Upcoming changes to the underlying Baring Funds
03 April 2018
We have been notified by Baring International Fund Managers (Ireland) Limited (the “Company”) of a number of changes to the underlying funds into which the following named funds invest, which will take place on 30 April 2018 (the “Effective Date”).
- J46 Baring Korea Feeder
- J03 Baring Korea Asia Growth
- M55 Baring Hong Kong & China
- M56 Baring Australia
- M57 Baring International Bond (USD)
- P87 Baring International Bond (EUR)
- P48 Baring Eastern Europe
- J27 Barings Developed and Emerging Markets High Yield Bond Fund
The Company has resolved to change the year-end accounting date of the underlying fund into which Fund 1 invests from 08 August to 30 April, and the semi-annual accounting date from 08 February to 31 October. As a result of this change, an interim semi-annual financial report for Fund 1 will be prepared for the period to 08 February. All subsequent annual reports will be prepared for the period to 30 April and semi-annual reports for the period to 31 October.
The Company has also advised of the following objective change to the underlying fund, into which Fund 1invests, on the effective date:
“The investment objective of Barings Korea Trust is to achieve long-term capital growth by investing in Korea.
The changes to the investment policy section are to clarify that a minimum of 70% of the total assets of the Trust will be invested in equities (i.e. shares) and equity-related securities of companies incorporated in Korea, or exercising the predominant part of their economic activity in Korea. However, for the remainder of the Trust’s total assets, the Investment Manager maintains the discretion to invest in markets outside of Korea, and in other asset classes such as bonds and cash, if required. The Trust may invest in other funds and other transferable securities. The Trust can also use derivatives for efficient portfolio management only (i.e. to reduce risk or cost).”
The underlying funds, into which Funds 1-7 invest, will undergo name changes on the Effective Date. The below name changes are applicable to Funds 1-7.
|Before (30/04/2018)||After (30/04/2018)|
|Fund Code 1||J46|
|Underlying Fund Name||Baring Korea Feeder||Barings Korea Feeder|
|Fund Code 2||J03|
|Underlying Fund Name||Baring Korea Asia Growth||Barings Korea Asia Growth|
|Fund Code 3||M55|
|Underlying Fund Name||Baring Hong Kong & China||Barings Hong Kong & China|
|Fund Code 4||M56|
|Underlying Fund Name||Baring Australia||Barings Australia|
|Fund Code 5||M57|
|Underlying Fund Name||Baring International Bond (USD)||Barings International Bond (USD)|
|Fund Code 6||P87|
|Underlying Fund Name||Baring International Bond (EUR)||Barings International Bond (EUR)|
|Fund Code 7||P48|
|Underlying Fund Name||Baring Eastern Europe||Barings Eastern Europe|
The underlying funds, into which Funds 2-8 invest, will undergo updates to the disclosure relating to the expected maximum exposure of total return swaps as of the Effective Date. The Company has stated the following, which will be applicable to Funds 2-8:
“The disclosure relating to the exposure of a Fund in respect of total return swaps under the section headed “Investment Policy: General” in the Highlights will be enhanced to reflect the expected maximum exposure to total return swaps for each of the Funds.
In respect of the Funds, the expected exposure and expected maximum exposure to total return swaps will be as set out in the table below. This reflects the expected maximum level of leverage, when calculated as the sum of the notionals of all of the derivatives used, of each of the Fund as currently set out in the section headed “Investment Objectives and Policies” in the Highlights.”
|Fund Name||Expected exposure calculated using the sum of the notionals as a % of the Net Asset Value of the Fund||Expected maximum exposure calculated using the sum of the notionals as a % of the Net Asset Value of the Fund|
|Baring Asia Growth Fund|
|Baring Hong Kong China Fund|
|Baring Australia Fund|
|Baring International Bond Fund|
|Baring Eastern Europe Fund|
|Barings Developed and Emerging Markets High Yield Bond Fund|
Should you have any questions regarding these changes, please contact International Funds & Investments.