Significant Fund Changes

Please read this important information regarding changes we are making to certain funds within our fund range.

For the Scheme of Arrangements, please note these changes do not impact GBP share classes.

The current KIID document and prospectuses have not been updated to reflect the changes listed below, so it is important that you read this information in addition to the KIID documents.

On 13 December 2018, Columbia Threadneedle Investments changed the pricing of the dual-priced Threadneedle UK Property Authorised Investment Fund and the Threadneedle UK Property Authorised Investment Trust from being priced on an offer basis to being priced on a bid basis.

This is to reflect the impact of transaction costs given market uncertainty and ensures the fair treatment of all our clients.

Q&A

We recently informed you that we will transfer the assets of certain share classes of the below listed UK-based funds into an equivalent fund within our established Luxembourg fund range. Please note these changes do not impact GBP share classes.

  • American Smaller Companies Fund (US)
  • European Smaller Companies Fund
  • Global Emerging Markets Equity Fund
  • Global Equity Income Fund

We are pleased to confirm that the transfers have now been successfully completed. Further information can be found below.

Investor letter

Q&A

Guide to Investing (SICAV)

We recently informed you that we will transfer the assets of certain share classes of the below listed UK-based funds into an equivalent fund within our established Luxembourg fund range. Please note these changes do not impact GBP share classes.

  • American Fund
  • American Select Fund
  • European Select Fund
  • UK Equity Income Fund
  • UK Fund

We are pleased to confirm that the transfers have now been successfully completed. Further information can be found below.

Investor letter

Q&A

Guide to Investing (SICAV)

We have written to investors about a proposed change to the following funds.

  • American Extended Alpha Fund
  • Asia Fund
  • Global Extended Alpha Fund
  • Global Select Fund
  • UK Absolute Alpha Fund

We are planning to transfer the assets of investors in certain share classes of each fund listed above into an equivalent share class within our established Luxembourg fund range. Please note these changes do not impact GBP share classes.

The transfers will be made by a process called a scheme of arrangement.

Find out more

We recently informed you of our proposal to transfer the assets of certain share classes of the below listed UK-based funds into an equivalent fund within our established Luxembourg fund range. Please note these changes do not impact GBP share classes.

  • American Smaller Companies Fund (US)
  • European Smaller Companies Fund
  • Global Emerging Markets Equity Fund
  • Global Equity Income Fund

Following the shareholder vote at the extraordinary general meetings, the results of the vote are detailed in the investor letter below.

Investor letter

Q&A

We recently informed you of our proposal to transfer the assets of certain share classes of the below listed UK-based funds into an equivalent fund within our established Luxembourg fund range. Please note these changes do not impact GBP share classes.

Following the shareholder vote at the extraordinary general meetings held on 10 October 2018, we can confirm that the proposed transfers have now been approved.

  • American Fund
  • American Select Fund
  • European Select Fund
  • UK Equity Income Fund
  • UK Fund

We will be communicating with all impacted clients and outlining the options available to them ahead of the merger date.

Investor letter

Q&A

We have applied to the FCA for authorisation to close the Threadneedle Global Opportunities Bond Fund, a sub-fund of the Threadneedle Specialist Investment Funds ICVC. The Fund has fallen to a value that means it is no longer viable to manage. As a result, we believe the closure of the Fund is in the best interests of investors. We will provide further details to shareholders, including the effective date of the closure, once we have received approval from the FCA to close the Fund.

We recently informed you that we will transfer the assets of the below listed UK-based funds into an equivalent fund within our established Luxembourg fund range (the “Lux Funds”). We are pleased to confirm that the transfers have now been successfully completed.

  • European Corporate Bond Fund
  • European High Yield Bond Fund
  • Pan European Fund
  • Pan European Smaller Companies Fund
  • Pan European Equity Dividend Fund

Further information can be found below.

Investor Letter
Q&A
Guide to Investing (SICAV)

We have written to investors about a proposed change to the following funds.

  • American Smaller Companies Fund (US)
  • European Smaller Companies Fund
  • Global Emerging Markets Equity Fund
  • Global Equity Income Fund

We are planning to transfer the assets of investors in certain share classes of each fund listed above into an equivalent share class within our established Luxembourg fund range. Please note these changes do not impact GBP share classes.

