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Henderson High Yield Opportunities Fund reorganization into T. Rowe Price U.S. High Yield Fund

*********Spoiler Alert*************

https://www.sec.gov/Archives/edgar/data/1141306/000089180417000156/hend70680-497.htm

497 1 hend70680-497.htm HENDERSON GLOBAL FUNDS
HENDERSON GLOBAL FUNDS
Henderson High Yield Opportunities Fund

Supplement dated February 27, 2017 to the
Prospectus, Summary Prospectus and Statement of Additional Information, each dated
November 30, 2016, as supplemented December 20, 2016

IMPORTANT NOTICE

This supplement provides new and additional information beyond that contained in the Prospectus and should be retained and read in conjunction with the Prospectus.

On February 24, 2017, the Board of Trustees of Henderson Global Funds (the “Board”) approved the reorganization of Henderson High Yield Opportunities Fund (the “Acquired Fund”) into the T. Rowe Price U.S. High Yield Fund (the "Acquiring Shell Fund"), a newly-organized fund in the T. Rowe Price family of funds (the “Reorganization”), subject to approval by the shareholders of the Acquired Fund. The proposed Reorganization will involve transferring the assets and liabilities of the Acquired Fund to the Acquiring Shell Fund in a tax-free reorganization, as set forth in an agreement and plan of reorganization (the “Plan”). If approved, the Reorganization is expected to occur on or around May 22, 2017, at which point Acquired Fund shareholders will receive shares of the Acquiring Shell Fund representing the same total value as their shares of the Acquired Fund.

The Acquiring Shell Fund will commence operations upon consummation of the Reorganization. It is anticipated that the Acquiring Shell Fund will become the accounting survivor of the Acquired Fund and adopt its performance and accounting history. The Acquiring Shell Fund has substantially similar investment objectives, investment strategies, and overall risk profile as the Acquired Fund. In addition, it is anticipated that the Acquiring Shell Fund will be managed by the same portfolio manager, Kevin Loome, and who is expected to be supported by the same investment personnel as was the case with the Acquired Fund.

Under the terms of the Plan, Class A and Class C shareholders of the Acquired Fund will receive Advisor Class shares of the Acquiring Shell Fund, and Class I and Class R6 shareholders of the Acquired Fund will receive I Class shares of the Acquiring Shell Fund, in proportion to the relative net asset value of their shareholdings of Class A, Class C, Class I, and/or Class R6 shares, respectively, of the Acquired Fund. In addition to the Advisor Class and I Class shares to be issued in the Reorganization, the Acquiring Shell Fund will also offer another class of shares called Investor Class shares.
Before the Reorganization can occur, the Plan must be approved by shareholders of the Acquired Fund. Detailed information on the proposal will be contained in proxy materials that are expected to be filed in the near future.
The foregoing disclosure is not intended to solicit a proxy from any shareholder of the Acquired Fund. The solicitation of proxies to effect the Reorganization will only be made by a final, effective Registration Statement on Form N-14, which includes a definitive Proxy Statement/Prospectus, after that Registration Statement is declared effective by the Securities

________________________________________
and Exchange Commission (the “SEC”). The Registration Statement on Form N-14 has yet to be filed with the SEC. After the Registration Statement on Form N-14 is filed with the SEC, it may be amended or withdrawn and the Proxy Statement/Prospectus will not be distributed to shareholders of the Acquired Fund unless and until the Registration Statement on Form N-14 is declared effective by the SEC.
Shareholders of the Acquired Fund are urged to read the Proxy Statement/Prospectus and other documents filed with the SEC carefully and in their entirety when they become available because these documents will contain important information about the proposed Reorganization. The Proxy Statement/Prospectus will contain information with respect to the investment objectives, risks, charges and expenses of the Acquiring Shell Fund and other important information that Acquired Fund shareholders should carefully consider.

