THREADNEEDLE (LUX) EMERGING MARKET ESG EQUITIES FUND

Threadneedle (lux) Emerging Market ESG Equities Fund

At a glance

A global emerging markets (EM) equity strategy that targets companies who exhibit strong or improving Environmental, Social and Governance (ESG) qualities as well as sustain and accelerate high-quality and profitable growth.

Fund Profile

Reasons to invest

Key facts

Fund inception date
23 September 2020

Benchmark index
MSCI Emerging Markets Index

1. Strong EM heritage:

Our experienced EM team has a proven track record of consistently generating strong alpha through bottom-up research and stock selection.

2. ESG benefit:

We systematically apply ESG factors to identify investment opportunities, screen for material risks, and optimize the portfolio. The investment process incorporates Columbia Threadneedle’s evidence based, data-driven proprietary Responsible Investment (RI) model, taking advantage of its forward-looking investment signals to support fundamental research.

3. Core innovators:

We believe companies with innovation at their core, creating and embracing new ideas, processes and technology, can gain a competitive advantage, win market share and drive long-term growth.

Investment approach

The market often underestimates the ability of highly innovative businesses to sustain high returns on capital and strong growth over the long run. Many such highly innovative companies also lead their peers in ESG best practices.

We seek to identify and invest in high-quality innovators through a combination of a detailed fundamental analysis and Columbia Threadneedle’s proprietary ESG research.

We utilise a ‘stewards-of-capital’ and competitive advantage framework to identify companies that can sustain and accelerate profitable growth over the long term, with a focus on return on invested capital. We work closely with our RI team to build a high conviction, best ideas portfolio of emerging markets innovative, ESG-friendly companies.

As we take a ‘go anywhere’ approach, stock selection drives sector and country weightings, and we believe our focus on long-term sustainable practices will drive outperformance across a range of market conditions.

Key facts

Launch date	23 September 2020
Benchmark index	MSCI Emerging Markets Index
Fund size (as at 23.09.2020)	$5 million

Fund Objective

The Fund invests at least two-thirds of its assets in shares of companies in emerging markets and/or companies that have significant operations in emerging markets. The companies that the Fund invests in are companies that meet the fund manager’s environmental, social and governance (ESG) criteria.

The Fund may invest up to 30% of its assets in China A Shares via the China-Hong Kong Stock Connect Programme. The Fund may also invest in asset classes and instruments different from those stated above.

The Fund is actively managed in reference to the MSCI Emerging Markets Index. The index is broadly representative of the companies in which the Fund invests, and provides a suitable target benchmark against which Fund performance will be measured and evaluated over time. The fund manager has discretion to select investments with weightings different to the index, and that are not in the index, and the Fund may display significant divergence from the index. Deviations from the index, including limits on the level of risk relative to the index, will be considered as part of the fund manager’s risk monitoring process, to ensure the overall level of risk is broadly consistent with the index. In line with its active management strategy, there may be significant deviation from the index. Income from investments in the Fund will be added to the value of your shares.

You can buy or sell shares in the Fund on any day which is a business day in Luxembourg unless the directors have decided that insufficient markets are open. Such days are published on columbiathreadneedle.com. You can find more detail on the investment objective and policy of the Fund in the section of the prospectus with the heading “Investment Objectives and Policies”.

For more information on investment terms used in this document, please see the Glossary published in the Document Centre on our website: www.columbiathreadneedle.com.

Fund manager

YOUNG KIM

Senior Portfolio Manager

Young is a senior portfolio manager within the International Equity Team at Columbia Threadneedle Investments and is based in Portland.

Previously, Young served as a senior equity analyst at Marathon Asset Management and Galleon Asia Management and worked in various operating and engineering roles in the technology industry.

Young received both a B.S. and M.S. in engineering from Massachusetts Institute of Technology (M.I.T.) and an MBA from Harvard Business School.

