Notification of changes to the underlying fund of R148 Schroder US Smaller Companies
13 Jul 2022
We have been notified by Schroder Investment Management (Europe) S.A. ("Schroders”) of the following changes to the Schroder ISF US Smaller Companies Fund (the “underlying fund”), the underlying fund of our Investment-linked policy ("ILP") sub-fund R148 Schroder US Smaller Companies (the “Affected ILP sub-fund”). The changes will take effect on 16 August 2022 (the “Effective Date”).
Summary of changes
Schroders has advised that the underlying fund will change its strategy to be focused on sustainable investments, in line with Article 9 of Regulation (EU) 2019-2088 of the European Parliament and of the Council of 27 November 2019 on sustainability related disclosures in the financial sector (“SFDR”).
In line with these changes, the underlying fund will change name, and the investment objective and policy will be amended. The Affected ILP sub-fund will also adopt these changes as detailed below:
| Affected ILP sub-fund name before the Effective Date | Affected ILP sub-fund name from the Effective Date | Summary of the Affected ILP sub-fund objective and policy from the Effective Date |
| R148 Schroder US Smaller Companies | R148 Schroder ISF US Smaller Companies Impact (USD) | The investment objective and policy will change to be focused on sustainable investments by adopting the best-in-class / positive screening strategy; this will include an updated disclosure to reflect that going forward the underlying fund is expected to hold fewer than 50 companies; the underlying fund’s sustainability criteria will be amended to explain the new best-in-class / positive screening approach; and the underlying fund will have the objective of sustainable investment within the meaning of Article 9 of the SFDR.
Please refer to the Appendix in the sample policyholder notification opposite for full details of the changes, which will also be available to view in the underlying fund's updated prospectus after the Effective Date. |
Policyholders and their advisers who are impacted by these changes have been notified by email or letter. A sample of the policyholder notification can be viewed opposite.
Policyholders do not need to take any action if they are happy to remain invested in the Affected ILP sub-fund, but are free to switch to any other ILP sub-fund available to their policy should they wish to.
