House Award for Long Only Funds "*" indicates required fields Step 1 of 5 20% Submission ID* Region* Category* Other Submission ID Clone submission Also apply this submission for other entries.House Award for Long Only Equity FundsName of firm* The Flagship Fund's name* The Fund's ISIN Code* Data as of the quarter-end DD slash MM slash YYYY Total Fund Size (including all share classes)* Total Number of Portfolio Manager(s)* Total Number of Analysts* Pillar 1: Investment Approach Note: When answering the questions in this pillar, please provide responses directly relevant to this specific fund/strategy. They should NOT be general answers that apply generally to all your firm's funds/strategies. [i] Material impacts are events likely to affect a company's operations and/or financial position, positively or negatively. Materiality varies from one industry to another and one business model to another. They may include, but are not limited to, supply chain, employee welfare, environmental practices, product safety, etc. [ii] Steps taken during the investment/divestment process can include, but are not limited to: ․ Information/data gathering ․ Interpretation of data/information including use in quantitative signals, big data-based models and other similar models ․ Modeling of investee's earnings, cash flow, market share and/or other similarly material activities ․ Formulating/assessing/revising the investment thesis ․ Formulating/assessing/revising the position's risk profile in the overall portfolio ․ Evaluating/revising the position's weight in the portfolio ․ Complete divestment ․ Deciding on a proxy vote ․ Engaging with the investee on suboptimal ESG practices ․ Other steps you take during the investment/divestment process [iii] Definition of concrete: Explicitly and clearly defined framework, parameters, principles, methods / techniques and objectives are available for imminent implementation [iv] "Traditional" comingled funds use research, portfolio and risk management resources and techniques that have become common in the industry. They rely on earnings reports, news flows, interviews with investees, visits to investees' premises, economic assessments, sector/industry reports, experts' views and other "traditional" sources of information. Examples of traditional comingled funds include, but are not limited to: bottom-up long only, bottom-up long/short, combination of top down/bottom up. [v] Adaptation of the CFA Institute ESG Disclosure Standards For Investment Products, November 2021 [vi] Adaptation of the PRI Principles – Principle 2 on active ownership policies and practices 1. Investment style consistency: Who has the ultimate responsibility for keeping the investment style consistent under all conditions and circumstances?Please select the closest answer. The CIO The CEO The CFO, COO The Chief Risk Officer The lead portfolio manager/s of this strategy Portfolio managers not directly managing this strategy Research analysts directly supporting this strategy Research analysts not supporting this strategy The entire investment team The investment committee An individual or group other than the above No person or team, or group is ultimately responsible We do not know the answer Additional Remarks, if any (maximum 250 words)2. Investment style consistency: If the investment style deviates, are there material, negative consequences for the person with ultimate responsibility for ensuring style consistency? Yes, there are material consequences, including bonus reduction, promotion freeze and/or specific financial consequences on the ultimately responsible individual No, there are no material consequences Additional Remarks, if any (maximum 250 words)3. Investment process: Does the investment process include any of the following.Please select all the most applicable answers. We have a clear and consistent investment process We have the strategy to have a target investors' risk/return profile The initial screening of the investment universe account for target investors' needs We generate ideas from the bottom up, e.g., drilling down into a potential investee's business model, moat, future cash flow, etc. We generate ideas from macro views, e.g., structural shifts, economic cycles, regime change, regulatory shifts, etc. Portfolio Managers are allowed to buy securities outside of the list of securities approved by the investment committee and/or CIO The risk managers are consulted at one or more points during the research, investment, divestment processes Additional Remarks, if any (maximum 250 words)4. Do you take ESG as Investment/Divestment materiality consequences? Yes. ESG effects on the portfolio are NOT currently considered, and we have NO plans to take them into account ESG effects on the portfolio are NOT currently considered, but we have CONCRETE[iii] PLANS to take them into account within the next 12 months Selected: Yes - How would you allocate ESG consequences as material impact for this particular strategy? (The sum must add to 100%)EnvironmentalPlease enter a number from 0 to 100.SocialPlease enter a number from 0 to 100.GovernancePlease enter a number from 0 to 100.5. ESG as Investment Process [v]: Is ESG information is used in an investment product's