The Canada Life International Fidelity Special Situations fund will temporarily close for new busine...
The Canada Life International Fidelity Special Situations fund will temporarily close for new business one week before the Fidelity portfolio splits in two on 18 September.
The division of the portfolio into two separate funds will take place on 16 September and investors will be able to deal in either fund from the 18th.
Like the Fidelity vehicle, the Canada Life mirror version will also split into two separate funds and investors will be able to choose between the existing Special Situations portfolio and the new global product.
Initially, Canada Life considered offering investors one fund, which would have been split between UK and global remits. However, it believed this would pose a problem for advisers because the fund could no longer be classified in its original sector definition - UK All Companies - as set out by the Association of British Insurers (ABI).
The group said this would have made it difficult for advisers to assess it in terms of performance compared with other portfolios. The global element of the fund will be classified under ABI's global equities sector.
Gavin Watson, client fund manager at Canada Life, said: "The decision to split the fund on a 50/50 basis will make life easier for advisers when it comes to asset allocation and portfolio construction."
The split of the fund comes amid succession plans for Anthony Bolton, who has managed the fund since launch in 1979. The Global Special Situations fund will be managed by Jorma Korhonen.
Korhonen has run international equity portfolios for nearly five years, having joined Fidelity in 1996 as an analyst. For the past two years he has been managing Swiss, Italian and Iberian equity funds. He also runs global equity funds for retail investors in Australia and Japan.
CLI Fidelity Special Situations fund to split in two
Product will close a week before the split
The fund will be classified into two separate ABI categories
Senior Managers Regime
Interest rate outlook unchaged
FCA made demands last week
'Unsung' part of FSCS work