Item 2 IRB Meeting Review of Investment and Income at 30_09_25
Renfrewshire Council · 19 November 2025
Back to Investment Review Board — 19 November 2025 and its agenda
Text extracted from the council's PDF. Layout and reading order may differ from the original.
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1 OFFICIAL ___________________________________________________________________ To: Investment Review Board On: 19 November 2025 ___________________________________________________________________ Report by: Director of Finance and Resources __________________________________________________________________ Heading: Paisley and Renfrew Common Good Funds six-month report to 30 September 2025 ___________________________________________________________________ 1. Summary 1.1 Hymans Robertson LLP have been engaged by the Council to provide investment advice pertaining to the Paisley and Renfrew Common Good Funds, and to assess the performance of the Funds’ investment managers, LGT Wealth Management. 1.2 A report by Hymans Robertson LLP is attached for Members’ consideration. The report provides an assessment of the performance of the Funds’ investments and income levels during the six-month period ending 30 September 2025. Hymans Robertson LLP will be represented at the meeting by David Watson (Investment Consultant), who will present his report to Members. Mr Watson will also give a presentation covering an update on markets and the current economic climate. 1.3 Gair Brisbane, Head of Charities - Scotland, LGT Wealth Management, will give a short presentation during which there will be an opportunity for Members to question him directly in regard to his presentation and Fund performance.
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2 OFFICIAL ____________________________________________________________ 2. Recommendations 2.1 To consider the attached report and presentation from Hymans Robertson LLP and the presentation by LGT Wealth Management. ___________________________________________________________________ Implications of the Report 1. Financial – fund income generated by the Investment Manager is made available for distribution through grants and other awards agreed by Local Partnerships and the Finance, Resources and Customer Services Policy Board. All funds are managed in line with the requirements of local government regulations, and in line with the Investment Policy Statement. 2. HR & Organisational Development – none arising directly from this report. 3. Community Planning – none arising directly from this report. 4. Legal – none arising directly from this report. 5. Property/Assets – none arising directly from this report. 6. Information Technology – none arising directly from this report. 7. Equality & Human Rights – none arising directly from this report. The Investment Policy Statement that governs the Environmental, Social and Governance impacts of the Common Good Fund investment is set and agreed by the Investment review Board annually.. 8. Health & Safety – none arising directly from this report. 9. Procurement – none arising directly from this report. 10. Risk – there is an inherent risk that investment returns will not meet their target due to a number of external factors. It is the job of the investment manager to mitigate against this risk by their investment approach, and decisions taken throughout the year. 11. Privacy Impact – none arising directly from this report. 12. COSLA Policy Position – none arising directly from this report. 13. Climate Risk – none arising directly from this report.
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3 OFFICIAL ___________________________________________________________________ List of Background Papers None ___________________________________________________________________ Author: Geoff Borland, Finance Manager 0141 487 0875 geoffrey.borland@renfrewshire.gov.uk
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Hymans Robertson LLP is a limited liability partnership registered in England and Wales with registered number OC310282. A list of members of Hymans Robertson LLP is available for inspection at One London Wall, London EC2Y 5EA, the firm’s registered office. Authorised and regulated by the Financial Conduct Authority and licensed by the Institute and Faculty of Actuaries for a range of investment business activities. Hymans Robertson is a registered trademark of Hymans Robertson LLP. Renfrewshire Council Common Good Funds Review of Investment Managers' Performance for the 6 months to 30 September 2025
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2 Historic returns for world markets [1] 2 Annual CPI inflation (% year on year) Sterling trend chart (% change) US GDP expanded at an annualised 3.8% in Q2 2025, from 0.5% in Q1. This reflected normalisation from Q1’s pre-tariff import surge, but AI investment and consumer spending also contributed, despite unemployment rising to 4.3% in August. Meanwhile, Q2 growth slowed in the UK and Europe, as the impact from Q1’s frontloading subsided. US headline CPI inflation rose to 3.0% year on year (from 2.4% in March), as tariffs impacted prices. Eurozone CPI remained steady at 2.2%, despite a spring dip. UK CPI was 3.8% in September, due to persistent price pressures. Core inflation reached 3.0% in the US, 3.9% in the UK and 2.4% in the eurozone after April’s peak. The European Central Bank cut its deposit rate by 0.5% pa, to 2.0% pa. Despite above-target inflation, the Bank of England (BoE) reduced its base rate by 0.5%, to 4.0% pa. The Federal Reserve (Fed) reduced rates by 0.25%, to 4.00– 4.25% pa. Markets are pricing in over 1.0% pa of Fed cuts by end-2026. Ten-year UK gilt yields were little changed, at 4.7% pa. However, longer-dated sovereign bond yields rose as anticipated heavy issuance to fund government spending and an AI-investment boom put upwards pressure on real yields. UK 20-year yields rose 0.2% pa, to 5.4% pa, while US and German equivalents both rose 0.1% pa, to 4.7% pa and 3.2% pa, respectively. Japanese 20-year yields underperformed, rising 0.4% pa, to 2.6% pa. Sterling investment-grade credit spreads fell 0.3% pa, to 0.8% pa, while their US and European counterparts fell 0.2% pa, to 0.8% pa. Source: DataStream. [1] Returns shown in Sterling terms. Indices shown (from left to right) are: FTSE All World, FTSE All Share, FTSE AW Developed Europe ex-UK, FTSE North America, FTSE Japan, FTSE AW Developed Asia Pacific ex-Japan, FTSE Emerging, FTSE Fixed Gilts All Stocks, FTSE Index-Linked Gilts All Maturities, iBoxx Corporates All Investment Grade All Maturities, ICE BofA Global Government Index, MSCI UK Monthly Property; UKSONIA Market Background – 6 Months to 30 September 2025
