Notification of changes to the underlying funds of various Janus Henderson funds

28 May 2020

- P61 Janus Henderson Horizon Asia-Pacific Property Equities
- R98 Janus Henderson Horizon China

We have been notified by Janus Henderson Investors (the “Company”) of the following changes to the name and policy of the underlying funds of the above named mirror funds. These changes will take effect from 1 July 2020 (the “Effective Date”).

Changes to the underlying fund of P61 Janus Henderson Horizon Asia-Pacific Property Equities

Please see the table below for more details of the name change of the underlying fund and P61 Janus Henderson Horizon Asia-Pacific Property Equities.

	Before the Effective Date With effect from Effective Date	With effect from Effective Date
Mirror Fund Name and Code	P61 Janus Henderson Horizon Asia-Pacific Property Equities	P61 Janus Henderson Horizon Asia-Pacific Property Income
Name of underlying fund	Janus Henderson Horizon Fund - Asia-Pacific Property Equities Fund	Janus Henderson Horizon Fund - Asia-Pacific Property Income Fund

Please also see the below from the Company, which has been extracted from the Shareholder Circular of the underlying fund of P61 Janus Henderson Horizon Asia-Pacific Property Equities.

Rationale for and impact of the change in investment objective, policy and strategy

Over the past couple of years, we have seen declining interest in the Fund’s current strategy coupled with growing interest in income focused strategies. We have therefore decided that the Fund’s revised objective and strategy towards an income focus is a more compelling proposition going forward. Because of this:

The Fund’s investment objective will change to provide a sustainable level of income, with a dividend yield higher than that of the FTSE EPRA Nareit Developed Asia Dividend Plus Index, plus the potential for capital growth over the long term.

The Fund will be actively managed with reference to the FTSE EPRA Nareit Developed Asia Dividend Plus Index (the “Index”), which is broadly representative of the companies in which it may invest. However, the Investment Manager has the discretion to choose investments for the Fund with weightings different to the Index or not in it, but at times the Fund may hold investments similar to it. The Index will form the basis of the Fund’s income target as stated in the Fund’s revised investment objective, and the level above which performance fees may be charged as explained below.

The reference benchmark used to calculate performance fee for the Relevant Share Classes will change to FTSE EPRA Nareit Developed Asia Dividend Plus Index (the “New Benchmark”), which is a better representation of the Fund’s revised objective and strategy. The current reference benchmark is FTSE EPRA Nareit Pure Asia total return net dividend Index (Capital constrained) (the “Current Benchmark”).

Please see the Shareholder Circular of the underlying fund of P61 Janus Henderson Horizon Asia-Pacific Property Equities for more details.

Changes to the underlying fund of R98 Janus Henderson Horizon China

Please see the table below for more details of the name change of the underlying fund and R98 Janus Henderson Horizon China.

	Before the Effective Date	With effect from Effective Date
Mirror Fund Name and Code	R98 Janus Henderson Horizon China	R98 Janus Henderson Horizon China Opportunities
Name of underlying fund	Janus Henderson Horizon Fund – China Fund	Janus Henderson Horizon Fund - China Opportunities Fund

 

Please also see the below from the Company, which has been extracted from the Shareholder Circular of the underlying fund of R98 Janus Henderson Horizon China.

"Rationale for and impact of the change in investment policy and strategy

The Investment Manager has a long and successful track record in managing long-only, Chinese and Hong Kong equity strategies, and considers the change from a long/short to a long-only strategy a more compelling proposition to achieving the Fund’s stated objective of capital growth over the long term.

Because of this:

The Fund will no longer take synthetic short positions in individual stocks to generate returns from a stock’s declining performance.

The Fund will be actively managed with reference to the MSCI Zhong Hua 10/40 Index (the “Index”), which is broadly representative of the companies in which it may invest. However, the Investment Manager has the discretion to choose investments for the Fund with weightings different to such Index or not in it, but at times the Fund may hold investments similar to it.

The Index will also form the basis of the Fund’s performance target which as set out in Appendix 10 will be ‘To outperform the MSCI Zhong Hua 10/40 Index by 2.5% per annum, before the deduction of charges, over any 5 year period.’ The risk management method used to calculate global risk exposure of the Fund will change from a relative Value at Risk (VaR) approach to the Commitment Approach. An advanced risk measurement method (VaR) is needed if a fund engages in complex investment strategies or has more than a negligible exposure to financial derivatives. An alternative method is the “Commitment” approach, which is intended for funds that do not generally engage in such complex strategies. The Commitment Approach is more suitable for this Fund based on its proposed investment strategy.”

Please see the Shareholder Circular of the underlying fund of R98 Janus Henderson Horizon China for more details.

The Company have also confirmed that the above changes will not materially change the operation or risk profile the underlying funds of the above named mirror funds.

Should you have any questions regarding these changes, please contact International Funds & Investments.