BNY Mellon have announced that they will close the Global Dynamic Bond Income Fund on 15th January 2025.
BNY have stated the following:
"To ensure we continue to meet the needs and expectations of all shareholders, we are always looking for ways to improve or update our range of funds and adapt to changing markets and investor requirements. Following a strategic review, due to the small size of the Fund and as it is not expected to attract significant further subscriptions, we believe it is unlikely that the Fund will reach a size in the near future to deliver sufficient cost efficiencies for shareholders.
As a result, we believe closing the Fund is in the best interests of the investors. This decision was made in consultation with the Fund's investment manager, Newton Investment Management Limited (Newton). Please see the appendix for a list of impacted share classes.
Please note that, to the extent necessary, Newton may proceed to move positions in the Fund to cash or liquid assets in the period leading up to the closure date to facilitate an orderly and efficient closure process. This may impact the Fund's ability to be fully invested in accordance with its investment objective and policy during that period.
Subscriptions, including regular savings plans, transfers or switches into any share class of the Fund will no longer be accepted from 31st October 2024."
Investors can either do nothing and automatically switch into the Responsible Horizons Strategic Bond Fund, switch the investment into another fund, transfer your ISA to another ISA Plan Manager or redeem the holdings.
BNY go on to state that:
"If no instruction is received by 12 noon on 14 January 2025, we will switch your investment into the Responsible Horizons Strategic Bond Fund, which we consider to be an appropriate substitute fund on 15 January 2025. This means your investment will retain its ISA tax-efficient status. The closure of the Fund may result in a tax liability depending on your individual circumstances. If you have any concerns about your tax position, we recommend that you seek independent professional tax advice as to the full tax implications for you."
If this is something that may interest you, please get in touch.
- uploaded - 01 November 2024