ROYAL LONDON UK MID-CAP GROWTH FUND 31.08.21 Overview FUND OVERVIEW The Fund's investment objective is to achieve capital growth over the medium term (3-5 years), by investing at least 80% in the shares of UK medium-sized companies listed on the London Stock Exchange. Fund Manager(s) Henry Lowson The Fund’s performance target is to outperform, after the deduction of charges, the FTSE 250 ex-IT Fund Size £526.92m (investment trust) Total Return GBP Index (the "Index") over rolling 5-year periods. For further Domicile United Kingdom information on the Fund's index, please refer to the Prospectus. ISA Available and Eligible Year-on-year performance Benchmark Index FTSE 250 ex Inv Co Investment Association IA UK All Companies 31.08.20 to 31.08.19 to 31.08.18 to 31.08.17 to 31.08.16 to Sector 31.08.21 31.08.20 31.08.19 31.08.18 31.08.17 Currency GBP Share Class M (Accumulation) 37.9% -4.5% -1.7% 11.6% 17.9% Share Class Z (Accumulation) 38.1% -4.4% -1.6% 11.8% 18.0% Fund Management Fee M Acc: 0.77% (FMF): Z Acc: 0.62% Share Class N (Accumulation) 38.0% - - - - N Acc: 0.70% Sector Average 32.4% -8.8% -3.2% 6.5% 13.8% FTSE 250 ex Inv Co 42.9% -9.3% -5.0% 7.1% 14.2% Share Class M (Accumulation) Unit Launch Date 11.11.09 Cumulative Performance (as at 31.08.21) Initial Charge 0.00% 3 Months 6 Months 1 Year 3 Years 5 Years Minimum Investment £100,000 Share Class M (Accumulation) 9.5% 22.3% 37.9% 29.4% 70.2% SEDOL B5BRW42 Share Class Z (Accumulation) 9.6% 22.4% 38.1% 30.0% 71.5% Mid Price 570.70p Share Class N (Accumulation) 9.6% 22.4% 38.0% - - Historic Yield 0.89% Sector Average 4.4% 14.6% 32.4% 16.9% 41.7% Share Class Z (Accumulation) FTSE 250 ex Inv Co 7.4% 18.3% 42.9% 23.2% 50.6% Unit Launch Date 06.05.14 Quartile Ranking 1 1 1 1 1 Initial Charge 0.00% Minimum Investment £25,000,000 Performance Chart SEDOL BG48LW0 100% Mid Price 198.90p Historic Yield 1.01% Share Class N (Accumulation) Unit Launch Date 20.03.20 50% Initial Charge 0.00% Minimum Investment £15,000,000 SEDOL BLP52H7 Mid Price 182.80p 0% Historic Yield 0.94% Sep 16 Dec 17 Mar 19 Jun 20 Sep 21 31.08.16 - 31.08.21 Powered by data from FE fundinfo Fund Sector Average FTSE 250 ex Inv Co Source: RLAM and FE fundinfo as at 31.08.21. Fund performance is shown on a mid to mid price basis, net of fees and taxes, with net income reinvested unless otherwise stated. Benchmark performance is shown gross of fees and taxes. Past performance is not a guide to future performance. The value of investments and the income from them is not guaranteed and may go down as well as up and investors may not get back the amount originally invested. 1 Fund Manager(s) Henry Lowson Fund Commentary Lead Manager Fund Manager tenure: August was a good month for UK equity investors, with encouraging economic data supporting market 01.01.18 sentiment, despite relatively little corporate news flow. The fund returned +5.2%, which compares to the benchmark (FTSE 250 ex IT index) return of +5.6%, and the IA UK All Companies peer group median of +3.3%. The relative underperformance to the benchmark was primarily a result of stock selection within the Industrials sector, where Meggit (not owned in the fund) became the subject of a competitive bidding process by two US peers. Spirent Communications, the telecommunications testing and assurance business, and Genuit, the Yield Definitions building materials group, were the top contributors to performance. Genuit posted highly impressive first The historic yield reflects distributions declared half results, with like-for-like sales almost 14% ahead of the comparable pre-pandemic period in 2019. over the past twelve months as a percentage of Demand from residential end markets remains robust, while commercial construction and infrastructure the mid-market price, as at the date shown. It markets are now also accelerating, leaving the group. Crucially, the business has been able to pass through does not include any preliminary charge and raw material cost inflation and maintain operating margins in the high teens. Spirent also delivered first investors may be subject to tax on their half results ahead of analyst forecasts, as both existing telecoms customers and new US cloud-hosting distributions. Reported yields reflect RLAM's customers accelerated investment in 5G and fibre networks. Margins expanded to new highs, because current perception of market conventions software and services revenues increased as a proportion of the whole - evidence of the management around timing of bond cash flows. team’s strategy succeeding, while substantially net cash balance sheet provides scope for acquisitions to Risk Warning accelerate growth. FTSE International Limited (“FTSE”) 2009. FTSE® is a trademark of the