Fund Size: £264.00m

Total screened & themed / SRI assets: £24024.00

Total assets under management: £493375.00

As at: 31/03/23

Contact: clientsupport@columbiathreadneedle.com

Overview

Filters

Fund information

Policy

Investment Philosophy

The CT Responsible Sterling Corporate Bond Fund focuses on managing credit with a view towards capturing superior risk-adjusted returns over full market cycles. Designed to meet clients’ needs, this approach is based on a repeatable identification of market inefficiencies – both structural and behavioural – and the use of proprietary research and value assessment to build highly diversified portfolios that incorporate multiple sources of alpha; for example, through sector and stock selection, asset allocation and duration views.

Our responsible credit investment philosophy takes into account ESG issues that can render certain companies uninvestable. Our approach to responsible investing distinguishes between investment management and responsible screening, with each undertaken by experienced and specialist teams that constantly interact in order to drive the entire process. The Credit team focuses on investment issues, determining the preliminary credit investment universe that is subjected to the responsible screening process based on ESG research conducted by our Responsible Investment team supported by the external Responsible Investment Advisory Council.

Our approach is based on three key concepts: invest; avoid and improve:

• Avoid: Certain industries or securities may be excluded from the investible universe based on products and services or business conduct
• Invest: Proactive selection of securities for their favourable ESG profile or positive contribution to society and the environment
• Improve: Active ownership activities conduced post investment to drive positive change in the management of ESG issues

Process

Investment Process

Interest in ethical issues, from climate change to human rights and the environment, continues to grow and, through this, fund investors can support companies that contribute to sustainable development and avoid those that potentially harm society. Investors also want to receive a strong income, so the essential characteristic of this fund is that our strictly screened portfolio targets the same level of returns that unscreened portfolios can achieve, meaning investors don't have to compromise on performance. The fund invests primarily in investment grade bonds making it potentially ideal for the cautiously minded investor seeking an alternative source of income. The manager adopts a process that blends top-down assessment of the macroeconomic environment with detailed analysis of individual companies and bond issues.

Our investment process reflects a disciplined and structured framework, providing a robust and disciplined approach for investment decision making, ethical screening, portfolio construction and review.

Throughout the investment process it is the responsibility of the Credit team to formulate their investment views, generate investment ideas and to reach a conclusion on which active positions to implement in the portfolios (subject to the ethical screening criteria).

Stage 1 - Asset Allocation

The credit team uses an asset allocation framework to analyse all the relevant factors driving global bond markets. The team analyses a range of qualitative and quantitative factors to create an overall picture of the forces influencing the behaviour of global bond markets. These factors include: (i) fundamental (macro- and credit) analysis; (ii) relative value analysis between different bond market sectors; (iii) technical analysis; and (iv) thematic analysis, such as geopolitical events or regulatory changes. Our approach ensures that we make credit decisions with full awareness of the overall market context. Macro research findings to help determine and to articulate active top-down credit strategies. In the context of the CT Responsible Sterling Corporate Bond Strategy, active top down strategies would include: level of credit market exposure, level of interest rate exposure, duration strategy, rating allocation and country allocation.

Stage 2: Sector Allocation

When considering sector selection, we apply a similar process to asset allocation and look at the fundamentals, valuations and technicals of each sector as a whole. For credit fundamentals, we consider how credit profiles of the companies within the sector look in aggregate, considering how they might perform on a forward-looking basis over the medium term. This requires an understanding of how different sectors perform at different parts of the business cycle. Valuations evaluate how bonds within certain sectors trade versus other bonds of similar credit risk and maturity compared to the rest of the universe. Finally, we consider technicals that might affect current prices, for example the expectation for forthcoming supply.

Stage 3: Credit Selection

The focus of our selection analysis is to evaluate both the ability and the willingness of an issuer to service and repay its debt, identifying securities where the spread or yield available is not justified based on the issuer’s underlying creditworthiness. In addition to assessing issuer credit risk, capital structure analysis and the shape of an issuer’s spread curve are considered to assess where credit risk is not correctly priced at the security level. The selection process is anchored in comprehensive fundamental analysis and optimized through team integration and quantitative tools. The output of the research process is: 1) the ranking of issuers and issues in terms of relative credit risk, both at the analyst and the team level and 2) the identification of opportunities created where the price of risk is not aligned with risk assessment. Fundamental analysis is the foundation of active coverage and is done from both a top-down and bottom-up perspective, assessing credit risk currently and on a forward-looking basis.

