Name and Objective Change - Henderson Horizon Japanese Equity Fund

What are the changes? 

• The fund will be renamed "Henderson Horizon Fund Japan Opportunities Fund" to reflect the change to the investment policy
• The investment policy of the fund will be amended
  from: The investment objective of the Japanese Equity Fund is to seek long-term capital appreciation by investing in Japanese companies across a variety of sectors, providing investors with diversification across large and small companies.
  
  The Fund is weighted towards large capitalisation companies, but the Fund may also invest in smaller companies where particular value has been identified. The Fund may invest in OTC markets. Such markets are geographically de-centralised and may be operated and regulated differently from other markets and accordingly may be subject to slightly more risks.
  
  to: The investment objective of the Japan Opportunities Fund is to seek long-term capital appreciation by investing primarily in equity and equity related securities of Japanese companies across a variety of sectors. The Fund is not restricted in the size of the companies in which it can invest.
• The performance of the Japan Opportunities Fund will be measured against the benchmark of the Tokyo SE First Section Index (TOPIX) (the “New Benchmark”), which more closely reflects the Japan Opportunities Fund's targeted investments. The current benchmark is MSCI Japan Index (the “Current Benchmark”).

Why is Henderson Horizon making these changes to the investment policy?

 As the fund is currently weighted towards large capitalisation companies, the Directors of the fund believe that the change in objective will present the Japan Equity Team with wider investment opportunities, allowing them to invest in companies of any size. Although it cannot be guaranteed, they hope this will increase the potential to improve the performance of the fund. 

Why is Henderson Horizon changing the performance fee benchmark? 

It believes that the New Benchmark is more relevant as it is expected to more closely reflect the fund's targeted investments in line with the proposed change of investment policy. Compared to the Current Benchmark, the New Benchmark better reflects the performance of the wider Japanese equity market, allowing the Japanese Equity Team to invest using an unconstrained approach. Similar to the Current Benchmark, the New Benchmark is widely utilised to measure the performance of underlying Japanese securities. 

Do investors need to do anything? 

Only if they are not happy with the proposed changes. If this is the case they can choose to switch into an alternative fund available to their policy at any time by either completing a returning a Fund switch instruction form, or if registered for switching on our Online Service Centre, by conducting a switch online. For Oracle, Paragon and Quantum policyholders, all switches are free of any switch charge. 

We have issued letters to any Oracle, Paragon and Quantum policyholders affected by these changes. Where an investment adviser is appointed, they will receive our notification instead of the policyholder. Servicing financial advisers attached to these policies will receive a copy of the letter for their information. 

Sample letters can be viewed opposite.