SEMI-ANNUAL REPORT & ACCOUNTS. Janus Henderson Global Technology Fund. For the half year ended 31 December 2017 (Unaudited)

Transcription

1 SEMI-ANNUAL REPORT & ACCOUNTS For the half year ended 2017 (Unaudited) Janus Henderson Global Technology Fund

2 General Managers Company Registration Number Henderson Global Investors (Singapore) Limited N Registered Address One Marina Boulevard #28-00 Singapore Operating Address 138 Market Street #34-03/04 CapitaGreen Singapore Directors of Henderson Global Investors (Singapore) Limited Trustee Auditors Alexander Jonathan Henderson Robert William Adams Timothy Alan Gibson Sophia Sally Rahmani BNP Paribas Trust Services Singapore Limited 20 Collyer Quay, #01-01, Singapore PricewaterhouseCoopers LLP 7 Straits View, Marina One East Tower, Level 12, Singapore

3 Contents Page Manager s Report 1 Financial Statements Statement of Total Return 3 Statement of Financial Position 4 Statement of Movements of Unitholders' Funds 5 Statement of Portfolio 6 Other Information 7

4 Manager's Report* For the six months from 1 July 2017 to 2017 Investment Fund Manager Stuart O Gorman and Alison Porter The fund returned 17.4%, versus the MSCI All Countries World IT Index return of 17.7% in US Dollar terms. The technology sector continued to outpace the broader equity market, driven by superior earnings growth and strong upward earnings revisions. The earnings strength was led by ongoing share gains from the old economy and powerful secular growth drivers. Naspers outperformed. Naspers is a South African holding company with ownership in Tencent. The net asset value represents a significant discount to holding Tencent shares outright, which we view as attractive. Micron also performed well. Memory demand has been an area of strength of late, driven by cloud data centre spending, mobile and stronger PC trends. Cavium, networking semiconductors, outperformed as Marvell announced an intention to merge. The implied price represented a premium to the prevailing market price of Cavium. As we have previously noted, Cavium has a strong franchise in networking and was expanding its use cases into ARM-based servers. The combined entity should have more scale in data centre semiconductors going forward. Universal Display, which own patents and manufactures materials used for flexible display, contributed positively to performance following strong results. The company is ramping up new Chinese and Korean customers. Nokia was the largest detractor following weaker than expected guidance. The telecommunications equipment sector has been a difficult area over the last few years due to a myriad of factors. Despite these headwinds, we like Nokia because of its dominant position in a cyclically depressed telecommunications equipment market. The equipment industry is more consolidated versus history, and the company boasts a strong management team, in our opinion. Expedia and Priceline detracted from performance as both companies guided to higher than expected costs. We continue to view the online travel space as being attractive given the strong positions that Expedia and Priceline have built. The largest change to the fund during the period was rotating from Tencent into Naspers. Over the period, activity included the sale of Criteo on increasing concerns on the impact of Apple s new operating system and GDPR. We sold EPAM Systems, an IT Services company with its headcount predominantly located in Eastern Europe, as the name approached our price target. We added a number of new names to the fund over the period. These included TE Connectivity (designer and manufacturer of connectors and sensors), Grubhub (food delivery platform), Coherent (lasers) and Ambarella (semiconductors for video compression and machine vision). The long term drivers of technology remain intact as it continues to take share versus the old economy, driven by demographics and innovation. We continued to be enthusiastic about the long term outlook for payment digitisation, investment in next generation infrastructure (cloud and 5G), internet transformation (e-commerce, media, travel etc increasingly moving online) and Artificial Intelligence (changing interface with technology and the transport revolution). The relative valuation of the sector remains attractive, especially given the balance sheet strength. We continue to focus bottom-up on powerful secular themes and growth at a reasonable price. * Information relates to the Janus Henderson Horizon Fund - Global Technology Fund (Luxembourg Fund) 1

5 Oct-97 Dec-98 Feb-00 Apr-01 Jun-02 Aug-03 Oct-04 Dec-05 Feb-07 Apr-08 Jun-09 Aug-10 Oct-11 Dec-12 Feb-14 Apr-15 Jun-16 Aug-17 Janus Henderson Global Technology Fund Performance of the Fund Since months months year years years years inception (p.a.) (p.a.) (p.a.) (p.a.) Janus Henderson Global Technology Fund 6.5% 13.5% 32.0% 16.7% 19.0% 8.7% 6.5% MSCI All Countries World Information Technology Index 6.4% 14.2% 31.1% 18.4% 21.5% 9.4% 6.9% Performance chart since launch to 2017 (S$) Janus Henderson Global Technology Fund MSCI AC World Information Technology Index Source: Note: Henderson Global Investors (Singapore) Limited / Morningstar, gross income reinvested at NAV price, NAV to NAV, in Singapore dollars, performance based on average annual compounded return to There has been no dividend distribution since the Fund was launched in October Past performance of the Fund is not necessarily indicative of the future or likely performance of the Fund. 2