Investment Grade Credit Research

Bond issuer research is conducted by a team of highly experienced investment grade credit research analysts who are located around the globe. They follow a structured, tried and tested research process, analysing individual issuers and issues. Their analysis results in a formal investment recommendation, a risk rating, an internal credit rating and a synopsis for each issuer.

The issuer and security level research process is an independent, proprietary credit research process that focuses on the most important issuers in the investable universe.

A team of 19 fundamental investment grade credit analysts located in Europe (London), the USA (Minneapolis and New York) and Asia (Singapore) are responsible for conducting this research.

• Issuing companies are grouped by industries with common characteristics and methods of analysis such that each analyst covers approximately 30 to 40 companies. The coverage of these industry sectors is allocated to the credit analysts on a regional basis (i.e. EMEA, USA and Asia) with the exception of four sectors – Oil and Gas, Metals and Mining, Property and Healthcare – which we believe are more global in nature.
• This team are dedicated exclusively to Investment Grade (rather than covering the full spectrum of corporate credit) and consequently can devote more time to IG issuers than might otherwise be the case – for example, where most time would be expected to be devoted to ‘riskier’ issuers (i.e. High Yield). That said, the team work closely with the High Yield research group (15 analysts) especially on those issuers transitioning between the investment grade and high yield markets.
• We strongly believe that the experience, depth and strength of our research team is the key to generating competitive risk-adjusted returns in both rising and declining market environments.

Investment Analysis

Each corporate issuer is financially modelled and stressed to establish any vulnerabilities. Analysis involves a consideration of many factors including management history, operating excellence and incentives, regulation, covenant analysis and position in the capital structure. The importance of each varies between sectors.

Should an analyst change any of those expectations, it is a requirement to reassess our investment thesis. In addition, analysts’ convictions help the portfolio management team to allocate relative positions weightings versus the opportunity set.

We have also developed a framework that allows us to classify issuers into risk rating bands (Risk 1 – Risk 4). This rating incorporates our view of the issuer’s risk profile and the trends and stability of that profile. Risk ratings are assigned at the issue level and are generally assigned with a longer-term view of the credit or by looking through the industry and economic cycle.

The relative value rating represents the expected return of the issue relative to the benchmark over the next six to 12 months

Forward-looking credit ratings are delivered in a letter designation (e.g. AA-, A+) and reflect the analyst’s expectations over a two-year time horizon. This helps with the ranking of individual issuers’ credit strength.

Our internal risk-rating system (Risk 1 to 4) allows analysts to efficiently communicate the stability of an issuer’s business model and its ability to control its credit quality. These ratings help determine portfolio position sizes. Analysts deliver an issuer performance recommendation which is communicated on a five-point scale (from strong outperform, outperform, market perform, underperform and strong underperform).

ESG Integration

Our ESG integration approach within credit is focused on identifying ESG factors which are material to investment outcomes. It is built on recognising the risks and opportunities that ESG issues present, identifying these, and making a judgement as to whether they are material to the likely investment outcome. Our process considers how material ESG factors can impact valuations and portfolio construction. We see ESG issues as potentially material where they present financially significant downside risk. Examples would include poor governance; event risk (such as heightened risk of major environmental breaches); regulatory breaches, which could result in large fines; stranded assets; and business ethics breaches.

Inputs

When considering the creditworthiness of an issuer, analysis of ESG criteria forms an integral part of our investment thesis, complementing and enhancing the conventional risk-mitigation focus that is key to fixed income investment.

Integrating analysis of ESG risks into the investment process enables a richer understanding of the dynamics, opportunities and risks inherent in an issuer's businesses. ESG considerations are primarily integrated through research, undertaken either by fixed income team analysts or in collaboration with the RI team.