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3 3 US and European speculative-grade spreads fell 0.7% and 0.5%, respectively, to 2.8% pa, reversing their April peaks of 4.6% pa and 4.2% pa. The FTSE All World Total Return Index gained 18.3%. Sentiment improved after April’s tariff agreements, alongside strong corporate earnings and AI enthusiasm. Asia Pacific ex- Japan outperformed on US-dollar weakness and the AI boom, which benefited semiconductor manufacturers. Similar themes and Chinese stimulus helped emerging markets to outperform. North America outperformed on its large exposure to tech – global tech rose 39%, the only outperforming sector. Japan also outperformed, as yen weakness benefited exporters. Europe ex UK was the worst-performing region: exposure to underperforming healthcare and low exposure to tech detracted, with euro strength affecting European exporters. UK stocks also underperformed on low tech exposure and above-average exposure to poor performers consumer staples, energy and healthcare. The trade-weighted US dollar declined 4.8% as investors hedged dollar exposure. Sterling and yen measures fell 0.4% and 2.4%, respectively, while the euro rose 4.7%. Gold surged 22.7%, supported by a weaker dollar, lower US yields and central bank reserve diversification. Oil prices fell 10.3% as OPEC+ indicated higher supply. The MSCI UK Monthly Property Total Return Index rose 3.5%, as a 0.7% rise in capital values supplemented income; industrial and retail capital values rose by 1.5% and 0.7%, while office values fell 0.9%. Source: DataStream, Barings, ICE [1] FTSE All World Indices. Commentary compares regional equity returns in local currency. [2] Returns shown in Sterling terms and relative to FTSE All World. Market Background – 6 Months to 30 September 2025 Investment and speculative grade credit spreads (% p.a.)Gilt yields chart (% p.a.) Global equity sector returns (%) [2] Regional equity returns [1]
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4 Valuation and Performance - Paisley Common Good Fund Valuation Income Performance Cumulative Performance 31/03/2025 £158,871 30/06/2025 £155,255 30/09/2025 £154,810 Target £129,000 (LGT) Estimated Annual Income 31/03/2025 30/09/2025 Actual % Benchmark % Difference UK Equity 1.16 1.16 21.4% 60.0% Overseas Equity 2.94 3.22 59.4% 20.0% Total Equity 4.10 4.38 80.7% 80.0% UK Government Bonds 0.39 0.39 7.2% 18.0% UK Non Government Bonds 0.36 0.00 0.0% International Bonds 0.12 0.48 8.8% Total Bonds 0.87 0.87 15.9% 18.0% Cash/Cash Products 0.05 0.18 3.3% 2.0% Total 5.02 5.43 Value (£m) Proportions -38.6% 39.4% 0.7% -10.8% 0.0% 8.8% -2.1% 1.3%
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5 Valuation and Performance - Renfrew Common Good Fund Valuation Income Performance Cumulative Performance 31/03/2025 30/09/2025 Actual % Benchmark % Difference UK Equity 4.41 4.42 21.3% 60.0% Overseas Equity 11.24 12.31 59.3% 20.0% Total Equity 15.64 16.73 80.6% 80.0% UK Government Bonds 1.50 1.49 7.2% 18.0% UK Non Government Bonds 1.37 0.00 0.0% International Bonds 0.43 1.82 8.8% Total Bonds 3.30 3.31 15.9% 18.0% Cash/Cash Products 0.25 0.72 3.5% 2.0% Total 19.19 20.76 Value (£m) Proportions -38.7% 39.3% 0.6% -10.8% 0.0% 8.8% -2.1% 1.5% 31/03/2025 £606,387 30/06/2025 £593,402 30/09/2025 £592,244 Target £492,000 (LGT) Estimated Annual Income
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6 In the six months leading up to September 2025, the Paisley and Renfrew funds posted returns of 10.0%, though slightly underperformed their benchmark by 0.3%. The relative underperformance was largely driven by the equities portfolio — both UK and overseas equities lagged their respective benchmarks over the period. Over the past 12 months, the Paisley and Renfrew funds delivered returns of 7.5%, underperforming their benchmarks by a more material 5.0%. Market conditions were volatile at the start of the period. In April, President Trump’s tariff proposals triggered a sharp sell-off in global equities, before the announcement of a 90-day suspension a week later prompted a strong rebound. By the end of Q2, most markets had regained their earlier losses, and bond yields also stabilised following the turbulence surrounding the “Liberation Day” announcement. Despite bouts of volatility, performance across all asset classes in the portfolio was positive, with the funds gaining 4.2% over the quarter. This recovery gathered pace in the third quarter as trade tensions eased and global economic data remained resilient. Strong corporate earnings, optimism around potential rate cuts, and continued enthusiasm for AI and technology further supported equity markets. Bond returns were more subdued, constrained by inflation and fiscal concerns, particularly in Europe and the UK. Nonetheless, solid equity gains more than offset weaker fixed-income performance, and both Funds ended Q3 up 5.6%, rounding off a strong six months to September 2025. As at September 2025, the equity allocation stood at 80.7% for Paisley and 80.6% for Renfrew, both slightly overweight relative to the 80% benchmark. The portfolios remain significantly underweight in UK equities and overweight in overseas equities. This underweight to UK equities has been beneficial over the longer term, given the relative underperformance of the UK market compared to other regions. Bond allocations were 15.9% for both funds, below the 18% benchmark. Notably, the portfolios no longer hold UK non-government bonds, with increased exposure to international corporate bonds instead. The remaining c.3% of assets were held in cash or cash products, providing liquidity for potential market opportunities. Looking over the longer term, the Paisley and Renfrew funds have delivered positive three-year annualised returns of 9.4% pa, though this trails the benchmark by 2.6% pa. Over five years, performance is 6.1% pa, lagging by 3.1% pa. Since the inception of the mandate, however, returns stand at 6.8% pa, broadly in line with the benchmark. Commentary
