PRI Reporting Framework 2013 Data Preparation Tool

PRI Reporting Framework 2013 Data Preparation Tool June 2013 reporting@unpri.org +44 (0) 20 7749 5106

Table of Contents Introduction 3 Indicator Presentation 4 Indicators (by module) 5 Organisational Overview 5 Indirect Manager Selection, Appointment and Monitoring 12 Direct Listed Equity Incorporation 13 Direct - Listed Equity Active Ownership 17 Direct Fixed Income 26 Main definitions 28 2

Introduction This tool will help you prepare for the launch of the new PRI Reporting Framework in October 2013. Before continuing, we recommend you familiarise yourself with this Snapshot of the new framework, which summarises all of the information requested by the framework s mandatory indicators. This tool includes only those indicators where exact numbers are requested, to support with advanced data preparation. Note that quantitative information that can be reported in rough ranges is not included in this document, please refer to the Snapshot to prepare for these indicators. Specific explanatory notes and definitions are included within each indicator and more general or recurring definitions are included in the Main Definitions section at the end of this document. Please review these carefully as they explain how you should interpret the indicator. The selected 13 indicators are part of five modules: Organisational Overview Indirect Manager Selection, Appointment and Monitoring; Direct Listed Equity Incorporation Direct - Listed Equity Active Ownership Direct Fixed Income If your investment covered by a specific module accounts for less than 10% of your total AUM, you will not be required to complete that asset class module (although you may choose to do so on a voluntary basis). All indicators are subject to final adjustment. Final indicators will be released in October 2013 and all signatories will have six months to submit their responses. 3

Indicator Presentation At the top of each indicator you will see its status (Mandatory to Report and Disclose; Voluntary to Report and Disclose; or Mandatory to Report, Voluntary to Disclose). Mandatory to report indicators appear in blue and voluntary to report indicators appear grey. Indicator status Purpose Principle OO 04 MANDATORY TO REPORT AND DISCLOSE PEERING GENERAL You will also find information about its purpose (peering, gateway, assessed, etc.) and the PRI Principle/s that it supports (1-6 or General ). Indicator purpose will be one or more of the following options. o o o o o Core assessed: the indicators forms part of the core assessment (for more information, see the assessment methodology) Additional assessed: part of the additional assessment Peering: Used to create peer groups for assessment purposes Gateway: Defines which follow up indicators are applicable for you Descriptive: None of the above; responses to these indicators are mainly used to provide additional context and background to your RI Transparency Report Further guidance More information is available online: - A Snapshot of the new PRI Reporting Framework - Reporting and Assessment: Overview, Objectives, Process and Outputs - FAQs Please direct additional questions to the Reporting and Assessment team at reporting@unpri.org 4

Indicators (by module) Organisational Overview Indicator status Purpose Principle OO 04 MANDATORY TO REPORT AND DISCLOSE PEERING GENERAL OO 04 OO 04.1 INDICATOR Indicate the year end date for your reporting year. Date Year Month Day OO 04.2 Indicate your total AUM at the end of your reporting year. Total AUM trillions billions millions thousands hundreds Currency Assets in USD [Automatically calculated based on your response] [The currency box will be a dropdown list: USD, EUR, GBP, CAD and AUD on top, then alphabetical] trillions billions millions thousands hundreds OO 04.3 Indicate the level of detail you would like to provide about your asset class mix. Approximate percentage breakdown to the nearest 5% (e.g. 45%) Broad ranges breakdown (e.g., <10%; 10-50%; >50%) OO 04.4 Additional information 5

OO 04 OO 04.2 EXPLANATORY NOTES The reporting year is the 12-month period that you chose to report against. Your organisation's AUM should represent: the AUM of all your consolidated asset management subsidiaries (net of AUM separately reported by any current PRI signatories which are majority owned and listed in previous question 03.2) Uncalled commitments (e.g. in private equity, infrastructure, property) The amount you indicated under total AUM in local currency will be converted to USD based on the September 1, 2013 exchange rates sourced from the International Monetary Fund. If you prefer to convert your AUM to the exchange rate on the year end date of your reporting year, complete the information directly in USD. OO 04.3 Information about your asset mix will be used to help readers understand the broad composition of your portfolio. It will also be used to customise your indicators in the online reporting tool, in order to ensure that you are only asked to report on indicators that are relevant to you. In this indicator you must choose whether you would like to report the breakdown of your AUM to the nearest 5% or in broad ranges (<10%; 10-50%; >50%). Information about the actual breakdown of your portfolio will be collected in the next indicator. Later you will be asked whether you would like to disclose the breakdown of your AUM to the nearest 5% (indicator OO 05a), in broad ranges (as in OO 05b), or by uploading an image with your preferred representation. 6

OO 05 option a Indicator status Purpose Principle MANDATORY TO REPORT, VOLUNTARY TO DISCLOSE GATEWAY GENERAL OO 05a OO 05a.1 INDICATOR Provide an approximate percentage breakdown of your AUM at the end of your reporting year, using the following asset classes: Internally managed Externally managed [a] Listed equity % % [b] Fixed income corporate % % [c] Fixed income government % % [d] Fixed income - other % % [e] Private debt % % [f] Private equity % % [g] Property % % [h] Infrastructure % % [i] Commodities % % [j] Hedge funds % % [k] Non listed forestry % % [l] Non listed farmland % % [m] Inclusive finance % % [n] Cash % % [o] Other, specify % % [p] Other, specify % % Sum (needs to add up to 100%) % OO 05a.2 Additional information 7