All fixed income team members have access to MSCI ESG Research issuer and sovereign ratings, ISS ESG sustainability research, and our own proprietary ratings, and consider these where applicable. Our risk mitigation focus also draws on a range of ESG research products that highlight key risks related to sector or country specific ESG issues; controversies; accounting and governance risks. Our bottom-up issuer review research template includes a section for analysts to capture ESG information considered material to the investment decision.

All fixed income team members also have access to our own dedicated RI team whose collective experience of interpreting ESG data and undertaking related research adds valuable colour and insight to the analysis of issuers and specific credits. In leveraging the combined expertise of the RI and fixed income teams, and the collective research capabilities and collaborative approach, we have built a platform that enables ESG factors and risks to be well integrated into fixed income investment processes.

ESG scoring process

MSCI ESG scores, alongside our own proprietary RI ratings and resultant analyst commentary are included in every Investment Grade thesis statement. To the extent that the analyst identifies material negative ESG considerations, the issuers will fall lower in the analyst’s fundamental ranking and, all other things equal, will require more credit spread to own it. If the market does not offer higher spreads portfolios would be unlikely to own such an issuer. ESG is thus embedded into both research and portfolio construction. In addition, we can run various exclusion criteria portfolios set to a client’s specifications.

Stage 4: Ethical Screening

All stocks considered for investment first undergo screening by members of the Responsible Investment team, to determine if they meet the criteria for inclusion in the portfolio’s investable universe. The Responsible Investment team has created a thorough and robust process to analyse companies to determine whether they meet the fund criteria:

• The fund will exclude companies with exposure to any business activities deemed to be socially or environmentally damaging, with specific tolerance thresholds. These excluded activities have adapted over time with the development of major social and environmental issues.
• The fund will also exclude companies which do not meet sufficiently high standards in how they operate, based on a detailed assessment of their policies and performance with respect to overall sustainability management. The focus will vary by sector according to relevance - and includes certain absolute exclusions in company behaviour - but is otherwise often a qualitative judgement. To make these assessments, we have established particular positions on a range of relevant issues, such as climate change and what we consider to be progressive approaches to these issues by companies. These positions are based on a range of inputs that include evolving international norms and agreements, extensive primary research, including field visits and the input of our Responsible Investment Advisory Council.
• The external Responsible Investment Advisory Council is also involved in reviewing the approvability ratings of companies as well as in developing the screening criteria for the fund and targeting engagement activity. Input is also frequently sought from a range of stakeholders.

The Responsible Investment team has a quarterly monitoring system to identify:

• Changes to business e.g. through mergers and acquisitions
• Whether the criteria continue to be met by the company (ethical, environmental and social)
• Any controversies that may affect the company rating (e.g. mis-selling, environmental damage or corruption).

Stage 5: Portfolio Construction

Credit research views and recommendations form the foundations on which our portfolios are constructed.  We create portfolios to benefit from our core views, whilst ensuring that we diversify credit risk. The desired size of any position reflects the level of conviction and the perceived potential for gains or losses including trading costs. We consider potential sources of alpha against both the need to constrain the overall level of risk, as well as abide by specific mandate / fund guidelines.

Sources of alpha include:

• Implementation of tilts to particular sections of the market, whether it be overall credit exposure, ratings, sectors or issuers.
• Relative value trades including intra-sector or across specific bonds of the same issuer;
• Security selection;
• Credit roll down strategies; and

Stage 6: Portfolio Monitoring and Risk Management

Portfolio monitoring and risk management is performed on credit portfolios both by the investment team and the independent teams within the organisation that are responsible for second line risk control. Risk management is performed daily by all our fund management teams who ensure that the risk budget of each portfolio is fully understood and used within limits and as effectively as possible. The independent risk control function is conducted by investment risk oversight, mandate compliance and performance analytics teams who ensure that all portfolio managers operate within client and fund guidelines.

Daily pre- and post-trade reviews of guidelines and limits is performed by our Investment Mandate Control team using our primary order management system. The team monitors all output from the system in relation to portfolio guideline limits and alerts that are triggered when guidelines are close to being or have been breached. The team is integral to ensuring portfolios are being managed true to guidelines as they are independent from the investors and therefore fulfil a supervisory role within the overall investment risk framework.