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Hymans Robertson LLP is a limited liability partnership registered in England and Wales with registered number OC310282. A list of members of Hymans Robertson LLP is available for inspection at One London Wall, London EC2Y 5EA, the firm’s registered office. Authorised and regulated by the Financial Conduct Authority and licensed by the Institute and Faculty of Actuaries for a range of investment business activities. Hymans Robertson is a registered trademark of Hymans Robertson LLP. Appendices
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8 Asset Allocation Paisley Common Good Fund Renfrew Common Good Fund 31/03/2025 Benchmark Fund Difference UK Equity 60.0% 23.2% Overseas Equity 20.0% 58.5% Total Equity 80.0% 81.6% UK Government Bonds 18.0% 7.8% UK Non Government Bonds 7.1% International Bonds 2.3% Total Bonds 18.0% 17.3% Cash/Cash Products 2.0% 1.1% Total 100.0% 100.0% -36.8% 38.5% 1.6% -10.2% 7.1% 2.3% -0.7% -0.9% 31/03/2025 Benchmark Fund Difference UK Equity 60.0% 23.0% Overseas Equity 20.0% 58.5% Total Equity 80.0% 81.5% UK Government Bonds 18.0% 7.8% UK Non Government Bonds 7.1% International Bonds 2.2% Total Bonds 18.0% 17.2% Cash/Cash Products 2.0% 1.3% Total 100.0% 100.0% -37.0% 38.5% 1.5% -10.2% 7.1% 2.2% -0.8% -0.7% 30/09/2025 Benchmark Fund Difference UK Equity 60.0% 21.4% Overseas Equity 20.0% 59.4% Total Equity 80.0% 80.7% UK Government Bonds 18.0% 7.2% UK Non Government Bonds 0.0% International Bonds 8.8% Total Bonds 18.0% 15.9% Cash/Cash Products 2.0% 3.3% Total 100.0% 100.0% -38.6% 39.4% 0.7% -10.8% 0.0% 8.8% -2.1% 1.3% 30/09/2025 Benchmark Fund Difference UK Equity 60.0% 21.3% Overseas Equity 20.0% 59.3% Total Equity 80.0% 80.6% UK Government Bonds 18.0% 7.2% UK Non Government Bonds 0.0% International Bonds 8.8% Total Bonds 18.0% 15.9% Cash/Cash Products 2.0% 3.5% Total 100.0% 100.0% -38.7% 39.3% 0.6% -10.8% 0.0% 8.8% -2.1% 1.5%
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9 Appendix 4 – Explanation of Performance Calculations Hymans Robertson are among the investment professionals who calculate relative performance geometrically as follows: ( (1 + Fund Performance) / (1 + Benchmark Performance) ) - 1 Some industry practitioners use the simpler arithmetic method as follows: Fund Performance - Benchmark Performance Arithmetic Method Fund Performance Benchmark Performance Relative Performance Quarter 1 7.0% 2.0% 5.00% Quarter 2 28.0% 33.0% -5.00% Linked 6 months -0.25% 6 month performance 37.0% 35.7% 1.30% • If fund performance is measured quarterly, there is a relative underperformance of 0.25% over the six month period. • If fund performance is measured half yearly, there is a relative outperformance of 1.3% over the six month period. • The arithmetic method makes it difficult to compare long term relative performance with shorter term relative performance. Geometric Method Fund Performance Benchmark Performance Relative Performance Quarter 1 7.0% 2.0% 4.90% Quarter 2 28.0% 33.0% -3.76% Linked 6 months 0.96% 6 month performance 37.0% 35.7% 0.96% • If fund performance is measured quarterly, there is a relative outperformance of 0.96% over the six month period. • If fund performance is measured half yearly, an identical result is produced. • The geometric method therefore makes it possible to directly compare long term relative performance with shorter term relative performance. The following example illustrates the shortcomings of the arithmetic method in comparing short term relative performance with the longer term picture :
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Risk Warning Please note the value of investments, and income from them, may fall as well as rise. This includes equities, government or corporate bonds, and property, whether held directly or in a pooled or collective investment vehicle. Further, investment in developing or emerging markets may be more volatile and less marketable than in mature markets. Exchange rates may also affect the value of an investment. As a result, an investor may not get back the amount originally invested. Past performance is not necessarily a guide to future performance. In some cases, we have commercial business arrangements/agreements with clients within the financial sector where we provide services. These services are entirely separate from any advice that we may provide in recommending products to our advisory clients. Our recommendations are provided as a result of clients’ needs and based upon our independent research. Where there is a perceived or potential conflict, alternative recommendations can be made available. Hymans Robertson LLP has relied upon third party sources and all copyright and other rights are reserved by such third party sources as follows: DataStream data: © DataStream; Fund Manager data: Fund Manager; Morgan Stanley Capital International data: © and database right Morgan Stanley Capital International and its licensors 2023. All rights reserved. MSCI has no liability to any person for any losses, damages, costs or expenses suffered as a result of any use or reliance on any of the information which may be attributed to it; Hymans Robertson data: © Hymans Robertson. Whilst every effort has been made to ensure the accuracy of such estimates or data - including third party data - we cannot accept responsibility for any loss arising from their use. © Hymans Robertson LLP 2025.