Related Insights

Asia Quarterly Bulletin

Key risks

Past performance is not a guide to future returns and the fund may not achieve its investment objective. Your capital is at risk. The value of investments can fall as well as rise and investors might not get back the sum originally invested. The Fund has a concentrated portfolio (holds a limited number of investments and/or has a restricted investment universe) and if one or more of these investments declines or is otherwise affected, it may have a pronounced effect on the fund’s value. Where investments are in assets that are denominated in multiple currencies, or currencies other than your own, changes in exchange rates may affect the value of the investments. The Fund aims to invest in companies with strong or improving environmental, social and governance (ESG) characteristics, as outlined in the fund’s ESG Investment Guidelines. The Guidelines will affect the Fund’s exposure to certain sectors, which may impact the performance of the Fund positively or negatively relative to a benchmark or other funds without such restrictions. The fund invests in markets where economic and regulatory risk can be significant. These factors can affect liquidity, settlement and asset values. Any such event can have a negative effect on the value of your investment. The investment policy of the fund allows it to invest in derivatives for the purposes of reducing risk or minimising the cost of transactions. The fund holds assets which could prove difficult to sell. The fund may have to lower the selling price, sell other investments or forego more appealing investment opportunities. The fund typically carries a risk of high volatility due to its portfolio composition or the portfolio management techniques used. This means that the fund’s value is likely to fall and rise more frequently and this could be more pronounced than with other funds. The Fund may invest through the China-Hong Kong Stock Connect programmes which have significant operational constraints including quota limits and are subject to regulatory change and increased counterparty risk. All the risks currently identified as being applicable to the Fund are set out in the “Risk Factors” section of the Prospectus. Please read the Key Investor Information Document and the Fund Prospectus if considering investing.

Important Information: For use by Professional and/or Qualified Investors only (not to be used with or passed on to retail clients). Past performance is not a guide to future performance. Your capital is at risk. The value of investments and any income is not guaranteed and can go down as well as up and may be affected by exchange rate fluctuations. This means that an investor may not get back the amount invested. Threadneedle (Lux) is an investment company with variable capital (Société d’investissement à capital variable, or “SICAV”) formed under the laws of the Grand Duchy of Luxembourg. The SICAV issues, redeems and exchanges shares of different classes. The management company of the SICAV is Threadneedle Management Luxembourg S.A, which is advised by Threadneedle Asset Management Ltd. and/or selected sub-advisors. Certain sub-funds of the SICAV are registered in Austria, Belgium, Denmark, France, Finland, Germany, Hong Kong, Iceland, Ireland, Italy, Liechtenstein, Luxembourg, Macau, the Netherlands, Norway, Portugal, Singapore, Spain, Sweden, Switzerland, the UAE and the UK; however, this is subject to applicable jurisdictions and some sub-funds and/or share classes may not be available in all jurisdictions. Shares in the Funds may not be offered to the public in any other country and this document must not be issued, circulated or distributed other than in circumstances which do not constitute an offer to the public and are in accordance with applicable local legislation. Shares in the Funds may not be offered, sold or delivered directly or indirectly in the United States or to or for the account or benefit of any “U.S. Person”, as defined in Regulation S under the 1933 Act. Het compartiment is op grond van artikel 1:107 van de Wet op het financieel toezicht opgenomen in het register dat wordt gehouden door de Autoriteit Financiële Markten. / Pursuant to article 1:107 of the Act of Financial Supervision, the subfund is included in the register that is kept by the AFM. This material is for information only and does not constitute an offer or solicitation of an order to buy or sell any securities or other financial instruments, or to provide investment advice or services. Please read the Prospectus before investing. The fund characteristics described above are internal guidelines (rather than limits and controls). They do not form part of the fund’s objective and policy and are subject to change without notice in the future. The analysis included in this document has been produced by Columbia Threadneedle Investments for its own investment management activities, may have been acted upon prior to publication and is made available here incidentally. Any opinions expressed are made as at the date of publication but are subject to change without notice and should not be seen as investment advice. Information obtained from external sources is believed to be reliable but its accuracy or completeness cannot be guaranteed. Subscriptions to a Fund may only be made on the basis of the current Prospectus and the Key Investor Information Document, as well as the latest annual or interim reports and the applicable terms & conditions. Please refer to the ‘Risk Factors’ section of the Prospectus for all risks applicable to investing in any fund and specifically this Fund. Documents other than KIIDs are available in English, French, German, Portuguese, Italian, Spanish and Dutch (no Dutch Prospectus). KIIDs are available in local languages. Documents can be obtained free of charge on request by writing to the management company at 44, rue de la Vallée, L-2661 Luxembourg, Grand Duchy of Luxembourg, from International Financial Data Services (Luxembourg) S.A. at 47, avenue John F. Kennedy, L-1855 Luxembourg, Grand Duchy of Luxembourg, from HYPERLINK "http://www.colubiathreadneedle.com/" www.colubiathreadneedle.com and/or in Sweden from Skandinaviska Enskilda Banken AB (publ), Kungsträdgårdsgatan, SE-10640 Stockholm, Sweden; in the UK from JPMorgan Worldwide Securities Services, 60 Victoria Embankment, London EC4Y 0JP. Threadneedle Management Luxembourg S.A. Registered with the Registre de Commerce et des Societes (Luxembourg), Registered No. B 110242 44, rue de la Vallée, L-2661 Luxembourg, Grand Duchy of Luxembourg. In the UK issued by Threadneedle Asset Management Limited. Registered in England and Wales, Registered No. 573204, Cannon Place, 78 Cannon Street, London EC4N 6AG, United Kingdom. Authorised and regulated in the UK by the Financial Conduct Authority. Columbia Threadneedle Investments is the global brand name of the Columbia and Threadneedle group of companies. In the UK issued by Threadneedle Asset Management Limited. Regis ngdom. Authorised and regulated in the UK by the Financial Conduct Authority.
columbiathreadneedle.com