INVESTORS SHOULD RETAIN THIS SUPPLEMENT WITH THE PROSPECTUS,
SUMMARY PROSPECTUS AND STATEMENT OF ADDITIONAL INFORMATION FOR FUTURE REFERENCE



Comments

  • edited February 2017
    HYOAX
    Henderson manager was previously @ T Rowe Price
    Biography
    Kevin Loome joined Henderson Global Investors in 2013 as Head of US Credit, and in early 2013 launched the Henderson High Yield Opportunities Fund. His career began at Morgan Stanley before moving to T. Rowe Price as an analyst and fund manager. Prior to joining Henderson, Kevin worked at Delaware Investments as Head of High Yield Investments and Senior Portfolio Manager. Kevin received a bachelor's in Business Administration from University of Virginia and received his MBA from the Amos Tuck School of Dartmouth College.
    https://www.henderson.com/uspi/expert/221/kevin-loomeM* High Yield
    M* High Yield Rankings
    Rankings
    http://news.morningstar.com/fund-category-returns/high-yield-bond/$FOCA$HY.aspx
    A Bull Market For Junk Bonds As Interest Rates Rise
    CapitalSpectator.com
    ..hawkish tone offers another reason to remain cautious on Treasuries. But while the outlook for bonds generally is challenged as interest drift higher, one corner of fixed-income has been immune: junk bonds.
    The BofA Merrill Lynch US High Yield Option-Adjusted Spread (which compares junk yields to Treasury rates) has slipped to a mere 3.78% (as of Feb. 22), which is near the lowest level since the recession ended in mid-2009.
    image

    image
    http://www.capitalspectator.com/a-bull-market-for-junk-bonds-as-interest-rates-rise/
  • The folks at T. Rowe tell me that this is there attempt to get around the fact that Mr. V. closed PRHYX and wants to keep it closed. They allow that the new fund gives potential investors unable to access Mark Vaselkiv’s fund “a very fine, but mostly comparable option."

    The "new" fund is 46 months old, so the longest standard comparison period I've got is three years. Over the three years ending on 1/31, the correlation between the two funds was near-perfect at 97. HYOIX had substantially higher returns and a lower maximum drawdown, leading to higher Sharpe, Sortino and Martin ratios.

    For what that's worth,

    David
  • edited February 2017
    So Price will have 2 competing (largely domestic) HY funds? That should be pretty.
  • Not competing, exactly, since you can't get into PRHYX. But yes, two strikingly similar funds offered side-by-side.
  • This fund is available NTF at Fidelity. What would happen to this fund after the switch to TRP? Would it then become a TF fund at Fidelity?
  • @Art I own HYOAX @Schwab.I expect new purchases to carry the trans.fee associated with TRP funds upon the merger/transfer.We can swallow hard or look @ similar w/o the fee. **HWHAX and ARTFX @ Fidelity ?
    **This fund is now available NTF (No Transaction Fee) and offered load-waived through Fidelity
  • So again, I'm asking, is this a good time to buy a High Yield fund?
  • So again, I'm asking, is this a good time to buy a High Yield fund?

    I'm interested in answers to that question, too. Or, perhaps VF was being rhetorical.
  • Crash said:

    So again, I'm asking, is this a good time to buy a High Yield fund?

    I'm interested in answers to that question, too. Or, perhaps VF was being rhetorical.
    Well, yes and no. I'm no James "bond", but then again like I've said before 007 does not know diddly. Because I can tell you it tastes better stirred than shaken.

    High yield bonds I presume would be "junk" bonds. If somehow, fed interest rate hike would imply new junk issues would have a lower interest rate, that would mean existing junk which is yielding higher rate, would go up in price. So if its something like that, just trying to understand.
  • *******Update************

    https://www.sec.gov/Archives/edgar/data/1141306/000089180417000237/hend70884-497.htm

    497 1 hend70884-497.htm HENDERSON HIGH YIELD OPPORTUNITIES FUND

    HENDERSON GLOBAL FUNDS

    Henderson High Yield Opportunities Fund


    Supplement dated March 27, 2017 to the

    Prospectus, Summary Prospectus and Statement of Additional Information,

    each dated March 27, 2017


    IMPORTANT NOTICE

    This supplement provides new and additional information beyond that contained in the Prospectus and should be retained and read in conjunction with the Prospectus.

