Changes to the underlying funds of R98 Janus Henderson Horizon China and P61 Janus Henderson Horizon Asia-Pacific Property Equities

Investment objective and policy before the Effective Date

Investment objective and policy from the Effective Date

The investment objective of the underlying fund is to seek long-term capital appreciation through investment in securities listed primarily in China, Hong Kong and Taiwan.

The underlying fund will invest at least two-thirds of its NAV in (i) companies having their registered office in China, Hong Kong or Taiwan (ii) companies with their registered office elsewhere but carrying out their business activities predominantly in China, Hong Kong or Taiwan, or (iii) holding companies, the interests of which are predominantly invested in companies with their registered office in China, Hong Kong or Taiwan. The Investment Manager (“IM”) of the underlying fund may also invest in companies incorporates elsewhere that have significant assets, business, production, trading activity or other interests in China, Hong Kong or Taiwan.

The underlying fund may invest in China A-Shares, directly through Shanghai-Hong Kong Stock Connect or indirectly through derivative instruments. Exposure to China A-Shares, whether directly or indirectly, will not be more than 35% of the underlying fund’s NAV.

For the remaining assets, the IM of the underlying fund has the flexibility to invest outside of the underlying fund’s principal geographies or asset classes.

No more than 10% of the underlying fund’s NAV may be invested in units of UCITS or other UCIs.

The underlying fund will apply a Fundamental strategy in the use of financial derivatives instruments (“FDIs”) such as quoted equity securities, structured notes, options, futures and forwards on stocks, indices, contracts for difference, over-the-counter equity swaps and asset swaps, equity linked notes and currency forwards, to achieve the underlying fund’s investment objective and policy or extensively for investment purposes with a view to enhancing their performance. There is a possibility that the NAV of the underlying fund may have a higher volatility and due to its investment policy or portfolio management techniques. When implementing the Fundamental strategy, the IM of the underlying fund apply “fundamental” research (dealing with the prospectus and valuation of companies) to identify undervalues or overvalued securities and create trades that will include both long and covered short directional positions and pairs trades.

The global risk exposure of the underlying fund is determined and monitored using the relative Value at Risk approach. The underlying fund’s leverage level is expected to be 100% of the underlying fund’s total NAV, based on the sum of notional exposures of FDIs in the investment portfolio including those held for risk reduction purposes. The underlying fund’s expected leverage calculated using the commitment approach will typically not exceed 100% of the underlying fund’s total NAV.

The underlying fund’s actual level of leverage might exceed the expected level from time to time under a number of circumstances provided the usage of FDIs is consistent with the underlying fund’s investment objective and risk profile. The expected level of leverage is an indicator and not a regulatory limit. The expected level of leverage will be updated from time to time.

For defensive purposes, the underlying fund may invest in fixed income securities and related derivative securities, and may hold cash or treasury bills pending reinvestment.

The IM may consider hedging currency and interest rates exposure, but will not generally enter into contracts involving a speculative position in any currency or interest rate.

The underlying fund may engage in securities lending transactions. Lending transactions may not be carries out on more than 50% of the NAV of the underlying fund.

Currently, the underlying fund does not engage in repurchase and/or reverse repurchase agreement transactions.

The underlying fund aims to provide capital growth.

The underlying fund will invest at least 80% of its net assets, by taking long (and to a lesser extent short) positions in equities or equity-related instruments of (i) companies having their registered office in China and Hong Kong; (ii) companies that do not have their registered office in China and Hong Kong but do most of their business, either directly or through subsidiaries, in China and Hong Kong. Notwithstanding the above, the underlying fund will maintain a net long exposure of at least 80% of its net assets.

Equities may include China A-Shares, directly through the Stock Connect Programs and other eligible exchanges or indirectly through derivative instruments. Exposure to China A-Shares, whether directly or indirectly, will not be more than 50% of the underlying fund’s NAV.

Equity-related instruments may include depository receipts, amongst others.

The underlying fund’s long positions may be held through a combination of direct investment and/or derivative instruments (such as futures, forwards, structured financial derivatives, equity swaps (also known as contracts-for-differences), swaps, options and warrants), whilst the short positions are achieved entirely through derivative instruments. The underlying fund will have significantly greater exposure to long positions than short positions and is therefore likely to demonstrate a high correlation to Chinese equity markets.

The underlying fund may use derivative instruments as part of the investment strategy, hedging and for the purposes of efficient portfolio management. For the avoidance of doubt, the underlying fund may use derivative instruments extensively or primarily for investment purposes.

There is a possibility that the NAV of the underlying fund may have a higher volatility due to its investment policy or portfolio management techniques. When implementing the Fundamental strategy, the Investment Manager of the underlying fund apply “fundamental” research (dealing with the prospects and valuation of companies) to identify undervalue or overvalued securities and create trades that will include both long and covered short directional positions and pairs trades.

The global risk exposure of the underlying fund is determined and monitored using the relative Value and Risk approach. The underlying fund’s leverage level is expected to be 100% of the underlying fund’s total NAV, based on the sum of notional exposures of FDIs in the investment portfolio including those held for risk reduction purposes. The underlying fund’s expected leverage calculated using the commitment approach will typically not exceed 100% of the underlying fund’s total NAV.

The underlying fund’s actual level of leverage might exceed the expected level from time to time under a number of circumstances provided the usage of FDIs is consistent with the underlying fund’s investment objective and risk profile. The expected level of leverage is an indicator and not a regulatory limit. The expected level of leverage will be updated from time to time.

For the remaining assets, the Investment Manager of the underlying fund has the flexibility to invest outside the underlying fund’s principal geographies or asset classes.

No more than 10% of the underlying fund’s NAV may be invested in units of UCITS or other UCIs.

On an ancillary basis, and for defensive purposes, the underlying fund may invest in fixed income securities (such as convertible bonds, corporate bonds and government bonds and related derivative securities), and money market instruments and may hold cash or treasury bills pending reinvestment.

The Investment Manager of the underlying fund may consider hedging currency and interest rates exposure, but will not generally enter into contracts involving a speculative position in any currency or interest rate.

The underlying fund may engage in securities lending transactions. Lending transactions may not be carried out on more than 50% of the NAV of the underlying fund.

Currently, the underlying fund does not engage in repurchase and/or reverse repurchase agreement transactions.