Important Information

The information in this site is aimed at intermerdiary investors in Luxembourg and it is not intended for direct use by any other type of investor.

Past performance is not a guide to future results. The value of your investments and any income from them can go down as well as up. You may not get back the full amount invested. Please be aware that Threadneedle does not offer investment advice.

Please read this Important Information. If you do not agree to any part of any section please do not accept and enter the website.

ABOUT THIS SITE
DISCLAIMER
YOUR AGREEMENT WITH US
COMPANY INFORMATION

PRIVACY & COOKIES POLICY

I Agree

I Disagree

ABOUT THIS SITE

This website is operated by Threadneedle ("Threadneedle" see below). Please ensure you have read and accept all sections of the important information before using this website. By using this website you are deemed to have read and unconditionally accepted the terms and conditions for use as set out below.

Nothing on this website or the web pages of any affiliate should be construed as an offer to sell or a solicitation of an offer to purchase any products where it would be illegal to do so.

Your privacy is important to Threadneedle. You should read Threadneedle's Privacy Statement and Cookies Policy to better understand how Threadneedle uses your personal information.

Threadneedle reserves the right to amend this Important Information at any time by placing any such amendments on this website. If this information is amended you will be required to read and accept these terms and conditions of use again.

This information is not intended to, nor does it, create any contractual rights whatsoever or any other legal rights, nor does it create any obligations on Threadneedle in respect of any other party or on behalf of any party.

Information on this website is directed at persons within Luxembourg. This website is not intended for use by people who are outside Luxembourg, in particular those in the United States. The information contained herein is not an invitation to subscribe for units or shares in any funds or products described.

Products described on this website are registered only in certain jurisdictions. Please ensure, prior to investing that you are eligible to do so. In particular, the products described in this website have not been registered under the U.S. Securities Act of 1933, and are not offered and may not be sold in the United States or to U.S. citizens and residents or any other person in any jurisdiction or country where offering or selling such products would be contrary to local law or regulation.