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© LIECHTENSTEIN. The Princely Collections, Vaduz‒Vienna Renfrewshire Council IRB Presented by GairBrisbane| Partner, Head ofCharities (Scotland) Wednesday19th November2025
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Your Investment Manager Gair leads the Scottish charity and endowments offering from LGT, managing portfolios for charities, trusts and public institutions. He joined LGT following the acquisition of abrdn's discretionary investment management business in 2023, bringing over 20 years’ experience in the charity sector as a volunteer, Executive Director and Investment Manager. Gair moved into investment management in 2011 to specialise in charity investments and prior to that, spent six years in Military Intelligence, commissioned in the Royal Air Force. Gair is a former Trustee and Finance Committee member of the Officers’ Association Scotland and the John Muir Trust. He is a Fellow of the Chartered Institute for Securities and Investment and holds the CFA’s Certificates in ESGInvesting and Climate Finance. Gair Brisbane Partner, Head of Charities (Scotland) +44 (0) 131 385 1326 gair.brisbane@lgt.com 2
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© LGT Weaker dollar has been a headwind for Euro and Sterling investors The US dollar has been weak year-to-date, weighed down by signs of slowing US growth, political uncertainty and fiscal concerns. For euro and sterling investors, dollar weakness has eroded overseas returns, with strong global equity performance in dollar terms not being reflected. The US dollar typically strengthens during periods of market stress, acting as a "safe haven" asset. Investor sentiment toward the dollar remains subdued, leaving room for a potential rebound. Source: Bloomberg 0.6% -2.9% 10.0% -20% -10% 0% 10% Dec Jan Feb Mar Apr May Jun Performance of global equities in various currencies Dollar weakness has created a large dispersion in retuns for global investors GBP EUR USD
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© LGT No sign of tariff-related inflation so far… US tariff measures are beginning to appear in tax receipt data, indicating that import duties are being collected more widely across targeted goods. However, these higher costs have not yet flowed through to consumer price inflation (CPI). This is partly due to the lag with which it will feed through. With the US economy slowing down, the impact should be partly mitigated as retailers absorb some of the cost in their margins, and price weakness in other areas of the economy. Source: LGT / Bloomberg - 5,000 10,000 15,000 20,000 25,000 2005 2010 2015 2020 2025 US Treasury Deposits Customs & Certain Excise Taxes - Millions $ Tariff tax take is up… 2.0 3.0 4.0 5.0 6.0 7.0 8.0 9.0 Sep 21 Jan 22 May 22 Sep 22 Jan 23 May 23 Sep 23 Jan 24 May 24 Sep 24 Jan 25 May 25 US CPI, % year on year ... but its not feeding into prices
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© LGT Source: Bloomberg 5 … but the Federal Reserve remains cautious about cutting rates Market Implied Ultimately, we expect the Fed to look through short- term tariff effects, and with growth softening, we expect a few rate cuts by year-end. This tension is paralysing policy action, with the Fed reluctant to ease too quickly for fear of stoking inflation, despite growing evidence of a slowdown. Tariffs are complicating the Federal Reserve’s response, as they introduce inflationary pressures just as economic growth is losing momentum. 2 3 4 Apr 25 May 25 Jun 25 Jul 25 Number of expected US interest rate cuts in 2025, market implied The number of expected cuts has declined since Trump starting talking about tariffs
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© LGT Investment guidelines Renfrewshire Council IRB The value of investments as well as the income derived from them can go down as well as up and investors may get back less than the original amount invested. Please note that LGT Wealth Management takes responsibility for the ongoing suitability of your portfolio. Please make us aware if your circumstances have changed. Investmentobjective Renfrew & Paisley Common Good Funds are managed with the objective of achieving a balance between capital growth and income through investing in a combination of UK and overseas equities, fixed interest securities andcash. IncomeRequirement Renfrew Common Good Fund seeks to generate an annual income of £492,000 and Paisley Common Good Fund seeks to generate an annual income of £129,000; income is paid to the Council bank account on a quarterly basis. InvestmentRestriction The investment restrictions in addition to those stated in the standard Terms & Conditions of your Investment Management Agreement are detailed in the Appendix. Benchmark/ComparatorIndex FTSE AllStocks Gilt Index (£) 18% FTSE AllShare Index (£) 40% FTSE World ex-UK Index (£) 40% SONIA (£) 2% RiskProfile Based on the information supplied by the Trustees a medium-high risk approach is being followed. This approach is appropriate for Charities who are prepared to accept a moderate to high level of risk over their time horizon. The Trustees understand that this may increase the risk of greater fluctuations in the value of yourinvestments. TimeHorizon 10 years plus Capacityfor CapitalLoss 20-30% Capacityfor IncomeLoss 10-15% 6 Asset Class Renfrew Common Good Fund Portfolio* (%) Benchmark weightings (%) Indices (£) Government Bonds Corporate Bonds 7.6 8.9 18 FTSE All Stocks Gilt Index UK Equities (including Alternatives) Overseas Equities 23.0 57.7 40 40 FTSE All Share Index FTSE World ex- UK Index Cash 2.8 2 SONIA Total 100 100 Estimated Annual Income Yield^ 2.9 2.9 Portfolio Value asof 31st October2025 (£) RenfrewCommon Good Fund 21,723,467 Estimated annualincome 605,471 Paisley Common Good Fund 5,682,165 Estimated annualincome 158,270 *Source: LGT, Figaro, average weighting for 12-months to 30th September 2025 ^Estimated annual income yield as of 30th September 2025
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© LGT Portfolio Values and Performance Portfolio Values 30th September 2025 (£) 30th June 2025 (£) 31st March 2025 (£) 31st December 2024 (£) Renfrew Common Good Fund 20,759,562 19,799,155 19,193,746 19,861,879 Estimated Annual Income 592,245 595,417 605,965 605,556 Paisley Common Good Fund 5,429,606 5,176,880 5,019,307 5,193,430 Estimated Annual Income 154,809 155,755 158,782 158,635 7 Portfolio Performance as of 30th September 2025 1 year (%) 3 years Cumulative (%) 5 years Cumulative (%) 7 years Cumulative (%) 10 years Cumulative (%) Renfrew Common Good Fund 7.4 31.1 34.3 50.5 113.3 Paisley Common Good Fund 7.4 31.0 34.1 50.2 112.3 UK CPI* + 3.5% per annum 7.6 23.8 46.9 58.2 80.5 ARC** Charities Steady Growth index (£) 7.6 27.8 35.3 40.1 83.9 FTSE All Share Index (£) 16.2 50.0 84.1 57.7 118.3 FTSE World ex-UK Index (£) 17.8 59.6 91.5 120.8 287.7 FTSE Government All Stocks Index (£) -1.3 3.8 -25.8 -13.0 -4.9 SONIA (£) 4.4 14.0 14.9 16.1 17.4 Source: LGT performance to 30th September 2025, unless otherwise stated. ^Withdrawals for the period from 01/01/2024 to 10/10/2025: £1,002,655.87 from Renfrew Common Good Fund, £262,472.50 from Paisley Good Common Good Fund. *The UK CPI performance value used for the most recent month may be an estimate, therefore the figures quoted may be subject to adjustment in the future. **For information on ARC see appendix disclaimer page. All performance returns are Total Returns unless otherwise specified. Performance figures for the Fund are calculated net of the management fee. Investors should be aware that past performance is not a reliable indicator to future performance Total Withdrawals since 1st January 2024^ = £1,265,128.37Total Contributions since 1st January 2024 = £0
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8 Top 10 Equities (%) As of 30th September 2025 Top Contributors (%) 12 months AA Biggest Detractors 12 Months MICROSOFT 4.47 CRH 3.82 ASML 3.66 TAIWAN SEMICONDUCTOR MANUFACTURING 3.62 SCHNEIDER ELECTRIC 3.20 ASTRAZENECA 3.16 ALPHABET 3.08 ZURICH INSURANCE GROUP 2.62 NATIONAL GRID 2.60 RELX 2.58 TAIWAN SEMICONDUCTOR MANUFACTURING 1.61 ALPHABET 1.03 CRH 0.99 MICROSOFT 0.81 DBS GROUP 0.64 High Level Overview TETRA TECH -0.49 ACCENTURE -0.46 ELI LILLY -0.40 OWENS CORNING -0.25 ORSTED -0.25 Key Activity Since 1st January 2024 Purchase JAPAN EXCHANGE GROUP Purchase S&P GLOBAL Purchase VINCI Purchase HSBC Purchase NVIDIA Purchase OWENS CORNING Purchase HALMA Sale NESTLE Sale AIRBNB Sale APAX GLOBAL ALPHA Sale ABBVIE Sale ORSTED Renfrew Common Good Fund – 12-months to 30th September 2025 Portfolio activity Source: LGT, Figaro Stock contribution is measured gross of management fees. Investors should be aware that past performance is not a reliable indicator to future performance.
