Notification of changes to the underlying fund of R117 Barings Developed and Emerging Markets High Yield Bond Fund
22 Jan 2025
We have been notified by the board of directors of Barings Umbrella Fund plc (the “Company”) of the following changes to the underlying fund of the R117 Barings Developed and Emerging Markets High Yield Bond Fund (the “Affected ILP sub-fund”). These changes will take effect from 5 February 2025 (the “Effective Date”).
Updates to investment policy
The Company has advised that from the Effective Date, the investment policy of the underlying fund of the ILP sub-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 for the underlying fund of the ILP sub-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 underlying fund of the ILP sub-fund is managed.
In addition, the investment policy of the underlying fund of the ILP sub-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.
The Company states that the amendments to the investment policy do not amount to material changes of the underlying fund of the ILP sub-fund. There will be no change or increase in the overall risk profile of the underlying fund of the ILP sub-fund and will not result in any change in the current level of fees and charges.
Please refer to the Appendix in the sample client communication 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. We recommend that policyholders seek the advice of their usual financial adviser before making any investment decisions.
We have contacted impacted policyholders and their financial advisers to notify them of the changes; primarily by e-shot, with letters sent by post where we do not hold a valid email, and to those who prefer to receive letters by post.
Should you have any questions regarding these changes, please contact the Investment Marketing Team.
