CT (Lux) Responsible Global Emerging Markets Equity Fund (CT) (was BMO)

Sustainable, Responsible &/or ESG Policy:

Investment Philosophy

Our investment philosophy is to identify high-quality, cash generative companies, invest in them at reasonable valuations and hold these positions for a long period of time.

The portfolio management team are responsible for implementing our philosophy and process into this strategy.

Quality

In our view, certain elements prove to be more important over the longer term. We view high quality companies as having four key characteristics:

• Companies that have a sustainable business model that can generate consistent and growing cash flow/revenues over many years
• Companies that have a robust balance sheet and use debt prudently or not at all
• Companies that have strong governance where management has demonstrated a strong track record and capital discipline
• Companies that respect and treat minority shareholders fairly

Long-term

We only invest for the long-term, with an expectation that we will be shareholders in a company for a multi-year period.

Benchmark aware

We believe that benchmarks reflect the past while investment is for the future; indexes do not represent our opportunity set. We are not influenced by the benchmark or our peers, preferring instead to focus on growing the absolute value of our clients’ capital over the long run, which we believe will achieve their objectives.

The objective of defining the investment universe is to apply our tenet – “No unintended bets” – we seek an informed view of all companies within our defined investable universe, including a perspective on what we don’t own. The team takes a theoretical long-short view on all stocks within our investment universe to help calibrate a favourable risk/reward balance.

We define our investable universe into three key groups:

• All stocks in the portfolio
• All stocks being considered for inclusion in the portfolio (includes all off-benchmark positions)
• All benchmark positions weighted 25 basis points or greater – whether owned or not.

Our defined investment universe is evaluated on a regular basis. Idea generation is supplemented by both primary team research (e.g., meetings with companies, their suppliers, and their competitors) and secondary research (companies highlighted by external analysts).

Responsible investing

We believe ESG issues can affect the performance of investment portfolios to varying degrees across companies, sectors, regions and asset classes. Our goal is to deliver sustainable, market leading returns for our clients over the long run. Therefore, it’s not just the ability of a company to generate economic profits today that is important, but the sustainability of those profits over time. From our initial universe screens to our in-depth company analysis, ethics, management alignment and integrity are integral parts of our investment approach. We believe that taking social and  environmental factors into account during the investment decision-making process will ultimately improve shareholder value.

Process:

Investment process

 Overview of investment process

The team applies a primarily bottom-up, fundamental approach to investing. We base all of our investment decisions and allocations at a company level within the specific guidelines that are set. The process itself is transparent and repeatable. We apply it with discipline, where decisions are subject to peer review and challenge.

The goal of our research efforts is to assign a quality score to each investment and assess what we believe to be a “fair value”. In its simplest form, our investment team follows the investment philosophy to generate investment ideas, we analyse them in depth and implement long-term investment decisions to build conviction portfolios.

When deciding to buy a specific company, in addition to specific stock research, we also look at the macroeconomic environment, sectorial issues, currency valuation and relative valuation among many other factors. The PMs have responsibility for considering these factors when deploying capital into the ideas where we see the best opportunity.

Stock selection and research process

Universe definition

The investment universe includes all companies listed in, or deriving the majority of income from emerging markets. This is then filtered by:

• Average daily trading volume
• Market cap
• Quality criteria outlined in the philosophy section
• Responsible investment screens

Idea generation

We do not believe in ‘investment by the rules’; this is particularly the case when it comes to generating ideas. We have generally found a combination of extensive travel, company meetings, the Research Meeting, universe screens and reading company and industry-related reports, to be the most useful tools for identifying companies that merit deeper research.

Company meetings

Meeting our companies helps us understand who the key decision makers are and what company culture has been created. We often find it insightful to meet with middle managers and other executives in the company as well as CEOs and CFOs; their competence is imperative in establishing our trust with companies.

As well as current and potential portfolio holdings, team members may also meet other market participants and/or conduct (where necessary) supply chain investigations as well as bottom-up market share checks.

Team meetings 

The team conducts a daily call, a weekly meeting and quarterly sector/region deep dives, which are attended by all staff. The purpose of the meetings are to provide mediums through which we can grow the shared knowledge pool of the team. For the daily calls, these tend to be informal gathering where we discuss company meetings and market developments. For the weekly meeting, we tend to discuss topics in more detail and the invite list is broadened to the whole firm, these meetings are regularly joined by members of the Global Equity Team and Responsible Investment Team. For the sector/region meetings, they are chaired by the respective research specialist, and we perform a deep dive into individual sectors and companies, and to present investment themes and ideas. Topics presented have included: taxation on investment returns, board dynamics, reputational risks – child labour, flavours and fragrances, water usage and consumer staples risk.

