Objectives and Approach

The Fund aims to achieve investment growth over the long term (5 years, or more). It also looks to outperform the MSCI ACWI Index (“the Index”) over rolling 3-year periods, after the deduction of charges. The Fund is actively managed, and invests at least 75% in a concentrated portfolio of shares of companies worldwide. There is no restriction on size, but investment tends to focus on larger companies. The Index represents the share performance of large and medium-sized companies worldwide and provides a suitable target benchmark against which Fund performance will be evaluated over time. The Investment Manager selects companies it has a high conviction that the current share price does not reflect the prospects for that business, and typically invests in fewer than 50 companies, including some not within the Index. These companies are chosen across different sectors and regions, with significant sector and share weightings taken at the discretion of the Investment Manager. The Investment Manager also seeks to create a portfolio that compares favourably against the Index over rolling 12-month periods, when assessed using the Columbia Threadneedle ESG Materiality Rating model. This model (developed and owned by Columbia Threadneedle Investments) analyses company data to assess how effectively material environmental, social and governance (ESG) risks and opportunities are being managed. If sufficient data is available, the combined results are expressed as a numerical rating to indicate how much exposure a company has to material ESG risks and opportunities in a particular industry. Whilst the Fund may still invest in companies that have poor ESG Materiality ratings, at least 50% of the portfolio is invested in companies with strong ratings. The Investment Manager engages with companies with a view to influencing management teams to address material ESG risks and improve their ESG practices. Columbia Threadneedle Investments is a signatory to the Net Zero Asset Managers Initiative and has committed to an ambition to reach net zero emissions by 2050 or sooner for a range of assets, including the Fund. As such, the Investment Manager will proactively engage with companies to assist with progressing this and may disinvest from those not meeting the minimum standards. The Fund only invests in companies that follow good governance practices. It does not invest in companies which derive revenue from industries or activities above the thresholds shown: tobacco production (5%); nuclear weapons – indirect involvement (5%), conventional weapons – military, or civilian firearms (10%), and thermal coal – extraction or power generation (30%), providing a company is not engaged in new coal projects. The Fund excludes companies that have direct involvement in nuclear or controversial weapons, and companies determined to have breached international standards and principles. The Fund may invest in other securities, collective investment schemes (including funds managed by Columbia Threadneedle companies), money market instruments, deposits, and cash. Derivatives may only be held with the aim of reducing risk or managing the Fund more efficiently.