OO 05 option b Indicator status Purpose Principle MANDATORY TO REPORT, VOLUNTARY TO DISCLOSE GATEWAY GENERAL OO 05b OO 05b.1 INDICATOR Indicate the breakdown of your AUM at the end of your reporting year in broad ranges, using the following asset classes: Internally managed Externally managed [a] Listed equity None;<10%;10-50%;>50% None;<10%;10-50%;>50% [b] Fixed income corporate None;<10%;10-50%;>50% None;<10%;10-50%;>50% [c] Fixed income government None;<10%;10-50%;>50% None;<10%;10-50%;>50% [d] Fixed income - other None;<10%;10-50%;>50% None;<10%;10-50%;>50% [e] Private debt None;<10%;10-50%;>50% None;<10%;10-50%;>50% [f] Private equity None;<10%;10-50%;>50% None;<10%;10-50%;>50% [g] Property None;<10%;10-50%;>50% None;<10%;10-50%;>50% [h] Infrastructure None;<10%;10-50%;>50% None;<10%;10-50%;>50% [i] Commodities None;<10%;10-50%;>50% None;<10%;10-50%;>50% [j] Hedge funds None;<10%;10-50%;>50% None;<10%;10-50%;>50% [k] Non listed forestry None;<10%;10-50%;>50% None;<10%;10-50%;>50% [l] Non listed farmland None;<10%;10-50%;>50% None;<10%;10-50%;>50% [m] Inclusive finance None;<10%;10-50%;>50% None;<10%;10-50%;>50% [n] Cash None;<10%;10-50%;>50% None;<10%;10-50%;>50% [o] Other, specify None;<10%;10-50%;>50% None;<10%;10-50%;>50% [p] Other, specify None;<10%;10-50%;>50% None;<10%;10-50%;>50% Sum 100% OO 05b.2 Additional information 8

OO 05a and 5b OO 05.1 EXPLANATORY NOTES Please read all the explanatory notes and definitions carefully before responding. Your response to this indicator will determine which modules, sections and indicators you will be asked to complete in later stages of the Reporting Framework. All denominators of percentages are based on total AUM. For asset classes that constitute less than 10% of your AUM, you will be given a choice as to whether you would like to report on those asset categories or not. In addition to reading these explanatory notes, please also review the separate asset class definitions. This will help avoid double counting or listing assets in the wrong category. In OO 04.3 you can select if you prefer to complete option a or b of OO 05. You must choose whether you would like to report the breakdown of your AUM to the nearest 5% or in broad ranges (<10%; 10-50%; >50%). Later you will be asked whether you would like to disclose the breakdown of your AUM to the nearest 5% (indicator OO 05a), in broad ranges ( as in OO 05b), or by uploading an image with your preferred representation. OO 05a and 5b DEFINITIONS Internally and externally managed assets Internally managed Externally managed Investment decisions (buy-sell-hold-weight) are made within the organisation itself, including consolidated and wholly-owned subsidiaries. Investment managers that primarily perform investment research internally and provide lists of eligible securities (or ineligible securities) to sub-advisor(s) should list their assets as internally managed. Check if any specifics of what to include in internally managed (direct) may be provided in the definitions of each asset class. Investment decisions (buy-sell-hold-weight) are made by third-party organisations (such as investment managers) on your behalf. If you are a fund of funds or manager of managers but the investment decisions (buy-sell-hold) for the underlying assets are made by third parties, list your assets as externally managed. Check if any specifics of what to include in internally managed (direct) may be provided in the definitions of each asset class. Asset classes Listed equity Fixed income corporate Fixed income - government Fixed income other Private debt All listed equity in all jurisdictions (developed, emerging and frontier markets). This does not include listed equity held in hedge funds. Fixed income corporate is defined as listed debt securities issued by private and public corporations. Fixed income government is defined as listed debt securities issued by national or local governments. Fixed income other is defined as listed debt securities issued by entities that are neither corporations nor national or local governments. These include multilateral institutions, (e.g. World Bank, IFC), development banks, etc. It may also include asset-backed securities (including Mortgaged-Backed Securities) and green bonds. Private debt consists of debt not publicly traded on exchanges. It includes products such as mezzanine, senior loans, second lien and high yield debt. List your private debt separately here if you manage it as an asset class by itself. However, if your private debt is managed within another asset class (e.g. fixed income or private 9