investment process or stewardship activities? Yes No Selected: Yes The investment product's compliant presentation includes a description of the sources and types of ESG information used in the investment process or stewardship activities As investment managers, we allocate efforts to evaluate the reliability of the ESG information used, including the following: Selected: As investment managers, we allocate efforts to evaluate the reliability of the ESG information used, including the following: independent evaluation of information reported by investees or provided by ESG data providers cross-referencing two or more sources of information evaluation of the accuracy or completeness of a dataset when determining the sources and types of ESG information that will be used in the investment process evaluation of models that estimate or interpolate missing data elements evaluation of how inherent uncertainty in specific data sets might affect investment decisions establishment of data quality monitoring and controls taking steps to validate anomalies, including notifying sources of potential errors 6. When determining the materiality of ESG factors[v] [vi], does the strategy consider the following factors: (an adaptation of the CFA ESG disclosure requirements and recommendations) The extent to which the materiality issue influences the objectives of the investment product or the likelihood of achieving them The extent to which the materiality issue affects the size and characteristics of the investment universe The extent to which the materiality issue affects investment decisions or the investment process The extent to which the materiality issue affects stewardship activities The likelihood that the materiality issue would attract prospective investors with needs and preferences that differ from those of current investors Whether the materiality issue triggers a local regulatory requirement, such as filing new documents, updating existing documents with a regulator, or providing new or updated disclosures to current investors ESG factors affect a specific company and not the market as a whole Sector/geographic risk affecting an entire industry or region, including regulatory and technological materiality issues associated with the business activity the company is involved in and/or to the markets it sources or sells to Systematic interaction between sectors in response to poorly understood risks which may be mispriced Indirect exposure such as resource scarcity prompting a tightening monetary policy, poor liquidity could drive investment losses ESG Materiality factors are not currently considered Additional Remarks, if any (maximum 250 words)7. Response to capital/asset markets' structural changes: How is this investment strategy responding to these changes for investors' benefit?Please choose one applicable answer: We believe the capital/asset markets have changed fundamentally -- volatility is appreciably more significant than before, therefore: We are aware of the structural changes, and we acknowledge that our investment strategy needs to make some adjustments; however, we do not intend to take any action We are aware of the structural shifts, but we do not think our investment strategy needs to adjust in response We are not aware of any structural shifts We have not yet taken any action and do not have any concrete[iii] plans to act within the next 12 months We are studying the structural changes closely, intending to formulate a plan of action within the next 12 months Selected: I believe the capital/asset markets have changed fundamentally -- volatility is appreciably more significant than before, therefore: We have instituted or have concrete[iii] plans to institute within the next 12 months to improve liquidity at the portfolio and/or security levels We have sharpened or have concrete[iii] plans to sharpen within the next 12 months) our approach to limiting portfolio drawdowns We are using (or have concrete[iii] plans to operate within the next 12 months) ESG as an integral part of our risk and portfolio management We have incorporated (or have concrete[iii] plans to incorporate) assets/asset classes/investment or risk management techniques that safeguard the portfolio when the regime changes Additional Remarks, if any (maximum 250 words)8. Actual Example - Only shortlisted candidates who made it to the Gatekeeper Forum will be required to complete actual example.Hidden8. Actual Example - Please provide an ACTUAL example of how you executed ONE of the following, in a maximum of 500 words. Maintained investment style consistency during a particularly challenging time for the portfolio Incorporating ESG as material consequences to the investment and divestment process Responded to structural changes in the capital or asset markets to improve risk/returns to investors HiddenPlease briefly describe the critical challenge/s, actions taken, results and lessons learned: Pillar 2: Portfolio Management Note: When answering the questions in this pillar, please provide responses directly relevant to this specific fund/strategy. They should NOT be general answers that apply generally to all your firm's funds/strategies. [i] Formula for no. of holdings: Where M1, M2, M3, … M36 = no. of holdings at the end of month 1,2,3 … 36 Average no. of holdings = (M1+M2+M3+ … M36)/36 [ii] Material impacts are events likely to affect a company's operations and/or financial position, positively or negatively. Materiality varies from one industry to another and one business model to another. They may include but are not limited to supply chain, employee welfare, environmental practices, product safety, etc. [iii] Formula for active share: Active share=1/2 ∑_(i=1)^n〖(Wfa-Wia)〗 where Wfa is the weight of security "a" in the fund Wia is the weight of security "a" in the index The formula in words: Sum of difference between each security's portfolio weight and index weight, divided by two (Note - Please include cash in your calculation, as holding cash is an active decision) [iv] Adaptation of the CFA Institute ESG Disclosure Standards For Investment Products, November 2021 1. Portfolio Limits: does the fund have explicit portfolio limits such as, but not limited to, single country, single sector, single security, single asset class, the correlation between securities, or other spelled-out limits. We are a Constrained Fund We are an Unconstrained Fund Constrained Fund - the portfolio manager can deviate from the explicit limits by: By a maximum of 5 percentage points By more than 5 percentage points, up to 10 percentage points By more than 10 percentage points By any magnitude they choose We don't know whether this fund has explicit portfolio limits Unconstrained Fund - But we ensure that the fund's risk level is aligned with target investors We have soft guidelines, including but are not limited to a maximum of 40-60% exposure to highly correlated assets or single security, issuer, country, sector, revenue source, asset class, etc. We have no exposure guidelines at all. The portfolio manager may place 100% of the fund's assets into a single security, a single country, a single sector, a single issuer, a single group of highly correlated assets, cash, etc. Our portfolio construction does not take into account our target investors' risk/return profile The question of risk management is irrelevant or does not apply to us Additional Remarks, if any (maximum 250 words)2. Portfolio level ESG characteristics [iv]: We have decided ESG criteria to be used as our portfolio characteristics that include: Scope 1 and Scope 2 greenhouse gas emissions asset-weighted percentage of the portfolio invested in green bonds asset-weighted percentage of the portfolio invested in economic activities deemed to be sustainable by a regulatory or third-party classification standard board gender diversity breakdown of energy consumption by type of non-renewable sources of energy share of investments in investee companies that have been involved in violations of the UN Global Compact principles or OECD Guidelines for Multinational Enterprises exposure to specific industries, sectors, and geographies with adverse impacts on ESG issues exposure to specific industries, sectors, and companies that aid transition to a low-carbon economy the ratio of "green" investments to "brown" investments We do not have an established portfolio-level criterion that is based on ESG information or ESG issues 3. ESG based Securities Selection criteria[iv]: We take steps to incorporate financially material ESG information alongside traditional financial information in financial analysis and valuation of the investment product's investments: Companies and issuers that have an environmental score in the bottom 50% of their industry-based peer group are excluded from our security selection universe The bottom 50% of their industry-based peer group are excluded from our security selection universe Equity securities that score in the top 50% are then screened for financial criteria, including but not limited to thresholds for earnings growth estimates and price-to-earnings ratios We do not have an established security selection criterion that is based on ESG information or ESG issues 4. The number of holdings [i]: What is the average number of securities in the fund over the last 3 years? Below 30 30 - 44 45 - 59 60 - 74 75 - 89 90 - 104 105 - 119 120 and above Inception period less than 3 years 5. Security weight: What determines the weight of each security?Please select all that apply: Liquidity at the security level Liquidity at the portfolio level Correlation with other securities in the portfolio Potential risk-adjusted returns relative to other securities in the portfolio Potential to produce alpha Material[ii] ESG merits of the investee Investee's response to our fund's/firm's engagement on material[ii] ESG issues Portfolio limits (explicit limits or soft guidelines) such as single issuer, single security, etc. We have no predetermined guidelines; the portfolio manager acts at their discretion Additional Remarks, if any (maximum 250 words)6. Portfolio liquidity in normal markets: When we construct the portfolio, we account for short-to-medium liquidity at the portfolio level under normal market conditions.Please select only ONE closest answer: Yes, we aim to be able to liquidate 20%, or less, of the portfolio in 5 trading days Yes, we aim to be able to liquidate 20%-30% of the portfolio in 5 trading days Yes, we