6 STATEMENT OF TOTAL RETURN For the half year ended 2017 (unaudited) $ $ Income Interest on deposit with banks Less: Expenses Audit fee 9,235 7,681 Management fee 58,165 45,252 Registrar fee 14,173 11,767 Trustee fee 22,053 17,405 Valuation fee 22,053 17,405 Transaction cost - 1,050 Other expenses 30,392 32, , ,558 Net losses (156,053) (133,558) Net gains or losses on value of investments Net gains on investments 11,054,093 12,117,467 Net foreign exchange gains/(losses) 2,304 (11,149) 11,056,397 12,106,318 Total return for the period before income tax 10,900,344 11,972,760 Less: Income tax - - Total return for the period after income tax before distribution 10,900,344 11,972,760 3

7 STATEMENT OF FINANCIAL POSITION As at 2017 (unaudited) ASSETS 30 June $ $ Portfolio of investments 96,091,932 82,719,650 Receivables 291, ,837 Cash and bank balances 2,351,600 1,170,538 Total assets 98,734,902 84,413,025 LIABILITIES Payables 139, ,913 Total liabilities 139, ,913 EQUITY Net assets attributable to unitholders 98,595,853 83,627,112 4

8 STATEMENT OF MOVEMENTS OF UNITHOLDERS' FUNDS For the half year ended 2017 (unaudited) 30 June $ $ Net assets attributable to unitholders at the beginning of the financial period/year 83,627,112 64,627,582 Operations Change in net assets attributable to unitholders resulting from operations 10,900,344 23,045,747 Unitholders' contributions/ (withdrawals) Creation of units 20,899,586 20,415,672 Cancellation of units (16,831,189) (24,461,889) Change in net assets attributable to unitholders resulting from net creation and cancellation of units 4,068,397 (4,046,217) Total increase in net assets attributable to unitholders 14,968,741 18,999,530 Net assets attributable to unitholders at the end of the financial period/year 98,595,853 83,627,112 5

9 STATEMENT OF PORTFOLIO As at 2017 (unaudited) Holdings at 2017 Fair value at 2017 $ Percentage of total net assets attributable to unitholders at 2017 % Percentage of total net assets attributable to unitholders at 30 June 2017 % Unit trust Janus Henderson Horizon Fund - Global Technology Fund 890,887 96,091, Portfolio of investments 96,091, Other net assets 2,503, Net assets attributable to unitholders 98,595, As the Fund invests wholly into Janus Henderson Horizon Fund - Global Technology Fund which is registered in Luxembourg, it is not meaningful to classify the investments into industry or geographical segments. 6

10 OTHER INFORMATION For the half year ended 2017 (unaudited) The following contains additional information relating to the Fund. 1. Distribution of investments Please refer to the Statement of Portfolio. 2. Top 10 holdings As at 2017 Fair value $ Percentage of total net assets attributable to unitholders % Janus Henderson Horizon Fund - Global Technology Fund 96,091, As at 2016 Fair value $ Percentage of total net assets attributable to unitholders % Janus Henderson Horizon Fund - Global Technology Fund 68,434, Investment in unit trusts, mutual funds and collective investment schemes Please refer to the Statement of Portfolio. 4. Amount of units created and cancelled for the financial period ended 2017 Units created 20,899,586 Units cancelled (16,831,189) 5. Turnover ratio Lower of total value of purchases or sales $ 6,034,859 2,205,828 Average daily net asset value $ 88,664,376 69,053,590 Total turnover ratio Note % Note: The portfolio turnover ratio is calculated in accordance with the formula stated in the Code on Collective Investment Schemes. The calculation of the portfolio turnover ratio was based on the lower of total value of purchases or sales of the underlying investments divided by the average daily net asset value. 7