The transfers will be made by a process called a scheme of arrangement.

Find out more

We have written to investors about a proposed change to the following funds.

  • American Fund
  • American Select Fund
  • European Select Fund
  • UK Equity Income Fund
  • UK Fund

We are planning to transfer the assets of investors in certain share classes of each fund listed above into an equivalent share class within our established Luxembourg fund range. Please note these changes do not impact GBP share classes.

The transfers will be made by a process called a scheme of arrangement.

Find out more

We recently informed investors of our proposal to transfer the assets of each fund listed below (the “Existing Funds”) into an equivalent fund within our established Luxembourg fund range (the “Lux Funds”). Following the shareholder vote at the extraordinary general meetings (EGMs) held on 24 August 2018, we can confirm that the transfers have been approved for all the affected funds.

  • European Corporate Bond Fund
  • European High Yield Bond Fund
  • Pan European Fund
  • Pan European Smaller Companies Fund
  • Pan European Equity Dividend Fund
  • Credit Opportunities Fund

We will be communicating with all impacted clients and outlining the options available to them ahead of the merger date.

Investor Letter

Q&A

We have written to investors about a proposed change to the following funds.

  • European Corporate Bond Fund
  • European High Yield Bond Fund
  • Pan European Fund
  • Pan European Smaller Companies Fund
  • Pan European Equity Dividend Fund
  • Credit Opportunities Fund

We are planning to transfer the assets of each fund listed above into an equivalent fund within our established Luxembourg fund range. The transfer will be made by a process called a 'cross-border merger'.

Find out more

On 16 March 2018, we transferred all the holdings in the Threadneedle Navigator Adventurous Managed Trust, Threadneedle Navigator Balanced Managed Trust, Threadneedle Navigator Cautious Managed Trust and Threadneedle Growth Managed Trust, into existing funds in our Managed funds range.

We began the closure of the Threadneedle Navigator Growth Trust, Threadneedle Navigator Income Trust and Threadneedle Navigator UK Index Tracker Trust on 22 March 2018.

Following these transfers and closures, we completed the winding up of the funds on 1 June 2018.

The final reports will be available to unitholders upon request, free of charge from 11 August 2018.

Threadneedle Navigator Trusts Final Reports
Navigator Closure Letter - Accounts 1
Navigator Closure Letter - Accounts 2b

Class L Shares were launched as part of a programme of fund transfers that took place in 2016 and 2017. They are institutional share classes with lower ongoing charges and a smaller annual management fee than the other share classes in the funds.

In the event that an existing investor exits a Class L Share and then (having gained permission from the ACD) decides to reinvest in that position, the investment minimum for Class L Shares will increase from £500,000 to £100 million with effect from 1 September 2018.

Which funds are affected by this change?

  • European Fund
  • UK Equity Income Fund
  • UK Select Fund
  • US Equity Income Fund
  • UK Corporate Bond Fund

Investor Letter

Q&A

If you would like further information, please call us on 0800 953 0134* if you are in the UK or on 0044 1268 444 321* if you’re based outside of the UK. Our team is available from 8.00am to 6.00pm, Monday to Friday (UK time).

*calls may be recorded

From 1 September 2018, we will no longer use currency hedging in the “portfolio hedged” share class in the TIF European Fund. As a result of this action, the share class will become “unhedged” and will subsequently be renamed “Class L Income GBP”.

A portfolio hedged class allows the use of currency transactions to reduce the effect of exchange rate fluctuations between the portfolio currency (euro, Swiss francs etc) and the hedged currency (sterling).

Investor Letter

Q&A

If you require any further information, please call us on 0800 953 0134* if you are in the UK or on 0044 1268 444 321 if you’re based outside of the UK. Our team is available from 8.00am to 6.00pm, Monday to Friday (UK time).

*calls may be recorded

We will be applying compulsory conversion to some of our Funds with effect from 16 June 2018. We have written to investors in the funds impacted by the change.

More information and the list of funds and share classes can be found here.

On 9 May we announced plans to transfer EU customer assets from our UK OEIC fund range to equivalent funds in our established Luxembourg SICAV range, to best serve European clients after the UK departs from the European Union.

