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Macquarie Investment Management Europe S.A., ValueInvest

PRI reporting framework 2017

Gateway asset class implementation indicators [OO 10 - 12]

Investment policy [SG 01 - 04] Objectives and strategies [SG 05 - 06] Governance and human resources [SG 07 - 08] Promoting responsible investment [SG 09 - 11] Implementation not in other modules [SG 12 - 16] Innovation [SG 17]

Direct - Listed Equity Active Ownership

Engagement [LEA 01 - 16] Overview [LEA 01 - 02] Process [LEA 03 - 10] Process for engagements run internally [LEA 03 - 04] Process for engagements conducted via collaborations [LEA 05 - 06] General processes for all three groups of engagers [LEA 09 - 10] Outputs and outcomes [LEA 11 - 15] Communication [LEA 16]

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Basic Information

OO 01. Signatory category and services

01.1. Select the services you offer.

Fund management

% of assets under management (AUM) in ranges

<10%

10-50%

>50%

Fund of funds, manager of managers, sub-advised products

Other, specify

Execution and advisory services

01.2. Additional information. [Optional]

ValueInvest Asset Management (ValueInvest AM) is a highly specialized investment management company. The company pursues a unique value-oriented investment strategy and is solely engaged in equity investments.

ValueInvest AM delivers only one product as all portfolios are managed according to the very same investment process. Focus and specialisation is delivering high quality products to clients.

OO 02. Headquarters and operational countries

02.1. Select the location of your organisation’s headquarters.

Luxembourg

02.2. Indicate the number of countries in which you have offices (including your headquarters).

2-5

6-10

>10

02.3. Indicate the approximate number of staff in your organisation in full-time equivalents (FTE).

15.3 FTE

02.4. Additional information. [Optional]

ValueInvest AM is a highly specialized investment management company based in the Grand Duchy of Luxembourg in 1998. The company pursues a unique value-oriented investment strategy and is solely engaged in equity investments.

OO 03. Subsidiaries that are separate PRI signatories

03.1. Indicate whether you have subsidiaries within your organisation that are also PRI signatories in their own right.

Yes

03.3. Additional information. [Optional]

ValueInvest AM has no subsidiaries.

OO 04. Reporting year and AUM

04.1. Indicate the year end date for your reporting year.

31/12/2016

04.2. Indicate your total AUM at the end of your reporting year, excluding subsidiaries you have chosen not to report on.

Total AUM
Total AUM	trillions	billions	millions	thousands	hundreds
Currency
Assets in USD
Assets in USD	trillions	billions	millions	thousands	hundreds

04.4. Additional information. [Optional]

The AUM mentioned listed above consists solely of funds owned by clients.

OO 06. How would you like to disclose your asset class mix

New selection options have been added to this indicator. Please review your prefilled responses carefully.

06.1. How you would like to disclose your asset class mix.

as percentage breakdown

	Internally managed (%)	Externally managed (%)
Listed equity	>50% 100	0 0
Fixed income	0 0	0 0
Private equity	0 0	0 0
Property	0 0	0 0
Infrastructure	0 0	0 0
Commodities	0 0	0 0
Hedge funds	0 0	0 0
Forestry	0 0	0 0
Farmland	0 0	0 0
Inclusive finance	0 0	0 0
Cash	0 0	0 0
Other (1), specify	0 0	0 0
Other (2), specify	0 0	0 0

as broad ranges

06.2. Publish our asset class mix as per attached image [Optional].

06.3. Provide contextual information on your AUM asset class split. [Optional]

ValueInvest AM has a track record that goes back more than 15 years in managing Global and Japanese listed equities according to its unique, disciplined, and value-oriented investment process based on fundamental bottom up stock picking.

ValueInvest AM Global

The ValueInvest Asset Management Global strategy is designed with the aim to produce attractive risk-adjusted long-term returns by investing in understandable businesses with mispriced earnings power. The portfolios are primarily invested in global large cap equities listed in developed countries. The portfolios consist exclusively of companies which have been positively identified in the investment process and are managed free of benchmark constraints. The investment strategy excludes derivatives, currency hedging, and leverage. Typically, cash positions are kept below two percent.

ValueInvest AM Japan

The ValueInvest Asset Management Japan strategy is designed with the aim to produce attractive risk-adjusted long-term returns by investing in understandable businesses with mispriced earnings power. The portfolios are primarily invested in Japanese large cap equities listed in Japan. The portfolios consist exclusively of companies which have been positively identified in the investment process and are managed free of benchmark constraints. The investment strategy excludes derivatives, currency hedging, and leverage. Typically, cash positions are kept below two percent.

OO 07. Fixed income AUM breakdown (Not Applicable)

OO 08. Segregated mandates or pooled funds (Not Applicable)

OO 09. Breakdown of AUM by market

09.1. Indicate the breakdown of your organisation’s AUM by market.

Developed Markets	0% <10% 10-50% >50 %
Emerging, Frontier and Other Markets	0% <10% 10-50% >50 %
Total	100%

09.2. Additional information. [Optional]

ValueInvest AM invests only in developed markets and offers two products: ValueInvest Global and ValueInvest Japan.

At ValueInvest AM, we approach investing with patience and discipline. Our investment philosophy rests on our core conviction that long-term preservation and accumulation of wealth can best be achieved through a combination of attractive valuations and thorough assessment of the quality of the businesses. The hallmarks of quality include profitability, earnings stability, low debt, and efficient use of assets. High-quality businesses with sustainable competitive advantages are believed to increase shareholder wealth throughout business cycles.

The aim is to produce attractive risk-adjusted long-term returns investing in understandable businesses with mispriced earnings power. Great importance is placed on assessing risks and in-depth research is used to gain detailed insight into the companies invested in.

Focused on long-term goals, we understand that short-term price fluctuations do not always reflect a company's value, which is why our investment strategy is based on the conviction that markets are inefficient in the short term. Volatility is seen as an opportunity to capitalize on mispricing through our structured investment process. In some cases, value investing requires a contrarian position - we recognize that going against prevailing trends is sometimes necessary to achieve our long-term investment objectives.

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