aim to be able to liquidate 30-40% of the portfolio in 5 trading days Yes, we aim to be able to liquidate 40-50% of the portfolio within 5 trading days Yes, we aim to be able to liquidate within 1-2 trading days at least 25-40% of any single position whose market value drops by 5% or more in a single day Our liquidity targets are better than the above (please specify in maximum 250 words) Our liquidity targets are less than the above (please specify in maximum 250 words) No, we do not consider portfolio liquidity under normal market conditions Please specify the liquidity targets in maximum 250 words.7. Portfolio liquidity in stressed markets: One key factor we consider when we construct the portfolio level is liquidity at the portfolio level under stressed market conditions.Please select only ONE closest answer: Yes, we aim to be able to liquidate 10%, or less, of the portfolio in 5 trading days if trading volume halves Yes, we aim to be able to liquidate 10%-20% of the portfolio in 5 trading days if trading volume halves Yes, we aim to be able to liquidate 20-30% of the portfolio in 5 trading days if trading volume halves Yes, we aim to be able to liquidate 30-40% of the portfolio within 5 trading days if trading volume halves Yes, we aim to be able to liquidate within 1-2 trading days at least 15-30% of any single position whose market value drops by 5% or more in a single day Our liquidity targets are better than the above (please specify in maximum 250 words) Our liquidity targets are less than the above (please specify in maximum 250 words) No, we do not consider portfolio liquidity under stressed market conditions Additional Remarks, if any (maximum 250 words)Please specify the liquidity targets in maximum 250 words.8. Target active share [iii]: What is the target proportion of active shares for this strategy or fund?Please use the formula (see glossary note iii) and select only one answer. We do not have a target 50 – 60% 61 – 70% 71 – 80% More than 81% Our alpha-related targets are based on each security's ability to generate alpha, not on the proportion of active shares. The percentage of active shares does not indicate the ability to generate alpha. Our primary focus is on standard deviation Not applicable to this strategy 9. Actual active share [iii]: What is the ACTUAL proportion of active shares in your fund or strategy (average of last 12 months)?Please use the formula (see glossary note iii) and select only one answer. 0% active share 50 - 60% active shares 61 - 70% active shares 71 - 80% active shares 81% or above active shares We do not measure active share; we measure performance above the benchmark We do not measure active share or relative performance; we focus on absolute return Not applicable to this strategy 10a. Investment Bases: Our investment decisions are substantively based on the following.Please select all that apply: Security's liquidity in the secondary market Valuation Target price Risk/return profile of a security relative to other positions in the portfolio Investee's cash flow Investee's ability to meet liabilities promptly/ credit quality The ability of investee to benefit from structural changes in its industry Investee's key management's track record Validity of our investment thesis Downgrade/upgrade of the investee by our analysts Downgrade/upgrade of the investee by sell-side analysts Rumors ESG factors improving Investee's response to our fund's/firm's ESG engagement Market timing Signals generated by our quantitative, big data models or other similar methods The security's drawdown exceeds our limits within a given time frame Environmental factors have (or likely will have) a material[ii] impact on the investee's earnings, cash flow, competitiveness, business resilience, reputation, and other risk-return balance Social factors have (or likely will have) a material[ii] impact on the investee's earnings, cash flow, competitiveness, business resilience, reputation, and other risk-return balance. In the case of investing, the material impact is positive. Governance factors have (or likely will have) a material[ii] impact on the investee's earnings, cash flow, competitiveness, business resilience, reputation, and other risk-return balance. In the case of investing, the material impact is positive. We do not have a system or method of arriving at a basis for investment/divestment. The portfolio manager acts according to their wishes. Additional Remarks, if any (maximum 250 words)10b. Divestment Bases: Our divestment decisions are substantively based on the following.Please select all that apply: Security's liquidity in the secondary market Valuation Target price Risk/return profile of a security relative to other positions in the portfolio Investee's cash flow Investee's ability to meet liabilities promptly/ credit quality The ability of investee to benefit from structural changes in its industry Investee's key management's track record Validity of our investment thesis Downgrade/upgrade of the investee by our own analysts Downgrade/upgrade of the investee by sell-side analysts Rumors ESG factors deteriorating Investee's response to our fund's/firm's ESG engagement Market timing Signals generated by our quantitative, big data