Notification of changes to the investment policy of CT Funds
We have received notification from Columbia Threadneedle Investments ("CT") of a change to the investment policy and benchmark on various CT Funds (the “Funds”) which will take effect on 2 October 2023 (the “Effective Date”).
The Funds can be found in our defined fund range products Regular Savings Plan (including Malaysia variants), Oracle, Paragon, Quantum (including Malaysia variants) and Preference.
| ISIN | Fund Name |
|---|---|
| GB0001530566 | CT American R Acc GBP |
| GB0001529238 | CT American Select R Acc GBP |
| GB0001529345 | CT European Select R Acc GBP |
| GB0001531424 | CT European Smaller Companies Ret Acc GBP |
| GB0001444701 | CT Global Select R Acc GBP |
| GB00BPZ55G51 | CT UK R Acc GBP |
| GB0001529782 | CT UK R Inc GBP |
SUMMARY OF CHANGES
From the Effective Date CT is amending the Funds investment policy to reflect the integration of a range of responsible investment measures into the investment decision making process, as well as their commitment to the Net Zero Asset Managers Initiative ("NZAMI"). The changes will introduce a set of Environmental, Social and Governance ("ESG") exclusions, that will prevent the Funds from investing in bonds issued by companies that:
- fail to follow good governance practices
- derive revenue from certain industries or activities (such as coal, tobacco and conventional weapons) above stated thresholds
- are considered to be in breach of accepted international standards and principles on human rights, labour standards and anti-corruption
In addition to the above, CT will establish a “positive ESG tilt” to the portfolio, which will aim to compare favourably against its benchmark, over the rolling 12 month periods, when assessed using CT's own ESG Materiality Rating model. This model gives a rating to companies, indicating how well they are managing material ESG risks and opportunities, with their investment approach favouring companies with stronger ratings.
These amendments are not expected to result in any significant changes to the way in which the Funds are currently managed or their risk profile. Please refer to the CT Notification and Q&A opposite for full details of the changes .
AVAILABLE IN OUR OPEN-ARCHITECTURE PRODUCTS
The Funds can be accessed through our portfolio bonds and will be subject to the changes detailed in the CT notification opposite.
For more information regarding Columbia Threadneedle Investments funds visit www.columbathreadneedle.com