Screening methods

We generally consider a number of quality and valuation factors. These may include:

• Returns/capital discipline (ROIC, ROE)
• P&L (revenue growth, operating margins)
• Leverage (net debt/EBITDA, net debt/equity)
• Asset intensity (working capital/sales, capex/sales)
• Stability (standard deviation in sales, standard deviation in earnings per share)
• Valuation (free cash flow (FCF) yield, dividend yield)

We will never make an investment decision solely on the basis of a screen, and we usually use this tool to help guide us into potential areas of interest. For example, if we are planning a trip to meet a company, we may consult the screen to see which other companies in the market may also have interesting characteristics and would be potentially interesting to meet. This also allows us to build our knowledge of specific markets and sectors where companies operate.

Independent stock screening and ESG criteria

Investment ideas generated by the investment team must pass screening requirements. Companies are required to meet the following minimum criteria before they can be approved for investment.

The team keeps a record of each company's compliance with both the positive thematic screens and the specific minimum ESG standards and rates the company as acceptable or unacceptable for the strategy. Only companies rated as acceptable can be included in the strategy portfolios.

Every investment we make undergoes ESG analysis, which is fully integrated into the investment process. The purpose of the ESG analysis is three-fold:

• Identify positive links to sustainability. These areas of interest (illustrated below) ensure that all the key ESG issues are encapsulated, while maintaining a sufficiently large universe for investment purposes.
• Identify the material risks and opportunities to the long-term viability of a company from ESG factors and assess these to determine any material impacts on the business model and the overall quality of the company.
• Identify areas for engagement and track progress with respect to companies’ ESG practices and performance.

The ESG analysis is completed within the Emerging Markets Equity Team with input (if relevant) from our ESG analyst and the Responsible Investment team. This assessment contributes to the overall assessment of the quality of a company. The strategy will seek investment opportunities across areas impacted by key global shifts.

Company analysis 

If an idea is likely to meet the quality and valuation criteria as outlined in the philosophy section, the Emerging Markets Equity Team will conduct a full company analysis. Key supporting information describing how the company meets our quality criteria is written up in the company’s investment case. The primary tool used to value a company used is our proprietary discounted cash flow model (DCF) for non-financial companies, and justified price-to-book for financial stocks.

Investment Case

Some of the quality drivers considered in the investment case document are highlighted below:

• Margin sustainability
• Company dynamics: Price advantage (brand, customer loyalty), cost advantage (economies of scale)
• Industry dynamics: Concentration, barriers to entry
• ESG positioning, risks and opportunities
• Approach to management of ESG issues
• Treatment of stakeholder groups
• Specific environmental targets and reporting
• Board composition and effectiveness
• Capital intensity
• Fixed assets: Capex, utilisation rates, technological changes
• Working capital: Inventory levels, credit terms
• Revenue potential
• Market size, penetration, demand elasticity
• Risks
• Internal: Accounting practices, non-regulatory change in auditor, key man
• External: Regulation, currency fluctuations for the entire value change
• Balance sheet/external liabilities:
• Debt (cover, denomination, maturity, etc.)
• Other liabilities: Leases, guarantees, litigation
• Management record and capital discipline
• Alignment of interests with other shareholders
• Controlling shareholder background and minority shareholder rights

Ultimately, the analyst decides if a company meets our high quality criteria.

Analysis of the fair value of the company stock

The prime objective of our analysis is to identify and invest in high-quality companies. However, we also recognise that stock markets can be very inefficient and volatile in the short term. Therefore, it is key to understand the fair value of a given company. The more undervalued a company, the more we tend to buy of it, and if it is outright overvalued, we will abstain from investing in the company irrespective of its quality.

A discounted cash flow (DCF) approach is used to assign fair value to a company’s stock, which is cross-checked with other valuation metrics such as relative peer group valuation, variation of economic profit, and a dividend discount model. The analysis is all done in a standardised cash flow modelling template, one for non-financials and another for financials.