equity) and if your RI approach can be reported along the lines of those assets, you may report your private debt assets in the relevant asset class. Private equity Equity stakes in privately held companies. Property Infrastructure Non-listed forestry Non-listed farmland Hedge funds Commodities Inclusive finance Cash Other Internally and externally managed inclusive finance options Property consists of direct non-listed physical property investments, investments in non-listed property funds and investments in listed or non-listed property companies that invest in property. List your direct investments in non-listed physical properties (equity or debt) as internally managed (direct). List your investments in non-listed property funds or property management companies that make the investment decision and monitor on your behalf as externally managed (indirect). However, if you invest in property management companies and are significantly involved in the investment decisions and monitoring of the physical property assets, then you may list your assets as direct and thus report on the Direct Property module. Unlisted infrastructure funds and direct infrastructure investments. This includes both equity and debt. All forms of forestry-related investments, including direct investments, forestry funds and managed investment schemes. All forms of farmland and agriculture -related investments, including direct investments, farmland funds and managed investment schemes. All investment in hedge fund structures, regardless of asset class or strategy. Investments in private or public companies through hedge fund structures should be reported here and not double counted (for example, listed equity held in hedge fund structures should not also be reported under listed equity). All forms of commodity related investment, including direct investments in physical assets, long exposure to commodities through commodity future contracts and commodity exchange traded funds (ETFs). Where a hedge fund strategy includes some investment in commodities but this is not its exclusive focus, this should be included in your figures for hedge funds. This category includes any investment, direct or indirect, in a retail institution (i.e. company, bank, microfinance institution) that provides financial services (credit, savings, insurance, mortgages, remittances, payments) to clients who have traditionally been excluded from such services, whether consumers, microenterprises or SMEs. This could be in emerging or developed markets. For guidance on the distinction between internally managed (direct) and externally managed (indirect) investment, see below. This category includes cash and equivalents managed as a separate asset class. This category includes assets that do not fit any of the above categories. Indirect investments include investments in microfinance investment intermediaries (MIIs) and investment entities that have microfinance as one of their core investment objectives and mandates. This could be via Microfinance Investment Vehicles (both public and private), holding companies and non-specialized microfinance investment funds (see definitions below). MIIs can provide debt (directly or indirectly), equity or guarantees to microfinance institutions (MFIs). MIIs have a range of return expectations depending on whether they emphasize a financial or social return objective, but in all cases they are aiming at recovering their capital with a profit. There are three main types: 1. Microfinance Investment Vehicles (MIVs) are independent investment entities specialized in microfinance, with more than 50 percent of their non-cash assets invested in microfinance. They are either self-managed or managed by an 10

investment management firm and are open to multiple investors. MIVs may issue shares, notes, or other financial instruments. 2. Holding Companies provide financing and technical assistance to microfinance institutions. They usually hold a majority stake in their investees and are generally investible only by private invitation. 3. Other MIIs include but are not limited to: Microfinance investment funds that are not open to multiple investors Investment entities not specialized in microfinance, but with a significant microfinance investment portfolio Peer-to-Peer microlenders Fund of funds 11

Indirect Manager Selection, Appointment and Monitoring Indicator status Purpose Principle SAM 09 MANDATORY TO REPORT AND DISCLOSE CORE ASSESSED 2 SAM 09 SAM 09.1 INDICATOR For the listed equities where your external managers have (proxy) voting discretion, indicate the approximate percentage (+/- 5%) of possible votes that were cast during the reporting year. Votes cast (to the nearest 5%) % We do not track or collect this information Specify the basis on which this percentage is calculated of the total number of ballot items on which you could have issued instructions of the total number of company meetings at which you could have voted of the total value of your listed equity holdings on which you could have voted SAM 09.2 Additional information SAM 09 SAM 09.1 SAM 09.2 EXPLANATORY NOTES When calculating the percentage of votes case, please include only those holdings for which you have a given external managers the mandate to vote. Variations in reporting You may wish to comment on variations in the reporting provided by your investment managers and on the reasons for these variations. Reasons why managers choose not to vote: You may wish to comment on a variety of reasons why managers choose not to vote, including: - Share-blocking, - Late delivery of proxy materials - Administrative impediments (power of attorney requirements) - Technical problems - Voting fees - Small holdings - Geographical restrictions (e.g. non-home market) - Insufficient information available to support voting decisions - Overall cost-effectiveness 12

Direct Listed Equity Incorporation Indicator status Purpose Principle LEI 03 MANDATORY TO REPORT AND DISCLOSE GATEWAY/CORE ASSESSED 1 LEI 03 LEI 03.1 INDICATOR Indicate which ESG incorporation strategy and/or combination of strategies you apply to your actively managed listed equities; and the breakdown of your actively managed listed equities by strategy or combination of strategies. Incorporation strategy (complete all that apply) Percentage of active listed equity to which the strategy is applied (estimate +/- 10%) Screening alone (i.e. not combined with any other strategies) % Thematic alone (i.e. not combined with any other strategies) % Integration alone (i.e. not combined with any other strategies) % Screening + integration strategies % Thematic + integration strategies % Screening + thematic strategies % All three strategies combined % No incorporation strategies applied % Total actively managed listed equities 100% LEI 03.2 Describe your primary reasons for choosing a particular incorporation strategy. 13

