Notification of changes to the underlying funds of Janus Henderson Horizon Funds

08 Sep 2022

Notification of changes to the underlying funds of:

• P61 Janus Henderson Horizon Asia-Pacific Property Income (the “Affected Mirror Fund 1”)
• P63 Janus Henderson Horizon European Growth (USD) (the “Affected Mirror Fund 2”)
• R98 Janus Henderson Horizon China Opportunities (the “Affected Mirror Fund 3”)

(together the “Affected Mirror Funds 1-3”)

We have been notified by Janus Henderson Horizon Fund (the “Company”) of the following upcoming changes to the underlying funds of the above Affected Mirror Funds 1-3. These changes will take effect on or around 1 October 2022 (the “Effective Date”), unless otherwise stated.

Sustainable Finance Disclosure Regulation ("SFDR")
The Company has advised that from the 31 October 2022, the sustainability approaches of the underlying funds of the Affected Mirror Funds 1-2 will be updated. From this date, the investment policies and strategies of the underlying funds of the Affected Mirror Funds 1-2 will change to reflect that they promote environmental and/or social characteristics as defined under Article 8 of SFDR.

Details of the environmental and/or social characteristics and how it seeks to achieve them will be disclosed in the section “Appendix 1 – Sustainability Approach” in the updated prospectus of the underlying fund, which will be available after the Effective Date. 

Clarification relating to investments into Special Purpose Acquisition Companies ("SPACs")
The Company has advised that from the Effective Date, the underlying funds of the Affected Mirror Funds 1-2 prospectus will be updated to clarify that the underlying funds of the Affected Mirror Funds 1-2 may invest up to 10% of the funds net asset value in SPACs that qualify as Transferable Securities. Please refer to Appendix 1 of the Appendix document opposite for further details in regards to clarification relating to SPACs.

Introduction of Firmwide Exclusions Policy
From the Effective Date, the Company intends to adopt a firmwide exclusions policy on the underlying funds of the Affected Mirror Funds 1-3 and applies to all investment decisions made by the Investment Manager. It will introduce the application of exclusionary screens to avoid investment entities involved in the current manufacture of, or or minority shareholding of 20% or greater in a manufacturer of controversial weapons, namely: (i) Cluster munitions; (ii) Anti-Personnel mines; (iii) Chemical weapons; (iv) Biological weapons issuers that are engaged in the manufacture of cluster munitions, anti-personnel mines, chemical weapons, and biological weapons. Please refer to Appendix 2 of the Appendix document opposite for further details in regards to the introduction of firmwide exclusions policy.

Clarifications relating to Ancillary Liquid Assets
The Company has advised that from the Effective Date the investment policies in the prospectus of the underlying funds of the Affected Mirror Funds 1-3 will be updated to clarify the types of assets which are utilised in unfavourable market conditions. 

Under the revised policy, an underlying fund may hold up to 20% of its net assets in ancillary liquid assets, such as bank and bank deposits at site, i.e. cash held in current accounts with a bank accessible at any time, in order to cover current or exceptional payments, or for a period of time strictly necessary in case of unfavourable market conditions.

Reduction of the Security Lending Usage Levels and Update to the Collateral Management Policy for Securities Lending
The Company has advised that from the Effective Date, the maximum and expected securities lending usage levels of the underlying funds of the Affected Mirror Funds 1-3 are being reduced.  At present, securities lending is permitted up to a maximum of 50% of the underlying fund net asset value, with an expected level of 30% of the underlying fund net asset value.  From the Effective date, the maximum permitted level will be reduced to 30% of the relevant underlying fund net asset value, and the expected level will be reduced to 20% of the relevant underlying fund net asset value.

In addition, the collateral management policy for securities lending, as stated in the prospectus of the underlying funds of Affected Mirror Funds 1-3, is being updated to clarify the types of collateral which can be received for securities lending.  Please refer to Appendix 3 for further details of the changes. 

The Company has advised that these changes do not affect the investment objectives, policies, risk profiles, portfolio compositions of the underlying funds of the Affected Mirror Funds 1-3, or the way in which they are managed.

Please contact the Investment Marketing team if you have any queries regarding the above.