Certain information on threadneedle.com is restricted by jurisdiction and must not be accessed from different jurisdictions. Threadneedle will not be liable for any damages or losses suffered by any investors accessing areas of threadneedle.com that are not appropriate for their jurisdiction or investor type.

Information from this website must not be issued in any jurisdiction where prohibited by law and must not be used in any way that would be contrary to local law or regulation. Specifically, the products and services mentioned on this website must not be promoted in any jurisdiction where this would not be permitted nor must any information contained herein be directed at investors who are not permitted to invest in, distribute, market or otherwise offer (or be the recipients of materials or offers to do the same) the products mentioned on this website. Investors are required to previously inform themselves on the legal requirements, terms and conditions for the acquisition, distribution or commercialisation of such products.

No one may link their website to the www.threadneedle.com website without the express written permission of Threadneedle.

All contents of this Website including, but not limited to the text, graphics, links and sounds are the copyright of Threadneedle and may not be copied, downloaded, distributed or published in any way without the prior written consent of Threadneedle.

"threadneedle investments" is registered trade mark and service mark of Threadneedle Asset Management Holdings Limited and no permission or licence is granted to use any such trade mark or service mark without the prior written consent of Threadneedle Asset Management Holdings Limited. All intellectual and other property on this website remain property of the Threadneedle group of companies and no rights of any kind will pass to users of this website.

Any information on this site relating to tax and tax treatment should not be considered advice or a recommendation to any individual. The value to you of tax benefits will depend on your own circumstances, and tax rules may change in the future.

DISCLAIMER

Threadneedle uses all reasonable skill and care in compiling and maintaining the information contained on this website. However no warranty is given, express or implied, as to the accuracy, reliability, timeliness or completeness of the information. No liability is assumed by Threadneedle for any use, or misuse, of the information presented on this website. Threadneedle takes all reasonable steps to ensure the security of the website and your personal information however the nature of the internet is such that we cannot provide an absolute guarantee of security. See the Threadneedle Privacy Policy section for more information.

Email is not guaranteed and is not secure. Threadneedle does not guarantee that any e-mails sent by you over the internet will be received by Threadneedle, nor does Threadneedle warrant the privacy and/or security of e-mails or data contained in any e-mail communications including (but not limited to, email containing confidential information or instructions direct to Threadneedle.

Threadneedle uses every reasonable effort to maintain the availability of this website however we cannot guarantee this. This website may also change from time to time and we cannot guarantee the continuation of the information provided through it.

Threadneedle makes no representation as to the accuracy, completeness, timeliness or suitability of any information contained or linked to on this site that is provided by third parties. We will not review or update such information on an ongoing basis and caution you that any use made of such information is at your own risk. Some of the information contained on this website may also have been prepared or provided by third parties and may not have been verified by us. Threadneedle hereby excludes any liability arising out of any preparation or provision of such information for this website and make no warranty as to the accuracy, suitability or completeness of any such information.

YOUR AGREEMENT WITH US

By using this website you are agreeing that you have read and understood the Important Information. You further hereby agree to indemnify and to keep Threadneedle fully and effectively indemnified against any action, liability, cost, claim, loss, damage, proceeding or expense (including but not limited to any legal fees, costs and expenses whatsoever and howsoever arising on a full indemnity basis) suffered or incurred and all by Threadneedle howsoever arising from or which is directly or indirectly related to any breach or non-observance of any of these terms and conditions by you.

COMPANY INFORMATION

Threadneedle group of companies comprises those companies whose ultimate holding company is Threadneedle Asset Management Holdings SARL.

Those companies within the Threadneedle group that contribute to and are responsible for content on this website include:

Threadneedle Management Luxembourg S.A. Registered with the Registre de Commerce et des Societes (Luxembourg), Registered No. B 110242, 44, rue de la Vallée, L-2661 Luxembourg, Grand Duchy of Luxembourg.