LEI 03.3 If assets are managed using a combination of ESG strategies, describe briefly how these are used in combination. LEI 03.4 Additional information LEI 03 LEI 03.1 LEI 03.2 EXPLANATORY NOTES Under Principle 1, you undertake to incorporate ESG issues into investment analysis and decision-making processes. The purpose of this indicator is to allow you to demonstrate the proportions of your listed equity assets that are covered by different approaches to implementing this Principle. There are many different ways in which this can be done. The options provided are intended to allow you to reflect your particular approach as faithfully as possible. The above combinations may not perfectly represent your strategy. This indicator will also determine whether you see more detail indicators on the individual strategies. Therefore please select the strategy that most closely matches your approach. If you apply two strategies to the same assets, please select the appropriate combination options. For example, for some assets you may only apply screening and for other assets you may apply a combination of screening and integration. In that case you select both Screening alone and Screening + Integration strategies. You will have to categorise all your assets to one or more of these options, so the total adds up to 100%. If you do not apply any approach to incorporation and the option No incorporation strategies applied accounts for 100% of your listed equity assets, you will not need to report further in the actively managed listed equity section of this module. This may include a discussion of: - Due to choice(s) made by your organisation, - Due to financial and/or ESG implications, - To meet client demand. LEI 03 DEFINITIONS For definitions of these strategies, please refer to the Main definitions at the end of this document. 14

LEI 14 Indicator status Purpose Principle MANDATORY TO REPORT, VOLUNTARY TO DISCLOSE DESCRIPTIVE 1 LEI 14 LEI 14.1 INDICATOR Indicate if you manage passive listed equity funds that incorporate ESG issues in the index construction methodology. Yes No LEI 14.2 Indicate the percentage of your total passive listed equity funds for which ESG issues are incorporated in the index construction methodology. ESG incorporation in index construction methodology (% of total passive listed equity funds) <10% 10-50% 51-90% >90% LEI 14.3 Specify index and fund name, provide a brief description of ESG methodology and indicate which of the following ESG incorporation approaches you apply. Index and fund name and brief descripton of ESG methodology Strategy (tick all that apply) ESG integration Screening Sustainability themed investments Other ESG integration Screening Sustainability themed investments Other ESG integration Screening Sustainability themed investments Other ESG integration Screening Sustainability themed investments Other ESG integration Screening Sustainability themed investments Other LEI 14.4 Additional information LEI 14 LEI 14.3 DEFINITIONS For definitions of passive and active management and the incorporation strategies, please refer to the Main definitions at the end of this document. 15

Indicator status Purpose Principle LEI 15 VOLUNTARY TO REPORT AND DISCLOSE DESCRIPTIVE 1 LEI 15 LEI 15.1 INDICATOR Indicate how your ESG incorporation strategies have influenced the composition of your portfolio(s) or investment universe. Screening Describe any reduction in your starting investment universe or other effects. Specify the percentage reduction % Sustainability themed investments Describe any alteration to your investment universe or other effects. Integration of ESG issues Select which of these effects followed your ESG integration: Reduce or prioritise the investment universe Overweight/underweight at sector level Overweight/underweight at stock level Buy / sell decisions Other, specify Index incorporating ESG issues (for passively managed funds) Describe. LEI 15.2 Additional information LEI 15 LEI 15.1 EXPLANATORY NOTES You are encouraged to discuss whether the ESG incorporation approach has affected portfolio design and construction (e.g. by reference to particular sectors, geographies, percentage of the universes screened in or screened out, etc.) You can provide further information on specific ESG issues that have affected individual investment views, decisions and performance under indicator LEI 17. 16

Direct - Listed Equity Active Ownership SECTION Engagements LEA 11 Indicator status Purpose Principle MANDATORY TO REPORT, VOLUNTARY TO DISCLOSE CORE ASSESSED 2 LEA 11 LEA 11.1 INDICATOR Indicate the number of companies with which your organisation engaged in the reporting year. Number of companies engaged (please avoid double counting, see notes) Individual / Internal staff engagements Collaborative engagements Service provider engagements LEA 11.2 Indicate what percentage of your engagements were comprehensive. % Comprehensive Individual / Internal staff engagements Collaborative engagements Service provider engagements >50% <10% >50% <10% >50% <10% 10-50% None 10-50% None 10-50% None LEA 11.3 Indicate what percentage of your collaborative engagements you were a leading organisation. % Leading role Collaborative engagements 50% 10-50% <10% None 17

LEA 11.4 Indicate for which part of your service provider engagements you were highly involved. % High involvement Service provider engagements 50% 10-50% <10% None LEA 11.5 Additional information LEA 11 LEA 11.1 EXPLANATORY NOTES The purpose of this sub-indicator is to allow you to report the number and intensity of your engagements. Number of companies engaged Please record the total number of companies with which you engaged in the reporting year irrespective of the number of issues on which you engaged. Estimates/partial numbers In LEA 10 you will be able to indicate if the information you provide are estimates or partial numbers. You can provide these estimates or partial numbers in this indicator. The fact that these are estimates or partial will be noted in the various reporting outputs. Moreover, you may provide further explanation in the Additional Information field below. Avoid double counting Do not count the same case of engagement with a company in more than one category. LEA 11.4 Beyond measuring engagements by number of companies engaged, there can be additional ways investors may track and report their engagement activities. Some investors for example capture their engagements by AUM covered. Others report on their engagements, highlighting how they mostly engage where they have the highest percentage of ownership in a company. Describe here any additional way you may wish to report your engagement activities, interactions and effort. LEA 11 LEA 11 DEFINITIONS For definitions on engagements, who conducts them, the intensity and the effort, please refer to the Main definitions at the end of this document. 18

