Source - RNS
RNS Number : 0796L
Janus Capital Funds PLC
28 September 2016
 

STOCK EXCHANGE ANNOUNCEMENT

 

For Immediate Release                                                                    28 September, 2016

 

Janus Capital Funds plc (the "Company")

an umbrella fund with segregated liability between sub-funds

 

Re: Changes to sub-funds

 

 

The directors of the Company wish to announce the following changes to various sub-funds of the Company (each, a "Fund").  All of the below changes have become effective as of 22 September 2016 (the "Effective Date"). 

 

1.   Amendment to the investment policy of the INTECH Global Dividend Fund

 

The investment policy for the INTECH Global Dividend Fund has been amended as follows:

 

The Fund's investment objective is long-term growth of capital and equity dividend income.  It pursues its objective by investing at least 80% in equities and equity related securities of companies located anywhere in the world whose market capitalisation is at least equal to the market capitalisation of one of the companies listed in the MSCI World High Dividend Yield Index at the time of purchase.  Under its investment policy prior to the Effective Date, the Fund pursued its goal by constructing a portfolio of securities with higher relative stock volatility than the MSCI World High Dividend Yield Index.  The Fund's investment policy has been amended to provide that the Fund will seek to outperform the MSCI World High Dividend Yield Index, over full market cycles, with the additional benefit that it may provide less volatility, as measured by the standard deviation, than the MSCI World High Dividend Yield Index. This reduction in portfolio standard deviation is likely to be most noticeable during periods of high market volatility.  

 

The Fund's Sub-Investment Adviser believes that the amended investment policy will better suit investors' needs given its dual objective of delivering returns with less absolute volatility.  

 

2.   Amendment to the name of the INTECH Global Dividend Fund

 

As a result of the above change to the investment policy of INTECH Global Dividend Fund, the name of the Fund has been amended as follows:

 

From

To

INTECH Global Dividend Fund

INTECH Global Income Managed Volatility Fund

 

3.   Amendment to the investment policy of the Janus Emerging Markets Fund

 

The investment policy for the Janus Emerging Markets Fund has been amended as follows:

 

Under normal circumstances, the Fund seeks to achieve its objective by investing principally in equity securities issued by companies incorporated or having their principal business activities in one or more Developing Markets (including China) or companies which derive a significant proportion of their revenues or profits from one or more Developing Markets or have a significant portion of their assets in one or more Developing Markets. The Fund may invest, without limit, in equity securities or employ investment techniques and instruments (as more particularly described in the Prospectus) which have exposure to the Chinese market. 

 

The Fund's investment policy has been amended to expressly provide that the Fund may also invest and have direct access to certain eligible China A-Shares via the Shanghai-Hong Kong Stock Connect.

 

The change in the Fund's investment policy is to give the Fund the ability to invest and have access to China A-Shares via the medium of Shanghai-Hong Kong Stock Connect. 

 

4.  Changes to the Trade Cut-Off Time for Subscriptions and Redemptions and Settlement Time for Redemptions for the Janus Emerging Markets Fund

 

Prior to the Effective Date, the Trade Cut-Off Time for subscriptions and redemptions for the Janus Emerging Markets Fund was close of the regular trading session of NYSE (normally 4:00pm, New York time). This definition has been revised to provide that the Trade Cut-Off Time for the Fund is 12 Noon GMT. 

 

In the case of redemptions, previously the Settlement Time was T+3.  This has been revised to provide that the Settlement Time for redemptions is T+5. 

 

The reason for this change is to reflect the operational requirements of Janus Capital Singapore Pte. Limited which is the Fund's sole Sub-Investment Adviser following termination of the appointment of the Fund's other Sub-Investment Adviser, Janus Capital Management LLC on the Effective Date. 

 

5.   Notification of replacement of the dealing charge and application of a dilution adjustment in relation to the  Janus Asia Frontier Markets Fund, Janus Asia Growth Drivers Fund, Janus Asia Fund and Janus Emerging Markets Fund

 

Under the terms of the Prospectus of the Company dated 1 April 2016 (the "April 2016 Prospectus"), to protect the existing shareholders in the relevant Funds, a dealing charge of up to 1.00% of the value of the subscription, redemption, exchange or transfer (where permitted) could, at the sole discretion of the Investment Adviser and the Distributor, be deducted and retained by the Funds to cover the Company's estimate of the costs of acquiring or disposing of securities.  Any such charge was in addition to the offer price at which relevant Share Classes of the relevant Funds, was issued and deducted from the redemption proceeds at which relevant Share Classes of the relevant Funds were redeemed, including the price of the relevant Share Classes of the relevant Fund issued or redeemed as a result of requests for conversion.  Any such sum was paid into the account of the relevant Funds.

 

At the annual general meeting of the Company held on 30 June 2014, the Shareholders passed a resolution adopting amended articles of association for the Company. These amended articles of association contained the changes summarised in the Shareholder circular sent to Shareholders on 30 May 2014.  In particular, the articles of association were amended to provide the Company with the flexibility to impose a dilution adjustment mechanism in certain circumstances, should it wish to do so. 

Following the approval by the Shareholders of the proposed amendments to the Company's articles of association, the existing dealing charge provided for in the April 2016 Prospectus in relation to the Funds has been replaced with a dilution adjustment.  In calculating the Net Asset Value per Share for each Fund on any dealing day, the Company may, at its discretion, adjust the Net Asset Value per Share for each Share Class by applying a dilution adjustment: (1) if net subscriptions or redemptions exceed a pre-determined threshold relating to a Fund's Net Asset Value (where such a threshold has been pre-determined for each Funds from time to time by the Directors) or (2) in any other cases where there are net subscriptions or redemptions in the Fund and the Directors or their delegate reasonably believes that imposing a dilution adjustment is in the best interests of existing Shareholders.  The dilution adjustment amount for each Fund will be calculated on a particular dealing day by reference to the estimated costs of dealing in the underlying investments of that Fund, including any dealing spreads, market impact, commissions and transfer taxes and will be applied to each Share Class in an identical manner. Where there are net inflows into a Fund, the dilution adjustment will increase the Net Asset Value per Share. Where there are net outflows from a Fund, the dilution adjustment will decrease the Net Asset Value per Share. The Net Asset Value per Share, as adjusted by any dilution adjustment, will be applicable to all transactions in Shares in the relevant Fund on the relevant dealing day. Shareholders can obtain more information about the dilution adjustments upon request to the Investment Adviser and Distributor.

 

Absent a dilution adjustment, the price at which the subscriptions or redemptions are effected would not reflect the costs of dealing in the underlying investments of the Funds to accommodate large cash inflows or outflows, including dealing spreads, market impact, commissions and transfer taxes. Such costs could have a materially disadvantageous effect on the interests of existing Shareholders in the Funds.

 

Enquiries:

 

 

 

 

 

 

Davy

David Ryan

+353 1 614 8933

This announcement has been issued through the Companies Announcement Service of

the Irish Stock Exchange.


This information is provided by RNS
The company news service from the London Stock Exchange
 
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