Quarterly risk and performance review meetings are chaired by our Chief Investment Officer and attended by Risk and Compliance teams.

Resources, Affiliations & Corporate Strategies

Responsible Investment Team

We have a dedicated in-house Responsible Investment (RI) team, one of the most experienced and established teams of its kind. The award-winning 40+ member team supports our clients, our investment teams and our overall business through expertise across ESG thematic research, ESG integration, ESG policy, client reporting and thought leadership content. Beyond these core activities, the team also supports a plethora of activity from representation on responsible investment industry groups, public policy contribution, ESG thought leadership, ESG product development, portfolio level ESG analytics, screening for specialist ESG portfolios and reporting on active ownership activities. Active ownership is a key aspect of our RI work, and within the team there are more than 20 professionals focused on engagement and voting activity.

The RI team works hand in hand with our research and investment professionals to enrich their understanding of key sustainability trends as they relate to specific sectors and issuers, collaborating to highlight risks and opportunities within industries and sectors, informing investment decisions across asset classes.

The RI team was awarded ‘Best ESG Research Team’ at the 2018, 2019 and 2020 Investment Week Sustainable & ESG Investment Awards, ‘Best ESG Reporting – Asset Manager: Large’ at the 2019 Environmental Finance Awards, and ‘Best ESG Research: Fixed Income’ at the 2020 Environmental Finance Awards. We were also awarded ‘Best ESG Fund House’ at the 2022 ESG Clarity Awards.

Responsible Investment Advisory Council

The Council is a six-member committee of experts, who are leaders in their fields and bring international experience across responsible investment, ethical, environmental, and social issues. Their primary role is to provide advice on the ethical criteria for our specialist Responsible strategy range. The Responsible Investment team is also able to draw on their expertise in informing our broader engagement and responsible investment approach.

The Council’s president is the Most Reverend Justin Welby, Archbishop of Canterbury. The Chair, who heads the quarterly meetings, is Howard Pearce, formerly Head of Environmental Finance and Pension Fund Management at the UK’s Environment Agency Pension Fund (EAPF).  More detail on the Council can be found here.

Affiliations & Memberships

We make efforts to promote responsible investment in multiple ways, including participation in speaking engagements, industry working groups, responsible investment conferences and collaborative initiatives.

A list of key responsible investment memberships and affiliations for Columbia Threadneedle Investments is shown below.

• Environmental

Climate Action 100+

Climate Action 100+ is an investor initiative launched in 2017 to ensure the world’s largest corporate greenhouse gas emitters take necessary action on climate change. We are a member of the investor coalition, leading 8 and supporting 38 engagements.

Date of joining: CTML: 2017, TAML: 2021

Transition Pathway Initiative (TPI)

A PRI sponsored initiative; this is an asset-owner led initiative which assesses companies' preparedness for the transition to a low carbon economy. It is supported by London School of Economics, a research driven initiative on high emitting sectors carbon transition and strategic/management commitment to address climate transition.

Date of joining: CTML: 2020, TAML: 2021

Net Zero Asset Managers Initiative

Founder signatory of this international group of asset managers committed to supporting the goal of net zero greenhouse gas emissions by 2050 or sooner, in line with global efforts to limit warming to 1.5 degrees Celsius; and to supporting investing aligned with net zero emissions by 2050 or sooner.

Date of joining: CTML: 2020, TAML: 2021

Carbon Disclosure Project (CDP)

Non-profit organisation that runs the global disclosure system for investors, companies, cities, states and regions to manage their environmental impacts. We are member of the investor coalition, leading and supporting several engagements.

Date of joining: CTML: 2000, TAML: 2005

Carbon Trust

We partner this organisation that supports companies to accelerate towards Net Zero. From target setting, Net Zero pathways, assurance and footprinting, to policy advice, strategy setting and programme delivery.

Date of joining: 2010

Task Force on Climate-related Financial Disclosures (TCFD)

We have committed to producing reporting as part of TCFD, an organisation that was established in December 2015 with the goal of developing a set of voluntary climate-related financial risk disclosures.

