Responsible funds

Our approach to responsible investing is to pursue investment in companies, sectors and countries that demonstrate a positive influence on environmental and/or social themes. At the same time, we seek to avoid investment in activities that we consider harmful to the environment and/or society.

The responsible funds have a multi-asset investment approach, meaning their portfolios have exposure to a range of asset classes. The responsible funds usually access asset classes ‘indirectly’ through investment in other funds. These funds are pooled investment vehicles, where one large portfolio is funded by numerous different investors and invested into different underlying assets, including funds managed by third-party fund managers.

We have listed the asset classes used in the responsible funds, and how we invest in each of them, below:

We use a responsible investing framework to assess, select and monitor the third-party managers and issuers of the investments that we select for the responsible funds. The framework comprises four underlying components:

• ESG (environmental, social and governance) integration
• Negative screening
• Pursuing positive environmental and/or social themes
• Engagement

All assets held in the responsible funds are subject to our ESG integration assessment and negative screening.

Our aim is that at least 70% of the assets within the responsible funds shall meet our criteria for demonstrating positive environmental and/or social themes.

As the responsible funds usually invest in funds managed by third-party managers, we assess the engagement processes of those third-party managers, and their engagement with investee companies or issuers.

Cautious Responsible Fund

The Cautious Responsible Multi Asset Fund takes a relatively low-risk approach to investment. It is best suited to investors with a limited appetite for risk and a keen interest in taking a responsible approach to investing. Like all of our responsible funds, Cautious Responsible follows the same investment process as our ‘core’ funds, but with the added assessment of potential investments against our own Responsible Investment Policy.

Although truly multi asset in its approach, the Cautious Responsible fund is somewhat weighted towards traditionally ‘safer’ asset types (like bonds), with a fairly low allocation to riskier asset types (like shares and ‘alternative’ assets).

Balanced Responsible Fund

The Balanced Responsible Multi Asset Fund is best suited to investors willing to take on some risk in exchange for improved potential financial reward, alongside a keen interest in taking a responsible approach to investing. Like all of our responsible funds, Balanced Responsible follows the same investment process as our ‘core’ funds, but with the added assessment of potential investments against our own Responsible Investment Policy.

Taking a truly multi asset approach to achieving its goals, the Balanced Responsible fund tends to invest in a blend of all major asset types, from shares and government bonds to ‘alternative’ assets.

Growth Responsible Fund

The Growth Responsible Multi Asset Fund takes a higher-risk approach to investment. It is best suited to investors willing to take on additional risk in exchange for greater potential financial reward, alongside a keen interest in taking a responsible approach to investing. Like all of our responsible funds, Growth Responsible follows the same investment process as our ‘core’ funds, but with the added assessment of potential investments against our own Responsible Investment Policy.

Although truly multi asset in its approach, the Growth Responsible fund is substantially weighted towards riskier asset types (like shares and ‘alternative’ assets), with a lower allocation to traditionally ‘safer’ asset types (like bonds).

UK investment products that have sustainability characteristics can choose to use a sustainable investment label as defined by the FCA, if the product meets certain criteria. Sustainable investment labels help investors identify products that have a specific sustainability goal.

These products do not have a UK sustainable investment label. This is because the Portfolio Manager does not invest the Sub-funds' assets in accordance with a specific sustainability objective, which is a requirement for products where the manager has chosen to use a sustainable investment label.

Before investing, please read the Key Investor Information Document (KIID). It contains important information including risk factors and charges.