Indicator status Purpose Principle LEA 12 VOLUNTARY TO REPORT AND DISCLOSE ADDITIONAL ASSESSED 2 LEA 12 LEA 12.1 INDICATOR Indicate if your engagements in the reporting year covered E, S and/or G issues. Type of engagement Individual / Internal staff engagements Collaborative engagements Service provider engagements Coverage Environmental Social Corporate Governance We do not track this information Environmental Social Corporate Governance We do not track this information Environmental Social Corporate Governance We do not track this information LEA 12.2 Provide an estimated breakdown by E, S and/or G issues. Type of engagement ESG issues % Environmental only % Social only Individual / Internal staff engagements % Corporate Governance only % Overlapping ESG issues 100% We do not track this information % Environmental only % Social only Collaborative engagements % Corporate Governance only % Overlapping ESG issues 100% We do not track this information 19

% Environmental only % Social only Service provider engagements % Corporate Governance only % Overlapping ESG issues 100% We do not track this information LEI 12.3 Additional information. LEA 12 LEA 12 LEA 12.2 EXPLANATORY NOTES The purpose of this indicator is to record the spread of your engagement across ESG issues in the reporting year. Overlapping ESG issues When an engagement involves issues in more than one of the Environmental, Social and Governance categories, please avoid double counting and only record as Overlapping ESG issues. LEA 12 LEA 12 DEFINITIONS For definitions of E, S and G issues, please refer to the Main definitions at the end of this document. 20

Indicator status Purpose Principle LEA 13 VOLUNTARY TO REPORT AND DISCLOSE DESCRIPTIVE 2 LEA 13 LEA 13.1 INDICATOR Indicate whether you have a reliable estimate of the number of cases during the reporting year where a company has changed its practices, or made a commitment to do so, following your organisation s and/or your service provider's engagement activities. Yes No LEA 13.2 Indicate the number of company changes or commitments to change recorded in the reporting year following your organisation s and/or your service provider's engagement activities. Internal/ individual engagements Collaborative engagements Service provider engagements LEA 13.3 Additional information LEA 13 LEA 13 EXPLANATORY NOTES There are many factors that influence company practices and behaviour and change; often an engagement is only one contributing factor. The intention here is not that you should prove that your engagement was the sole reason for an identified change. However, please explain if you believe you can attribute the change to your engagement and why. 21

SECTION (Proxy) voting and shareholder resolutions Indicator status Purpose Principle LEA 22 MANDATORY TO REPORT AND DISCLOSE CORE ASSESSED 2 LEA 22 LEA 22.1 INDICATOR For listed equities where you, and/or your service provider, has the right to issue (proxy) voting instructions, indicate the percentage of votes cast during the reporting year. Votes cast (to the nearest 1%) % We do not track or collect this information Specify the basis on which this percentage is calculated of the total number of ballot items on which you could have issued instructions of the total number of company meetings at which you could have voted of the total value of your listed equity holdings on which you could have voted LEA 22.2 If there are specific reasons why you did not vote certain holdings, explain these, and if possible, indicate the percentage of holdings affected by these factors. LEA 22.3 Additional information LEA 22 LEA 22.1 LEA 22.2 EXPLANATORY NOTES When calculating the percentage of votes cast, please include only those holdings for which you have a client mandate to vote. If you do not have a mandate, do not include those holdings in the numerator or denominator of the ratio. Reasons for choosing not to vote (although your organisation holds the mandate) could include: Strategic decision not to vote on a certain type of assets or funds Operational or timing constraints Share-blocking Conflicts of interest Administrative impediments (e.g. power of attorney requirements) Voting fees Geographical restrictions (non-home market) Insufficient information. 22

Indicator status Purpose Principle LEA 23 VOLUNTARY TO REPORT AND DISCLOSE DESCRIPTIVE 2 LEA 23 LEA 23.1 INDICATOR Indicate if you track the voting instructions that you and/or your third party have issued on your behalf. Yes, we track this information No, we do not track this information LEA 23.2 Of the voting instructions that you issued, and/or third parties issued on your behalf, indicate the proportion of ballot items that were: Voting instructions Breakdown as percentage of votes cast For (supporting) management proposals % Against (opposing) management proposals % Abstentions % Total 100% LEA 23.3 For the reporting year, describe your approach towards voting on shareholder resolutions. LEA 23.4 Additional information LEA 23 LEA 23 EXPLANATORY NOTES Withhold votes Under some voting systems shareholders are given the option to only vote for a resolution or withhold their support (e.g. director election). For the purpose of this indicator withhold votes that have the effect of a vote opposing the proposal should be included under the Against voting recommendations. 23

Indicator status Purpose Principle LEA 24 VOLUNTARY TO REPORT AND DISCLOSE DESCRIPTIVE 2 LEA 24 LEA 24.1 INDICATOR Indicate if your organisation directly or via a service provider filed or co-filed any shareholder resolutions during the reporting year. Yes No LEA 24.2 Indicate the number of ESG shareholder resolutions you filed or co-filed. Total LEA 24.3 Indicate what percentage of these ESG shareholder resolutions. Went to vote % Were withdrawn due to changes at company and/or negotiations with the company % Were withdrawn for other reasons % Total 100% LEA 24.4 Of the ESG shareholder resolutions that you filed or co-filed and that were put to vote (i.e. not withdrawn) how many received: >50% approval 50-20% approval <20% approval LEA 24.5 Describe the ESG shareholder resolutions that you filed or co-filed and the outcomes achieved. LEA 24.6 Additional information LEA 24 LEA 24 EXPLANATORY NOTES This indicator is intended to capture both the number and nature of ESG shareholder resolutions that you filed or co-filed, and the outcomes of any engagement associated with the filing of resolutions. 24

