Sustainable, Responsible &/or ESG Policy:

FUND AIM

The investment objective of the fund is to provide diversified exposure to the GBP corporate bond markets and produce a return in line with the performance of the Solactive L&G ESG GBP Investment Grade Corporate TR Index.

FUND CHARACTERISTICS

The fund employs an index tracking strategy, aiming to replicate the performance of its benchmark.

The index aims to provide exposure to the GBP corporate bond markets while reflecting significant environmental, social and corporate governance (ESG) issues. The index is comprised of fixed interest securities denominated in sterling with credit ratings of BBB‑ and above.

The index excludes securities issued by companies on LGIM’s Future World Protection List (FWPL).

The FWPL seeks to align with market practice and client expectations for responsible investment products, as set out in the FWPL methodology. Companies on the FWPL include companies considered as perennial violators of the United Nations Global Compact, certain companies involved in controversial weapons manufacturing and production, certain companies with involvement in mining and extraction of thermal coal, thermal coal power generation or oil sands. www.lgim.com/fwpl.

Following these exclusions, the index tilts to increase exposure to companies with higher LGIM ESG scores and decreases exposure to companies with lower LGIM ESG scores. Due to data limitations, LGIM may not be able to calculate an LGIM ESG score for all companies in the index. In such cases companies will be given a neutral weighting. A summary of LGIM’s ESG Scoring system is available on request.

Within the tracking deviation, the fund may exclude securities issued by companies listed on LGIM’s Climate Impact Pledge divestment list. This list include  ompanies, which after a certain period of engagement, continue to: (i) not perform well against LGIM’s climate assessment; (ii) are unresponsive to engagement recommendations; and/or; fall behind in meeting LGIM’s minimum standards. If the tracking deviation limit is exceeded, holdings of companies that are on the Climate Impact Pledge divestment list may be reduced rather than fully divested. www.lgim.com/climateimpact‑pledge

We follow a pragmatic approach to managing index funds with the fund’s investments. While the investments will closely match the index, not all constituents will be held. The fund may invest directly in the securities of the index, or indirectly through other LGIM funds. The fund may also hold government bonds to provide liquidity and futures for efficient portfolio management purposes.

FUTURE WORLD PHILOSOPHY

The Future World philosophy encapsulates how we identify long‑term themes and opportunities, while managing the risks of a changing world. We use our scale and influence within the market to propel positive change on environmental, social and governance (ESG) issues, at the same time as seeking to achieve financial success
The Future World funds are for clients who want to express a conviction on ESG themes, across a broad array of asset classes and strategies

(Source: Fund factsheet, June 2025)