As at: 31/03/22

Contact: clientsupport@columbiathreadneedle.com

Overview

Filters

Fund information

Policy

Investment Philosophy

Our responsible 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 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 company selection approach is broadly summarised below:

High quality business

• Competitive advantages
• Long-term growth drivers
• Strong sustainability characteristics
• Understandable

Strong management

• Proven management team
• Consistent execution
• Responsible capital allocators
• Appropriate incentives

Attractive price

• Identification of long-term value creators
• Sustainable superior returns
• Margin of safety
• Use of discounted cash flow & relative valuation

• How well a company manages its ESG responsibilities is an indicator of management quality, long-term strategic thinking and the resilience of a business. Companies that perform well on these metrics should create more sustainable shareholder value over time. We try to seek these sustainability leaders or potential leaders.
• We explicitly focus our investment horizon on the long term and find that particular themes linked to sustainable development are a rich source of ideas.
• We favour companies with proven business models, delivering consistent returns and stable cash flow and where management have proven themselves to be responsible allocators of capital with high standards of corporate social responsibility.
• We apply a disciplined valuation process to determine attractive entry points to take long term positions (with the aim of a holding period of at least 5 years).
• Post investment we endeavour to develop relationships with the company management and board to engage in a constructive ongoing dialogue on all elements of business strategy including key environmental, social and governance issues. We believe we have a responsibility as shareholders to exercise the rights and responsibilities of ownership and that through engagement and active voting we can encourage companies towards meeting or setting best practice in the management of ESG issues. This should ultimately support long term performance, reduce risk and contribute to promoting a fairer and more sustainable world.

Process

Investment Process

There is a five-step investment process led by the Global Equities team:

• Idea generation
• Ethical and sustainability screening
• Fundamental analysis
• Portfolio construction
• Engagement and proxy voting

Step 1: Idea generation (Global Equities team)

The process starts with idea generation on the investment team. We find a rich source of ideas comes from considering long term social and environmental themes, looking across industries and along value chains. We believe companies that are contributing to solutions to key sustainability challenges, and building successful business models around this will see a long-term tailwind to their growth opportunities. The identification of themes helps to focus our analytical efforts rather than imposing a strict thematic structure on the portfolio, our themes are outlined below:

• Connect and protect – technological advances create opportunities to accelerate our connectivity, and progress social well-being, supply chain efficiencies and sustainable cities.
• Digital empowerment – data can be harnessed for good, to enable better healthcare or empower smaller businesses, which can lead to broader competition and employment opportunities.
• Energy transition – transformation is required across all types of energy use, including power generation and transport.
• Health and well-being – with increased globalisation and urbanisation comes rising communicable diseases. With ageing demographics, rising obesity and an increasing prevalence of non-communicable diseases, the demand for healthcare is rising while the supply remains constrained, particularly in emerging markets.
• Resource efficiency – we must use our planet’s finite resources in a more sustainable way, while minimising the impact we have on the environment.
• Sustainable cities – a growing global population puts cities under increasing stress, such as the provision of reliable healthcare and education, and environmental challenges such as global warming.
• Sustainable finance – by integrating sustainability into their business strategies and decision-making, financial institutions can play a significant role in adapting and promoting innovation to address global sustainability challenges.

We additionally try to look for companies who are leaders, or have the potential to show meaningful improvement, in how they manage key ESG issues, whether or not their business fits a particular theme. Additional input into idea generation comes from the experience available through other internal equity teams. Research and company meetings are shared across all equity desks. External input includes sell-side research, conferences, industry experts and macro considerations. Any companies not already in the acceptable universe are then put forward to the Responsible Investment team for screening against the strategy’s acceptability criteria.

Step 2: Ethical and sustainability screening (Responsible Investment team)

All stocks considered for investment first undergo screening by members of the Responsible Investment team, to determine if they meet the criteria for inclusion in the portfolio’s investable universe. The Responsible Investment team has created a thorough and robust process to analyse companies to determine whether they meet the strategy criteria:

• The Strategy will exclude companies with exposure to any business activities deemed to be socially or environmentally damaging, with particular tolerance thresholds. These excluded activities have adapted over time with the development of major social and environmental issues.
• The Strategy will also exclude companies which do not meet sufficiently high standards in how they operate, based on a detailed assessment of their policies and performance with respect to overall sustainability management. The focus will vary by sector according to relevance and includes certain absolute exclusions in company behaviour but is otherwise often a qualitative judgement. In order to make these assessments, we have established particular positions on a range of relevant issues, such as climate change and what we consider to be progressive approaches to these issues by companies. These positions are based on a range of inputs that include evolving international norms and agreements, extensive primary research, including field visits and the input of our Responsible Investment Advisory Council.