Date of joining: CTML: 2020, TAML: 2022

Sustainability Accounting Standards Board (SASB)

ESG standard setter (Member Standards Advisory Group & sub-groups). SASB guides the disclosure of financially material sustainability information by companies to their investors.

Date of joining: 2018

Science Based Targets initiative (SBTi)

The SBTi is a partnership between CDP, the United Nations Global Compact, World Resources Institute (WRI) and the Worldwide Fund for Nature (WWF). Guides companies to set science-based targets to mobilize the private sector to take urgent climate action.

Date of joining: 2020

Impact Investing Institute

Focuses on the development of outcome related investment, to encourage more investment made with the intention to generate positive, measurable social and environmental impact alongside a financial return. TAML is a Founding supporter and member of the Advisory Council and working group for the Green+ Gilts

Date of joining: 2020

Institutional Investor Group on Climate Change (IIGCC)

IIGCC works with business, policy makers and investors to help define the investment practices, policies and corporate behaviours required to address climate change. A member of the RI team serves on the Board. We lead and support several engagements.

Date of joining: 2001

IIGCC's Global Investor Statement

A joint statement coordinated by the seven Founding Partners of The Investor Agenda to all world governments urging a global race-to-the-top on climate policy and warns that laggards will miss out on trillions of dollars in investment if they aim too low and move too slow.

Date of joining: 2009

IIGCC’s Investor Position Statement on Transition Planning

Signatory of this investor statement by 56 leading investors calling for the implementation of new corporate governance measures to ensure shareholders can hold companies to account in achieving net zero emissions commitments.

Date of joining: 2021

Ceres Land Use and Climate WG (Biodiversity)

Ceres works with the most influential capital market leaders to advance innovative solutions to the climate crisis and achieve a zero emissions future where people and the planet can prosper.

Date of joining: 2020

Cerrado Manifesto SoS

Public statement committing to halt deforestation in the Cerrado, adopt sustainable land management practices and mitigate financial risks associated with deforestation and climate change. It is endorsed by global FMCG companies and institutional investors.

Date of joining: 2021

ChemScore

Benchmark created by NGO International Chemical Secretariat (ChemSec). It ranks the world’s top 50 chemical producers on their work to reduce their chemical footprint.

Date of joining: 2021

Nature Action 100

Founding member of investor-led collaborative engagement programme to engage with companies and policymakers on nature.

Date of joining: 2022

Taskforce for Nature-related Financial Disclosures

As a forum member, we support the taskforce aiming to develop and deliver a risk management and disclosure framework for organisations to report and act on evolving nature-related risks.

Date of joining: 2020

Sustainability Policy Transparency Toolkit (SPOTT)

SPOTT scores palm oil, tropical forestry, and natural rubber companies annually against over 100 sector specific ESG indicators to benchmark their progress over time. As an investor supporter we express need for enhanced transparency.

Date of joining: 2019

Investor Policy Dialogue on Deforestation

Collaborative investor initiative set up to engage with public agencies and industry associations on the issue of deforestation. The goal is to coordinate a public policy dialogue on halting deforestation. We are a member of the Advisory Council, leading/supporting engagements going forward.

Date of joining: 2021

ShareAction Chemicals Working Group

Investor group focused on engagement with the chemicals sector on decarbonisation.

Date of joining: 2021

• Social

Global Network Initiative (GNI)

Member of this initiative seeking to safeguard freedom of expression and personal privacy against government restrictions. The protections are facilitated by a coalition of companies, investors, civil society organisations, academics, and other stakeholders.

Date of joining: CTML: 2008, TAML: 2002

Interfaith Centre on Corporate Responsibility (ICCR)

Coalition of over 300 global faith- and values-based institutional investors. We are members of the Food Justice and Racial Equity workstream.

Date of joining: 2020

ICCR's Investor Alliance on Human Rights (IAHR)

Part of the ICCR, IAHR provides a collective action platform to facilitate investor advocacy on a full spectrum of human rights and labour rights issues.