11 OTHER INFORMATION For the half year ended 2017 (unaudited) 6. Expense ratio Total operating expenses S$ 273,591 83,149 Average daily net asset value S$ 82,489,271 69,252,942 % Total expense ratio Note (including Investee Fund's expense ratio) % Weighted average of the Investee fund's unaudited expense ratio % Note: The expense ratio has been computed based on the guidelines laid down by the Investment Management Association of Singapore ("IMAS"). The calculation of the expense ratio at 2017 was based on total operating expenses divided by the average net asset value for the year. The total operating expenses do not include (where applicable) brokerage and other transactions costs, performance fee, interest expense, distribution paid out to unitholders, foreign exchange gains/losses, front or back end loads arising from the purchase or sale of other funds and tax deducted at source or arising out of income received. The Fund does not pay any performance fee. The average net asset value is based on the daily balances. 7. Related party transactions The Manager of the Fund is Henderson Global Investors (Singapore) Limited (the Manager ). The Trustee of the Fund is BNP Paribas Trust Services Singapore Limited (the "Trustee"). Management fee is paid to the Manager during the financial period. The trustee fee and registrar fee are paid to the Trustee while valuation fee and custody fee are paid to BNP Paribas Securities Services acting through its Singapore branch, a related party of the Trustee. In addition to related party information shown elsewhere in the financial statements, as at the end of the financial period, the Fund maintained the following accounts with BNP Paribas Securities Services acting through its Singapore branch, a related company of the Trustee $ 30 June 2017 $ Cash and bank balances 2,351,600 1,170, Any other material information that will adversely impact the valuation of the fund Nil 8

12 OTHER INFORMATION For the half year ended 2017 (unaudited) The details which follow make reference to the investments within Janus Henderson Horizon Fund - Global Technology Fund unless stated otherwise. 1. Top 10 Holdings As at 2017 Market Value USD % of Net Assets* 1 Apple 234,553, Facebook 192,347, Microsoft 155,281, Alphabet 'A' 143,306, Samsung Electronics 124,055, Alphabet 'C' 113,060, Alibaba Holdings ADS 109,197, Visa 100,024, Cisco Systems 95,807, Broadcom 84,613, As at 2016 Market Value USD % of Net Assets* 1 Apple 175,405, Facebook 129,471, Microsoft 127,638, Alphabet 'A' 108,719, Alphabet 'C' 86,447, Samsung Electronics 82,352, Visa 80,641, Intel 75,977, Cisco Systems 74,454, Tencent Holdings 70,726, * Any Differences in the percentage of Net Asset figures are the result of roundings. 2. Financial Ratios % % Expense Ratio Turnover Ratio (33.80)

13 For further information, please contact your local distributor, or Henderson Global Investors (Singapore) Limited, 138 Market Street, #34-03/04, CapitaGreen, Singapore Tel: (65) Website: Company Registration No N Important Information The prospectus and Product Highlight Sheet of the Janus Henderson Global Technology Fund is available and may be obtained from the manager s office and the participating distributors offices. Investors should read the prospectus and Product Highlights Sheet before deciding whether to invest in the units of the Janus Henderson Global Technology Fund. All applications for units in the Janus Henderson Global Technology Fund must be made on the application forms accompanying the prospectus. The information on the Janus Henderson Global Technology Fund and Janus Henderson Horizon Fund - Global Technology Fund (Luxembourg fund) is strictly for information purposes only and should not be construed as an offer or solicitation to deal in the Funds. Investors should note that the Luxembourg fund may make use of financial derivative instruments for efficient portfolio management and/or hedging purposes. Reference to individual companies is for the purpose of illustration only and should not be construed as a recommendation to buy or sell. An investment in unit trusts, and/or other investment products is subject to investment risks, including the possible loss of the principal amount invested. Past performance and any forecast made are not necessarily indicative of future performance. The value of the units and the income from the Janus Henderson Global Technology Fund may fall as well as rise. Janus Henderson Global Investors (Singapore) Limited s unit trusts and investment products are not obligations of, deposits in, or guaranteed by Janus Henderson Global Investors (Singapore) Limited or any of its affiliates. Investors may wish to seek advice from a financial adviser before making a commitment to invest in units of the Janus Henderson Global Technology Fund. In the event an investor chooses not to seek advice from a financial adviser, the investor should consider whether the Janus Henderson Global Technology Fund is suitable for him. Whilst Janus Henderson Global Investors (Singapore) Limited believes that the information contained in this report is correct at the date of print, it is subject to changes by Janus Henderson Horizon Fund (Luxembourg SICAV). 2018, Janus Henderson Investors. Janus Henderson is a trademark of Janus Henderson Investors. The name Janus Henderson Investors includes HGI Group Limited, Henderson Global Investors (Brand Management) Sarl and Janus International Holding LLC. Date of publication: February 2018 H033702/0118