models or other similar methods The security's drawdown exceeds our limits within a given time frame Environmental factors have (or likely will have) a material[ii] impact on the investee's earnings, cash flow, competitiveness, business resilience, reputation, and other risk-return balance Social factors have (or likely will have) a material[ii] impact on the investee's earnings, cash flow, competitiveness, business resilience, reputation, and other risk-return balance. The material impact is negative, and the investee is not taking adequate steps to address these material social factors. Governance factors have (or likely will have) a material[ii] impact on the investee's earnings, cash flow, competitiveness, business resilience, reputation, and other risk-return balance. The material impact is negative, and the investee is not taking adequate steps to address these material governance factors. We do not have a system or method of arriving at a basis for investment/divestment. The portfolio manager acts according to their wishes. Additional Remarks, if any (maximum 250 words)11. Portfolio managers' turnover: What is the portfolio managers' turnover rate over the last 12 months?Please provide a turnover rate for the PMs responsible for this strategy. Please include those who took early retirement. <30% <50% >51% but less than 70% >71% 12. Analysts' turnover: What is the analysts' turnover rate over the last 12 months?Please provide a turnover rate for the analysts responsible for this strategy. Please include those who took early retirement. <10% <30% <50% >51% but less than 70% >71% 13. Research resources: How many securities does each analyst responsible for this fund cover on average? Fewer than 50 50 - 69 70 - 89 90 - 109 110 - 129 130 or more 14. Research depth: What types of research do you rely on to make investment decisions?Select all that are applicable: Our proprietary financial models Site visits to investees' facilities: We observe operational employees' effectiveness, productivity, attitude, initiative Site visits to investees: We observe the key processes or production of items that are salient to the investees' competitiveness One-to-one conversations with investees' management outside of scheduled conferences for all investment analysts We verify investees' claims with informed third parties, including but not limited to suppliers, customers, distributors, competitors, and industry specialists Earnings conference calls or meetings with investees' management which are scheduled for all investment analysts Independent consultants specializing in specific sectors, technologies, geographies, economies, factors, etc. Sell-side brokers' research None of the above Additional Remarks, if any (maximum 250 words)15. Actual Example - Only shortlisted candidates who made it to the Gatekeeper Forum will be required to complete actual example.Hidden15. Actual Example - Please provide an ACTUAL example of how you executed ONE of the following, in a maximum of 500 words. How you managed portfolio liquidity during a time of market stress. What critical decisions did you make, and what were the rationale and outcome? How did you manage the risks of a constrained/unconstrained fund during challenging market conditions, and how did these actions align with investors? How did you integrate climate-related opportunities/risks into the investment/divestment decision-making process, and what is the outcome? How was a period of relatively high turnover among the portfolio managers or analysts managed, and what was the outcome? Other areas related to how the portfolio is managed and how does that serve investors' needs? HiddenPlease briefly describe the critical challenge/s, actions taken, results and lessons learned: Pillar 3: Performance & Risk Management Note: When answering the questions in this pillar, please respond directly relevant to this specific fund/strategy. They should NOT be general answers that generally apply to all your firm's funds/strategy. [i] Definition of concrete: Explicitly and clearly defined framework, parameters, principles, methods/techniques, and objectives are available for imminent implementation [ii] example of investment cap: Each investor is limited to 10% of the fund's total AUM or another quantum [iii] Formula for investment cap: [(Each investor's current investment + his/her intended future investment) / fund's total AUM post new investment from the investor]*100% Example: Current fund AUM is $100 mn; investor K has a current investment of $9 mn and wishes to make a further investment of $1 mn; therefore, K's total $10 mn constitutes 9.9% of total post-investment AUM. [iv] Definition of recovery: Fully regaining the loss made. For example, the fund's drawdown was -50% during the period. How long did it take to make gains of 100% to make a full recovery? Additional Remarks, if any (maximum 250 words)1. Alpha sources: What were the significant sources of alpha over the last 3 years?You may choose more than one option: Securities mispriced by the market Securities misunderstood by the market Securities that benefited from cyclical factors Securities that are relatively inaccessible by retail investors and/or smaller institutional asset owners