We are pleased to confirm that the RCN has a strong ethical policy which requires that the investments should be managed in a socially responsible manner. The policy states that there should be no direct investments in companies that violate the following restrictions:

• Cluster bombs and landmines – Prohibited under international treaties and not included in any portfolio managed by Sarasin.
• Adult entertainment – 5% of revenues in activities connected to adult entertainment.
• Alcohol – 5% of revenues related to the production of alcohol or 10% of revenues from the sale of alcohol related products and services.
• Armaments – zero exposure to manufacturers of whole weapon systems and 10% of revenues from sales connected to weapons systems including components, support systems and services designed for weapon use.
• Civilian firearms – zero exposure to either the manufacture or sale of civilian firearms.
• Gambling – 5% of revenues related to gambling operations or 10% of revenues from the sale of gambling related activity.
• Tobacco – zero exposure to tobacco producers, 10% of revenues derived from tobacco related products.
• Thermal coal – 5% of revenues derived from the extraction of thermal coal.
• Oil tar sands – 5% of revenues derived from the production of oil from tar sands.
• Predatory Lending - 5% of revenues for activities connected to predatory lending

In addition to our specific ethical restrictions, our Investment Manager looks to avoid investing in companies which are materially involved in ethically unacceptable practices such as:

• Corruption
• Environmental degradation
• Poor labour practices
• Breaches of human rights
• Companies which persistently, knowingly and materially breach international legal standards

Finally, our Investment Manager has been graded as an A which is well above the median average of other investment based upon the UN Principles for Responsible Investment, 

Statement of investment principles

Breakdown of RCN portfolio as at 30 June 2025