Changes to investment policies of certain Threadneedle funds

From 14 May 2018, the funds listed below will be able to invest through Shanghai-Hong Kong Stock Connect and Shenzhen-Hong Kong Stock Connect (together, Stock Connect) in mainland Chinese shares, called China A Shares.

Which funds are affected by the changes?

The following funds are affected by the changes:

Threadneedle Asia Fund
Threadneedle China Opportunities Fund
Threadneedle Global Emerging Markets Equity Fund
Threadneedle Global Select Fund
Threadneedle Global Extended Alpha Fund
Threadneedle Global Equity Income Fund

What changes are you making?

We are changing the investment policies of the following funds:

The Threadneedle Global Emerging Markets Equity Fund, which invests in global emerging market shares including Chinese mainland shares.
The Threadneedle Asia Fund, which invests in Asian shares excluding Japan and including Chinese mainland shares.
The Threadneedle China Opportunities Fund, which invests in Chinese mainland shares.

The changes will allow the funds to also invest directly in a specific set of Chinese shares known as China A-Shares. The new investments will take place using programmes called Shanghai-Hong Kong Stock Connect and Shenzhen-Hong Kong Stock Connect and may also be made through other Stock Connect programmes if they become available in the future.

Please note that the Threadneedle Global Select Fund, the Threadneedle Global Extended Alpha Fund and the Threadneedle Global Equity Income Fund will also have the ability to invest via Stock Connect. However, we are not amending the investment policies of these funds as their investment via Stock Connect will be limited to 5% of their respective portfolio’s assets. Other provisions in the prospectuses for these funds will be updated to take account of this investment via Stock Connect.

Why are you making the changes?

The Chinese market has introduced new rules that allow foreign funds, such as Threadneedle funds, to buy China A shares listed on the China mainland via the Shanghai-Hong Kong Stock Connect and Shenzhen-Hong Kong Stock Connect platforms.

The MSCI index has approved the inclusion of mainland Chinese shares in its indices from May 2018. While the Threadneedle Asia Fund and Threadneedle China Opportunities Fund have already been able to invest in shares listed on the mainland Chinese markets, we believe that the use of Stock Connect will make the process more cost-efficient and provide access to a wider range of investment opportunities in mainland China.

How will this affect my investment?

Will there be any changes to the fees and charges?

What do I need to do?

Where can I find out more information?

If you have any questions about the changes or would like further information, please call us on 0800 953 0134* if you are in the UK or on 0044 1268 444 321 if you’re based outside the UK. Our team is available from 8.00am to 6.00pm. Monday to Friday (UK time).

*Calls may be recorded.

Changes to investment policies of certain Threadneedle funds

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