Securities in special situations Picking up securities with solid fundamentals during times of market panic Risk budgeting and allocation Asset allocation to specific sectors, geographies, asset classes We have no alpha sources We think sources of alpha are not important 2. Stress test: Have stress tests been performed on this fund or strategy in the last 3 years?Please select only one answer: Yes No, but we have concrete[i] plans, with a definite schedule, to perform at least one stress test within the next 12 months No, and we have NO concrete[i] plans to perform any stress test within the next 12 months We do not know whether any stress test has been performed during this time, and we are not aware of concrete plans for one Inception period less than 3 years Selected: Yes - Stress test scenarios were applied in the stress test that has already been performed?Please select all that apply: Market volatility rising materially Asset prices falling materially (or, in the case of short positions, rising materially) Liquidity shrinking rapidly and materially The fund's risk/return exceeding target investors' profile Correlations rising rapidly among diverse asset classes/sectors/geographies/etc Interest rates rising substantially Bond yield spreads widening significantly Net outflows for your fund or strategy rising materially Our fund passed the stress test We did not pass the test, but we have addressed (or are addressing/have concrete[i] plans to address) the portfolio's ability to protect investors' capital in stressed market conditions We are waiting for the results of the stress test at the time of this submission We cannot divulge the results of the stress test Selected: No, but we have concrete[i] plans - What scenarios will you use?Please select all that apply: Market volatility rising materially Asset prices falling materially (or, in the case of short positions, rising materially) Liquidity shrinking rapidly and materially The fund's risk/return exceeding target investors' profile Correlations rising rapidly among diverse asset classes/sectors/geographies/etc Interest rates rising substantially Bond yield spreads widening significantly Net outflows rising materially from this strategy or fund Additional Remarks, if any (maximum 250 words)3. Investment cap per investor[ii]: Do you limit each investor's investment to a certain percentage of the fund's total AUM to restrict overexposure to any single investor? Yes, we currently have a cap and the maximum[iii] each investor can invest into the fund: No, we do NOT currently have a cap but have concrete[i] plans to institute one within the next 12 months No, we do not currently have a cap and have NO definite plans for one Selected: Yes, we currently have a cap and the maximum[iii] each investor can invest into the fund: Each investor is allowed to invest a maximum of up to 10% of the Fund's AUM Each investor is allowed to invest a maximum of up to 11-15% of the Fund's AUM Each investor is allowed to invest a maximum of up to 16-20% of the Fund's AUM Each investor is allowed to invest a maximum of up to 21-30% of the Fund's AUM Each investor is allowed to invest a maximum of up to 31-40% of the Fund's AUM Each investor may account for more than 40% of the Fund's AUM 4. Drawdown recovery: How long did it take for the fund to recover[iv] from its maximum drawdown since inception?Please select only one answer 6 weeks or fewer 7-12 weeks 13-18 weeks 19-24 weeks 25-30 weeks 31-37 weeks 38-43 weeks 44-49 weeks 50 weeks or more The fund's drawdown occurred less than 24 weeks ago, at the time of this submission, and has not yet fully recovered We prefer not to divulge information about the fund's recovery from its steepest drawdown during this period 5. Have climate-related risks been assessed on this fund or strategy?Please select only one answer Yes, we assess both transition risk and physical risks Yes, we assess transition risks Yes, we assess physical risks No, but we have concrete plans, with a definite schedule, to perform climate-related risk assessment within the next 12 months No, and we have NO concrete plans to perform any climate-related risk assessment within the next 12 months No, we do not know whether any climate-related risk assessment has been performed during this time, and we are not aware of concrete plans for one 6. Have scenario analysis have been applied on the climate-related risk assessment?Please select only one answer Yes, we have applied scenario analysis and developed 1.5°C or lower transition scenarios Yes, we have applied scenario analysis and developed 2°C or lower transition scenarios Yes, we have applied scenario analysis, but the transition scenarios are above 2°C No, but we have concrete plans, with a definite schedule, to apply scenario analysis within the next 12 months No, and we have NO concrete plans to apply scenario analysis within the next 12 months No, we do not know whether any scenario analysis has been applied during this time, and we are not aware of concrete plans for one 7. Have quantitative evaluation been adopted in the climate-risk assessment?Please select only one answer Yes, we have quantitative evaluation. The level of impact is high, in which financial loss is over 30% Yes, we have quantitative evaluation. The level of impact is medium, in which financial loss between 10-30% Yes, we have quantitative evaluation. The level of impact is low, in which financial loss is over less than 10% No, we do not have quantitative evaluation. 