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© LGT Moving to an LGT Investment Objective Which of the following would you describe as most important to you? Capital Preservation Income Capital Growth Income & Capital Growth I want my portfolio to maintain its current nominal value My primary need is for this portfolio to provide an income I wish to grow the value of my portfolio, but I also need it to provide some income I want to grow the value of my portfolio and have no need for it to provide an income 9
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© LGT Understanding your risk appetite and willingness to take risk In seeking investment returns above those available from high quality bank deposits it is necessary to take some form of risk. These questions are designed to help us to understand your ability to withstand capital loss and your appetite for the various risks involved in investing. I’m comfortable that I can afford large fluctuations in my capital and I’m willing to absorb these if there is the possibility that my capital may grow in the long term I do not want to take any risk of my capital falling in value I don’t mind taking some risk with my capital, but I would be uncomfortable with large fluctuations in its value It is important that we understand your risk appetite or willingness to take risk. In relation to this portfolio, how do you feel about investing in volatile assets (e.g. equities) that might expose your portfolio to fluctuations in value and losses? 10
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© LGT Medium High Risk profiles at LGT and descriptors The primary objective of the portfolio is to achieve above average capital growth. The portfolio will be invested in a diversified range of asset classes, with a medium to high allocation to equities (expected to be up to 90%) and other higher risk assets. We would suggest a minimum investment period of five years for this type of risk profile. The primary objective of the portfolio is to target high levels of capital growth. You have a high tolerance for risk, and you are comfortable with the significant fluctuations in the value of your portfolio and potential loss of capital that may result from this investment strategy. The portfolio may be invested in a diversified range of asset classes but is likely to have a substantial bias towards equities (up to 100%) and other higher risk assets. We would suggest a minimum investment period of five years for this type of risk profile. High Very High Equity Fixed Income Cash Alternatives 95% 0% 5% 0% The primary objective of the portfolio is to target very high returns and/or allow concentrated exposure to a single asset class or individual assets. You are comfortable that the selection of such assets or asset classes may vary from time to time. You have a very high tolerance for risk and understand the trade-off between risk and return. You acknowledge that this investment strategy may result in large fluctuations in the value of your portfolio and potentially expose your portfolio to significant loss of capital as you pursue high returns. We would suggest a minimum investment period of seven years for this type of risk profile. Equity Fixed Income Cash Alternatives 100% 0% 0% 0% Equity Fixed Income Cash Alternatives 75% 20% 5% 0% The pie charts are a neutral asset allocation typical for the type of portfolio based on LGT WM’s internal guidelines. The bar charts are intended to illustrate the potential gains and losses associated with the various risk profiles. This is not intended to be a prediction of any future performance of your portfolio. Which of the following statements best summarises your risk and return objectives? Please review the charts when considering your answer. 11
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© LGT Understanding your capacity for loss We understand that your capacity for loss and the impact that losses might have on your lifestyle and standard of living may differ from your willingness to take risk. With this in mind, and in relation to this portfolio, how would you describe your ability to absorb capital losses and fluctuations in the value of your portfolio? At some point in the future, you may need the money in this portfolio either for income in retirement or for other reasons (such as to pay school fees or repay a mortgage). With this in mind, how would you describe your ability to absorb losses or fluctuations in the value of your portfolio based on your anticipated future needs? I am unable to accept any losses to my capital as this will have a significant detrimental effect on my standard of living I can accept a small amount of loss. In extreme circumstances, a drop of 20% or less in the value of my portfolio would not have a material impact on my overall financial position I can accept some loss. Falls of up to 35% in the value of my portfolio would not have a significant impact on my overall financial position I am financially able to accept the possibility of large losses (above 35%) in my portfolio without it having a significant impact on my overall financial position I am entirely reliant on the funds in this portfolio to fund my standard of living/pay off future liabilities I have other sources of wealth or income, but this portfolio will be needed to support my standard of living I have significant assets/income from other sources and the money in this portfolio is not earmarked for any particular needs © LGT 12
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© LGT Appendices 13
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Authorised Signatories Renfrew & Paisley Common Good Funds Current Authorised Signatories Geoffrey Borland Christine McCourt Lisa Dickie Signing Requirements and Restrictions In accordance with the terms and conditions of the Investment Management Agreement, LGT WM will act on instructions and requests it reasonably believes to have been given by the following signatory(s) on your behalf. LGT WM will not be liable for loss, claims damages or expenses that might arise as a result of LGT WM acting in accordance with the authorised person’s instructions. Instructions are subject to the restrictions orlimitations imposedby you(the Client) as set out below: Onesignatoryforadministrativechanges,twoforcashwithdrawals 14 Please advise us if any updates or amendments are required. We can send out the Authorised Signatory Form to be completed via Docusign or email. For completion via Docusign, we will require the full names and email address of any new signatories to be added, as well as certified ID andaddressdocuments. Information Only Hymans Robertson
