Notification of changes to the underlying fund of R34 Schroder Global Climate Change Equity

14 Jul 2022

We have been notified by Schroder Investment Management (Europe) S.A. (“Schroders”) of the following changes to the Schroders ISF Global Climate Change Equity Fund (the “underlying fund”), which is the underlying fund of our Mirror Fund R34 Schroder Global Climate Change Equity (the “Affected Mirror Fund"). The changes will take effect from 16 August 2022 (the “Effective Date”).

Summary of Changes

Schroders has advised that the investment policy of the underlying fund will be changed in the following manner: 

  • to permit investment in China B-Shares and China H-Shares,
  • to increase its exposure to China A-Shares such that it may invest up to 10% (previously up to 5%) of its assets (on a net basis) directly or indirectly (for example via participatory notes) in China A-Shares through Shanghai-Hong Kong Stock Connect and Shenzhen-Hong Kong Stock Connect and shares listed on the Science and Technology Innovation Board (STAR Board) of the Shanghai Stock Exchange and the ChiNext market of the Shenzhen Stock Exchange.

The underlying fund of the Affected Mirror Fund does not currently intend to invest (i) more than 10% of its Net Asset Value in China A-Shares via Stock Connect, the STAR Board and the ChiNext market and (ii) more than 10% of its Net Asset Value directly or indirectly in China A-Shares and China B-Shares.

In recent years China has increased as a proportion of the underlying fund’s comparator benchmark, which is used for performance and sustainability comparison purposes, and increased exposure is required in order to take larger positions.

Schroders has advised that save as disclosed above, all other key features of the underlying fund, including its investment objective and policy, risk and return profile and fees, will remain the same.

Please contact the Investment Marketing team if you have any queries regarding the above.