LEA 24.5 Your description of the ESG shareholder resolutions could include : The rationale for filing these resolutions. The process undertaken to generate the support required to submit the resolution. The subject of the resolution(s) The markets in which they were filed Why some resolutions were withdrawn Whether company management changed its approach to address your concerns, or other outcomes that resulted. Whether your voting intentions changed as a result of action by company management. 25

Direct Fixed Income Indicator status Purpose Principle FI 04 MANDATORY TO REPORT AND DISCLOSE GATEWAY/CORE ASSESSED 1 FI 04 FI 04.1 INDICATOR Indicate which ESG incorporation strategy and/or combination of strategies you apply to your actively managed fixed income corporate investments; and the breakdown of your actively managed fixed income corporate investments by strategy or combination of strategies. Incorporation strategy (complete all that apply) Percentage of actively managed fixed income corporate to which the strategy is applied (estimate +/- 10%) Screening alone (i.e. not combined with any other strategies) % Thematic alone (i.e. not combined with any other strategies) % Integration alone (i.e. not combined with any other strategies) % Screening + integration strategies % Thematic + integration strategies % Screening + thematic strategies % All three strategies combined % No incorporation strategies applied % Total actively managed fixed income corporate 100% FI 04.2 Describe your primary reasons for choosing a particular incorporation strategy. 26

FI 04.3 If assets are managed using a combination of ESG strategies, describe briefly how these are used in combination. FI 04.4 Additional information FI 04 FI 04 FI 04.2 EXPLANATORY NOTES Under Principle 1, you undertake to incorporate ESG issues into investment analysis and decision-making processes. The purpose of this indicator is to allow you to demonstrate the proportions of your fixed income corporate investments that are covered by different approaches to implementing this Principle. There are many different ways in which this can be done. The options provided are intended to allow you to reflect your particular approach as faithfully as possible. The above combinations may not perfectly represent your strategy. This indicator will also determine whether you see more detailed indicators on the individual strategies. Therefore please select the strategy that most closely matches your approach. If you apply two strategies to the same assets, please select the appropriate combination options. For example, for some assets you may only apply screening and for other assets you may apply a combination of screening and integration. In that case you select both Screening alone and Screening + Integration strategies. You will have to categorise all your assets to one or more of these options, so the total adds up to 100%. If you do not apply any approach to incorporation and the option No incorporation strategies applied accounts for 100% of your corporate fixed income investments, you will not need to report further in the actively managed fixed income corporate section of this module. This may include a discussion of: - Due to choice(s) made by your organisation, - Due to financial and/or ESG implications, - To meet client demand' FI 04 DEFINITIONS For definitions of these strategies, please refer to the Main definitions at the end of this document. 27

PRI Reporting Framework 2013 Main definitions June 2013 reporting@unpri.org +44 (0) 20 7749 5106

Table of Contents ESG issues 30 Active/ Passive investments 31 ESG incorporation 32 Active ownership and engagement 35 29

ESG issues Definition ENVIRONMENT, SOCIAL AND GOVERNANCE ISSUES A definitive list of environmental, social and governance (ESG) issues does not exist. It would not be possible or desirable to produce a list, or a set of definitions, that claimed to be exhaustive or definitive. Any such list would inevitably be incomplete and would soon be out of date. Nonetheless, the table below provides examples of ESG issues, for guidance purposes. This is intended primarily for signatories who are relatively new to responsible investment and to the PRI. Some modules (e.g. Property) provides examples of ESG issues that are specific to that sector or asset class. Environmental (E) Social (S) Governance (G) Issues relating to the quality and functioning of the natural environment and natural systems. These include: biodiversity loss; greenhouse gas (GHG) emissions, climate change, renewable energy, energy efficiency;, air, water or resource depletion or pollution; waste management;; stratospheric ozone depletion; changes in land use; ocean acidification and changes to the nitrogen and phosphorus cycles. Issues relating to the rights, well-being and interests of people and communities. These include: human rights, labour standards in the supply chain, child, slave and bonded labour, workplace health and safety, freedom of association, and freedom of expression, human capital management and employee relations; diversity; relations with local communities, activities in conflict zones, health and access to medicine, HIV/AIDS, consumer protection; and controversial weapons. Issues relating to the governance of companies and other investee entities. In the listed equity context these include: board structure, size, diversity, skills and independence; executive pay; shareholder rights; stakeholder interaction; disclosure of information; business ethics; bribery and corruption; internal controls and risk management; and, in general, issues dealing with the relationship between a company s management, its board, its shareholders and its other stakeholders. This category may also include matters of business strategy, encompassing both the implications of business strategy for environmental and social issues, and how the strategy is to be implemented. In the unlisted asset classes governance issues also include matters of fund governance, such as the powers of Advisory Committees, valuation issues, fee structures, etc. Numerous organisations and projects have identified ESG issues by sector, together with associated key performance indicators. Examples include: The European Federation of Financial Analysts Societies (EFFAS): KPIs for ESG - A Guideline for the Integration of ESG into Financial Analysis and Corporate Valuation The CFA Institute: Environmental, Social and Governance Factors at Listed Companies - A Manual for Investors UNEP FI and WBCSD: Translating environmental, social and governance factors into business value ESG research providers and brokers are also well placed to provide advice in this area. 30

