Change to investment policy – Threadneedle (Lux) funds

Threadneedle (Lux) Global Select 1U Acc USD (LU1864957219)

Threadneedle (Lux) European High Yield Bond 1E Acc EUR (LU1829334579)

Threadneedle (Lux) European High Yield Bond 1G Acc GBP (LU1829334652)

Investment Objective and Policy (benchmark disclosure section)

Promotion of Environmental and Social Characteristics

The Fund-Advisor promotes environmental and social characteristics by integrating a range of responsible investment measures into the investment decision-making process.

Over rolling 12-month periods, the Fund aims to compare favourably with the relevant fund Index according to the Columbia Threadneedle ESG Materiality Rating - a proprietary model which builds on the Sustainability and Accounting Standards Board (SASB®) framework. This model identifies material environmental, social and governance (“ESG”) factors across a broad range of sectors, and provides an insight into the management focus and standards of operating practices of a company. The Fund-Advisor considers that companies that manage ESG risks effectively are better positioned to address future challenges, and capitalise on unknown and known future business opportunities. Companies that lead on the most material ESG metrics should be well positioned to build competitive advantage and sustain their long-term future.

The Fund also aims to exclude companies that breach accepted international standards and principles (e.g. the United Nations Global Compact). Companies in breach may be assessed as suitable for investment by the Fund, if in the opinion of the Fund-Advisor there are tangible mitigating factors for the company to be held.

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For the Equity Funds:

The Sub-Advisor ensures that at least:

• 90% of equity securities issued by large companies domiciled in developed countries; and 

• 75% of equity securities issued by large companies domiciled in Emerging Market Countries or by small and medium companies, held by the Portfolio are rated against the above measures. For the purposes of this test, small companies are those with a market capitalisation below €5 billion, medium companies are those between €5 billion and €10 billion and large companies are those above €10 billion.

For the Bond Funds:

The Sub-Advisor ensures that at least two thirds of the fixed income securities held by the Portfolio are rated against the above measures.

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To support and enhance the promotion of environmental and social characteristics, the Sub-Advisor will seek proactive engagement with companies with a view to influencing management teams to improve their practices, for example on issues relating to carbon emissions.

Further information on the Portfolio investment guidelines, including the Columbia Threadneedle ESG Materiality Rating methodology and engagement policy, is available at columbiathreadneedle.com.

The Portfolio is categorised as one that promotes environmental or social characteristics under Article 8 of the EU Regulation 2019/2088 on sustainability-related disclosures in the financial services sector (SFDR).

Typical Investor’s Profile

This Fund is suitable for investors who: 

• seek an investment that promotes environmental and social characteristics.