Stock markets can be very inefficient and volatile in the short term therefore, it is key to understand the fair value of a given company. The returns an investor can make in a company are a function of this long-term compounding ability and the price paid for the shares. The more undervalued a company, the more we tend to buy of it, and if it is outright overvalued, we will abstain from investing in the company irrespective of its quality.

Investment decision and portfolio allocation

Buy decision

The following documents are completed by the investment team before an investment can be made:

• Written investment case, including assigning a quality rating.
• Valuation model

For the CT Responsible GEM strategy, the company must also be acceptable based upon the screening by the Responsible Investment team as described previously. While each company researched is unique, we always use templates to ensure uniformity in the minimum required information.

Portfolio construction and investment decision-making is primarily the responsibility of the Lead Portfolio Manager, Gokce Bulut, backed up by the investment team. Since the investment process is collaborative, we typically share similar conviction levels within the team. Conviction reflects valuation upside, liquidity, and risk, both absolute and their contribution to portfolio risk exposures (tracking error, stock / sector / style specific risk, beta).

Portfolio allocation

Our goal is to build a conviction portfolio of 30-60 stocks. We operate with a reasonably simple rule of thumb when sizing a position: the cheaper the quality, the more we buy. We consider several factors when adding a stock to the portfolio including upside potential, contribution to portfolio risk, liquidity, and total sector/industry exposure.

Portfolio weightings are determined based on a combination of factors:

• Conviction in, and quality of the company
• Company valuation
• Company risk profile and contribution to portfolio risk
• Runway for growth and the future opportunities

We make the largest allocations where we have the highest conviction and believe valuations are reasonable. These positions are weighted typically from 4-8%.

In constructing portfolios, we are aware of any biases as a result of specific country or sector exposures, the stage a company is at in its growth cycle, and size or capitalisation. We are prepared for portfolios to have biases, but these should be intended biases. We have access to quantitative tools, such as truView’s risk models; however, these do not drive the process. We believe that our portfolio managers’ experience, knowledge and judgment are superior to a quantitative model, which can often create artificial comfort in new and challenging market conditions.

Our objective is to ensure that the best ideas from our investment team are incorporated into our clients’ portfolios, as appropriate.

Portfolio monitoring and management

Portfolio management

Our main forum for discussing the portfolio is our daily team calls and weekly team meetings. It is in these gatherings where we discuss changes to stock positioning, valuation, quality, material ESG risks, company engagement and performance are all covered. Any material changes to a particular stock’s investment case can also be discussed here. All investment team members are expected to participate.

Company engagement and voting

As discussed above, we use company meetings as a key source of idea generation. We also view these interactions with existing holdings as key forums to discuss important topics with them that may impact future prospects. While the primary purpose of the meetings is to understand the business for the years to come and help us understand if we have the right amount of ownership, we also use these meetings to express our views and to explain why we believe recent decisions are either good or bad.

Our advice and engagement are always focused on maximising sustainable long-term value. Some of the common areas we find ourselves engaging with management on are listed below:

• An acquisition that might grow a company’s revenues, but it will be value destructive as it dilutes return on capital.
• Investing in efforts to improve energy efficiency with a view to curbing operational costs as well as greenhouse gas emissions.
• Asking companies to develop and implement robust systems to manage risks related to data privacy and security in light of the increasing threat of cyber-attacks.
• Encouraging boards to enhance their effectiveness and performance by appointing experienced independent non-executive directors, implementing robust director review processes, and incorporating diversity considerations into director search and selection.
• The company we are invested in seems to have room for improvement on the working capital when comparing it to peers.
• Mitigating operational and financial risks to the business by managing risks driven by ESG factors along the supply chain, such as climate change, natural resource depletion, human rights abuses and corruption.

Resources, Affiliations & Corporate Strategies:

Responsible Investment Team

We have a dedicated in-house Responsible Investment (RI) team, one of the most experienced and established teams of its kind. The award-winning 40+ member team supports our clients, our investment teams and our overall business through expertise across ESG thematic research, ESG integration, ESG policy, client reporting and thought leadership content. Beyond these core activities, the team also supports a plethora of activity from representation on responsible investment industry groups, public policy contribution, ESG thought leadership, ESG product development, portfolio level ESG analytics, screening for specialist ESG portfolios and reporting on active ownership activities. Active ownership is a key aspect of our RI work, and within the team there are more than 20 professionals focused on engagement and voting activity.