8-10. Actual Example - Only shortlisted candidates who made it to the Gatekeeper Forum will be required to complete actual example.Hidden10. Actual Example - Please provide an ACTUAL example of how you executed ONE of the following, in a maximum of 500 words. What steps did you take in response to the results of your stress test/s? How did you respond to the maximum drawdown period, and what was the rationale behind the decisions taken? How did you steer the fund to full recovery after the maximum drawdown? HiddenPlease briefly describe the critical challenge/s, actions taken, results and lessons learned: Pillar 4: Stewardship Note: When answering the questions in this pillar, please respond directly relevant to this specific fund/strategy. They should NOT be general answers that generally apply to all your firm's funds/strategy. [i] Stewardship is a set of behaviors, principles, and/or policies guiding responsible shareholding. Stewards invest with awareness of the investees' ability to create long-term value not just for shareholders but also for society and the economy. [ii] Material impacts are events likely to affect a company's operations and financial position, positively or negatively. Materiality varies from one industry to another and one business model to another. They may include but are not limited to supply chain, employee welfare, environmental practices, product safety, etc. [iii] Definition of concrete: Explicitly and clearly defined framework, parameters, principles, methods/techniques, and objectives are available for imminent implementation [iv] Adaptation of the CFA Institute ESG Disclosure Standards For Investment Products, November 2021 1. Stewardship Activity: Engagement activities [iv] have been undertaken on behalf of investors to put stewardship into effect. These activities include: Participation in a shareholder meeting Casting, abstaining, or withholding a vote on a management or shareholder resolution, on management or shareholder resolution Filing a shareholder resolution Commencement, continuation, modification, or discontinuation of an engagement with an investee company Enforcement of covenants Exercise of warrants or embedded options Lending of securities Taking a seat on the board of directors of an investee company, hiring, firing, and directing the management of an investee company Maintenance and improvement of real estate and physical assets Advocating for strong environmental, social, or governance practices Stating a position or advocating for or against public policies or proposals that affect, or may affect, the investment product 2. Stewardship Monitoring scope: Our stewardship for investees/potential investees monitoring scopes include the following: On material[ii] environmental issues On carbon footprint and exposures to climate risk On material[ii] social issues On material[ii] governance issues On corporate culture and remuneration On capital structure On strategy On overall material risks On transparency We do not currently monitor any of the above, BUT we have concrete[iii] plans to begin monitoring at least some of the above within the next 12 months Do not do any of the above and have no concrete[iii] plans to do so Additional Remarks, if any (maximum 250 words)3. Stewardship Team: A dedicated stewardship team [iv] is set up to flag specific companies and issues for engagement which includes the undertakings below: All written communications and meeting records, including targeted outcomes of the engagement, are logged in the stewardship management system Engagement is undertaken with the intent to improve a company's environmental and social resource management and to reduce risks related to environmental and social practices or activities Engagement activities include in-person and virtual meetings, written correspondence, and emails Engagement may occur with a company's board of directors, executive management, or investor relations and may be conducted independently or in collaboration with other investors through the fund's proxy voting and engagement service provider The Fund's Stewardship Team reviews progress toward each engagement effort quarterly against the targeted outcomes and determines next steps as needed Additional Remarks, if any (maximum 250 words)4. Proxy Voting: At the product level, we have transparent proxy voting [iv] policies that are unique to this particular investment strategy: Yes We do not vote We cannot/prefer not to divulge our voting practices Selected: Yes We disclose that the portfolio managers undertake proxy voting for the investment product while investee engagements are handled at the organizational level The firm's Proxy Voting Committee purely determines voting decisions The firm's Proxy Voting Committee determines voting decisions in conjunction with input from the strategy teams and a third-party proxy advisor All proxy votes are recorded and stored in our internal proxy voting and engagement system When voting