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© LGT Investment Guidelines - Restrictions 15 Renfrew & Paisley Common Good Funds The portfolio is managed according to your ethical policy and is implemented in conjunction with MSCI as required. (MSCI is a leading provider of ESG [environmental, social and corporate governance] services and research). This is also applied along with internal resources: please note that MSCI ethical screens may change. These restrictions relate to direct investment (see belowforthedefinitionofthis)*. All ethicalrestrictions are implementedona bestendeavours basis. Ifan existingholding is foundto be unacceptable underthe restrictions detailed, now orin the future,we will review the holdingandwhere deemedappropriatecontacttheTrustees. We define direct investment as investing in an equity or bond directly rather than via a pooled fund. We define indirect investment as applying to any holdings (equities or bonds) via a pooledfund. Thefollowingrestrictionsare in additiontothosein thestandardTermsand ConditionsofyourInvestmentManagementAgreement: Tobacco No directinvestmentin tobaccoproduction(i.e.excludethe tobaccosector)(TOB) No directinvestmentin companiesthatderivemorethan10% ofturnoverfromtobaccoproduction(MSCI- E05) Gambling No directinvestmentin acompanyif thereismorethan5% turnoverfromgambling-relatedbusinessactivities(MSCI– E80) Military No directinvestmentin armaments/ defence (i.e.excludetheaerospace& defencesector)(ARM) No directinvestmentin companiesthathave any industrytietothemanufactureoflandminesexceptforsafety,whichmaybe a positiveindicator(MSCI- E17) No directinvestmentin companiesthatmanufactureclustermunitionswholeweaponssystems,components,ordeliveryplatforms(MSCI- E38) No directinvestmentin acompanywithmorethan10% turnoverinweapons& components(MSCI- E76)] FossilFuels No oil/gasstocks- excludeOil& Gas Sectorandthermalcoalproducers(Y23) No directinvestmentsina companyif therehasbeenprovenreservesofshalegasand/oroilownedby the company(MSCI– E73) FixedInterestrestriction FixedIntereststocksa targetassetallocationof15%,variablebetween10% and 20% at thediscretionofthe InvestmentManager.
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Renfrew Common Good Fund Source: LGT, average weighting for 12-months to 30th September 2025 73.6% 16.5% 7.1% 2.8% Equities Bonds Alternative Cash 16 Asset allocation Equities 73.6% Technology 18.8 Telecommunications 2.3 Healthcare 9.3 Financials 8.0 Real Estate 1.7 Consumer Discretionary 5.2 Consumer Staples 4.1 Industrials 14.6 Basic Materials 2.6 Energy 0.0 Utilities 7.0 Bonds 16.5% Corporate 8.9 Government 7.6 Alternatives 7.1% Renewables 2.9 Infrastructure 3.2 Private Equity 1.0 Cash & Liquidity 2.8% Cash 2.1 Liquidity Fund 0.7
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© LGT Top 10 holdings (%) Top 10 holdings and equities Name Value % 1. MICROSOFT 4.47 2. CAPITAL GROUP GLOBAL CORPORATE BOND FUND 3.97 3. CRH 3.82 4. ASML 3.66 5. TAIWAN SEMICONDUCTOR MANUFACTURING 3.62 6. SCHNEIDER ELECTRIC 3.20 7. ASTRAZENECA 3.16 8. ALPHABET 3.08 9. ZURICH INSURANCE GROUP 2.62 10. NATIONAL GRID 2.60 Top 10 equity holdings (%) 17 Renfrew Common Good Fund Name Value % 1. MICROSOFT 4.47 2. CRH 3.82 3. ASML 3.66 4. TAIWAN SEMICONDUCTOR MANUFACTURING 3.62 5. SCHNEIDER ELECTRIC 3.20 6. ASTRAZENECA 3.16 7. ALPHABET 3.08 8. ZURICH INSURANCE GROUP 2.62 9. NATIONAL GRID 2.60 10. RELX 2.58 Source: LGT, Figaro, 30th September 2025
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© LGT Top 10 performers Stock Contributions Name Average Weight % Total Return % Contribution % 1. TAIWAN SEMICONDUCTOR MANUFACTURING 3.72 62.04 1.61 2. ALPHABET 2.47 46.31 1.03 3. CRH 3.34 167.34 0.99 4. MICROSOFT 4.10 20.55 0.81 5. DBS GROUP 1.86 41.02 0.64 6. ASML 2.62 17.54 0.61 7. AMAZON 3.40 17.31 0.51 8. ZURICH INSURANCE GROUP 2.61 21.23 0.50 9. NVIDIA 0.64 50.01 0.49 10. KONINKLIJKE KPN 2.28 21.07 0.45 Bottom 10 performers 18 Renfrew Common Good Fund – 12-months to 30th September 2025 Source: LGT, Figaro, 12-months to 30th September 2025. Stock contribution is measured gross of management fees. Investors should be aware that past performance is not a reliable indicator to future performance. Name Average Weight % Total Return % Contribution % 1. TETRA TECH 1.35 -29.15 -0.49 2. ACCENTURE 1.43 -29.57 -0.46 3. ELI LILLY 2.67 -13.78 -0.40 4. OWENS CORNING 0.68 -27.63 -0.25 5. ORSTED 0.18 -27.04 -0.25 6. NEXTERA ENERGY 2.35 -8.80 -0.23 7. HALEON 1.20 -13.90 -0.17 8. THE RENEWABLES INFRASTRUCTURE GROUP 0.72 -18.60 -0.17 9. CONSTELLATION SOFTWARE 1.03 -16.68 -0.17 10. PROCTER & GAMBLE 1.60 -9.82 -0.16
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© LGT Top 10 holdings (%) Top 10 holdings and equities Name Value % 1. MICROSOFT 4.37 2. CAPITAL GROUP GLOBAL CORPORATE BOND FUND 3.91 3. CRH 3.86 4. TAIWAN SEMICONDUCTOR MANUFACTURING 3.63 5. ASTRAZENECA 3.59 6. ASML 3.54 7. SCHNEIDER ELECTRIC 3.26 8. ALPHABET 2.98 9. NATIONAL GRID 2.68 10. ZURICH INSURANCE GROUP 2.64 Top 10 equity holdings (%) 19 Paisley Common Good Fund Name Value % 1. MICROSOFT 4.37 2. CRH 3.86 3. TAIWAN SEMICONDUCTOR MANUFACTURING 3.63 4. ASTRAZENECA 3.59 5. ASML 3.54 6. SCHNEIDER ELECTRIC 3.26 7. ALPHABET 2.98 8. NATIONAL GRID 2.68 9. ZURICH INSURANCE GROUP 2.64 10. RIO TINTO 2.60 Source: LGT, Figaro, 30th September 2025
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© LGT Top 10 performers Stock Contributions Name Average Weight % Total Return % Contribution % 1. TAIWAN SEMICONDUCTOR MANUFACTURING 3.71 62.03 1.60 2. CRH 3.50 170.37 1.04 3. ALPHABET 2.47 46.31 1.03 4. MICROSOFT 4.08 20.55 0.80 5. DBS GROUP 1.86 41.02 0.64 6. ASML 2.61 17.53 0.61 7. AMAZON 3.32 17.30 0.50 8. ZURICH INSURANCE GROUP 2.61 21.23 0.50 9. NVIDIA 0.63 50.01 0.49 10. KONINKLIJKE KPN 2.33 21.07 0.46 Bottom 10 performers 20 Paisley Common Good Fund – 12-months to 30th September 2025 Source: LGT, Figaro, 12-months to 30th September 2025. Stock contribution is measured gross of management fees. Investors should be aware that past performance is not a reliable indicator to future performance. Name Average Weight % Total Return % Contribution % 1. TETRA TECH 1.35 -29.15 -0.49 2. ACCENTURE 1.43 -29.57 -0.46 3. ELI LILLY 2.66 -13.78 -0.40 4. OWENS CORNING 0.68 -27.63 -0.25 5. ORSTED 0.18 -27.04 -0.25 6. NEXTERA ENERGY 2.35 -8.80 -0.23 7. HALEON 1.38 -13.90 -0.20 8. THE RENEWABLES INFRASTRUCTURE GROUP 0.71 -18.60 -0.17 9. CONSTELLATION SOFTWARE 1.02 -16.68 -0.17 10. PROCTER & GAMBLE 1.60 -9.82 -0.16
