Notification of changes affecting the underlying fund of J46 Barings Korea Feeder
16 May 2022
We have been notified by Baring International Fund Managers (Ireland) Limited (“Barings”) of the following upcoming changes that impact the underlying fund of the J46 Barings Korea Feeder (the “Affected Mirror Fund”).
The underlying fund of the Affected Mirror Fund is Barings Korea Feeder (the “Unit Trust”). The Unit Trust acts as a feeder fund and invests its assets in Barings Korea Trust (the “Master Trust”).
Amendments to the investment objective and strategy of Barings Korea Trust (the Master Trust")
The Master Trust currently uses the Korea Composite Stock Price Index (“KOSPI”) as a performance Comparator. Barings has advised that the description of the investment objective and strategy of the Master Trust is being updated to reflect that the Master Trust targets outperformance of the KOSPI.
In particular, the investment objective of the Master Trust is being amended to reflect that the Master Trust will aim to provide a total return, including both capital and growth and dividend income, rather than just capital growth as this reflects the way the return of the KOSPI is measured.
In line with the above, the investment objective of the Master Trust shall be amended to read as follows:
“The Trust aims to provide a total return, including both capital growth and dividend income (after fees have been deducted), in excess of the Korea Composite Stock Price Index (KOSPI) over a rolling five year period by investing in equity and equity related securities in Korea.*”
* There is however no guarantee that this objective will be achieved over any time period. The Trust is not constrained by the benchmark and can make investments in securities that are not included in the benchmark.
Further, as a result of the amendments to the investment objective of the Master Trust, the disclosures on the use of KOSPI by the Master Trust will also be enhanced.
Please note that the investment objective and policy of the Unit Trust itself remains unchanged and the Unit Trust will continue to invest its assets in the Master Trust.
The above changes to be made to the prospectus of the Unit Trust are expected to take effect on or about 18 July 2022 (the “Effective Date”), or such later date as they are noted by the Central Bank. The changes set out do not amount to material changes to the Unit Trust and are not expected to lead to material change or increase in the overall risk profile of the Unit Trust or Master Trust.
There are no other changes to the underlying fund of the Affected Mirror Fund. These changes will happen automatically to the Master Trust and policyholders do not need to take any action as a result of the changes.