Active/ Passive investments Definition Passive strategies Active - quantitative (quant) strategies Active - fundamental Active - other ACTIVELY AND PASSIVELY MANAGED STRATEGIES Investment strategies or funds that aim to replicate broad capital market index benchmarks (for this reason they are referred to as index or tracker funds). Investment strategies or funds where the manager builds computer-based models to determine whether an investment is attractive. In a pure "quant model" the final decision to buy or sell is made by the model. Fundamental strategies in which investment decisions are based on human judgment. This includes both bottom-up (e.g. stock-picking) and top-down (e.g. sector-based) strategies. Strategies that do not match any of the above strategies. These may be active strategies that combine active quant and active fundamental strategies, or other strategies that you believe do not fit at all the above definitions. You may clarify your strategy in Additional Information field. 31

ESG incorporation Definition ESG INCORPORATION Incorporation of ESG issues into investment analysis and decision-making processes is covered in Principle 1 of the PRI. Throughout the Reporting Framework, we refer to ESG incorporation as the review and use of ESG information in the investment decision-making process. The Reporting Framework addresses four ways in which this can be done: Screening Sustainability themed investment (also referred to as environmentally and socially themed investment) Integration of ESG issues A combination of the above Assets subject to an engagement approach only and not subject to any of the above strategies should not be included in ESG incorporation. To improve standardisation and communication in the responsible investment industry, the PRI is aligning its definitions with those of the Global Sustainable Investment Alliance. These are presented below for convenience. Screening of investments Sustainability themed investing Integration of ESG issues This involves three types of screening: a. Negative/exclusionary screening: The exclusion from a fund or portfolio of certain sectors, companies or practices based on specific ESG criteria; b. Positive/best-in-class screening: Investment in sectors, companies or projects selected for positive ESG performance relative to industry peers; c. Norms-based screening: Screening of investments against minimum standards of business practice based on international norms. Investment in themes or assets specifically related to sustainability (for example clean energy, green technology or sustainable agriculture). The systematic and explicit inclusion by investment managers of environmental, social and governance factors into traditional financial analysis. Investment decision-making processes For the purposes of the Reporting Framework, investment decision making processes refers to research, analysis and other processes that lead to a decision to make or retain an investment ( i.e. to buy, sell or hold a security), or to commit capital to an unlisted fund or other asset. (Proxy) voting decisions and engagement activities are not classified as investment decisions for the purposes of the Reporting Framework. These decisions fall under Principle 2 of the PRI, relating to active ownership, and within the Listed Equity Active Ownership (LEA) module of the Framework. 32

FURTHER EXPLANATION OF DEFINITIONS FOR ACTIVE STRATEGIES Screening Sustainability themed investing Integration of ESG issues Combined approaches Screening covers both screening conducted under a manager s own policy and client-directed screening. Negative/exclusionary screening and positive/best-in-class screening are based on criteria defined in a variety of ways: by product, activity, sector, geographic region or management practices. Norms-based screening involves either: i) defining the investment universe based on investees performance on international norms related to responsible investment/esg issues, or ii) excluding investees from portfolios after investment if they are found following research, and sometimes engagement, to contravene these norms. Such norms include but are not limited to the UN Global Compact Principles, the Universal Declaration of Human Rights, International Labour Organization standards, the United Nations Convention Against Corruption and the OECD Guidelines for Multinational Enterprises. Sustainability themed investing involves the selection of assets that contribute to addressing sustainability challenges such as climate change or water scarcity. Funds can either be single-themed or multi-themed. For the purpose of this Reporting Framework, we use interchangeably the term environmental and social themed and sustainability themed investments. Integration of ESG issues encompasses the use of qualitative and quantitative ESG information in investment processes, with the objective of enhancing investment decision-making. Integration of ESG issues can be used to inform economic analysis and industry analysis. It can be used at the portfolio level, by taking into account ESG-related trends such as climate change, or at the stock, issuer, or investee level. The term is used interchangeably with ESG integration or integrated analysis. Integrated analysis for active stock-picking or other equity investments includes analysing how ESG issues can affect a company s balance sheet, income statement or cash flow models, by affecting costs, revenues, and business growth assumptions (i.e. in the estimation of a company s fundamental value). Integrated analysis for active bond-picking and other debt funds involves analysing how ESG issues can affect an issuer s creditworthiness. This type of analysis can also be used by funds that pick bond issuers using quantitative modelling. Integrated analysis for both equities and debt includes an assessment of a company s quality of management and the business risks and opportunities it faces related to ESG issues, allowing comparisons between companies. For examples of how investors are conducting integrated analysis for listed equities, see Integrated Analysis: How Investors Are Addressing Environmental, Social and Governance Factors in Fundamental Equity Valuation, published by the PRI in February 2013. Combined approaches might include for example: Establishing a sustainable agriculture thematic fund that screens out companies involved in producing tobacco and uses integrated analysis to select companies for inclusion in the fund. Running a fund that applies 20 negative screens to determine the investible universe and uses integrated analysis to select companies for investment from within the investible universe. Running a global equities fund using integrated analysis to select stocks combined with a norms-based approach, investigating any serious alleged breaches of selected international norms and divesting companies found to be in serious breach of a norm (often after engagement). 33

