Notification of changes to the underlying fund of R214 CT Responsible Global Equity (GBP)
13 Feb 2025
R214 CT Responsible Global Equity (GBP) (the “ILP sub-fund”)
We have been notified by Columbia Threadneedle Funds Management Limited (the “Manager”) of the following changes to the underlying fund of the investment-linked policy sub-fund (“ILP sub-fund”) named above. These changes will take effect from 24 March 2025 (the “Effective Date”).
Updates to sustainable objective
The Manager has advised that on the Effective Date it will be updating the objective and policy of the underlying fund of the ILP sub-fund. The underlying fund is committed to investing predominantly in sustainable investments. However, the Manager is updating the sustainability objective of the underlying fund to include a specific sustainability goal alongside the financial objective. The fund aims to address sustainability challenges faced by people and the environment by investing in companies that provide solutions which are aligned with the fund’s sustainability themes.
Reason behind the changes
The Financial Conduct Authority* (“FCA”) has introduced four sustainability investment labels to help investors find and compare funds that have a specific sustainability goal. The underlying fund of the ILP sub-fund will be adopting a Sustainability Focus label as it invests mainly in assets which are sustainable for people or the planet. Furthermore, the FCA’s Sustainability Disclosure Requirements (“SDR”) labelling regime requires that all labelled funds provide clear and detailed information on what the sustainability goal of the fund is and the approach to achieving it.
Update to financial objective
In addition to the sustainability objective change, the Manager is updating the financial objective of the underlying fund. It will be updated to include an aim to outperform the MSCI World Index (target benchmark), over rolling 5 year periods. The Manager believes this index represents the types of companies in which the underlying fund invests and provides a useful measure to assess and demonstrate their financial performance.
Please refer to the Appendix in the sample client communication opposite for details of the updated investment objectives following the Effective Date.
This change will take effect automatically and policyholders do not need to take any action.
We have contacted impacted policyholders and their financial advisers to notify them of the changes; primarily by e-shot, with letters sent by post where we do not hold a valid email, and to those who prefer to receive letters by post.
Should you have any questions regarding these changes, please contact the Investment Marketing Team.
*The FCA regulates the financial services industry in the UK. Its role includes protecting consumers, keeping the industry stable and promoting healthy competition between financial providers. You can visit their website at www.fca.org.uk
