As a result of the six-day market closure of the Tokyo Stock Exchange to mark Japan’s “Golden Week”, dealing in the M&G Japan Fund and M&G Japan Smaller Companies Fund (the “Funds”) will be temporarily suspended from Friday 26 April 2019 to Monday 6 May 2019 inclusive.
Background to and reason for the suspension of dealing
Golden Week is a series of national holidays that take place in Japan at the end of April and early May each year. This year, to mark the ascension of Japan’s new Emperor, Golden Week has been extended to 10 days starting on Saturday 27 April 2019, resulting in the Tokyo Stock Exchange being closed for 6 days from Monday 29 April 2019 to Monday 6 May 2019 inclusive.
As it will not be possible to buy or sell shares in companies listed on the Tokyo Stock Exchange during this prolonged market closure, we do not believe that it is in the best interests of the Funds’ Shareholders to allow dealing in the Funds during that period. The decision to suspend dealing was not taken lightly and agreement was sought from the Depositary.
What does this mean?
Taking the time difference into account, the Funds’ last valuation point before the Tokyo Stock Exchange closes for Golden Week will be at 12:00 on Thursday 25 April 2019. The Funds will therefore be priced and the prices published as usual on that day. Prices published between Friday 26 April 2019 and Monday 6 May 2019 inclusive will be based on the price calculated on Thursday 25 April 2019 and adjusted on a daily basis to reflect relevant market movements during that period. The Funds will resume dealing on Tuesday 7 May 2019 with the prices calculated and published as normal on that day.
Will this have an impact on any other M&G UK funds that invest in Japan?
No. These are the only funds within our UK range that have over 10% exposure to Japanese securities, either directly or indirectly, making them the only ones where a temporary suspension is considered necessary.