WealthSelect Responsible Blend 3 Responsible investment report

WealthSelect Responsible Blend 3 Responsible investment report Quarter 1 2022 This report is designed to help you review the ESG and responsible investing credentials of the portfolio and measure how the portfolio is achieving its objectives. The WealthSelect Responsible Blend 3 portfolio aims to achieve capital growth over a period of five years or more, while managing the Environmental, Social, and Governance (“ESG”) risk of the portfolio and maintaining a smaller carbon footprint than the reference index. The portfolio will have exposure to a diversified range of investments in the UK and globally by investing in funds that we identify as leaders in the integration and management of ESG factors. In addition to meeting these criteria, at least 50% of the portfolio’s assets will be in funds that pursue explicit environmental and/or social targets or characteristics as part of their investment process. Whilst the portfolio is actively managed, it will typically hold a minimum of 35% of its non - cash assets in passive investment vehicles that feature ESG screening. Please see the portfolio factsheet for the full objective. What is responsible investment and ESG? Responsible investment is defined by the UN - backed Principles for Responsible Investment (PRI) as “ a strategy or practice th at incorporates environmental, social and governance (ESG) factors into investment decisions and owners hip activity.” Environmental factors include issues such as climate change and resource scarcity, social facto rs look at people and relati onship aspects such as human rights and labour standards, and governance factors look at a firm’s posit ion on issues such as bri bery and corruption, and lobbying or political contributions. How do we measure the portfolio's responsible investment attributes? When managing and analysing the portfolios we need to have a suitable reference point for the portf olio’s carbon footprint. We use the MSCI All Country World Index as our reference index. The MSCI All Countries World Index is simil ar to the FTSE 100 Index in the UK, but it represents an average portfolio of global equities. More information on our investment ap proach and how different ESG factors are measured and calculated can be found in our ‘Guide to our responsible investment calcula tions’ at platform.quilter.com/wealthselect/guidetoRI .

2 of 4 Responsible investment update The tragic events that have unfolded in Ukraine because of Russia’s invasion has been a key focus of our responsible investment activity. While the responsible portfolios stop short of implementing widespread exclusions, given the severity of the situation, the violation to human rights, and our responsible investment objective, we felt that we had to act. The news of the invasion broke just prior to the launch of the portfolios, and we immediately sought to understand our direct and indirect exposure to Russia and also any exposure to companies that could be involved in supplying military equipment to Russia. Where we had exposure to Russian government bonds, we removed this exposure, and where we identified exposure to Russian companies we engaged with our active managers and instructed them to not initiate any new positions in Russian companies or add to existing positions. With regards to passively managed exposure to Russian companies we engaged with the provider to understand how they were managing these exposures with the index providers. While we believe exclusion is appropriate in this instance, we strongly believe that engagement is typically a more effective tool to drive change and will continue to be central to the management of the Responsible portfolios. WealthSelect responsible investment attributes Where indicated, each portfolio will adhere to the following attributes: Managed Portfolios Responsible Portfolios Sustainable Portfolios Attribute 1: Follow the Quilter Investors responsible investment principles Attribute 2: Maintain a lower carbon footprint than the reference index Attribute 3: Focus on investing in funds that Quilter regards as leaders in ESG integration Attribute 4: Invest in funds that pursue explicit environmental and/or social targets or characteristics Attribute 5: Invest substantially in funds that target positive sustainable outcomes Attribute 6: Seek to support sustainable solutions to environmental and social challenges Attribute 7: Exclude or normally avoid exposure to unsustainable activities *At least 50% of the assets in the Responsible portfolios will be in funds that pursue explicit env ironmental and/or social targets or characteristics. The WealthSelect Managed portfolios are able to select from the widest investment u niverse, compared to the WealthSelect Responsible and WealthSelect Sustainable portfolios. This is because as portfolios adhe re to more ESG attributes , the choice of investments becomes smaller.

