Pension and Investment fund updates

Objective: The investment strategy of the fund is to purchase units in the Royal London Sustainable Leaders Trust - the underlying fund.

Underlying Fund Objective: The Scheme’s financial objective is to achieve capital growth over the medium term, which should be considered as a period of 3-5 years and to outperform the FTSE All-Share Index (the "Index") over a rolling 5-year periods. There is however no certainty or promise that the Scheme will achieve this performance target.

The Scheme’s sustainability objective is to invest in companies that make a positive contribution to one or more of the “Sustainability Themes” (listed below), through their products or services as determined by the Investment Adviser using its Sustainability Standard (as defined in the Investment Strategy).

• Clean – to support the low carbon economy, the reduction of carbon emissions and/or the prevention or remediation of negative environmental impacts such as pollution and biodiversity loss.
• Healthy – to support the protection and improvement of people's mental and physical health and wellbeing.
• Safe – to support the prevention of physical and mental harm and injury in homes and workplaces and/or keeping data and information safe and secure.
• Inclusive – to support people to participate in economic and social life by providing products and services which are affordable, accessible and of a quality that supports equitable treatment of customers and/ or people in society.

At least 80% of the fund is invested in UK companies which are listed on the London Stock Exchange. The remainder of the fund's assets may be invested in overseas stock markets to access areas that would otherwise be unavailable. Overall, at least 70% of the fund is invested in Sustainable Companies. Up to 30% may be held in Non-Sustainable Companies.

The fund is actively managed and may invest in a range of other assets, including derivatives, for diversification, liquidity or efficient portfolio management (“EPM”) purposes:

• Up to 10% in other investment funds, known as collective investment schemes, including funds managed by Royal London Unit Trust Managers Limited or another Royal London Group company.
• Typically between 0% and 5% of assets is invested in cash, although there is no restriction on cash levels exceeding 5%. The Scheme will typically have 40-60 holdings; each individual position will usually account for 2- 4% of assets, but some may be larger than this however, no single holding will be greater than 10% of total assets.

Objective: The investment strategy of the fund is to purchase units in the Royal London Sustainable Leaders Trust - the underlying fund.

Underlying Fund Objective: The fund is actively managed and aims to achieve capital growth where at least 80% of the fund is invested in shares of UK companies that are listed in the UK. UK companies are those that are either domiciled in, incorporated in, or have a significant economic exposure to, the UK.

The remainder of the fund (up to 20%) may be invested in shares of overseas listed companies. Overall, at least 70% of the fund is invested in sustainable companies or issuers  and up to 30% may be held in non-sustainable companies or issuers (as defined in the Investment Strategy section). The remaining portfolio will not conflict with the sustainability objective of the fund which includes “Screening for conflict with the sustainability objective”.

The Scheme’s sustainability objective is to invest in companies that make a positive contribution to one or more of the “Sustainability Themes” (listed below), through their products or services as determined by the Investment Adviser using its Sustainability Standard (as defined in the Investment Strategy).

• Clean – to support the low carbon economy, the reduction of carbon emissions and/or the prevention or remediation of negative environmental impacts such as pollution and biodiversity loss.
• Healthy – to support the protection and improvement of people's mental and physical health and wellbeing.
• Safe – to support the prevention of physical and mental harm and injury in homes and workplaces and/or keeping data and information safe and secure.
• Inclusive – to support people to participate in economic and social life by providing products and services which are affordable, accessible and of a quality that supports equitable treatment of customers and/ or people in society.

At least 80% of the fund is invested in UK companies which are listed on the London Stock Exchange. The remainder of the fund's assets may be invested in overseas stock markets to access areas that would otherwise be unavailable. Overall, at least 70% of the fund is invested in Sustainable Companies. Up to 30% may be held in Non-Sustainable Companies.

