Notification of changes to the Barings Developed and Emerging Markets High Yield Bond Fund
We have been notified by Barings Umbrella Fund plc ("Barings") of upcoming changes to the Barings Developed and Emerging Markets High Yield Bond Fund (the "Affected Fund"). These changes will take effect from 5 February 2025 ("the Effective Date").
AVAILABLE IN OUR DEFINED FUND RANGE PRODUCTS
The Affected Fund, in its US Dollar variant - Barings Developed & Emerging Markets High Yield Bond G Dist USD - IE0000835953 - can be found in our defined fund range product Preference.
Updates to investment policy
Barings has advised that from the Effective Date, the investment policy of the Fund will change to reflect that it seeks to promote environmental and/or social characteristics as defined under Article 8 of the EU’s Sustainable Finance Disclosure Regulation (“SFDR”). Article 8 funds are those that promote social and/or environmental characteristics, invest in companies that follow good governance, give binding commitments but do not have a sustainable investment objective.
As such, from the Effective Date the investment policy of the Affected Fund will be updated to clarify that it will invest at least 50% of its Net Asset Value in issuers which exhibit positive or improving environmental and/or social characteristics. This clarification is for additional transparency purposes only and does not result in a change in the manner in which the Affected Fund is managed.
In addition, the investment policy of the Affected Fund will be updated to provide for the ability to invest up to 10% of its Net Asset Value in loan participations and loan assignments, which are unsecuritised and which qualify as money market instruments in accordance with the requirements of the Central Bank of Ireland.
Barings state that the amendments to the investment policy do not amount to material changes of the Affected Fund. There will be no change or increase in the overall risk profile of the Affected Fund and will not result in any change in the current level of fees and charges.
Please refer to the Appendix opposite for details of the updated investment policy following the Effective Date.
These changes will take effect automatically and policyholders do not need to take any action.
AVAILABLE IN OUR OPEN-ARCHITECTURE PRODUCTS
The Affected Fund, in a number of currency variants, can be accessed through our portfolio bonds and will be subject to the update detailed in the Barings Notification opposite.
For more information on Barings Umbrella Funds visit: www.barings.com