3 of 4 More information on how we have measured and calculated the carbon footprint of the portfolio and the reference index can be found in our ‘Guide to our responsible investment calculations’ at platform.quilter.com/wealthselect/guidetoRI Attribute 1: The portfolio follows the Quilter Investors responsible investment principles Quilter Investors believe: Good corporate governance is central to long - term investing and a well - functioning investment marke t. ESG considerations should be embedded throughout the entire business. ESG considerations can impact the whole investment process. Climate changes is a particularly important factor to consider in investing. ESG integration involves assessment at the overall portfolio level as well as across the underlying funds. Assessing how responsible investment is integrated involves looking at a manager’s philosophy, proc ess, people, and portfoli o. Differing approaches to ESG integration may be equally appropriate and can vary depending on the ty pe of investment. Being a responsible wealth manager means transparency and collaboration is key. Attribute 2: This portfolio maintains a lower carbon footprint than the reference index The portfolio is managed to maintain a smaller carbon footprint than the reference index. The carbo n footprint is the total carbon emissions in metric tons based on an investment of £100,000 in the equity and corporate bond portion of the portfolio. WealthSelect Responsible Blend 3 has a carbon footprint 30% lower than the MSCI All Country World Index WealthSelect Responsible Blend 3 7.49 metric tons Reference index: MSCI All Country World Index 10.74 metric tons

4 of 4 Attribute 3: The portfolio focuses on investing in funds that Quilter regards as leaders in ESG integration The portfolio management team have analysed the funds in this portfolio and believe they clearly co nsider ESG factors alongs ide other areas as part of their overall investment strategy. The funds held in this portfolio have all passed a rigorous investment due diligence process and ha ve gone through a two sta ge ESG screening and selection process: 1. Each fund goes through an initial ESG screening process that enables us to flag them as poten tial leaders in ESG integ ration. 2. Funds that successfully pass through the initial screening stage are then subject to detailed ESG due diligence to det ermine whether they qualify as a leader in ESG integration. Attribute 4: The portfolio invests in funds that pursue explicit environmental and/or social targets The funds in the portfolio must satisfy one of the following criteria: – The fund has explicit ESG objectives. – The fund promotes environmental or social characteristics. – The fund has sustainable investment as its objective. The portfolio management team has assessed the funds in this portfolio and are comfortable with wha t each fund’s environment al and/or social targets or characteristics are, and how the fund managers intend to achieve them. *At least 50% of the assets in the portfolio will be in funds that pursue explicit environmental an d/or social targets or ch aracteristics. Source: Quilter Investors. Calculated by Factset. Based on the latest data and portfolio holdings a vailable as at 31 March 2022 . We have excluded portfolio holdings with a negative portfolio value (short derivative positions) from o ur calculations. Carbon e missions data and sustainability objectives alignment data for individual companies provided by ISS. Product involvement data for indi vidual companies provided by Sustainalytics. Portfolio holdings data provided by Morningstar. Important information Further information on the WealthSelect Managed Portfolio Service can be found at platform.quilt er.com/wealthselect Past performance is not a guide to future performance and may not be repeated. Investment involves risk. The value of invest ments and the income from them may go down as well as up and investors may not get back the amount originally invested. Because of this , an investor is not certain to make a profit on an investment and may lose money. Exchange rates may cau se the value of overseas investments to rise or fall. platform.quilter.com Please be aware that calls and electronic communications may be recorded for monitoring, regulatory and training purposes an d records are available for at least five years. Quilter Investment Platform Limited and Quilter Life & Pensions Limited are registered in England a nd Wales under numbers 16 80071 and 4163431 respectively. Registered Office at Senator House, 85 Queen Victoria Street, London, United Kingdom, EC4V 4AB. Quilter Investm ent Platform Limited is authorised and regulated by the Financial Conduct Authority. Quilter Life & Pensions Limited is auth orised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Their Financia l Services register numbe rs are 165359 and 207977 respectively. VAT number 386 1301 59. Quilter uses all reasonable skill and care in compiling the information in this communication and i n ensuring its accuracy, but no assurances or warranties are given. You should not rely upon the information in this communication in making inves tment decisions. Nothing in this communication constitutes advice or personal recommendation. Data from third parties (“Third - Party Data”) may be included in this communication and those third parties do not accept any liability for errors and omissions. Therefore, you should make sure you understand certain important information, which can b e found at platform.quilter.com/thir d - party - data . Where this communication contains Third - Party Data, Quilter cannot guarantee the accu racy, reliability or comp leteness of such Third - Party Data and accept no responsibility or liability whatsoever in respect of such Third - Party Data.