London Stock Inflation remains the topic of the moment for financial markets, as investors look to central banks for early Exchange Plc and The Financial Times Limited and signs as to whether interest rates are likely to rise or remain stable. As we wrote last month, there remains is used by FTSE under licence. All rights in the a high degree of uncertainty given that wage inflation – the key measure – is distorted when many FTSE Indices and/or FTSE ratings vest in FTSE governments continue to provide enhanced unemployment support, while cost inflation for goods is also and/or its licensors. Neither FTSE nor its licensors distorted due to (possibly transitory) supply chain disruptions. We believe that our approach of investing accept any liability for any errors or omissions in the FTSE indices and /or FTSE ratings or in high quality companies who are in control of their own fates, is the right one. Portfolio companies have, underlying data. No further distribution of FTSE so far, been able to demonstrate pricing power and protect margins. We would expect them to continue data is permitted without FTSE’s express written outperforming their peers due to their well invested assets and robust competitive positions and remain consent. Figures subject to rounding. optimistic for their prospects over the medium and long term. Royal London Asset Management Limited, registered in England and Wales number 2244297; This is not a recommendation or solicitation to buy or sell any particular security. Royal London Unit Trust Managers Limited, registered in England and Wales number 2372439. The views and opinions expressed herein are those of the manager at the time and are subject to change RLUM Limited, registered in England and Wales without notice. number 2369965. All of these companies are authorised and regulated by the Financial Conduct Sector Breakdown Authority. All of these companies are subsidiaries of The Royal Fund London Mutual Insurance Society Limited, registered in England and Wales number 99064. Industrials 26.7% Registered Office: 55 Gracechurch Street, London, Consumer Discretionary 17.6% EC3V 0RL. The marketing brand also includes Royal London Asset Management Bond Funds Plc, Financials 16.4% an umbrella company with segregated liability Technology 10.5% between sub-funds, authorised and regulated by the Central Bank of Ireland, registered in Ireland Health Care 8.5% number 364259. Registered office: 70 Sir John Basic Materials 7.8% Rogerson’s Quay, Dublin 2, Ireland. Telecommunications 4.8% Source: RLAM, FE fundinfo and HSBC as at Consumer Staples 4.1% 31.08.21, unless otherwise stated. Yield Real Estate 3.7% definitions are shown above. Our ref: FF RLAM PD 0006 Breakdowns exclude cash and futures. Top 10 Holdings as at 31.08.21 Fund DECHRA PHARMACEUTICALS 3.6% GENUS ORD GBP0.10 3.5% WATCHES OF SWITZERLAND GROUP PLC 3.4% INTEGRAFIN HOLDINGS PLC 2.7% BODYCOTE PLC 2.6% CRANSWICK 2.6% ASCENTIAL PLC 2.5% FDM GROUP PLC 2.5% ULTRA ELECTRONICS HLDGS 2.4% GENUIT GROUP PLC 2.4% Total 28.2% No of Holdings 52 Every effort is made to ensure the accuracy of any information provided but no assurances or warranties 2 are given. Nothing in this factsheet should be construed as advice and is therefore not a recommendation to buy or sell shares. CONTACT DETAILS Key Concepts to Understand Capital Growth: Capital growth is defined as the rise in an investment’s value over time. Private Investors Rolling 5 Year Period: A rolling 5-year period is any period of five years, no matter which day you start For enquiries and dealing: Tel: 03456 04 04 04* on. Intermediaries Efficient Portfolio Management: A list of approved investment techniques, including the use of derivatives, used to protect against excessive risk, reduce cost or generate extra income or growth. For enquiries: Tel: 0203 272 5950* Email: [email protected] Medium-sized companies (mid-cap): Those worth between £250 million and £2 billion. Institutional Investors Fund Risks For enquiries: Tel: 020 7506 6500* Email: [email protected] Investment Risk: The value of investments and any income from them may go down as well as up and is not guaranteed. Investors may not get back the amount invested. Head Office EPM Techniques: The Fund may engage in EPM techniques including holdings of derivative Royal London Asset Management Limited instruments. Whilst intended to reduce risk, the use of these instruments may expose the Fund to 55 Gracechurch Street increased price volatility. London, EC3V 0RL Counterparty Risk: The insolvency of any institutions providing services such as safekeeping of assets Tel: 020 7506 6500* or acting as counterparty to derivatives or other instruments, may expose the Fund to financial loss.