Date of joining: 2020

ICCR's Investors for Opioid and Pharmaceutical Accountability (IOPA) Part of the ICCR, IOPA addresses the fallout of the opioid crisis and other business risks by seeking accountability and mitigating further risk at pharmaceutical companies through comprehensive shareholder reforms.

Date of joining: 2021

ShareAction Good Work Coalition

Investor engagement initiative aimed at driving up standards in the workplace. Engagement focus on labour standards, living wage standards, accreditation, transparency of the FTSE350, extension to DEI with a focus on ethnic diversity.

Date of joining: 2021

ShareAction Healthier Markets Investor initiative aimed at improving children's health by increasing access to affordable, healthy food.

Date of joining: 2021

Access to Medicine Foundation

Member of the investor coalition, leading and supporting several engagements. Independent, non-profit organisation working to stimulate and guide the pharmaceutical industry. Produces the Access to Medicine Index, Antimicrobial Resistance Benchmark, Access to Vaccines Index.

Date of joining: 2021

Investor Action on Antimicrobial Resistance (AMR)

A coalition between the Access to Medicine Foundation, the FAIRR Initiative, the Principles for Responsible Investment and the UK Government Department of Health and Social Care to galvanise investor efforts to address global AMR. We are leading and supporting engagements.

Date of joining: 2021

Investor Initiative for Responsible Care

Collaborative engagement group coordinated by UNI Global Union focused on working standards and quality of care in the listed nursing care sector.

Date of joining: 2022

Workforce Disclosure Initiative (WDI)

Disclosure body. We are Signatory, member of the Advisory Group; leading/supporting several engagements. Investor initiative aimed at improving corporate transparency and accountability on workforce issues. Provide companies and investors with comprehensive and comparable data.

Date of joining: CTML: 2021, TAML: 2020

Global Investor Collaboration on Farm Animal Welfare & Global Investor Statement on Farm Animal Welfare

Engagement collaboration with BBFAW (Business Benchmark on Farm Animal Welfare), member of the investor coalition, supporting and leading several engagements.

Date of joining: 2021

Platform Living wage Financials

Coalition of financial institutions that encourages and monitors investee companies to address the non-payment of living wage in global supply chains. We are chair of the Platform's Garment Working Group; member of the Food, Retail and Agri working group.

Date of joining: 2020

Find it, fix it, prevent it

Engagement collaboration. Member, leading on engagements. Investor led initiative targeting UK-listed companies to demonstrate commitment to eradicating modern slavery from their supply chains.

Date of joining: CTML: 2020, TAML: 2021

KnowTheChain

Engagement collaboration. Member of the investor coalition, supporting several engagements. KnowTheChain is a resource for companies and investors to understand and address forced labour risks within their global supply chains.

Date of joining: 2021

Access to Nutrition Index

Engagement collaboration. Member of the investor coalition, supporting several engagements. Independent, non-profit organisation producing the Access to Nutrition Index. Benchmark evaluates the world's largest food and beverage manufacturers' policies and performance related to the world's most pressing nutrition challenges: obesity and undernutrition.

Date of joining: 2021

Human Capital Management Coalition (US)

Engagement collaboration. Member of the coalition of investors to elevate human capital management. Engages companies and other market participants with the aim of understanding and improving how human capital management contributes to the creation of long-term shareholder value.

Date of joining: 2021

Investors for Racial Justice

Member of this information sharing network and engagement collaboration.

Date of joining: 2020

Votes Against Slavery 2022

Member of this investor collaboration engaging with FTSE 350 companies on their compliance with the Modern Slavery Act 2015. We joined the collaboration for the 2021 campaign.

Date of joining: 2021

• Governance

International Corporate Governance Network (ICGN)

Member of investor led organisation advancing the highest standards of corporate governance and investor stewardship worldwide in pursuit of long-term value creation.

Date of joining: CTML: 2007, TAML: 2017

Investment Association (IA)

Member of UK industry body; facilitates the monitoring and responding to ESG policy and regulatory changes impacting our activities.

Date of joining: CTML: 2000, TAML: 1998

Corporate Governance Forum

European focus - UK based asset management governance teams. Informal discussion on companies and industry issues.

