Environmental or social characteristics of the Fund

The Fund aims to provide a higher total return (capital growth plus income) than that of the global convertibles market over any five-year period while applying ESG criteria.

How the Fund meets its environmental and social characteristics

The Fund promotes the use of an exclusionary approach and a Positive ESG Tilt (as defined below):

The Fund excludes certain potential investments from its investment universe to mitigate potential negative effects on the environment and society.

The Fund maintains a weighted average ESG rating that is either

1. higher than that of the global equity market as represented by its benchmark; or

2. equivalent to at least an MSCI A rating, whichever is lower (“Positive ESG Tilt”).

The Investment Manager favours investments with better ESG characteristics where this is not detrimental to the pursuit of the investment objective.

The Fund invests in securities that meet the ESG Criteria.

The following types of exclusions apply to the Fund’s direct investments:

• Norms-based exclusions: investments that are assessed to be in breach of commonly accepted standards of behaviour related to human rights, labour rights, environment and anti-corruption.
• Sector-based and/or values-based exclusions: investments and/or sectors exposed to business activities that are assessed to be damaging to human health, societal wellbeing, the environment, or otherwise assessed to be misaligned with the Fund’s sector-based and/or values-based criteria.
• Other exclusions: investments assessed to be otherwise in conflict with the ESG Criteria.

References to “assessed” above mean assessment in accordance with the ESG Criteria.

The benchmark of the Fund is the Refinitiv Global Focus Convertible Bond Index. It is a comparator against which the Fund’s performance can be measured.

The benchmark is not an ESG benchmark and is not consistent with the ESG Criteria.

Additional information

Further information on the ESG methodology, including data sources, screening criteria and the relevant sustainability indicators of the Fund can be found in the ESG Criteria.

A description of ESG and responsible investment terms used is available in the Fund’s Prospectus.

Information on how the environmental and social characteristics have been met can be found in the latest annual report.