Schroder International Selection Fund (ISF) Global Equity Impact Fund

Sustainable, Responsible &/or ESG Policy:

Objectives
The fund aims to provide capital growth by investing in equities of companies worldwide, including emerging markets, whose activities create positive social and environmental impact and which the investment manager deems to be sustainable investments.

Investment policy
The fund is actively managed and invests its assets in (i) sustainable investments, which are investments that the investment manager expects to contribute towards the advancement of an environmental or social objective linked to one or more of the UN SDGs, and to deliver returns to shareholders over the long term, and (ii) investments that the investment manager deems to be neutral under its sustainability criteria.
The investment manager will select companies from a universe of eligible companies that have been determined as meeting the Investment Manager's impact criteria. The impact criteria include an assessment of a company's contribution to the UN SDGs alongside the investment manager's assessment of the company's impact via its proprietary impact investment management framework and tools (e.g. impact scorecard).
The fund seeks to deliver positive impact and is part of Schroders' Impact Driven strategies. As such, it applies highly selective investment criteria and its investment process is aligned with the Operating Principles for Impact Management which means that impact is embedded in all the steps of the investment process, annually disclosed and independently verified by externally specialized parties. All investments in the fund are subject to this framework as this is the core component of the Schroders proprietary impact investment management framework.
Investments are composed of companies whose products and services contribute positively to at least one of the UN SDGs. In order to identify companies with a direct link to a UN SDG, the investment manager applies a two step approach:
• The first is a revenue based approach that considers whether a certain percentage of the relevant company's revenues, capital expenditure or operating expenditure contributes to an environmental or social objective (as applicable).
• The second is a detailed impact assessment of the company via the completion of a proprietary impact scorecard. The investment manager considers different aspects of impact such as: what outcome and UN SDGs the company is contributing to; who is served by the outcome (such as the relevant stakeholder or industry); an assessment of our expected contribution (including Schroders influence and engagement); and consideration of impact risks. The assessment typically includes Key Performance Indicators (KPIs) that are used to track impact over time.
The company and impact scorecard are then validated and approved by Schroders' Impact Assessment Group (IAG), in order for the company to be eligible for inclusion in the Fund's investible universe. The IAG consists of members from Schroders' impact and sustainable investment teams and portfolio managers from the Investment team. There may be some limited instances where step 2 and the IAG approval may follow subsequently (such as a particularly time sensitive investment).
The fund does not directly invest in certain activities, industries or groups of issuers above the limits listed under “Sustainability Information” on the fund's webpage, accessed via www.schroders.com/en/lu/private-investor/ gfc.
The fund invests in companies that do not cause significant environmental or social harm and have good governance practices, as determined by the investment manager's rating criteria.
The investment manager may also engage with companies held by the fund to improve sustainability practices, and to enhance social and environmental impacts generated by underlying investee companies. More details on the investment manager's approach to sustainability and its engagement with companies are available on the webpage https:\\www.schroders.com/en/lu/private-investor/strategic-capabilities/sustainability.
The fund invests at least two-thirds of its assets in equities of companies worldwide, including emerging markets. The fund typically holds 40 – 80 companies.
The fund may also invest up to one-third of its assets directly or indirectly in other securities (including other asset classes), countries, regions, industries or currencies, investment funds, warrants and money market investments, and hold cash (subject to the restrictions provided in the prospectus).
The fund may use derivatives with aim of reducing risk or managing the fund more efficiently.

(Source: KIID, as at December 2025)

SDR Labelling:

Not eligible to use label (out of scope)