LGT Capital Management Ltd. European SRI Transparency Code European SRI Transparency Code Disclaimer This document aims at fulfilling reporting requirements under the European SRI Transparency Guidelines. It does not constitute a public offering or public advertisement of any financial instruments mentioned herein. This document is not directed at recipients in any jurisdictions where the receipt of the information contained herein would be unlawful. The receipt of this information is not to be taken as constituting the giving of investment advice. Each person should make its own independent assessment and should take its own professional advise in relation to any investment product mentioned herein. Please be advised that investors should always consult the legal documentation of the investment products mentioned herein. The information contained in this document was obtained from a number of different sources. LGT exercises the greatest care when choosing the sources of information and compiling obtained information. Nevertheless errors or omissions in information obtained from different sources cannot be excluded. LGT does not assume any liability for any direct or indirect damage or loss resulting from the use of this document. This document and the information contained herein may be reproduced only with the prior written consent of LGT. To the extent that past performance of investment products is mentioned in this document please note that past performance is not an appropriate indicator for future performance. 2 / 25 European SRI Transparency Code European SRI Transparency Code Version 3.0 The European SRI Transparency Code (the Code) focuses on SRI funds distributed publicly in Europe and has been designed to cover a range of assets classes, such as equity and fixed income. All information pertaining to the European SRI Transparency Code can be found at the following website: www.eurosif.org. The code comes with a Guidance Manual for fund managers on how to best use and respond to the Transparency Code. The present version of the Code has been approved by the Board of Eurosif on October 3, 2012. TWO KEY MOTIVATIONS UNDERPIN THIS CODE 1. The opportunity for retail SRI funds to clarify their SRI approach to investors and other stakeholders in an easily accessible and comparable format. 2. Proactively strengthen a self‐regulation that contributes to the development and promotion of SRI funds by setting up a common framework for transparency best practices. GUIDING PRINCIPLE Signatories to the Code should be open, honest and disclose accurate, adequate and timely information to enable stakeholders, in particular consumers, to understand the ESG1 policies and practices of the fund. COMMITMENTS FROM SIGNATORIES . The order and exact wording of the questions shall be respected; . Responses should be informative and clear, and the resources and methodologies deployed should be described with as much detail and precision as possible; . Funds should report data in the currency that they use for other reporting purposes; . Reasons preventing the fund from providing all or part of the information to a given question should be clearly stated and, in such a case, signatories should state when they will be able to answer the question; . Responses shall be updated at least on an annual basis and should have a precise publication date; . Responses to the Code should be easily accessible from the fund’s and/or fund manager’s website. In any case, signatories should make it clear where to find the information required by the Code; . Signatories are solely responsible for the answers to the questions, and should state this in their response. 1 ESG stands for Environmental, Social and Governance. 3 / 25 European SRI Transparency Code To clarify these commitments, signatories should include at the beginning of the response document the following two statements: Statement of Commitment Sustainable and Responsible Investing is an essential part of the strategic positioning and behaviour of LGT Capital Management. We have been involved in SRI since 2008 and welcome the European SRI Transparency Code. This is our fourth statement of commitment and covers the period 07.06.2013 to 06.06.2014. Our full response to the European SRI Transparency Code can be accessed below and is available in the annual report of the retail funds and on our web site. Compliance with the Transparency Code LGT Capital Management Ltd is committed to transparency and we believe that we are as transparent as possible given the regulatory and competitive environments that exist in the countries in which we operate. LGT Capital Management Ltd meets the full recommendations of the European SRI Transparency Code. 06.06.2013 4 / 25 European SRI Transparency Code Code categories Section 1. Basic Details 1 The Fund Management Company 1a Provide the name of the fund management company managing the fund(s) to which this code apply. LGT Capital Management Ltd. manages the funds to which this code apply. Contact information Address: Schützenstrasse 6 CH‐8808 Pfäffikon, Switzerland Telephone: +41 55 415 92 11 Web: www.lgt.com Marie‐Christine Mikl, MAS/FIS ESG Officer marie‐[email protected] Provide general information about The Fund Management Company managing the fund(s) to which this code apply (eg. name, address, website…). LGT Capital Management Ltd. manages the funds to which this code apply. We are the investment centre of the LGT Group for traditional asset classes and strategy solutions as well as the family office of the Princely House of Liechtenstein. 1b Describe the general approach of the fund management company with regards to how it takes environmental, social and governance (ESG) criteria into consideration. Mankind is facing major social, ecological and economic challenges, such as climate change and scarcity of resources. However, challenges also harbour opportunities, which is where our sustainability funds come into the picture. The strategic initiative «Sustainable Investing» has broad support in the LGT Group. The initiative is based on our corporate values such as long‐term value creation, independence, stability and quality. The Princely Family of Liechtenstein – owner of LGT Group – strongly backs the initiative, and has made a strategic investment in the LGT Sustainability Funds. This results in the high level alignment of investment interests between our clients, owner and staff – the like of which is unique in the banking sector. We invest in companies, organisations and countries, that stand out in terms of sustainability criteria and ensure long‐term financial value creation. We actively select themes that contribute to increasing sustainable human well‐being. We focus on three areas of sustainability «ESG”: 1) Environment – primarily comprises the consequences of climate change 5 / 25 European SRI Transparency Code and resource scarcity; 2) Social – comprises labor and society; 3) Governance – addresses corporate management and transparency. LGT Group also engages in philanthropy. For many people – as well as for the Princely Family of Liechtenstein – using part of their assets for a good cause is a matter of genuine importance. LGT Venture Philanthropy provides the opportunity to invest capital in such a way as to achieve the greatest and most enduring social and environmental benefits. Our Venture Philanthropy experts are constantly examining suitable organizations worldwide and help investors choose and carry out their philanthropic commitment. Is the fund management company approach towards ESG criteria aligned or inspired by its corporate social responsibility approach? Yes/No. If yes, insert a link to the company’s CSR policy. If not, explain why not. Yes it is, we focus on human wellbeing and environmentally responsible behaviour both at an investment and a corporate level: http://www.lgt.com/en/lgt‐group/sustainability/ Has the fund management company signed the Principles for Responsible Investment? If yes, please insert the link to the answer to the PRI questionnaire. If not, explain why not. Yes, LGT Capital Management is a signatory of UNPRI, last year there was no questionnaire due so no link can be provided to it. Is the fund Manager a signatory or a member of other international and/or national initiatives supporting SRI practices? Please answer if you deem this information to be useful. LGT Capital Management is a member of Forum Nachhaltige Geldanlagen (FNG) and LGT Group has signed the Global Compact Has the fund management company established an ESG engagement policy? If yes, describe the policy by outlining its objectives and its methodology and/or, if it is public, insert a link to the policy. If not, explain why not. LGT Capital Management currently does not have a formal engagement policy, but portfolio managers have been practicing engagement on specific themes like child‐labour by communicating directly with the company concerned. Has the fund management company established a voting policy? If yes, describe the policy by outlining its objectives and its methodology and/or, if it is public, insert a link to the policy. If not, explain why not. Yes, LGT Capital Management takes this responsibility towards its investors seriously and votes on behalf of them, according to clearly defined criteria. Please find further details under: http://www.lgt‐ cm.com/shared/.content/publikationen/$verwaltung_publikationen/voting_rights_en.pdf 6 / 25 European SRI Transparency Code Describe how the fund management company or the group