The RI team works hand in hand with our research and investment professionals to enrich their understanding of key sustainability trends as they relate to specific sectors and issuers, collaborating to highlight risks and opportunities within industries and sectors, informing investment decisions across asset classes.

The RI team was awarded ‘Best ESG Research Team’ at the 2018, 2019 and 2020 Investment Week Sustainable & ESG Investment Awards, ‘Best ESG Reporting – Asset Manager: Large’ at the 2019 Environmental Finance Awards, and ‘Best ESG Research: Fixed Income’ at the 2020 Environmental Finance Awards. We were also awarded ‘Best ESG Fund House’ at the 2022 ESG Clarity Awards.

Responsible Investment Advisory Council

The Council is a six-member committee of experts, who are leaders in their fields and bring international experience across responsible investment, ethical, environmental, and social issues. Their primary role is to provide advice on the ethical criteria for our specialist Responsible strategy range. The Responsible Investment team is also able to draw on their expertise in informing our broader engagement and responsible investment approach.

The Council’s president is the Most Reverend Justin Welby, Archbishop of Canterbury. The Chair, who heads the quarterly meetings, is Howard Pearce, formerly Head of Environmental Finance and Pension Fund Management at the UK’s Environment Agency Pension Fund (EAPF).  More detail on the Council can be found here.

Affiliations & Memberships

We make efforts to promote responsible investment in multiple ways, including participation in speaking engagements, industry working groups, responsible investment conferences and collaborative initiatives.

A list of key responsible investment memberships and affiliations for Columbia Threadneedle Investments is shown below.

• Environmental

Climate Action 100+

Climate Action 100+ is an investor initiative launched in 2017 to ensure the world’s largest corporate greenhouse gas emitters take necessary action on climate change. We are a member of the investor coalition, leading 8 and supporting 38 engagements.

Date of joining: CTML: 2017, TAML: 2021

Transition Pathway Initiative (TPI)

A PRI sponsored initiative; this is an asset-owner led initiative which assesses companies' preparedness for the transition to a low carbon economy. It is supported by London School of Economics, a research driven initiative on high emitting sectors carbon transition and strategic/management commitment to address climate transition.

Date of joining: CTML: 2020, TAML: 2021

Net Zero Asset Managers Initiative

Founder signatory of this international group of asset managers committed to supporting the goal of net zero greenhouse gas emissions by 2050 or sooner, in line with global efforts to limit warming to 1.5 degrees Celsius; and to supporting investing aligned with net zero emissions by 2050 or sooner.

Date of joining: CTML: 2020, TAML: 2021

Carbon Disclosure Project (CDP)

Non-profit organisation that runs the global disclosure system for investors, companies, cities, states and regions to manage their environmental impacts. We are member of the investor coalition, leading and supporting several engagements.

Date of joining: CTML: 2000, TAML: 2005

Carbon Trust

We partner this organisation that supports companies to accelerate towards Net Zero. From target setting, Net Zero pathways, assurance and footprinting, to policy advice, strategy setting and programme delivery.

Date of joining: 2010

Task Force on Climate-related Financial Disclosures (TCFD)

We have committed to producing reporting as part of TCFD, an organisation that was established in December 2015 with the goal of developing a set of voluntary climate-related financial risk disclosures.

Date of joining: CTML: 2020, TAML: 2022

Sustainability Accounting Standards Board (SASB)

ESG standard setter (Member Standards Advisory Group & sub-groups). SASB guides the disclosure of financially material sustainability information by companies to their investors.

Date of joining: 2018

Science Based Targets initiative (SBTi)

The SBTi is a partnership between CDP, the United Nations Global Compact, World Resources Institute (WRI) and the Worldwide Fund for Nature (WWF). Guides companies to set science-based targets to mobilize the private sector to take urgent climate action.

Date of joining: 2020

Impact Investing Institute

Focuses on the development of outcome related investment, to encourage more investment made with the intention to generate positive, measurable social and environmental impact alongside a financial return. TAML is a Founding supporter and member of the Advisory Council and working group for the Green+ Gilts

Date of joining: 2020

Institutional Investor Group on Climate Change (IIGCC)

IIGCC works with business, policy makers and investors to help define the investment practices, policies and corporate behaviours required to address climate change. A member of the RI team serves on the Board. We lead and support several engagements.

Date of joining: 2001

IIGCC's Global Investor Statement

A joint statement coordinated by the seven Founding Partners of The Investor Agenda to all world governments urging a global race-to-the-top on climate policy and warns that laggards will miss out on trillions of dollars in investment if they aim too low and move too slow.

