Circ re. (change of investment objective & policy)

RNS Number : 5060V

Henderson Diversified Income TstPLC

14 December 2021

 

HENDERSON DIVERSIFIED INCOME TRUST PLC

HENDERSON INVESTMENT FUNDS LTD

LEGAL ENTITY IDENTIFIER: 213800RV2228EO1JEN02

14 December 2021

HENDERSON DIVERSIFIED INCOME TRUST PLC

Publication of Circular

Henderson Diversified Income Trust plc (the "Company") has today published a Shareholder circular (the "Circular") setting out recommended proposals in relation to the Company's adoption of an amended investment objective and policy, including a Notice of General Meeting.

Background

At the Company's last Annual General Meeting, in order to facilitate the Company's transition away from LIBOR, Shareholders voted in favour of amending the Company's investment objective to that of seeking a sustainable level of annual income and capital gains consistent with seeking to reduce the risk of capital losses. The Company's benchmark was also updated as a result of this process.

Following this change, and in the light of the introduction of new EU rules relating to the introduction of sustainability-related disclosures, the Board has been discussing with the Investment Manager the various ways in which Environmental, Social and Governance ("ESG") matters are integrated into the Company's portfolio construction and investment processes. The Investment Manager already seeks to incorporate certain guiding principles in constructing the Company's portfolio in a manner that promotes the application of greenhouse gas emissions ("GHG") intensity related criteria, political rights and civil liberties and support for the UN Global Compact ("UNGC") principles. As a result of these discussions, the Board is proposing to amend the Company's investment objective and policy to incorporate formally some of these principles.

In addition, the Board believes that the potential for meaningful capital gains in the current low interest rate environment is limited and therefore it is proposed that, subject to Shareholder approval, the Company's investment objective be amended to that of providing Shareholders with a high level of income and preservation of capital, through the economic cycle.

The purpose of the Circular is to explain the proposed changes to the Company's existing investment objective and policy, the Company's integration of ESG considerations into its wider investment strategy and to explain why the Board recommends Shareholders vote in favour of the Resolution to be proposed at the General Meeting.

For the avoidance of doubt, there will be no material change to the Company's investment process or strategy as a result of the proposed amendments to the investment objective and policy as these amendments largely reflect the current strategy and processes employed by the Investment Manager on behalf of the Company.

The Company's existing investment objective and policy and the New Investment Objective and Policy are set out in full in Part 2 of the Circular.

Publication of Circular and General Meeting

The adoption of the New Investment Objective and Policy is subject to Shareholder approval. A notice convening the General Meeting which is to be held at the Company's registered office, 201 Bishopsgate, London, EC2M 3AE on 25 February 2022 at 9.30 a.m. is set out at the end of the Circular. The Resolution will be proposed as an ordinary resolution and will, if passed, result in the adoption of the New Investment Objective and Policy as set out in Part 2 of the Circular, with effect from the passing of the Resolution.

A copy of the Circular has been submitted to the Financial Conduct Authority and will be available for inspection at the National Storage Mechanism which is located at https://data.fca.org.uk/#/nsm/nationalstoragemechanism and on the Company's website at www.hendersondiversifiedincome.com .

Notes:

This announcement does not contain all the information which is contained in the Circular and Shareholders should read the Circular in full before making a decision.

Unless the context requires otherwise, terms defined in the Circular have the same meaning where used in this announcement.

For further information please contact:

James de Sausmarez

Director and Head of Investment Trusts

Janus Henderson Investors

Telephone: [phone]

 

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