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Global investment capabilities A personalised experience with leading capabilities and expertise across the globe As part of LGT Group, we leverage the resources and knowhow of our global research and investment teams. Our experts are continuously analysing economic developments and global financial markets to provide a solid basis for well-considered, conviction- led investment decisions. Our clients benefit from the wider services of the group, including multiple booking centres, all whilst receiving a personalised experience. 5,600+ employees across 30 locations in Europe, Asia, Australia, the Americas and the Middle East* LGT Private Banking key facts £313.4 billion of clients assets under management 6 booking locations Ratings (LGT Bank Ltd.) Moody’s/Standard & Poor’s Aa2/A+ Regional expertise in all key financial markets Strong focus on sustainable and alternative investments *as at 30 June 2024 21
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Our commitment to sustainability 22 We cannot tackle big challenges like climate change, social inequality or political polarisation alone. Together we can achieve more and change the future Memberships and signatories Principles for Responsible Investment (PRI) United Nations Global Compact (UNGC) Principles for Responsible Banking (PRB) Institutional Investors Group on Climate Change (IIGCC) Partnership for Carbon Accounting Financials (PCAF) Net-Zero Banking Alliance (NZBA) Climate Action 100+ (CA100+) Task Force on Climate-related Financial Disclosures (TCFD) Finance For Biodiversity Pledge Nature Action 100 UK 10+ SI experts, research analysts EUROPE 10+ SI experts, analysts, portfolio advisers APAC 5+ SI experts, specialists As well as drawing on expertise at LGT globally, we work with other organisations and within our sector to pursue similar goals and exchange ideas. We have received a number of awards to recognise our commitment to a more sustainable future. Wealth for Good Awards 2023 Winner International Investment Awards 2022 Winner International Investment Awards 2021 Winner
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23 Quality focused Structural growth, not speculation Globally active, robust process Flexible and transparent outcomes Investment approach Quality, sustainable growth A bottom-up, fundamentals driven approach using a global buy list We think about risk in terms of permanent loss of capital Uncovering companies exposed to the most enduring structural growth themes High visibility of growth provides confidence in sustainable returns over the long term Active stewards of our client’s capital, advocating for positive change on our clients’ behalf In-depth research process and focus on Sustainability helps us understand key risks and opportunities to assess overall quality Cost effective offering Direct holdings enable flexibility and transparency Portfolios meet a range of objectives and risk profiles 23
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Additional reports Charity specific insights and training 24 Impact report Sustainability 360 Stewardship at LGT Stewardship policy Sector Insights Topical Articles Webinars Quick Reads Suggestion box – what would you like to hear about? Introducing: the Charity Resources Hub We offer practical added value, insights, training for trustees and guidance on best practice. Visit: https://www.lgtwm.com/uk- en/charities/charity-resource-hub Or scan the QR code below:
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Your team Gair leads the Scottish charity and endowments offering from LGT, managing portfolios for charities, trusts and public institutions. He joined LGT following the acquisition of abrdn's discretionary investment management business in 2023, bringing over 20 years’ experience in the charity sector as a volunteer, Executive Director and Investment Manager. Gair moved into investment management in 2011 to specialise in charity investments and prior to that, spent six years in MilitaryIntelligence,commissioned in theRoyal Air Force. Gair is a former Trustee and Finance Committee member of the Officers’ Association Scotland and the John Muir Trust. He is a Fellow of the Chartered Institute for Securities and Investment and holdstheCFA’s Certificatesin ESG InvestingandClimate Finance. Gair Brisbane Partner, Head of Charities (Scotland) Josh works in our Charities Team in Edinburgh office as an Investment Assistant. He is a University of Bristol and Durham University graduate. Josh holds the following CISI qualifications: Level 4 Investment Advice Diploma (IAD) in Securities and also Financial Planning and Advice, Level 4 Certificate in Paraplanning, Level 3 Extended Certificate in Investment Operations (IOC), and theLevel 3 Certificatein Derivatives(CapitalMarketsProgramme). Joshua Ryan Investment Assistant +44 (0) 131 385 1326 gair.brisbane@lgt.com +44 (0) 131 385 1256 joshua.ryan@lgt.com 25
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© LGT Very Low Risk profiles at LGT and descriptors Which of the following statements best summarises your risk and return objectives? Please review the charts when considering your answer. The objective of the portfolio is to preserve the capital value of your investments. You are aware that the effect of inflation may reduce the purchasing power of your assets. The portfolio will be invested entirely in cash or cash instruments and so is unlikely to have periods of negative returns but will have limited growth potential. The primary objective of the portfolio is to preserve the capital value of your portfolio whilst trying to achieve some growth. You are comfortable with the small fluctuations in value that may result from this investment strategy. The portfolio is likely to be invested primarily in cash and bonds, with the potential for an allocation to equities (expected to be no greater than 35%) and other higher risk assets. The returns from this strategy may not be sufficient to maintain the purchasing power of your assets. We would suggest a minimum investment period of three years for this type of risk profile. Low Medium-Low The primary objective of the portfolio is to achieve capital growth in excess of inflation over the medium to long term. The portfolio will be invested in a diversified range of asset classes, with a