Sustainable, Responsible &/or ESG Policy:

Objectives and Investment Policy

The aim of the Fund is to increase the value of an investment over a minimum of 5 years through a combination of capital growth - which is profit on investments held, and income received by the Fund - which is money paid out of investments, such as dividends from shares and interest from bonds. The Fund also aims to outperform, over any rolling 5 year period, the UK Consumer Prices Index plus 3% per annum.

The Investment Manager actively manages the Fund, deciding which investments to buy or sell and when using a responsible investment selection process which selects assets that have a strong focus on Environmental, Social and Governance (“ESG”) considerations along with the potential to grow in value. The Fund aims to deliver income and growth from a medium risk level of return.

The Fund focuses on ESG investments across various industries and regions. It may hold between:
• Between 40% and 70% in shares of companies.
• Between 10% and 40% in bonds.
• Up to 20% in investment trusts providing exposure to alternative assets such as, property and infrastructure.

Bonds, (loans typically issued by companies, governments and other institutions), may be either investment grade, where the issuer has a high and reliable capacity to repay the debt, or sub-investment grade, which can be more vulnerable to changing market conditions but typically pay a higher rate of interest.

The Investment Manager uses their own ESG rating mechanism to identify assets that look to benefit from changes within the economy whilst offering robust management of ESG risks and opportunities. This process involves detailed research and analysis using both investment expertise combined with independent data.

The process initially involves negative screening to avoid investing in companies that generate more than a defined percentage of revenue from the following activities:
• Tobacco, gambling services and armaments (military weapons and equipment) and civilian firearms –maximum of 5% of revenue.
• Pornography – maximum of 3% of revenue.
• Predatory lending, cluster munitions and landmines – 0% of revenue.
• Coal, unconventional oil or gas extraction (e.g. tar sands and shale), or coal power generation – maximum of 5% of revenue.

The Investment Manager ensures an overall “high” quality ESG rating for the Fund which can be independently verified. The Fund currently uses MSCI for assessing its ESG credentials and a “high” ESG score should be considered as AA or AAA.

The Fund will not invest in other collective investment schemes and may hold up to 20%in cash.
The Fund can use derivatives or forward transactions (instruments whose returns are linked to another asset, market or other variable factor) for efficient portfolio management including the reduction of risk (hedging), although their use is expected to be minimal.
The performance target is the level of performance the Investment Manager aims to deliver, after charges, in normal market conditions. However, returns will fluctuate, and it will not necessarily be achieved over every rolling 5 year period. The UK Consumer Prices Index has been chosen as it is a standard and broadly accepted measure of UK inflation.
The Fund’s performance can be compared to the ARC Sterling Steady Growth ACI index.
We recommend reading this information alongside the Fund’s Sustainability Disclosure.
You can find the Sustainability Disclosure at: www.ifslfunds.com.

(Source: KIID, as at November 2025)

SDR Labelling:

Unlabelled - promotes sustainable characteristics (has CFD)

SDR Literature:

• Consumer Facing Disclosure