When the UK leaves the EU (and at the end of any transition period), it’s highly likely that UK-based OEIC funds will lose their UCITS status. By transferring assets to our Luxembourg fund range, we can provide certainty for our EU-based investors and ensure they remain in a UCITS-compliant fund, regardless of the final agreement between the UK and the EU.

A total of 20 funds from the Threadneedle OEIC range will be impacted. The transfers are subject to shareholder approval.

For further information please refer to the press release and Q&A.

From 14 May 2018, the funds listed below will be able to invest through Shanghai-Hong Kong Stock Connect and Shenzhen-Hong Kong Stock Connect (together, Stock Connect) in mainland Chinese shares, called China A Shares.

Which funds are affected by the changes?

The following funds are affected by the changes:

  • Threadneedle Asia Fund
  • Threadneedle China Opportunities Fund
  • Threadneedle Global Emerging Markets Equity Fund
  • Threadneedle Global Select Fund
  • Threadneedle Global Extended Alpha Fund
  • Threadneedle Global Equity Income Fund

Find out more

In our latest review of fees and charges, we identified opportunities to reduce charges on a number of our funds and in certain share classes. These changes will reduce the ongoing charges figures (OCF) and improve value for money for investors. The new fees and charges come into effect from 1 February 2018 and will:

  1. Reduce registrar fees on a number of our UK regulated funds and in certain share classes
  2. Reduce operating expenses on a number of our Luxembourg regulated funds and in certain share classes
  3. Reduce the annual management charge (AMC) on a range of funds and share classes.

View list of funds

Following a review of our fund range, we are making the following changes to the Navigator Funds to simplify our product range.

1. Fund mergers
Following approval at the extraordinary general meetings (EGMs) on 14 February 2018, the assets of the Navigator Funds listed below will be merged into other Threadneedle funds on 16 March 2018.

  • Threadneedle Navigator Adventurous Managed Trust
  • Threadneedle Navigator Balanced Managed Trust
  • Threadneedle Navigator Cautious Managed Trust
  • Threadneedle Navigator Growth Managed Trust

2. Fund closures
We will be closing the following funds on 22 March 2018:

  • Threadneedle Navigator Growth Trust
  • Threadneedle Navigator Income Trust
  • Threadneedle Navigator UK Index Tracker Trust

Dealing in the Funds will be suspended from 12 noon on 21 March 2018, and the termination process will begin on 22 March 2018. Find out more.

From 1 February 2018 we will be updating our prospectuses for some of our funds to include the ability for us to convert investors’ shares in a fund from one share class of the fund to another share class of that same fund. This is known as compulsory conversion.

We will only be doing this for our open-ended investment funds* at this stage and not for our unit trusts.

We will only apply compulsory conversions if it is in the best interests of investors to do so. Ahead of any compulsory conversions we will write to investors in the Fund to explain what is happening, the reasons for it and to give notice of the date that the change will be taking place and we will explain what you can do if you disagree with the changes we plan to make.

For full details please read the Prospectus update section in the Investor Update.

* Threadneedle Focus Funds ICVC, Threadneedle Investment Funds ICVC, Threadneedle Opportunity Investment Funds ICVC, Threadneedle Specialist Investment Funds ICVC, Threadneedle UK Property Authorised Investment Fund.

On 1 November 2017 we will be making changes to the way the Threadneedle Japan Fund is managed. Threadneedle Asset Management Limited (TAML), the investment manager of the Fund, will be able to delegate investment decisions for the Fund to Columbia Management Investment Advisers, LLC (CMIA), which is a US-based investment manager in the Columbia Threadneedle group of companies.

Find out more

We have simplified our product range, as we believe this will better serve our shareholders. This is mostly an administrative change, largely to eliminate duplication of Funds.

On the 12 May 2017, the following funds were transferred:

  • The Threadneedle European ex-UK Growth Fund into the European Fund
  • The Threadneedle Japan Growth Fund into the Japan Fund
  • The Threadneedle Pacific ex-Japan Growth Fund into the Asia Fund
  • The Threadneedle UK Equity Income Fund into the UK Equity Income Fund
  • The Threadneedle UK Growth Fund into the UK Select Fund

Find out more

On the 28 February 2017 the names of the funds in the Threadneedle Managed Funds range were changed and the investment objectives and policies updated to provide a clearer, simpler explanation of the investment process of each fund. These changes do not affect the way the Funds are run by the fund managers.

