Change to investment restrictions on Columbia Threadneedle Investment Funds
Columbia Threadneedle Investments (“Columbia Threadneedle”) has notified us of a change to a number of its funds. The change will take effect on 1 November 2025 (the “Effective Date”).
AVAILABLE IN OUR DEFINED FUND RANGE PRODUCTS SHOWN OPPOSITE
Background
Columbia Threadneedle is amending the exclusion policies of a number of its funds, including funds we have in our defined fund range listed below (the “Affected Funds”). The change to the Affected Funds, increases their ability to invest in companies that are involved in the conventional weapons sector. The amended exclusion policies will be adopted from the Effective Date.
| ISIN | Fund Name |
|---|---|
| GB0001530566 | CT American R Acc GBP |
| GB0001529345 | CT European Select R Acc GBP |
| GB0001531424 | CT European Smaller Companies Ret Acc GBP |
| GB0031109738 | CT Sterling Corporate Bond R Inc GBP |
| GB0001529782 | CT UK R Inc GBP |
Details of the change
Currently, the Affected Funds are not permitted to invest in shares or bonds issued by companies that derive more that 10% of their revenue through their involvement in conventional weapons. From the Effective Date, the Affected Funds’ investment policies will be updated to remove these restrictions.
The change is not expected to significantly impact the way in which the Affected Funds are currently managed or their risk profiles.
The Affected Funds will continue to be managed in line with their sustainability approach which includes investing at least 50% of the Affected Funds in companies promoting environmental and / or social characteristics, and avoiding (subject to specified revenue thresholds) companies involved in certain industries / activities like thermal coal extraction, and that are determined to be in breach of international standards and principles, as described more fully in the prospectus of the Affected Funds.
More information on the change from the Effective Date can be found in the Columbia Threadneedle Notification and Q&A Document opposite, and at https://www.columbiathreadneedle.com/en/changes/.
Why is this change being made?
The Investment Managers of the Affected Funds believe that there is a strong case for investment in companies involved in the defence industry. Increased governmental spending on defence means it is likely that the number of companies with defence exposure (particularly in the technology and telecommunication sectors) will rise. This is expected to increase the investment opportunities available for the Affected Funds and in turn could enhance their performance returns.
The Affected Funds will continue to exclude investing in companies involved in controversial weapons, including landmines and biochemical weapons. These weapons are banned under international conventions and protocols.
This change will take effect automatically within the Affected Funds and plan owners do not need to take any action.
AVAILABLE IN OUR OPEN-ARCHICTECTURE PRODUCTS
A number of Columbia Threadneedle funds which can be accessed through our portfolio bonds will also be subject to the change detailed above.
For more information on the Columbia Threadneedle Investment funds please visit www.columbiathreadneedle.com