Date of joining: 2009

IIGCC’s Investor Position Statement on Transition Planning

Signatory of this investor statement by 56 leading investors calling for the implementation of new corporate governance measures to ensure shareholders can hold companies to account in achieving net zero emissions commitments.

Date of joining: 2021

Ceres Land Use and Climate WG (Biodiversity)

Ceres works with the most influential capital market leaders to advance innovative solutions to the climate crisis and achieve a zero emissions future where people and the planet can prosper.

Date of joining: 2020

Cerrado Manifesto SoS

Public statement committing to halt deforestation in the Cerrado, adopt sustainable land management practices and mitigate financial risks associated with deforestation and climate change. It is endorsed by global FMCG companies and institutional investors.

Date of joining: 2021

ChemScore

Benchmark created by NGO International Chemical Secretariat (ChemSec). It ranks the world’s top 50 chemical producers on their work to reduce their chemical footprint.

Date of joining: 2021

Nature Action 100

Founding member of investor-led collaborative engagement programme to engage with companies and policymakers on nature.

Date of joining: 2022

Taskforce for Nature-related Financial Disclosures

As a forum member, we support the taskforce aiming to develop and deliver a risk management and disclosure framework for organisations to report and act on evolving nature-related risks.

Date of joining: 2020

Sustainability Policy Transparency Toolkit (SPOTT)

SPOTT scores palm oil, tropical forestry, and natural rubber companies annually against over 100 sector specific ESG indicators to benchmark their progress over time. As an investor supporter we express need for enhanced transparency.

Date of joining: 2019

Investor Policy Dialogue on Deforestation

Collaborative investor initiative set up to engage with public agencies and industry associations on the issue of deforestation. The goal is to coordinate a public policy dialogue on halting deforestation. We are a member of the Advisory Council, leading/supporting engagements going forward.

Date of joining: 2021

ShareAction Chemicals Working Group

Investor group focused on engagement with the chemicals sector on decarbonisation.

Date of joining: 2021

• Social

Global Network Initiative (GNI)

Member of this initiative seeking to safeguard freedom of expression and personal privacy against government restrictions. The protections are facilitated by a coalition of companies, investors, civil society organisations, academics, and other stakeholders.

Date of joining: CTML: 2008, TAML: 2002

Interfaith Centre on Corporate Responsibility (ICCR)

Coalition of over 300 global faith- and values-based institutional investors. We are members of the Food Justice and Racial Equity workstream.

Date of joining: 2020

ICCR's Investor Alliance on Human Rights (IAHR)

Part of the ICCR, IAHR provides a collective action platform to facilitate investor advocacy on a full spectrum of human rights and labour rights issues.

Date of joining: 2020

ICCR's Investors for Opioid and Pharmaceutical Accountability (IOPA) Part of the ICCR, IOPA addresses the fallout of the opioid crisis and other business risks by seeking accountability and mitigating further risk at pharmaceutical companies through comprehensive shareholder reforms.

Date of joining: 2021

ShareAction Good Work Coalition

Investor engagement initiative aimed at driving up standards in the workplace. Engagement focus on labour standards, living wage standards, accreditation, transparency of the FTSE350, extension to DEI with a focus on ethnic diversity.

Date of joining: 2021

ShareAction Healthier Markets Investor initiative aimed at improving children's health by increasing access to affordable, healthy food.

Date of joining: 2021

Access to Medicine Foundation

Member of the investor coalition, leading and supporting several engagements. Independent, non-profit organisation working to stimulate and guide the pharmaceutical industry. Produces the Access to Medicine Index, Antimicrobial Resistance Benchmark, Access to Vaccines Index.

Date of joining: 2021

Investor Action on Antimicrobial Resistance (AMR)

A coalition between the Access to Medicine Foundation, the FAIRR Initiative, the Principles for Responsible Investment and the UK Government Department of Health and Social Care to galvanise investor efforts to address global AMR. We are leading and supporting engagements.

Date of joining: 2021

Investor Initiative for Responsible Care

Collaborative engagement group coordinated by UNI Global Union focused on working standards and quality of care in the listed nursing care sector.

Date of joining: 2022

Workforce Disclosure Initiative (WDI)

Disclosure body. We are Signatory, member of the Advisory Group; leading/supporting several engagements. Investor initiative aimed at improving corporate transparency and accountability on workforce issues. Provide companies and investors with comprehensive and comparable data.

