News from UPP scheme administrator, Fidelity

07.11.2023

Investment Update - Baillie Gifford UK and Worldwide Equity Fund

Changes to the Fidelity Baillie Gifford UK and Worldwide Equity Fund

We need to make you aware of changes to the above fund, which is currently available to members of your plan.

The fund manager is amending the fund’s investment objective to clarify the composite index, which the Fund uses as its benchmark, is made up of 60% FTSE All Share Index and 40% overseas indices. They are also amending the investment policy wording to demonstrate a minimum standard of responsible investing and display commitments to support the goal of net zero greenhouse gas emissions by 2050.

The changes will come into effect from 13 November 2023.

Please see details of the changes below:

Current Investment Objective

This life fund invests in an underlying fund managed by Baillie Gifford & Co Limited. The objective of the underlying fund is to outperform (after deduction of costs) a composite index comprising 60% UK and 40% overseas equities, as stated in Sterling, by at least 1% per annum over rolling five-year periods. The composite index is calculated by Baillie Gifford and comprises: 60% FTSE All Share Index and 40% overseas. The overseas element is currently made up of 28% FTSE North America Index; 28% FTSE Europe (ex UK) Index; 28% MSCI Pacific Index and 16% MSCI Emerging Markets Index. Investment Policy of the Sub-fund will invest at least 90% directly or indirectly in shares of UK and overseas companies. The indirect investment will be through collective investment schemes (including those managed or operated by the ACD). The Sub-fund will be actively managed and may invest in shares of companies from any country, sector and in shares of companies of any size, however the Sub-fund will have a bias to UK companies. The proportion of the Sub-fund invested in UK and non-UK shares will be at the investment manager's discretion but the Sub-fund will invest a minimum of 45% in UK shares and 25% in non-UK shares. To the extent that the Sub-fund is not fully invested directly or indirectly in such shares, the Sub-fund may also invest in other transferable securities of both UK and overseas companies, money market instruments, deposits and cash. The Sub-fund may not invest in or otherwise use derivatives.

New Investment Objective

This Life Fund invests into an underlying fund managed by one of our fund partners. The Sub fund aims to outperform (after deduction of costs) a composite index comprising 60% UK and 40% overseas equities, as stated in sterling, by at least 1% per annum over rolling five year periods. The composite index is calculated by Baillie Gifford and comprises: 60% FTSE All Share Index and 40% overseas indices. The overseas element is currently made up of 28% FTSE North America Index; 28% FTSE Europe (ex UK) Index; 28% MSCI Pacific Index and 16% MSCI Emerging Markets Index. The Sub fund will invest at least 90% directly or indirectly in shares of UK and overseas companies. The indirect investment will be through collective investment schemes (including those managed or operated by the ACD). The Sub fund will be actively managed and may invest in shares of companies from any country, sector and in shares of companies of any size, however the Sub fund will have a bias to UK companies. The proportion of the Sub fund invested in UK and non UK shares will be at the Investment Advisers discretion but the Sub fund will invest a minimum of 45% in UK shares and 25% in non UK shares. The Investment Adviser assesses companies the Sub fund invests in directly using a Norms based Evaluation and will comply with the Investment Advisers policy on assessing breaches of the United Nations Global Compact as outlined in its ESG Principles and Guidelines document. In addition, the Investment Adviser has joined the Net Zero Asset Managers initiative (‘NZAMi’) and has committed to support the global goal of net zero greenhouse gas (‘GHG’) emissions by 2050 or sooner for certain assets that it manages, including the Sub fund. Such commitments may evolve over time and are reviewed by the Investment Adviser at least every 5 years. In order to meet these commitments the Investment Adviser will carry out specific climate analysis on directly held investee companies and will engage with the same, as the Investment Adviser considers necessary. If, in the Investment Advisers opinion, a company does not demonstrate sufficient alignment with the global goal of net zero GHG emissions by 2050 or sooner to allow the Sub fund to meet the minimum requirements of its commitments, then the Investment Adviser will sell the Sub-funds holding in the company in question. To the extent that the Sub-fund is not fully invested directly or indirectly in such shares, the Sub fund may also invest in other transferable securities of both UK and overseas companies, money market instruments, deposits and cash. The Sub fund may not invest in or otherwise use derivatives.

There will be no other changes to the fund.

We will place a message on PlanViewer to advise any members of the changes and will write to all members invested in the fund.

If you have any questions relating to this email, please do not hesitate to contact Fidelity. You can find the details on the about the UPP page.

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