Notification of changes to the underlying fund of R172 Schroder Strategic Bond (USD)

06 Mar 2025

We have been notified by Schroder International Selection Fund (the “Company”) of the following changes to the underlying fund of the ILP sub-fund named above. These changes will take effect from 8 April 2025 (the “Effective Date”).

Updates to investment policy

From the Effective Date the underlying fund of the ILP sub-fund will incorporate environmental and/or social characteristic(s), within the meaning of Article 8 of the Sustainable Finance Disclosure Regulation (“SFDR”). Article 8 funds are those that promote social and/or environmental characteristics, invest in companies that follow good governance, give binding commitments but do not have a sustainable investment objective.

The Company believes that incorporating sustainability factors into the strategy of the underlying fund of the ILP sub-fund aligns with the increasing desire among investors for strategies that can clearly demonstrate their sustainability credentials.

Details of the environmental and/or social characteristics of the underlying fund of the ILP sub-fund and how it seeks to achieve them will be disclosed in the investment policy and sustainability criteria sections in the underlying fund prospectus, which will be updated from the Effective Date.

Please refer to the Appendix of the sample client communication opposite for full details of the changes being made to the investment policy and benchmark sections of the underlying fund of the ILP sub-fund, and the new sustainability criteria information.

The Company states that there are no other changes to the investment objective, investment style, investment philosophy, investment strategy, and the operation and/or manner in which the underlying fund of the ILP sub-fund will be managed following these changes. All other key features of the underlying fund of the ILP sub-fund, including the risk profile and fees, will remain the same.

These changes will take effect automatically and policyholders do not need to take any action. We recommend that policyholders seek the advice of their usual financial adviser before making any investment decisions.

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.  A sample of the client communication can be found opposite.

Should you have any questions regarding these changes, please contact the Investment Marketing Team.