The fund is actively managed and may invest in a range of other assets, including derivatives, for diversification, liquidity or efficient portfolio management (“EPM”) purposes: 

• Up to 10% of the fund may be invested in other funds known as collective investment schemes (including funds managed by RLUM Limited or another Royal London Group company) and transferrable securities. The fund may use derivatives for the purposes of efficient portfolio management (including hedging). The use of derivatives for this purpose is unlikely to increase the risk profile of the fund. Cash may be held for investment purposes and to manage inflows and outflows of investors’ money in the fund, however cash is not expected to exceed 5% of the fund.

The fund may at times be concentrated in terms of the number of investments it holds (i.e. have less than 50 holdings).

Objective: The investment strategy of the fund is to purchase units in the Baillie Gifford American Fund - the underlying fund.

Underlying Fund Objective: The objective is to produce capital growth over the long term. The fund will invest principally in equities of companies which are listed, quoted, traded, incorporated, domiciled or conducting a significant portion of their business in the United States of America. Investment may be direct or indirect and the portfolio will be concentrated, usually between 30-50 stocks. The fund may also invest in other equities, cash and near cash. Up to (but no more than) 10% in value of the-fund may be invested in each of the following: (1) collective investment schemes, including those managed or operated by the ACD and (2) deposits. The fund will be actively managed, and investment may be made in any economic sector. 

Performance Objective: To outperform (after deduction of costs) the S&P 500 Index, as stated in sterling, by at least 1.5% per annum over rolling five-year periods.

Objective: The investment strategy of the fund is to purchase units in the Baillie Gifford American Fund - the underlying fund.

Underlying Fund Objective: The objective is to produce capital growth over the long term. The fund will invest principally in equities of companies which are listed, quoted, traded, incorporated, domiciled or conducting a significant portion of their business in the United States of America. Investment may be direct or indirect and the portfolio will be concentrated, usually between 30-50 stocks. The fund may also invest in other equities, cash and near cash. Up to (but no more than) 10% in value of the-fund may be invested in each of the following: (1) collective investment schemes, including those managed or operated by the ACD and (2) deposits. The fund will be actively managed, and investment may be made in any economic sector. 

Performance Objective: To outperform (after deduction of costs) the S&P 500 Index, as stated in sterling, over rolling five year periods.

FTSE All-Share Index

FTSE Custom All-Share ex IT Exclusions 5% Capped Index

Previous objective

Updated objective

Objective: The investment strategy of the fund is to purchase units in the M&G UK Sustain Paris Aligned Fund - the underlying fund.

Underlying Fund Objective: The fund has two aims:

• To provide a higher total return (capital growth plus income), net of the Ongoing Charge Figure, than the FTSE All-Share Index over any five year period; and
• To invest in companies that contribute towards the Paris Agreement climate change goal.
   

At least 80% of the fund is invested directly in equities and equity related securities of companies, across any sector and of any size, which are incorporated, domiciled or do most of their business, in the UK. The fund is concentrated and usually holds shares in fewer than 50 companies. The fund invests in securities that meet the ESG Criteria and Sustainability 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 and Sustainability Criteria.

Objective: The investment strategy of the fund is to purchase units in the M&G UK Sustain Paris Aligned Fund - the underlying fund.

Underlying Fund objective: The Fund aims to:

• Provide a higher total return (capital growth plus income), net of the Ongoing Charge Figure, than that of the FTSE Custom All-Share ex IT Exclusions 5% Capped Index over any five-year period, and
• As its Sustainability Goal, support the mitigation of climate change by investing at least 70% of the Fund in companies that contribute towards the Paris Agreement climate change goal* and have the potential to reduce their contribution to climate change determined by their potential to decarbonise their operations over time and ultimately reach Net Zero**.
   

*The overarching Paris Agreement climate change goal is to hold the increase in the global average temperature to well below 2 °C above pre-industrial levels and pursue efforts to limit the temperature increase to 1.5 °C above pre-industrial levels. The principal way to achieve this is to avoid the buildup of greenhouse gases, which in turn will prevent the most severe impacts of climate change, such as extreme weather events, sea-level rise, and biodiversity loss.

