Sustainable, Responsible &/or ESG Policy:

OBJECTIVES AND INVESTMENT POLICY

The Fund seeks long-term total returns.

The Fund has a sustainable objective to seek to understand the world's social and environmental challenge and to invest in debt issued by companies and organisations that it believes are addressing these needs in a differentiated way through their core products, services and projects. The Fund through its investments, seeks to improve access to, and the quality of, basic life essentials, reduce inequality and mitigate the effects of climate change. The Fund will be actively managed and seeking to outperform the Bloomberg Global Aggregate Hedged to US dollar Index (“the Index”) and achieve its objectives by investing primarily in investment-grade global fixed income securities.

The Fund may hold concentrated positions within an Impact Theme as there may be more investment opportunities within certain impact themes than others. Whilst the Fund will generally be well diversified by country, currency, industry, and issuers, it may hold positions that are concentrated in this manner from time to time.

The Fund may invest, either directly or indirectly via derivatives, in global fixed income securities issued by corporate, government, agency, supranational issuers; mortgage and other asset-backed securities. The Fund will primarily invest in developed countries but may also invest in emerging markets.

The Fund's average credit quality is expected to be investment grade but the Fund may invest up to 20% in below investment grade rated securities. The Fund will invest in global fixed income securities of varying maturity but will generally have interest rate duration of +/-1.5 years of the Index. The Fund will generally hedge any non-US Dollar exposures back to US Dollars.

Derivatives will be used to hedge (manage) risk and/or volatility and for investment purposes (such as gaining exposure to a security). Derivatives will form a significant part of the strategy and will impact performance.

The Index may be considered during portfolio construction and is used for performance comparison purposes and baseline WACI purposes. Fund securities may be components of the Index but are not expected to have similar weightings. The Investment Manager may limit the extent that overall interest rate duration differs from the Index but this should not be expected to limit the Fund's ability to achieve long-term total returns in excess of the Index.

The Fund will invest at least 85% in companies that contribute to the Fund's primary impact categories of life essentials, human empowerment, and the environment, and within these categories across one or a combination of Impact Themes such as freedom from hunger, clean water and sanitation, health, affordable housing, education and training, financial inclusion, digital divide, alternative energy, resource stewardship and resource efficiency.

The Investment Manager will also seek to reduce the carbon footprint of the Fund's corporate holdings, as measured by its weighted average carbon intensity (WACI), to net zero by 2050, or sooner, in line with the Paris Agreement. The Investment Manager will manage this goal by ensuring the Fund's corporate holdings have a WACI that is no less than 50% below the Index's 2019 WACI by 2030 and as an interim milestone, targeting its corporate holdings to have a WACI that is at least 30% less than the Index's 2019 WACI baseline.

The Investment Manager believes identifying investment opportunities which generate a positive impact requires bottom-up fundamental research, however the Fund also uses screening to ensure certain investments are excluded. A full list of these exclusion can be found in the Fund's pre-contractual disclosure document within the Prospectus.

(Source: KIID as at January 2025)