Significant fund changes

Threadneedle Target Return Fund Closure

On 28 February 2017 we will be closing the Threadneedle Target Return Fund (the Fund). We have written to advisers who have clients invested in the fund as well as directly to investors in the funds to notify them of the closure.
Action required:

If your clients are invested in the Fund, they need to complete the Form of Direction and send it back to us as soon as possible at: Threadneedle Investment Services Limited, Client Services, PO Box 10033, Chelmsford, CM99 2AL, United Kingdom.

Why is the Fund being closed?
The Fund has fallen to a size, £13.3 million^, which makes it economically unviable to manage and following a review we identified that it is unlikely to attract new investors in the future. We therefore believe the closure of the Fund is in the best interests of investors.
When will the Fund be closed?
Dealing in the Fund will be suspended from 12 noon on 27 February 2017, and the termination process will begin on 28 February 2017 (the “Effective Date”).
What are my clients' options?

Your clients can choose to:

  • Switch their investment free of charge into another Threadneedle fund(s) up until 12 noon on 27 February 2017. Details of our funds can be found on our website
  • Sell their investment before the Fund is suspended.
  • Take no action and your clients’ shares will be redeemed and the proceeds sent to them.
Are there any tax implications?
There may be tax implications depending on your individual circumstances and which option you choose. We are unable to provide tax advice and we therefore suggest that you seek advice from your tax adviser about any potential tax implications before you take any action.
What happens once the Fund has closed?
On the Effective Date we will begin the termination process which we expect to take approximately one month. Once completed, if you have left your investment to be cashed in, the proceeds of your investment will be sent to the registered shareholder at the address we have on our records.
What do I need to do?
You can take no action and your shares will be redeemed and the proceeds will be held in a Client Money Account until we receive the information required on the Form of Direction in order to return the proceeds of sale to you.
Further information

If you have any further questions, please call us on +44 1268 444 321*. Our team is available from 8:00 am to 6:00 pm (GMT), Monday to Friday.

*Calls may be recorded