State Street Climate ESG International Equity Fund

• Climate Aware – favours companies with lower carbon emissions and higher exposures to green revenues, while avoiding companies with large fossil fuel reserves or brown revenues.
• ESG Scoring - seeks increased exposure to companies with strong ESG ratings using State Street’s ESG scoring methodology (R-Factor™).
• Exclusionary Screening - screens out companies with material involvement in controversial business activities including tobacco, controversial (including nuclear) weapons, thermal coal, alcohol, gambling and adult entertainment.
• Diversified Investment - provides investors with a cost efficient way of gaining diversified exposure to international stock markets.

The State Street Climate ESG International Equity Fund (“the Fund”) seeks to achieve capital growth and income in line with the MSCI World ex-Australia Index, subject to delivering climate and ESG objectives.

The MSCI World ex-Australia Index ("the Index") represents large- and mid-cap stocks across 22 developed markets countries. The Index is an industry benchmark used by professional investors for global equity portfolios.

The Fund allows investors to deploy capital across multiple dimensions of ESG and Climate themes via:

• Climate Mitigation - aims to reduce exposure to the flow of heat-trapping greenhouse gases into the atmosphere and increase exposure to the “green” economy.
• Climate Adaptation - increases exposure to companies that are better prepared for the possible physical, economic and regulatory impacts of climate change, including GHG-reduction targets and transition plans.
• Sustainable & Transparent ESG - increases exposure to companies that score well on financially material global sustainability issues as well as market specific corporate governance codes.
• Screening - excludes companies with material business activity involving tobacco, controversial (including nuclear) weapons, thermal coal, gambling, alcohol or adult entertainment; and companies that exhibit severe violations of the United Nations corporate sustainability principles or have extreme ESG controversies.

The Fund uses an optimised portfolio construction framework which aims to achieve the most efficient trade-off between climate targets, ESG improvement, tracking error and diversification, while seeking long-term returns broadly in line with the Index.