Notification of changes to the underlying fund of Schroder Global Cities (GBP) fund

04 Feb 2025

• P84 Schroder Global Cities (GBP)
• Z75 Schroder Global Cities (GBP)* 

(Together the “Affected Mirror Funds”)

We have been notified by Schroders Unit Trusts Limited (“Schroders”) of the following changes to the underlying fund of the Affected Mirror Funds. These changes will take effect from 1 April 2025 (the “Effective Date”).

Application of Sustainability Focus label

From the Effective Date, a “Sustainability Focus” label will be applied to the underlying fund of the Affected Mirror Funds. This is one of four new fund labels introduced under the Financial Conduct Authority's Sustainability Disclosure Requirements ("SDR"), which are designed to indicate whether a fund is aligned to a particular sustainability goal. The Sustainability Focus label can be used by funds that aim to invest at least 70% of their portfolios in assets that are environmentally and/or socially sustainable. 

Schroders has advised that in order to demonstrate that the underlying fund of the Affected Mirror Funds meets the new qualifying criteria for the label, a number of changes will be made:

• Updates to the investment objective - to align with the requirements for sustainability objectives under SDR. Detail will be added on the positive sustainability outcome to be sought by the underlying fund of the Affected Mirror Funds and how this will be measured.

• Updates to the investment policy - to reflect:
  • A new commitment to invest at least 90% of the assets of the underlying fund of the Affected Mirror Funds in line with a robust, evidence-based standard of sustainability.
  • Cross references to new detailed content on sustainability.

• Addition of a new “Sustainability Criteria” section of the underlying fund prospectus with detailed sustainability disclosures

The nature and purpose of the underlying fund of the Affected Mirror Funds will continue to be to seek exposure to real estate companies that support the development of global cities (with additional sustainability criteria now applied). The risk profile of the underlying fund of the Affected Mirror Funds will not change as a result. 

Please refer to the Schroders Notification opposite for full details of the changes which will be applied from the Effective Date. 

These changes will take effect automatically and policyholders do not need to take any action. We recommend that policyholders seek the advice of their usual financial adviser before making any investment decisions.

For more information on Schroders funds, visit www.schroders.co.uk 

Should you have any questions regarding these changes, please contact the Investment Marketing Team.

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*Fund applicable to Hong Kong designated policyholders.