Date of joining: CTML: 2021, TAML: 2020

Global Investor Collaboration on Farm Animal Welfare & Global Investor Statement on Farm Animal Welfare

Engagement collaboration with BBFAW (Business Benchmark on Farm Animal Welfare), member of the investor coalition, supporting and leading several engagements.

Date of joining: 2021

Platform Living wage Financials

Coalition of financial institutions that encourages and monitors investee companies to address the non-payment of living wage in global supply chains. We are chair of the Platform's Garment Working Group; member of the Food, Retail and Agri working group.

Date of joining: 2020

Find it, fix it, prevent it

Engagement collaboration. Member, leading on engagements. Investor led initiative targeting UK-listed companies to demonstrate commitment to eradicating modern slavery from their supply chains.

Date of joining: CTML: 2020, TAML: 2021

KnowTheChain

Engagement collaboration. Member of the investor coalition, supporting several engagements. KnowTheChain is a resource for companies and investors to understand and address forced labour risks within their global supply chains.

Date of joining: 2021

Access to Nutrition Index

Engagement collaboration. Member of the investor coalition, supporting several engagements. Independent, non-profit organisation producing the Access to Nutrition Index. Benchmark evaluates the world's largest food and beverage manufacturers' policies and performance related to the world's most pressing nutrition challenges: obesity and undernutrition.

Date of joining: 2021

Human Capital Management Coalition (US)

Engagement collaboration. Member of the coalition of investors to elevate human capital management. Engages companies and other market participants with the aim of understanding and improving how human capital management contributes to the creation of long-term shareholder value.

Date of joining: 2021

Investors for Racial Justice

Member of this information sharing network and engagement collaboration.

Date of joining: 2020

Votes Against Slavery 2022

Member of this investor collaboration engaging with FTSE 350 companies on their compliance with the Modern Slavery Act 2015. We joined the collaboration for the 2021 campaign.

Date of joining: 2021

• Governance

International Corporate Governance Network (ICGN)

Member of investor led organisation advancing the highest standards of corporate governance and investor stewardship worldwide in pursuit of long-term value creation.

Date of joining: CTML: 2007, TAML: 2017

Investment Association (IA)

Member of UK industry body; facilitates the monitoring and responding to ESG policy and regulatory changes impacting our activities.

Date of joining: CTML: 2000, TAML: 1998

Corporate Governance Forum

European focus - UK based asset management governance teams. Informal discussion on companies and industry issues.

Date of joining: 2012

Global Institutional Governance Network (GIGN)

US/Global focus - Global asset management governance teams. Discussions on companies and industry issues.

Date of joining: 2012

Council of Institutional Investors (CII)

Member of this non-profit organisation promoting effective corporate governance policies.

Date of joining: 1996

Investor Forum

Member and proactive collaborator with the Forum, which helps investors to work collectively to escalate material issues with the Boards of UK-listed companies.

Date of joining: 2005

Asia Corporate Governance Association

Member of independent, non-profit membership organisation dedicated to working with investors, companies and regulators in the implementation of effective corporate governance practices throughout Asia.

Date of joining: CTML: 2004, TAML: 2010

Asia Research & Engagement (ARE)

Engagement collaboration. Organisation that structures, implements and assembles investor collaborative engagement programmes across Asia. Performs in-depth industry and company research that provides strategic insight into key ESG issues to underpin engagement work.

Date of joining: 2021

Pre-Emption Group (PEG)

Members of the UK Capital markets group that sets guidelines on the application/dis-application of pre-emption rights in UK capital issuance.

Date of joining: 2016

30% Club UK Investor Group

Campaign for greater representation of women on company boards. Member of the investor coalition, leading and supporting several engagements.

Date of joining: 2021

30% Club France Investor Group

Member of this investor-led group aiming to boost the number of women in board seats and executive leadership of companies in the SBF 120 index.

Date of joining: 2021

30% Coalition (US)

Campaign for greater diversity on company boards. Member of the investor coalition, leading and supporting several engagements.

Date of joining: 2021

Women in Finance Charter

First asset manager signatory to the UK charter committing to support the progression of women into senior roles in the financial services sector, set targets and publicly report on progress against these targets to support transparency and accountability.

Date of joining: 2016

Eumedion

Member of this non-profit organisation aiming to promote good corporate governance and sustainability policies at Dutch listed companies and to promote engaged and responsible shareholding by its members.