The independent Responsible Investment Advisory Council is also involved in reviewing the approvability ratings of companies as well as in developing the screening criteria for the strategy and targeting engagement activity. Input is also frequently sought from a range of stakeholders.

The Responsible Investment team has a quarterly monitoring system to identify:

• Changes to business e.g. through mergers and acquisitions
• Whether the criteria continue to be met by the company (ethical, environmental and social)
• Any controversies that may affect the company rating (e.g. mis-selling, environmental damage or corruption).

Step 3: Fundamental analysis (Global Equities and Responsible Investment teams)

 Stocks that enter the investment universe undergo a process of fundamental investment analysis by the Global Equities team. Sector research responsibilities are allocated across the team. This ensures that there is a ‘centre of excellence’ for each sector and theme within the team, with a thorough understanding of the drivers affecting each sector and theme as well as the relative position of the constituent companies within them. However, this is not an exclusive process and individuals can champion ideas in any sectors.

We believe the key to superior investment performance lies in investing over the long term in high-quality companies that are attractively valued. For any potential investment we will:

• Develop a detailed understanding of the company’s business model and market
• Understand key business drivers
• Understand the sensitivity to changes in these key drivers
• Determine the strengths and potential weaknesses of the management team
• Consider how the company is positioned within its specific markets, how strong the competition is and the scale of pricing and cost pressures
• Identify catalysts which may impact the share price.

The RI team and the Global Equities team work together to fully incorporate ESG risks and opportunities into the fundamental valuation of each company. To flag key Environmental, Social, and Governance risks and opportunities, the Global Equities team works with the RI team and an important data source that we use is Morgan Stanley Capital International (MSCI) ESG Research ratings and analysis. The MSCI ESG approach identifies key issues by industry for each company and rates companies on social, environmental and governance performance both in absolute terms and relative to their specific industry. We also review a list of what we consider to be 20 key governance indicators and also any significant controversies a company may have been involved in.

However, whilst ESG data quality has improved over time, it is still not perfect. We therefore also

make our own assessments through the RI team’s own analysis of ESG considerations and engagement efforts, in order to establish our own views of all material ESG risks and opportunities facing a company. Our RI team therefore leverages their experience across different ESG issues and ‘scrubs’ the MSCI data where we see deficiencies, in order to arrive at cleaner ESG data points that leverage the breadth of the MSCI coverage, but yet the depth of ESG knowledge within our RI team.

With increasing rhetoric from both the fund management industry and within the investee corporate landscape regarding sustainability, we look to stay true to what our investors expect of us; that we are clearly, deliberately and diligently investing in companies that are truly delivering upon sustainability challenges. With that in mind, the A.I.M. framework was established:

• Additionality: Is the company a leader in its industry, making a real difference to the positive direction of the industry? Here we focus on and evidence the fund’s exposure through our view of high quality, wide moat businesses.
• Intentionality: How core is sustainability to the company’s strategy and overall raison d’être? Here we leverage our extensive engagement capability to assess the company’s transparency and communication around strategic goals, which will evidence the management team and Board’s intentions in prioritising these issues/opportunities.
• Materiality: How material are sustainability opportunities for the company? Here, we make an assessment of the company’s revenue alignments to our 7 sustainability themes.

When it comes to valuation, we place particular emphasis on cash flows as we believe these provide the most rigorous base for analysis of the underlying financial strength, and therefore quality, of any company. Discounted cash flow models (DCFs) are a key component of our valuation work to determine a ‘conservative assessment of the intrinsic value’ of a share price (CAIV). DCFs are also an important tool to help us determine the margin of safety in a stock by looking at what is implied in the current share price.

Here, ESG factors are considered directly in the analysis of the business model and the assessment of management quality. We factor them into the valuation by flexing assumptions and discount rates as appropriate. For example, we may flex revenue or profitability assumptions across different outcomes reflecting ESG risks and opportunities.

The inputs into our proprietary “alternate weighted average cost of capital” (ALT-WACC) used as a discount rate within our DCF analysis also incorporate our views on ESG risks/opportunities as well as our sustainability assessment as depicted above.

At the end of this process, a formal investment research note is produced by the analyst and discussed with the wider team. Stocks researched by the team are rated 1 (most positive), 2 (neutral), or 3 (most negative). The ratings are active with no neutral rating, determined by the combination of margin of safety and upside to their ‘intrinsic value’ and the level of confidence we have in the quality of the business. The forum for discussing research is our twice weekly research meetings. These are rigorous and thorough meetings during which an analyst will present their research on a stock which must stand up to detailed scrutiny by the team.

