Notification of changes to the underlying funds of BlackRock SF Managed Index Portfolios

21 Jul 2022

Notification of changes to the underlying funds of:

  • L75 BlackRock SF - Managed Index Portfolios Defensive (USD)
  • L72 BlackRock SF - Managed Index Portfolios Defensive (GBP)
  • L76 BlackRock SF - Managed Index Portfolios Moderate (USD)
  • L73 BlackRock SF - Managed Index Portfolios Moderate (GBP)
  • L77 BlackRock SF - Managed Index Portfolios Growth (USD)
  • L74 BlackRock SF - Managed Index Portfolios Growth (GBP)

(together the “Affected Mirror Funds”)

We have been notified by BlackRock Strategic Funds ("BlackRock") of the following upcoming changes to the underlying funds of the above Affected Mirror Funds. These changes will take effect from 18 August 2022 (the “Effective Date”).

Summary of changes

From the Effective Date, the investment strategy of the underlying funds of the Affected Mirror Funds will change to adopt environmental, social and governance ("ESG") principles. The underlying funds of the Affected Mirror Funds will continue to follow the same investment objective, but going forward will do so in a manner that is consistent with the principles of ESG focused investing.

From the Effective Date, the underlying funds of the Affected Mirror Funds will be changed from Article 6 to Article 8 under the EU's Sustainable Finance Disclosure Regulation ("SFDR"). Article 8 funds promote social and/or environmental characteristics, invest in companies that follow good governance, give binding commitments but do not have a sustainable investment objective.

ESG Commitments from the Effective Date

  • More than 90% of the issuers of securities that the underlying funds of the Affected Mirror Funds invest in are ESG rated or have been analysed for ESG purposes.
  • The underlying funds of the Affected Mirror Funds will invest a minimum of 80% of their total assets in underlying funds that pursue ESG strategies or attributes.
  • Where investing in sovereign bond funds, the underlying funds of the Affected Mirror Funds will invest a minimum of 80% of their total assets in underlying sovereign bond funds with an ESG sovereign rating of BB or higher.
  • The underlying funds of the Affected Mirror Funds will seek to reduce carbon emissions relative to the MSCI ACWI Index and Bloomberg Multiverse Index by 30% and have an ongoing reduction in their emissions intensity.

For full details regarding the changes to the investment objective and policy of the underlying funds of the Affected Mirror Funds, please refer to the Appendix in the Sample policyholder letter opposite.

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

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Sample policyholder letter