April 2021

Quarterly Stewardship Update

Over the past 3 months, we have continued our stewardship activities whilst preparing our first Annual Stewardship and Engagement Report for the year 2020. The 2020 Report provides in depth insight into our stewardship and engagement policies and activities, as well as how we integrate ESG factors into our investment activities. The annual report can be found on our website.

Much of our activity was focused on fulfilling our voting rights and responsibilities on behalf of our clients, as is shown in Voting against management the charts below. We rely upon our expert knowledge of investee companies, plus recommendations from Institutional We voted against management, in line with ISS Shareholder Services (ISS), to vote in the way that provides recommendations, at the recent Kone AGM. We the best value for our clients, whilst considering the value for shared their concerns about the excessive increases wider society. We follow ISS’s Sustainability Voting policy, so in director remuneration, which appeared out of line that their recommendations to us are aligned with sustainable with a reasonable peer group. Additionally, we also outcomes. As ever, we carry out our own extensive research shared concerns over the lack of independence on every time we vote on a core holding, and we are free to vote the board of directors. against ISS, and management, if our own research leads us to a different conclusion. Approving investment policy changes We voted to approve changes to the investment Our voting record over the past quarter 01/01/21 - 31/03/21 4 policy for Odyssean , in line with 4 ISS. The proposed changes limit investment in 1 industries or companies that are deemed to be 1 unethical or unsustainable. We believe the changes are wholly sensible, timely and serve to solidify the 16 informal exclusion policy the investment managers 16 have always followed anyway.

For Against management Abstain We understand that occasionally clients may wish to vote For Against management Abstain themselves on some of their holdings. We are glad to facilitate this, where possible, through our Vote Your Shares service, which can be found on our website, or via our investment Our voting record over the past year 01/04/20 - 31/03/21 managers.

2 A number of our clients instruct us on how to vote for some or 12 2 all of their holdings. One client in our office keeps an 12 extremely active eye on their family portfolios, which contain a number of Venture Capital Trust (VCT) investments. The client contacts us when meetings are announced and tells us how 113 they would like to vote and why. 113

For Against management Abstain For Against management Abstain We also continued to engage directly with the management of the companies and funds in which we invest. A number of these engagements were with infrastructure funds, We were happy to support the fund which are diversified funds of infrastructure assets, such to make further investments to as hospitals, roads and schools. Some assets in these support renewable infrastructure. funds are directly related to the production of clean and renewable energy.

Case Studies How our engagements shape outcomes Supporting renewable infrastructure In February, we met with the Chairman of the HICL The Renewables Infrastructure Group announced in infrastructure fund, a diversified fund of infrastructure March their plan to issue additional shares. The purpose assets. We discussed many issues including some of this issuance was to finance commitments falling recent acquisitions, upcoming board changes in the due later this year and to make further investments impact of Brexit. Notably, we also made requests according to their investment policy. Our analysts spoke that the fund begin producing sustainability reports to management to satisfy themselves that the issuance and improve energy efficiency, waste management was in the interests of our clients, as well as discussing and water usage within their underlying investments. the work being done to strengthen the balance sheet We were pleased to see the Chairman welcome through reduced leverage and other measures. We our requests and encouraged by his willingness to were happy to support this issuance, not just from a undertake improvements. We eagerly await the next financial perspective but also because we know it will annual meeting to see if they have done so. allow the fund to make further investments to support renewable infrastructure.