against management, the following issues are typically prioritized based on: We may vote against management on an issue, and when the Proxy Voting Committee has voted against management on an issue: Selected: When voting against management, the following issues are typically prioritized based on: Their potential to affect a company's financial performance Board independence Accountability Shareholder rights Transparency Esg reporting Workplace health and safety issues Environmental resource management issues that may increase the likelihood of regulatory fines or risks Selected: We may vote against management on an issue, and when the Proxy Voting Committee has voted against management on an issue: The engagement team initiates an engagement effort to discuss our specific concerns with management We engage with companies to encourage best governance practices, including those related to reporting on material ESG information An engagement effort will be initiated, and a file is created in our proxy voting and engagement system that includes the company name, the specific issue identified, the targeted outcome, and a copy of the initial written communication An automatic alert for review of each individual engagement effort is put in place based on the recommended follow-up time frame Engagement efforts and progress are tracked and reviewed on an ongoing basis by the engagement team Continued engagement efforts are recommended per our engagement policy All written communications and summaries of any meetings with company management are documented and maintained in the centralized internal database The engagement team provides quarterly updates to portfolio managers and meets with them as needed Additional Remarks, if any (maximum 250 words)5. Voting Disclosure: Please select the statements that describe your firm's practices related to voting.You may select more than one statement: Our disclosure on voting is available to ALL investors, from retail to institutional asset owners, without them having to make a request, i.e., the disclosure is on our website or another electronically accessible venue Our disclosure on voting is available ONLY to institutional asset owners, including family offices, without them having to make a request, i.e., the disclosure is electronically accessible to them We disclose our votes and rationale ONLY if an investor asks for disclosure In our disclosures, we explain in plain, clear, unambiguous language the rationale behind every vote In our disclosures, we explain the rationale behind every vote, BUT we do not make an effort to present it in plain language, clear, unambiguous language We do not currently disclose our votes and rationale, but we have concrete plans to do so within the next 12 months We do not disclose and have no plans to disclose our voting We do not vote We cannot/prefer not to divulge our voting practices Additional Remarks, if any (maximum 250 words)6. Engagement frequency: Teamwide over the last 1 year, we have engaged with investees/potential investees on the material[ii] issues selected above:Please include both collective engagement and engagement conducted on your own. Once a year on average Twice a year on average Once a quarter on average Once every two months on average Once a month on average More frequently than once a month on average We currently have no engagement Additional Remarks, if any (maximum 250 words)7. Engagement Disclosure: Do you disclose your key engagement activities, along with the outcomes, to investors? Yes, we disclose in a separate report devoted to stewardship (electronic or printed) Yes, we disclose as part of scheduled reporting, such as factsheets and annual reports, etc Yes, we disclose on our website, which is accessible to investors Yes, we disclose but only when investors request for it No, we do not currently disclose, but we have concrete[iii] plans within the next 12 months No, we do not currently disclose and have no concrete[iii] plans to disclose Additional Remarks, if any (maximum 250 words)8. Actual Example - Only shortlisted candidates who made it to the Gatekeeper Forum will be required to complete actual example.Hidden8. Actual Example - Please provide an ACTUAL example of how you executed ONE of the following, in a maximum of 500 words. An investment/divestment/change in security weight resulting from your engagement activities How your stewardship code/framework/philosophy/methods/approach has, or has, evolved over the years. How do these changes affect investors and the community your firm operates in? How you've adapted your firm's stewardship practices/approaches for Asia, the rationale behind the adaptation/s and the outcome/s HiddenPlease briefly describe the critical challenge/s, actions taken, results and lessons learned:Pillar 5: Corporate Responsibility and Strength Please complete this pillar in separate "Pillar 5: Corporate Responsibility and Strength" questionnaire. You will only need to respond to Pillar 5 ONCE for all your firm's investment strategies.Please provide the following attachments: - Prospectus - Fact Sheet (Oldest Share Class) - Fact Sheet (Newest Share Class) - KFSAttachments* Drop files here or Select files Max. file size: 50 MB. CAPTCHA