Date of joining: 2012

Global Institutional Governance Network (GIGN)

US/Global focus - Global asset management governance teams. Discussions on companies and industry issues.

Date of joining: 2012

Council of Institutional Investors (CII)

Member of this non-profit organisation promoting effective corporate governance policies.

Date of joining: 1996

Investor Forum

Member and proactive collaborator with the Forum, which helps investors to work collectively to escalate material issues with the Boards of UK-listed companies.

Date of joining: 2005

Asia Corporate Governance Association

Member of independent, non-profit membership organisation dedicated to working with investors, companies and regulators in the implementation of effective corporate governance practices throughout Asia.

Date of joining: CTML: 2004, TAML: 2010

Asia Research & Engagement (ARE)

Engagement collaboration. Organisation that structures, implements and assembles investor collaborative engagement programmes across Asia. Performs in-depth industry and company research that provides strategic insight into key ESG issues to underpin engagement work.

Date of joining: 2021

Pre-Emption Group (PEG)

Members of the UK Capital markets group that sets guidelines on the application/dis-application of pre-emption rights in UK capital issuance.

Date of joining: 2016

30% Club UK Investor Group

Campaign for greater representation of women on company boards. Member of the investor coalition, leading and supporting several engagements.

Date of joining: 2021

30% Club France Investor Group

Member of this investor-led group aiming to boost the number of women in board seats and executive leadership of companies in the SBF 120 index.

Date of joining: 2021

30% Coalition (US)

Campaign for greater diversity on company boards. Member of the investor coalition, leading and supporting several engagements.

Date of joining: 2021

Women in Finance Charter

First asset manager signatory to the UK charter committing to support the progression of women into senior roles in the financial services sector, set targets and publicly report on progress against these targets to support transparency and accountability.

Date of joining: 2016

Eumedion

Member of this non-profit organisation aiming to promote good corporate governance and sustainability policies at Dutch listed companies and to promote engaged and responsible shareholding by its members.

Date of joining: 2009

• Environmental, Social & Governance

Principles for Responsible Investment (PRI)

Global responsible investment association, membership is a pre-requisite for many clients. TAML & BMO GAM are Founding Signatories to the UN supported PRI. CTML, formerly known as BMO GAM EMEA, was part of BMO GAM at the time of becoming a signatory. BMO GAM EMEA business was acquired by Ameriprise Financial, Inc. in 2021. CMIA became a signatory in 2014.

Date of joining: CTML & TAML: 2006, CMIA: 2014

UK Stewardship Code

Set of principles for asset owners and managers. We are signatories of the 2020 code.

Date of joining: 2012

Investor Stewardship Group (ISG)

Members of the network of investors and asset managers formed to promote good practice in stewardship and corporate governance, specific to the US.

Date of joining: 2018

Investment Company Institute (ICI)

US Industry body; facilitates the monitoring and responding to ESG policy and regulatory changes impacting our activities.

Date of joining: 2019

UK Sustainable Investment and Finance Association (UKSIF)

Network focused on the UK sustainable investment market, pre-requisite for FNG certification. A member of the RI team chairs the Policy Committee.

Date of joining: CTML: 2000, TAML: 2020

Taiwan Stewardship Code

Signatory to the Taiwan Stewardship Code, which is based on a ‘comply or explain’ approach.

Date of joining: 2022

Japan’s Stewardship Code

Signatory to Japan’s Stewardship Code, which is maintained by Japanese Financial Services Agency, based on a ‘comply-or-explain’ approach where signatories comply with the principles of the code or explain why they do not comply.

Date of joining: 2022

Global Real Estate Benchmark (GRESB)

Member of this organization whose data facilitates our ability to track trends in corporate environmental and social risk management performance as it relates to property.

Date of joining: 2013

London Stock Exchange

Members of the LSE’s Primary Markets Group, advising on primary market issues.

Date of joining: 2012

The Big Exchange

TAML is a founding partner and members of the Impact Committee.

