Notifications of changes to the underlying funds of various Barings funds
09 April 2020
M55 Barings Hong Kong & China (the “Mirror Fund 1”)
M56 Barings Australia (the “Mirror Fund 2”)
J03 Barings Asia Growth (the “Mirror Fund 3”)
M57 Barings Global Bond (USD) (the “Mirror Fund 4”)
P87 Barings Global Bond (EUR) (the “Mirror Fund 5”)
J27 Barings Developed and Emerging Markets High Yield Bond Fund (the “Mirror Fund 6”)
P48 Barings Eastern Europe (the “Mirror Fund 7”)
J46 Barings Korea Feeder (the “Mirror Fund 8”)
(together, the” Mirror Funds 1-8”)
We have been notified by Baring Asset Management (Asia) Limited (the “Company”) of the following temporary arrangements to the price adjustment policy of the underlying funds of the above named mirror funds. This change has taken effect from 1 April 2020 (the “Effective Date”).
Mirror Funds 1-7
The Company have confirmed that the underlying funds of the Mirror Funds 1-7 provide that adjustments may be made to net asset value under certain circumstances. The intention of making such adjustments is to preserve the value of the holdings of continuing unitholders / shareholders in the event of substantial or recurring net redemptions or subscriptions. We wish to advise that under the current exceptional market conditions, the amount of adjustments made may be higher than that made during normal market conditions.
Mirror Fund 8
The Company have confirmed that the underlying fund of J46 Barings Korea Feeder provide that Baring Fund Managers Limited has the ability to apply an adjustment on the subscription and redemption of units / shares in the Fund or sub-fund of a Fund. It is further provided that if a dilution adjustment is required then, based on historical data and future projections, the estimated amount of the adjustment is likely to be up to 1% of the price of a unit / share. In light of the current exceptional market conditions, we wish to advise that the amount of adjustments on the price of a unit / share may exceed the estimated amount of up to 1% with effect from the date of this notice.
Please be advised that the above relates to the Barings Korea Trust, the master fund of the underlying fund of J46 Barings Korea Feeder. The pricing of the units in the Barings Korea Trust in which the underlying fund of J46 Barings Korea Feeder invests may be swung in accordance with the policy as set out above.
Mirror Funds 1-8
The Company have also confirmed the below, which has been extracted from the shareholder circular of the underlying funds of the Mirror Funds 1-8.
“Please note that as any adjustment to any of the Funds (or any of the Fund’s sub-funds) described above will be dependent on the level of net redemptions or subscriptions of the relevant Fund/sub-fund and/or market conditions, it is not possible to accurately predict whether it will occur at any future point in time and consequently how frequently it will need to be made and the amount of adjustments that will be made. When making a determination on applying an adjustment and on the amount of adjustments being made, such determination shall be made with the view to protect the interests of unitholders / shareholders in the Fund/sub-fund and in the best interest of unitholders / shareholders.”
Should you have any questions regarding these changes, please contact International Funds & Investments.