    As previously announced, on February 24, 2017, the Board of Trustees of Henderson Global Funds (the “Board”) approved the reorganization of Henderson High Yield Opportunities Fund (the “Acquired Fund”) into the T. Rowe Price U.S. High Yield Fund (the "Acquiring Shell Fund"), a newly-organized fund in the T. Rowe Price family of funds (the “Reorganization”), subject to approval by the shareholders of the Acquired Fund. The proposed Reorganization will involve transferring the assets and liabilities of the Acquired Fund to the Acquiring Shell Fund in a tax-free reorganization, as set forth in an agreement and plan of reorganization (the “Plan”). If approved, the Reorganization is expected to occur on or around May 22, 2017, at which point Acquired Fund shareholders will receive shares of the Acquiring Shell Fund representing the same total value as their shares of the Acquired Fund.

    In anticipation of the Reorganization, effective upon the close of business (4:00 pm Eastern) on May 18, 2017, the Acquired Fund will not accept purchase orders, including with respect to additional investments for existing shareholders of the Acquired Fund. Any purchase orders for shares of the Acquired Fund received upon or after the close of business on May 18, 2017 will not be accepted and the transaction will not be processed. In addition, effective immediately, the Acquired Fund will not accept purchase orders for Class C shares subject to a contingent deferred sales charge.

    Before the Reorganization can occur, the Plan must be approved by shareholders of the Acquired Fund. Detailed information on the proposal will be contained in proxy materials that are expected to be filed in the near future.

    The foregoing is not an offer to sell, nor a solicitation of an offer to buy, any shares in connection with the Reorganization, nor is it a solicitation of a proxy from any shareholder of the Acquired Fund. The solicitation of proxies to effect the Reorganization will only be made by a final, effective Registration Statement on Form N-14, which includes a definitive Proxy Statement/Prospectus, after the Registration Statement is declared effective by the Securities and Exchange Commission (the “SEC”). The Registration Statement on Form N-14 has yet to be filed with the SEC. After the Registration Statement on Form N-14 is filed with the SEC, it may be amended or withdrawn and the Proxy Statement/Prospectus will not be distributed to shareholders of the Acquired Fund unless and until the Registration Statement on Form N-14 is declared effective by the SEC.

    Shareholders of the Acquired Fund are urged to read the Proxy Statement/Prospectus and other documents filed with the SEC carefully and in their entirety when they become available because these documents will contain important information about the Reorganization. The Proxy Statement/Prospectus will contain information with respect to the investment objectives, risks, charges and expenses of the Acquiring Shell Fund and other important information that Acquired Fund shareholders should carefully consider.

    INVESTORS SHOULD RETAIN THIS SUPPLEMENT WITH THE PROSPECTUS,

    SUMMARY PROSPECTUS AND STATEMENT OF ADDITIONAL INFORMATION FOR FUTURE REFERENCE
  • edited April 2017
    T Rowe Price US High Yield Fund registration filing:

    https://www.sec.gov/Archives/edgar/data/754915/000075491517000016/uhy2ndfiling485a.htm

    (Approximate Date of Proposed Public Offering May 22, 2017)
  • TUHYX is now available for purchase at TD Ameritrade.
  • I bought mine through TRP, but it took a while as the online system was not set up to buy it. I tried to buy it on 5/25, but the purchase/exchange to obtain it never occurred. I tried again last week and was finally able to purchase it.
  • Neither TUHAX nor TUHYX are available for purchase at Schwab or E-Trade.
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