medium allocation to equities (expected to be no greater than 75%) and other higher risk assets. We would suggest a minimum investment period of five years for this type of risk profile. Medium Equity Fixed Income Cash Alternatives 20% 75% 5% 0% The primary objective of the portfolio is to achieve a level of capital growth that will maintain the purchasing power of your portfolio. You are comfortable with the moderate fluctuations in value that may result from this investment strategy. The portfolio will be invested in a diversified range of asset classes, with a low to medium allocation to equities (expected to be no greater than 55%) and other higher risk assets. In times of high inflation, the returns from this strategy may not be sufficient to maintain purchasing power of your assets. We would suggest a minimum investment period of three years for this type of risk profile. Equity Fixed Income Cash Alternatives 40% 55% 5% 0% Equity Fixed Income Cash Alternatives 60% 35% 5% 0% Equity Fixed Income Cash Alternatives 0% 0% 100% 0% The pie charts are a neutral asset allocation typical for the type of portfolio based on LGT WM’s internal guidelines. The bar charts are intended to illustrate the potential gains and losses associated with the various risk profiles. This is not intended to be a prediction of any future performance of your portfolio. 26
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© LGT Disclaimers Any data contained herein which is attributed to a third party (“Third Party Data”) is the property of (a) third party supplier(s) (the “Owner”) and is licensed for use by LGT Wealth Management. Third Party Data may not be copied or distributed. Third Party Data is provided “as is” and is not warranted to be accurate, complete or timely. To the extent permitted by applicable law, none of the Owner, by LGT Wealth Management or any other third party (including any third party involved in providing and/or compiling Third Party Data) shall have any liability for Third Party Data or for any use made of Third Party Data. Neither the Owner nor any other third party sponsors, endorses orpromotes the fund orproduct to which Third Party Datarelates. ARC Private Client Indices (“PCI”) are based on historical information and past performance is not indicative of future performance. PCI are computed using a complex calculation and the results are provided for information purposes only and are not necessarily an indicator of suitability for your specific investment or other requirements. ARC does not guarantee the performance of any investment or portfolio or the return of an investor’s capital or any specific rate of return. ARC accepts no liability for any investment decision made on the basis of the information contained in this report. You should always complete your own analysis and/or seek appropriate professional advice before entering into an agreement with any PCI Data Contributor. The content is the property of ARC or its licensors and is protected by copyright and other intellectual property laws. Use of the information herein is governed by strict Conditions of Use as detailed on https://www.assetrisk.com/research/ ©2024 Morningstar. AllRights Reserved. Neither any of the Factset companies nor any of their information providers shall have any liability, contingent or otherwise for (i) the accuracy, completeness, timeliness, or correct sequencing of any information provided on it or through this website; (ii) the performance of any software, products or services, available on or through this website; (iii) any interruption in your being able to access any of the foregoing or any other aspect to the website; or (iv) any decision made or action taken by you in reliance upon any of them. The past performance of an investment or investment strategy does not guarantee its future performance. 27
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LGT Wealth Management UK LLP is authorised and regulated by the Financial Conduct Authority. Registered in England and Wales: OC329392. Registered office: 14 Cornhill, London, EC3V 3NR. LGT Wealth Management Limited is authorised and regulated by the Financial Conduct Authority. Registered in Scotland number SC317950 at Capital Square, 58 Morrison Street, Edinburgh, EH3 8BP. LGT Wealth Management Jersey Limited is incorporated in Jersey and is regulated by the Jersey Financial Services Commission in the conduct of Investment Business and Funds Service Business: 102243. Registered office: Sir Walter Raleigh House, 48-50 Esplanade, St Helier, Jersey JE2 3QB. LGT Wealth Management (CI) Limited is registered in Jersey and is regulated by the Jersey Financial Services Commission: 5769. Registered Office: at IFC1, The Esplanade, St Helier, Jersey, JE1 4BP. LGT Wealth Management US Limited is authorised and regulated by the Financial Conduct Authority and is a Registered Investment Adviser with the US Securities & Exchange Commission (“SEC”). Registered in England and Wales: 06455240. Registered Office: 14 Cornhill, London, EC3V 3NR. This publication is marketing material. It is for information purposes only. Certain services described herein are not available to retail clients as defined by the FCA or the JFSC, as applicable; please speak to your investment adviser for further clarification in this regard. All services are subject to status and where local regulations permit. The wording contained in this document is not to be construed as an offer, advice, invitation or solicitation to enter into any financial obligation, activity or promotion of any kind. You are recommended to seek advice concerning suitability from your investment adviser. Any information herein is given in good faith, but is subject to change without notice and may not be accurate and complete for your purposes. This document is not intended for distribution to, or use by, any individual or entities in any jurisdiction where such distribution would be contrary to the laws of that jurisdiction or subject any LGT Wealth Management entity to any registration requirements. When we provide investment advice it is on the basis of a restricted approach that is to say, whilst we review and advise on retail investment products from the whole of the investment market. Investors should be aware that past performance is not an indication of future performance, the value of investments and the income derived from them may fluctuate and you may not receive back the amount you originally invested. Legal information 28