Step 4: Portfolio construction (Global Equities team)

The output of the fundamental analysis forms the basis of portfolio construction. We consider that higher quality companies will justify a larger active position on the portfolio. Timing, regional, sector and aggregate risk considerations are taken into account. Analytical responsibilities are divided between the team by sector or theme specialisation. Daily desk discussion of ideas exchange and news-flow monitoring is supplemented by a more formal weekly Stock Review Meeting and Portfolio Construction Meeting; ensuring that monitoring and review at team level takes place.

The Strategy observes the following self-imposed limits:

• Stock constraints: We typically hold between 40-60 stocks in the portfolio. Most position sizes will typically be in the 1.0%-5.0% active weight range.
• Country/Sector/Industry constraints: We do not impose any formal limits; however, diversification is considered as part of the portfolio construction process. In terms of geographical exposure, we typically limit our regional position to +/-10 percentage points relative to benchmark, to ensure the majority of risk in the portfolio remains stock specific.

The biggest constraint that applies to our portfolio construction is the ethical and sustainable screening process that defines the investable universe and will result in certain structural biases, such as an underweight position relative to the benchmark in extractive industries. The Strategy has a predictable style bias to mid-cap and growth companies that results partly from the screening process and partly from the investment style of the portfolio managers. The approved list is hard-coded into the dealing system to avoid inadvertently investing in unacceptable securities. The risk profile of the overall portfolio is reviewed on a regular basis in which we ensure:

• Stock-specific risk comprises the main element of the risk budget.
• The main stock contributors to tracking error are consistent with the intended shape of the portfolio.
• The risk contribution from countries and sectors is consistent with the intended shape of the portfolio.
• The risk budget is appropriately spread across the main positions.
• Tracking errors are consistent with the portfolio objectives.
• Positions by country, sector and stock are within mandate restrictions.

Individual weightings are initially determined by the strength of conviction of each idea on a risk adjusted return basis, taking into account the quality of the investment thesis.

Sell discipline

Our sell discipline is not rules based, but a sale would likely be triggered by a fundamental breach of the investment case, or a stock becoming fully valued with no further upside foreseen over the medium term.

Step 5: Engagement and proxy voting (Global Equities and Responsible Investment teams)

We operate an active ownership policy, and seek to influence positive change and support best practice through engagement and voting. After meeting the ethical and sustainability screening standards, we will engage companies and encourage them to meet or set emerging best practice in the management of key ESG issues. We engage on company specific issues, sector and broader thematic issues and at public policy level. Our aim is to reduce risk to enhance long term performance, and to encourage a positive contribution to broader social and environmental issues. We use constructive confidential dialogue, typically working one to one with companies, but taking a collaborative approach where this has more impact. We will vote at all shareholder meetings of companies under the strategy, based on its detailed proxy voting guidelines.

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.

Literature

• Fund overview & literature (including factsheet)
• Responsible Investment

Disclaimer

Important Information

 PRIVATE AND CONFIDENTIAL

All information provided within this document is for the attention of the addressee only and solely for the purpose of evaluating the investment and advisory management services available from Columbia Threadneedle Investments. The information provided is on the basis that it remains private and confidential between the addressee and Columbia Threadneedle Investments. Accordingly, the addressee is not permitted, in the event that a request for information is made under the Freedom of Information Act 2000, to disclose any of the information provided herein by Columbia Threadneedle Investments, given the duty of confidentiality that exists as between Columbia Threadneedle Investments and the addressee. Columbia Threadneedle Investments is the global brand name of the Columbia and Threadneedle group of companies.

CONTRACTUAL AGREEMENT

This document is issued by Columbia Threadneedle Management Limited. Should you decide or wish to receive the services detailed within this document, your contractual agreement will be with Columbia Threadneedle Management Limited. This entity is a wholly owned subsidiary of Columbia Threadneedle Investments UK International Limited, whose direct parent is Ameriprise Inc., a company incorporated in the United States.

Past performance should not be seen as an indication of future performance. The value of investments and income derived from them can go down as well as up as a result of market or currency movements and investors may not get back the original amount invested. The information, opinions, estimates or forecasts contained in this document were obtained from sources reasonably believed to be reliable and are subject to change at any time.

The “Firm” referred to herein is part of the group of legal entities acquired by Ameriprise Financial Inc. on 8th November 2021. On 4th July 2022, we reached a significant milestone in the integration of our businesses being rebranded as Columbia Threadneedle Investments. We have made significant progress with the integration of our businesses, and while we now present ourselves externally as a single brand, there may be instances where the Firm’s legacy functions, systems, teams or policies remain in place until further integration milestones are reached. Where applicable, this document may make reference to such functions, systems, teams or policies, with any such references being subject to change as the integration work continues.

Last amended: 03/07/23 02:54