Date of joining: 2009

• Environmental, Social & Governance

Principles for Responsible Investment (PRI)

Global responsible investment association, membership is a pre-requisite for many clients. TAML & BMO GAM are Founding Signatories to the UN supported PRI. CTML, formerly known as BMO GAM EMEA, was part of BMO GAM at the time of becoming a signatory. BMO GAM EMEA business was acquired by Ameriprise Financial, Inc. in 2021. CMIA became a signatory in 2014.

Date of joining: CTML & TAML: 2006, CMIA: 2014

UK Stewardship Code

Set of principles for asset owners and managers. We are signatories of the 2020 code.

Date of joining: 2012

Investor Stewardship Group (ISG)

Members of the network of investors and asset managers formed to promote good practice in stewardship and corporate governance, specific to the US.

Date of joining: 2018

Investment Company Institute (ICI)

US Industry body; facilitates the monitoring and responding to ESG policy and regulatory changes impacting our activities.

Date of joining: 2019

UK Sustainable Investment and Finance Association (UKSIF)

Network focused on the UK sustainable investment market, pre-requisite for FNG certification. A member of the RI team chairs the Policy Committee.

Date of joining: CTML: 2000, TAML: 2020

Taiwan Stewardship Code

Signatory to the Taiwan Stewardship Code, which is based on a ‘comply or explain’ approach.

Date of joining: 2022

Japan’s Stewardship Code

Signatory to Japan’s Stewardship Code, which is maintained by Japanese Financial Services Agency, based on a ‘comply-or-explain’ approach where signatories comply with the principles of the code or explain why they do not comply.

Date of joining: 2022

Global Real Estate Benchmark (GRESB)

Member of this organization whose data facilitates our ability to track trends in corporate environmental and social risk management performance as it relates to property.

Date of joining: 2013

London Stock Exchange

Members of the LSE’s Primary Markets Group, advising on primary market issues.

Date of joining: 2012

The Big Exchange

TAML is a founding partner and members of the Impact Committee.

Date of joining: 2019

Global Impact Investing Network (GIIN) Member of this leading non-profit dedicated to increasing the scale and effectiveness of impact investing

Date of joining: 2020

FAIRR Collaborative investor network that focuses on ESG risks and opportunities around animal agriculture.

Date of joining: 2021

Investor Tailings Safety Initiative & Investor 2030 Mining Agenda We are the founding supporter of this initiative and will co-lead on some of the corporate engagements.

Date of joining: 2021

Centre for Audit Committee and Investor Dialogue Network initiative that enables investors, audit committee members and auditors to discuss issues of common interest.

Date of joining: 2013

International Capital Markets Association (ICMA)

The development of green, social and sustainability bond principles relevant to our fixed income investments in an RI context. Members of the Social Bond Working Group and members of working groups on the SDGs and on impact reporting.

Date of joining: 2016

Source: Columbia Threadneedle Investments, as at March 2023. Includes memberships held by CMIA, TAML, CTML and other group affiliates. CMIA = Columbia Management Investment Advisors, LLC; TAML = Threadneedle Asset Management Limited; CTML = Columbia Threadneedle Management Limited.

Dialshifter

This fund is helping to ‘shift the dial from brown to green’ by…

Our responsible / sustainable investment philosophy is based on three pillars:

• Avoid: Avoid companies with damaging or unsustainable business practices
• Invest: Invest in companies that make a positive contribution to society and/or the environment
• Improve: Use influence as an investor to encourage best practice management of ESG issues through engagement and voting

This philosophy underlies the process that is applied to define the investable universe through screening, the subsequent investment analysis, stock selection and active ownership.

Our organisation is helping to support the Paris Climate Agreement and the Race to Net Zero by…

Our methodology to implement our net zero commitment for equities and corporate debt is based on the Net Zero Investment Framework, developed by the Paris Aligned Investment Initiative. Our approach to net zero is focused on real world decarbonisation, using stewardship to help drive improvements in companies’ practices and alignment to a net zero trajectory. More details on our methodology can be found here: Net zero investing: Columbia Threadneedle Investments Approach

At the enterprise level, we continue to evolve our climate change strategy and reporting, and in 2022 produced our first full carbon footprint assessment of Ameriprise Financial, Inc.

SDR Labelling:

Not eligible to use label (out of scope)