Notification of changes to the underlying fund of R212 Schroder Global Cities (USD)

26 Feb 2026

R212 Schroder Global Cities (USD) (the “Affected ILP sub-fund”)

Schroder International Selection Fund (the “Company”) has notified us that on 30 March 2026 (the “Effective Date”) it will be changing the investment policy and sustainability criteria of the underlying fund of the Affected ILP sub-fund.

The Company has also updated the investment objective to clarify that the underlying fund holds equity and equity related securities of real estate companies worldwide that own assets in global cities.

Background and rationale

The underlying fund of the Affected ILP sub-fund currently uses a Schroders’ proprietary tool to assess whether an investment qualifies as sustainable. However, a methodology provided by Global Real Estate Sustainability Benchmark (GRESB), a specialist in real estate sustainability data, offers a tool the underlying fund’s investment manager believes will provide a more specific methodology for the underlying fund’s strategy. The new approach will require potential holdings in the underlying fund to:

• achieve a score of at least 50% on both the performance and management components of the GRESB’s scorecard and thereby achieve the threshold for GRESB’s “Green Star” designation; or
• receive a determination by the underlying fund’s investment manager that the company would achieve a score of at least 50% on each component if additional robust evidence was available within the scorecard and included in the calculation of the score.

On the Effective Date, the investment policy of the underlying fund of the Affected ILP sub-fund will be updated to reflect the new approach. 

For full details of the changes being made to the underlying fund of the Affected ILP sub-fund, please refer to the Appendix in the sample client correspondence opposite. 

The extent of the change to the risk/reward profile of the underlying fund of the Affected ILP sub-fund as a result of this change is non-significant. There are no other changes to the underlying fund’s investment style, investment philosophy, investment strategy, and the operation and/or manner in which the underlying fund is being managed following these changes. All other key features of the underlying fund of the Affected ILP sub-fund, including the relevant risk indicator and fees, will remain the same.

These changes 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.