**The long term target is for investments made by the Fund to reach Net Zero by 2050.

Derivatives may be used for Efficient Portfolio Management and hedging.

Objective: The investment strategy of the fund is to purchase units in the M&G European Sustain Paris Aligned Fund - the underlying fund.

Underlying Fund Objective: The fund has two aims:

• To provide a higher total return (capital growth plus income), net of the Ongoing Charge Figure, than that of the MSCI Europe ex UK Index over any five-year period; and
• To invest in companies that contribute towards the Paris Agreement climate change goal.
   

At least 80% of the fund is invested directly in equity securities and equity-related securities of companies across any sector and market capitalisation that are incorporated, domiciled, or listed in Europe, excluding the UK. The fund has a concentrated portfolio and usually holds fewer than 35 companies. The fund invests in securities that meet the ESG Criteria and Sustainability 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 and Sustainability Criteria.

Objective: The investment strategy of the fund is to purchase units in the M&G European Sustain Paris Aligned Fund - the underlying fund.

Underlying Fund Objective: The Fund aims to:

• Provide a higher total return (capital growth plus income), net of the Ongoing Charge Figure, than that of the MSCI Europe ex UK Index over any five-year period, and
• As its Sustainability Goal, support the mitigation of climate change by investing at least 70% of the Fund in companies that contribute towards the Paris Agreement climate change goal* and have the potential to reduce their contribution to climate change determined by their potential to decarbonise their operations over time and ultimately reach Net Zero**.
   

*The overarching Paris Agreement climate change goal is to hold the increase in the global average temperature to well below 2 °C above pre-industrial levels and pursue efforts to limit the temperature increase to 1.5 °C above pre-industrial levels. The principal way to achieve this is to avoid the buildup of greenhouse gases, which in turn will prevent the most severe impacts of climate change, such as extreme weather events, sea-level rise, and biodiversity loss.

**The long term target is for investments made by the Fund to reach Net Zero by 2050.

Objective: The investment strategy of the fund is to purchase units in the M&G Global Sustain Paris Aligned Fund - the underlying fund.

Underlying Fund Objective: The fund has two aims:

• To provide a higher total return (capital growth plus income), net of the Ongoing Charge Figure, than that of the MSCI World Index over any five-year period; and
• To invest in companies that contribute towards the Paris Agreement climate change goal.
   

At least 80% of the fund is invested directly in equity securities and equity-related securities of companies across any sector and market capitalisation that are domiciled in any country, including Emerging Markets. The fund has a concentrated portfolio and usually holds fewer than 40 companies. The fund invests in securities that meet the ESG Criteria and Sustainability 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 and Sustainability Criteria.

Objective: The investment strategy of the fund is to purchase units in the M&G Global Sustain Paris Aligned Fund - the underlying fund.

Underlying Fund Objective: The Fund aims to:

• Provide a higher total return (capital growth plus income), net of the Ongoing Charge Figure, than that of the MSCI World Index over any five-year period, and
•  As its Sustainability Goal, support the mitigation of climate change by investing at least 70% of the Fund in companies that contribute towards the Paris Agreement climate change goal* and have the potential to reduce their contribution to climate change determined by their potential to decarbonise their operations over time and ultimately reach Net Zero**.
   

*The overarching Paris Agreement climate change goal is to hold the increase in the global average temperature to well below 2 °C above pre-industrial levels and pursue efforts to limit the temperature increase to 1.5 °C above pre-industrial levels. The principal way to achieve this is to avoid the buildup of greenhouse gases, which in turn will prevent the most severe impacts of climate change, such as extreme weather events, sea-level rise, and biodiversity loss. **The long term target is for investments made by the Fund to reach Net Zero by 2050.

**The long term target is for investments made by the Fund to reach Net Zero by 2050.