Fund A-ACC-EUR (hedged) LU0987487336
FF – Global Multi Asset Income Fund A-MCDIST(G)-SGD (SGD/USD hedged) LU1883994011
FF – Global Multi Asset Income Fund A-MCDIST(G)-USD LU1883993989
FF – Global Multi Asset Income Fund A-MINCOME(G)-HKD LU0905234497
FF – Global Multi Asset Income Fund A-MINCOME(G)-USD LU0905234141
FF – Global Multi Asset Income Fund A-MINCOME(G)-SGD LU1084809471
FF – Global Multi Asset Income Fund A-QINCOME(G)-EUR (hedged) LU0987487419
FF – Global Multi Asset Income Fund A-HMDIST(G)-AUD (hedged) LU1046420987
FF – Global Multi Asset Income Fund Y-MINCOME(G)-USD LU1622746433
FF – Growth & Income Fund LU0138981039
FF – SMART Global Moderate Fund LU0080751232
FF – SMART Global Defensive Fund LU0056886558

For more details, please read the shareholder notification.

 

  1. Closure of the 3 share classes within the Fidelity Funds

We would like to inform you that we have decided to close the following 3 share classes within the Fidelity Funds.

  • FF – Emerging Europe, Middle East and Africa Fund A-SGD
  • FF – International Fund A-ACC-SGD (hedged)
  • FF – Global Inflation-linked Bond Fund A-SGD (hedged)

The closure is take in light of the fact that the size of these share classes are small ; keeping the fund would result in high expense ratios that may not be in the best interest of investors.

The list of the affected share classes registered for distribution in Singapore, their respective ISINS, and closure dates are listed in Table 8 below.

 

Table 8: Singapore registered share classes

Classes of Shares ISIN Codes Share class AUM

(as at 31 July 2019)

TER

(as of 30 April 2019)

Closure Date
FF – Emerging Europe, Middle East and Africa Fund A-SGD LU0345363179 USD 1,954,782 1.93% 18 December 2019
FF – International Fund A-ACC-SGD (hedged) LU1273509148 USD 2,306,244 1.89% 18 December 2019
FF – Global Inflation-linked Bond Fund A-SGD (hedged) LU0353649196 USD 970,065 0.70% 14 January 2020

For more details, please read the shareholder notification.

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