Find out more

The Threadneedle Target Return Fund closed on 28 February 2017.

Find out more

We are simplifying our product range, as we believe this will better serve our shareholders. This is mostly an administrative change and largely to eliminate duplication of Funds, but we expect that our shareholders will benefit from lower fees and expenses in the New Funds.

On the 25 November 2016, the following funds were transferred:

  • The Threadneedle UK Corporate Bond Fund transferred into the UK Corporate Bond Fund
  • The Threadneedle UK Short-Term Money Market Fund transferred into the Sterling Fund
  • The Threadneedle UK Index Linked Fund transferred into the UK Index Linked Fund

On the 9 December 2016, with the following funds were transferred:

  • The Threadneedle UK Fixed Interest Fund transferred into the UK Fixed Interest Fund
  • The Threadneedle UK Short-Dated Corporate Bond Fund transferred into Sterling Short-Dated Corporate Bond Fund
  • The Threadneedle UK Medium & Long-Dated Corporate Bond Fund transferred into Sterling Medium and Long-Dated Corporate Bond Fund

Find out more

In the March 2015 and 2016 Budget announcements, the UK Government introduced changes to the way savings and investments are taxed in the UK.Consequently:

  • All payments from Equity Funds have been paid gross of UK tax since 6 April 2016
  • All payments from Bond Funds will be paid gross of UK tax from 6 April 2017

As a result of the taxation changes mentioned, we consider it appropriate to remove references to ‘net’ in our share class names as distributions will no longer be paid net of tax. 

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Change to Performance Fees

From 1 January 2017 there will be changes to the way performance fees are calculated on the Threadneedle UK Extended Alpha Fund and the Threadneedle UK Absolute Alpha Fund.

Read More

On the 1st of August 2016 the Threadneedle UK Growth & Income Fund will be altering its investment policy to remove the reference to "blue chip large capitalised UK companies" and replacing it with "larger capitalised UK companies".

At the same time, the term "larger capitalised UK companies" will be defined in the prospectus in relation to the Fund as "the largest 150 companies by market capitalisation in the FTSE All-Share Index". In doing this we will be clarifying the Fund's investment universe.

The Fund's objective of providing long-term capital growth with a reasonable and growing income will not change nor will it alter the way the Fund is managed.

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We have written to unitholders of one or more funds within the Navigator fund range (the Trusts) to inform them that effective from 1 June 2016, the prospectus of the Navigator Fund Range has been updated to allow the fund manager to formally take advantage of an increase in investment powers that came into effect in 2003.

This change allows each Trust to invest up to 10% of its value in other funds that use derivatives for investment purposes from 1 June 2016.

The following funds are affected by the changes:

  • Navigator Adventurous Managed Trust
  • Navigator Balanced Managed Trust
  • Navigator Cautious Managed Trust
  • Navigator Growth Managed Trust

Read more

The transfer of the Threadneedle US Equity Income Fund into the US Equity Income Fund was approved at an extraordinary general meeting of shareholders on 23 March 2016 and therefore the transfer will proceed as planned on 20 May 2016.

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Please note that on 1 January 2016, the following changes will take place within Citibank, which acts as the depositary/custodian/trustee for some of our funds:

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On 1 November 2017 we will be making changes to the way the Threadneedle Japan Fund is managed. Threadneedle Asset Management Limited (TAML), the investment manager of the Fund, will be able to delegate investment decisions for the Fund to Columbia Management Investment Advisers, LLC (CMIA), which is a US-based investment manager in the Columbia Threadneedle group of companies.

Find out more

The Threadneedle Multi-Asset Zurich fund range merged with the Zurich Horizon Multi-Asset Funds on 18 July 2015.

Read more

There have been a number of changes to our UK Property Fund range which impact new and existing investors, such as change to PAIF structure, change of pricing basis and suspension of dealing in the funds.

Find out more