Sustainable, Responsible &/or ESG Policy:

Objective: The Funds aim to: i) make sustainable investments, defined as either investments in companies with an overall positive alignment to the UN Sustainable Development Goals (“SDGs”) as determined by the Investment Manager’s Sustainable Stewardship Investment Policy (“SSIP”) or in bonds classified by the Climate Bonds Initiative as “Green”, “Social” or “Sustainability” Bonds; ii) manage volatility within a risk range of 3% higher or lower than the volatility of the Volatility Index; and (iii) grow your investment over the long term (5 years or more) through a combination of income and capital growth.

 

Strategy: The Funds are actively managed, selecting investments aligned to the Funds' sustainable aims and in line with the Funds' volatility target. The Funds aim to provide returns consistent with itheir sustainability and volatility aims,  using a longer term outlook, to blend asset classes and may make tactical allocations. Derivatives may be used to reduce risk, for efficient portfolio  management, and for investment purposes but will not materially alter the risk profile of the Funds.

Sustainability Characteristics: The Funds first apply the SSIP's negative screens to exclude companies that do not meet certain ethical, social and environmental standards, so that the Funds do not invest in companies  regarded as strongly misaligned to any SDGs. These screens are not applied
to other investments, for example, government bonds (including CBI classified bonds), cash and derivatives. The Funds then aim to invest a minimum of 70%: (i) in accordance with the SSIP or (ii) in bonds classified by the CBI as “Green”, “Social” or “Sustainability” Bonds, together referred to as the “sustainable allocation” as summarised below. The sustainable allocation may temporarily fall below 70% if the Funds have large cash holdings as a result of dealing activity.

SSIP: the Funds invest in shares and bonds issued by companies that the Investment Manager has determined, in accordance with the SSIP, are: (i) positively aligned to one or more SDGs; and (ii) on balance, positively aligned to the SDGs overall (i.e. any areas of positive alignment to the SDGs are not outweighed by any areas of misalignment to the SDGs). The Funds do not target positive alignment to any particular SDG or group of SDGs. It is unlikely that each investment will positively align to all of the SDGs and the Fund may invest in companies with known misalignment to one or more SDGs, providing it is considered positively aligned to one or more SDG and positively aligned to the SDGs overall. 

Further information on the Funds' sustainability characteristics are set out in Appendix 3 of the Prospectus.

 

(Source: KIID, as at January 2025)

SDR Labelling:

Unlabelled with sustainable characteristics