ESG Focus: Society We have found that the ‘S’ in ESG, which stands for social, is the issue that generally receives the least attention In the light of the Covid-19 from both investors and corporates. This could be due pandemic renewed attention to its wide scope and lack of data points on which to measure company performance. However, in the light of is being paid to social issues the Covid-19 pandemic, renewed attention is being paid to within investments. social issues within investments and we have undertaken two significant engagements in this area, seeking not only to secure the best value for our clients who hold these companies, but also to make it clear that the treatment of people – those employed by the company and in society in general – must always be a priority. The following case studies bring to life our approach to stewardship goals, which are to create long-term value for clients and beneficiaries leading to sustainable benefits for the economy, the environment and society. Case Studies Compass Group Boohoo Although children across the UK have not been in Another Covid-19 related headline from last summer schools for most of this quarter, schools are still focused on garment factories in Leicester that were required to provide free meals to those who need linked to, among others, fast fashion company Boohoo. them. The contract to provide substitute food parcels Workers in some factories were allegedly facing for children at home was awarded to Chartwells, a dangerous and non-Covid-19 secure conditions and subsidiary of Compass Group, a company in which being paid as little as £3.50 an hour. Although our we invest. As social media and newspaper front pages direct holding in Boohoo is relatively small, some of the have recently showed, in some cases these parcels funds we invest in have large holdings. Furthermore, we appeared to fall below the standards expected and the see this is an issue of great importance and something budget allocated. We engaged with Compass Group to we could not ignore. understand the issue from their point of view and hear Since the summer and into this quarter, we have been how they have reacted to the news and criticism. working with two fund managers on their engagements From our discussions with Compass Group, it has with Boohoo. We want to ensure Boohoo satisfactorily become clear that while some parcels did indeed fall acts on recommendations and implements real and below standards, this was in part exacerbated by a lasting improvements to their processes, which will in very short notice period, stringent requirements by the turn have a positive impact on their employees and those Department for Education and some short-sighted within their supply chain. We began by interrogating behaviour from some of Chartwell’s management. We the process by which Boohoo was selected as an do not believe that this incident is symptomatic of poor investment for the portfolio, through which we were able behaviour by Compass Group as a whole. Furthermore, to understand the managers’ thoughts relating to issues from a shareholder perspective, this contract is minimal such as supply chain resilience, company culture and and therefore will have little impact on the finances of the remuneration structures, issues at the heart of the recent company. However, the reputational risk to Compass news stories. Group is real, as is the hardship being faced by many Throughout the course of this engagement, which is families. We sought to understand what management still ongoing, we were clear in our position which was to is doing to correct its errors and ensure this does not encourage the fund managers, and indirectly Boohoo, happen again. We were encouraged to hear Compass to strive towards complete transparency of the issues own up to the fact that some boxes were below standard and the solutions. An example of this is the report and that they were improving their quality controls. issued to Boohoo by Alison Levitt QC. We and the fund Additionally, we welcomed the news that the CEO had managers felt that it must be published by the company taken charge and was speaking to the impacted schools, in a complete and timely manner, and this was made as a mark of how seriously the company takes the issue. clear to Boohoo. We were pleased that they published We also entered into a separate engagement with the report in full very shortly after receiving it, alongside Chartwells via our collective engagement partner, BMO their acknowledgment of the issues and onboarding of all reo©. It is our hope that companies such as Compass recommendations which were put forward in the report. will hear the voices of investors like us and understand the expectation to behave as a responsible business when it comes to all stakeholders, not just those with a financial interest.

The value of investments can fall and you may get back less than you invested. Information is provided only as an example and is not a recommendation to pursue a particular strategy. We or a connected person may have positions in or options on the securities mentioned herein or may buy, sell or offer to make a purchase or sale of such securities from time to time. In addition we reserve the right to act as principal or agent with regard to the sale or purchase of any security mentioned in this document. For further information, please refer to our conflicts policy which is available on request or can be accessed via our website at www.brewin.co.uk. Information contained in this document is believed to be reliable and accurate, but without further investigation cannot be warranted as to accuracy or completeness. We will only be bound by specific investment restrictions which have been requested by you and agreed by us. Opinions expressed in this publication are not necessarily the views held throughout Brewin Dolphin Ltd.

Brewin Dolphin Limited is a member of the . Brewin Dolphin Limited is authorised and regulated in the by the Financial Conduct Authority (Financial Services Register reference number: 124444) and regulated in Jersey by the Jersey Financial Services Commission. Registered Office: 12 Smithfield Street, London, EC1A 9BD. BDM3162_2104_1 Registered in England and Wales − company number: 2135876. VAT Number: GB 690 8994 69 Issue date: April 2021