Date of joining: 2019

Global Impact Investing Network (GIIN) Member of this leading non-profit dedicated to increasing the scale and effectiveness of impact investing

Date of joining: 2020

FAIRR Collaborative investor network that focuses on ESG risks and opportunities around animal agriculture.

Date of joining: 2021

Investor Tailings Safety Initiative & Investor 2030 Mining Agenda We are the founding supporter of this initiative and will co-lead on some of the corporate engagements.

Date of joining: 2021

Centre for Audit Committee and Investor Dialogue Network initiative that enables investors, audit committee members and auditors to discuss issues of common interest.

Date of joining: 2013

International Capital Markets Association (ICMA)

The development of green, social and sustainability bond principles relevant to our fixed income investments in an RI context. Members of the Social Bond Working Group and members of working groups on the SDGs and on impact reporting.

Date of joining: 2016

Source: Columbia Threadneedle Investments, as at March 2023. Includes memberships held by CMIA, TAML, CTML and other group affiliates. CMIA = Columbia Management Investment Advisors, LLC; TAML = Threadneedle Asset Management Limited; CTML = Columbia Threadneedle Management Limited.

Dialshifter

This fund is helping to ‘shift the dial from brown to green’:

Our responsible / sustainable investment philosophy is based on three pillars:

• Avoid: Avoid companies with damaging or unsustainable business practices
• Invest: Invest in companies that make a positive contribution to society and/or the environment
• Improve: Use influence as an investor to encourage best practice management of ESG issues through engagement and voting

This philosophy underlies the process that is applied to define the investable universe through screening, the subsequent investment analysis, stock selection and active ownership.

Our organisation is helping to support the Paris Climate Agreement and the Race to Net Zero by…

Our methodology to implement our net zero commitment for equities and corporate debt is based on the Net Zero Investment Framework, developed by the Paris Aligned Investment Initiative. Our approach to net zero is focused on real world decarbonisation, using stewardship to help drive improvements in companies’ practices and alignment to a net zero trajectory. More details on our methodology can be found here: Net zero investing: Columbia Threadneedle Investments Approach

At the enterprise level, we continue to evolve our climate change strategy and reporting, and in 2022 produced our first full carbon footprint assessment of Ameriprise Financial, Inc.

Literature

• Fund overview & literature (including factsheet)
• Responsible Investment

Disclaimer

Important Information

 PRIVATE AND CONFIDENTIAL

All information provided within this document is for the attention of the addressee only and solely for the purpose of evaluating the investment and advisory management services available from Columbia Threadneedle Investments. The information provided is on the basis that it remains private and confidential between the addressee and Columbia Threadneedle Investments. Accordingly, the addressee is not permitted, in the event that a request for information is made under the Freedom of Information Act 2000, to disclose any of the information provided herein by Columbia Threadneedle Investments, given the duty of confidentiality that exists as between Columbia Threadneedle Investments and the addressee. Columbia Threadneedle Investments is the global brand name of the Columbia and Threadneedle group of companies.

CONTRACTUAL AGREEMENT

This document is issued by Columbia Threadneedle Management Limited. Should you decide or wish to receive the services detailed within this document, your contractual agreement will be with Columbia Threadneedle Management Limited. This entity is a wholly owned subsidiary of Columbia Threadneedle Investments UK International Limited, whose direct parent is Ameriprise Inc., a company incorporated in the United States.

Past performance should not be seen as an indication of future performance. The value of investments and income derived from them can go down as well as up as a result of market or currency movements and investors may not get back the original amount invested. The information, opinions, estimates or forecasts contained in this document were obtained from sources reasonably believed to be reliable and are subject to change at any time.

The “Firm” referred to herein is part of the group of legal entities acquired by Ameriprise Financial Inc. on 8th November 2021. On 4th July 2022, we reached a significant milestone in the integration of our businesses being rebranded as Columbia Threadneedle Investments. We have made significant progress with the integration of our businesses, and while we now present ourselves externally as a single brand, there may be instances where the Firm’s legacy functions, systems, teams or policies remain in place until further integration milestones are reached. Where applicable, this document may make reference to such functions, systems, teams or policies, with any such references being subject to change as the integration work continues.

Last amended: 03/07/23 11:06