FURTHER EXPLANATION OF DEFINITIONS FOR PASSIVE STRATEGIES Screening Sustainability themed investments Integration of ESG issues Screening may include the use of indices constructed from an eligible universe based on the ESG characteristics of a company or country, but in which ESG issues do not play a part in the weighting of those companies or countries within the index. This may include indices constructed using ESG best-in-class or positive selection methodologies which identify securities for index inclusion (e.g. FTSE4Good, Dow Jones sustainability and MSCI ESG indices) or indices that exclude particular companies or countries (e.g. on the basis of products or activities). Exclusions may also be activity-based (i.e. exclude securities on the basis of their industry or business activities, for example, tobacco or controversial weapon screens), or location-based (i.e. exclude securities from companies who operate in certain countries, or the sovereign debt from those countries). Alternatively, there may be norms-based exclusions (i.e. indices which exclude securities of issuers considered to have broken certain minimum standards of business conduct based on international norms, such as the UN Global Compact). Sustainability themed investments cover passive funds investing in companies linked to specific themes (e.g. indices focused entirely on environmental and social themes such as clean technology, climate change, microfinance and impact investing). Integration of ESG issues typically alternative weighted ESG indices in which constituent security weights take account of the ESG characteristics of the company or country. 34

Active ownership and engagement Definition Active ownership Engagement (Proxy) voting and shareholder resolutions ACTIVE OWNERSHIP AND ENGAGEMENT Active ownership is the use of the rights and position of ownership to influence the activity or behaviour of investees. This can be applied differently in each asset class. For listed equities it includes both engagement and (proxy) voting (including filing shareholder resolutions). For other asset classes (e.g. fixed income), engagement may still be relevant while (proxy) voting may not. Engagement refers to interactions between the investor and current or potential investees (which may be companies, governments, municipalities, etc.) on ESG issues. Engagements are undertaken to influence (or identify the need to influence) ESG practices and/or improve ESG disclosure. Voting refers to voting on management and/or shareholder resolutions as well as filing shareholder resolutions. FURTHER EXPLANATION OF DEFINITIONS FOR ENGAGEMENT Do not include the following as engagements: Interactions with companies for data collection and/or research purposes related to buy/hold/sell/weight decisions. Standard questionnaires sent to companies for the purposes of information gathering and investment decision-making related to Principle 1 only (e.g. on products, or ESG policies and performance, for screening purposes). Attendance at a company presentation, AGM or other company meeting without interactions or discussion. CDP s disclosure requests on GHG emissions, water and forests. These are not captured as engagements but are reported in Overarching Approach (OA). Press releases an investor may publish regarding a practice an investee is undertaking which the investor is aiming to change. Interactions intended to influence public policy or industry bodies defining best practices may not necessarily relate to specific underlying assets. Hence, do not report these in the asset class modules, but in the Overarching Approach (OA) module. 35

ENGAGEMENTS SPLIT BY WHO CONDUCTS THEM There are many different configurations of engagement. Investors engage with companies directly in their own name, in collaboration with other investors (through investor networks and membership organisations) and through commercial service providers. The distinctions between these are not always clear-cut. Please use the definitions below and your best professional judgement when deciding how to classify your engagement. Review the process indicators for each category (LEA 03-04 for internal; LEA 05-06 for collaborative; and LEA 07-08 for service providers) and determine which indicator/s best fit your business model. Please contact the Reporting and Assessment team if you require additional clarification. The defining characteristics of an individual/internal staff engagement are: it is carried out by your internal staff alone, with no involvement or support from other investors, investor networks or service provider Individual/ Internal staff engagement it is conducted in the name of your organisation (i.e. the companies with which you engage can identify your organisation individually) and you do not act on behalf of other organisations. Joining the CDP should not be counted as an engagement but reported as part of the way you support responsible investment in Organisational Approach OA10. However, if your organisation engages in its own name with companies on their carbon emissions, water or forest footprint disclosure as a follow-up to CDP disclosure requests, you should report these engagements as individual/internal staff engagements. Collaborative engagement is engagement that an investor conducts jointly with other investors. This includes: Collaborative engagement groups of investors working together without the involvement of a formal investor network or other membership organisation. groups of investors working together with the support of a formal t investor network or other membership organisation, with some level of support but with individual members of the collaboration responsible for most of the engagement activity. collaborative engagement supported by PRI staff and conducted through the PRI Clearinghouse platform. Joining the CDP should not be counted as an engagement but reported as part of the way you support responsible investment in Organisational Approach OA10. However, if your organisation engages with a group of investors in its own name with companies on their carbon emissions, water or forest footprint disclosure as a follow-up to CDP disclosure requests, you should report these engagements as collaborative engagements. Service provider engagements include engagements conducted via: Service provider engagement commercial parties that provide stand-alone engagement services, without managing their clients underlying assets. investor organisations that conduct engagement on their members behalf, and which have an explicit mandate from their members to represent them. These include engagements conducted entirely on an outsourced basis as well as those facilitated by the service provider but the investor s own staff undertake some of the engagement activity. 36