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GLG Partners LP

PRI reporting framework 2017

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ESG incorporation in actively managed fixed income

Implementation processes

FI 04. Incorporation strategies applied

04.1. Indicate 1) Which ESG incorporation strategy and/or combination of strategies you apply to your actively managed fixed income investments; and 2) The proportion (+/- 5%) of your total actively managed fixed income investments each strategy applies to.

Corporate (financial)
80 Screening alone
0 Thematic alone
20 Integration alone
0 Screening + integration strategies
0 Thematic + integration strategies
0 Screening + thematic strategies
0 All three strategies combined
0 No incorporation strategies applied
100%
Corporate (non-financial)
80 Screening alone
0 Thematic alone
20 Integration alone
0 Screening + integration strategies
0 Thematic + integration strategies
0 Screening + thematic strategies
0 All three strategies combined
0 No incorporation strategies applied
100%

04.2. Describe your reasons for choosing a particular ESG incorporation strategy and how combinations of strategies are used.

The Firm's blanket master list screen for controversial arms and munitions represents the largest portion of the Firm's fixed income ESG incorporation.

The remaining portion accounts for the integration of ESG, specficially governance. Governance for sovereign and corporate debtr alike, and social consequences of policy are analysed as part of the investment process and are critical to GLG's fixedc income investment team's views on debt/GDP path, debt sustainability and currency performance (via the performance of external accounts).

04.3. Additional information [Optional].


FI 05. ESG issues and issuer research (Private)


FI 06. Processes to ensure analysis is robust

06.1. Indicate how you ensure that your ESG research process is robust:

06.2. Describe how your ESG information or analysis is shared among your investment team.

06.3. Additional information. [Optional]


(A) Implementation: Screening

FI 07. Types of screening applied

07.1. Indicate the type of screening you conduct.

Select all that apply
Corporate (financial)
Corporate (non-financial)
Negative/exclusionary screening
Positive/best-in-class screening
Norms-based screening

07.2. Describe your approach to screening for internally managed active fixed income

We focus on knowledge and awareness of ESG issues to make informed investment decisions when assessing risks and valuations, rather than exclusion and divestment.  However, Man Group recognizes the importance of broader norms-based mandates as well, and we will structure them for clients that want to incorporate specific company or sector restrictions.

07.3. Additional information. [Optional]


FI 08. Negative screening - overview and rationale (Not Applicable)


FI 09. Examples of ESG factors in screening process (Not Completed)


FI 10. Screening - ensuring criteria are met

10.1. Indicate which systems your organisation has to ensure that fund screening criteria are not breached in fixed income investments.

Type of screening
Checks
Positive/best-in-class screening
Norms-based screening

10.2. Additional information. [Optional]


(C) Implementation: Integration

FI 14. Integration overview

14.1. Describe your approach to integrating ESG into traditional financial analysis.

More than 80% of the exposures in the GEM Debt Total Return and GEM Bond Strategies, and 100% of the exposure in the Local Currency and Rates strategy are composed by investments in sovereign instruments, and currency and interest rate derivatives. Governance of such sovereigns and social consequences of policy are analyzed as part of the investment process and are critical to our views on debt/GDP path, debt sustainability and currency performance (via the performance of external accounts).

14.2. Describe how your ESG integration approach is adapted to each of the different types of fixed income you invest in.

Corporate (financial)

The remaining 20% of exposure is usually concentrated in a limited number of large and systemically important quasi sovereign companies where the main consideration in the analysis will be the level of sovereign support that those companies are likely to receive from the government in the event of credit distress. Hence, they are to a large part an extension of the sovereign process outlined above. Notwithstanding this, the portfolio management team will take into account ESG factors when analyzing the individual companies that it considers as candidates for investment. In this regard it is supported by the general Man ESG infrastructure

Corporate (non-financial)

The remaining 20% of exposure is usually concentrated in a limited number of large and systemically important quasi sovereign companies where the main consideration in the analysis will be the level of sovereign support that those companies are likely to receive from the government in the event of credit distress. Hence, they are to a large part an extension of the sovereign process outlined above. Notwithstanding this, the portfolio management team will take into account ESG factors when analyzing the individual companies that it considers as candidates for investment. In this regard it is supported by the general Man ESG infrastructure

14.3. Additional information [OPTIONAL]


FI 15. Integration - ESG information in investment processes

15.1. Indicate how ESG information is typically used as part of your investment process.

Select all that apply
Corporate (financial)
Corporate (non-financial)
ESG analysis is integrated into fundamental analysis
ESG analysis is integrated into security weighting decisions
ESG analysis is integrated into portfolio construction decisions
ESG analysis is a standard part of internal credit ratings or assessment
ESG analysis for issuers is a standard agenda item at investment committee meetings
ESG analysis is regularly featured in internal research notes or similar
ESG analysis is a standard feature of ongoing portfolio monitoring
ESG analysis features in all internal issuer summaries or similar documents
Other, specify

15.2. Additional information [OPTIONAL]


FI 16. Integration - E,S and G issues reviewed

16.1. Indicate the extent to which ESG issues are reviewed in your integration process.

Environment
Social
Governance
Corporate (financial)

Environmental

Social

Governance

Corporate (non-financial)

Environmental

Social

Governance

16.2. Please provide more detail on how you review E, S and G factors in your integration process.

Corporate (financial)

The majority of the non sovereign exposure of the portfolios is to quasi-sovereign companies. As a result, the main consideration in the analysis will be the level of sovereign support that those companies are likely to receive from the government in the event of credit distress. Hence, they are to a large extent and extension of the sovereign process.

The portfolio management team will take into account ESG factors when analyzing the individual companies that it considers as candidates for investment. Factors usually considered are corporate governance (e.g. risk management, director independence and expertise, transparency / accountability), social factors (eg employee relations/ strike actions, product responsibility). Depending on the sector of activity, environmental issues may also be considered.

Corporate (non-financial)

The majority of the non sovereign exposure of the portfolios is to quasi-sovereign companies. As a result, the main consideration in the analysis will be the level of sovereign support that those companies are likely to receive from the government in the event of credit distress. Hence, they are to a large extent and extension of the sovereign process.

The portfolio management team will take into account ESG factors when analyzing the individual companies that it considers as candidates for investment. Factors usually considered are corporate governance (e.g. risk management, director independence and expertise, transparency / accountability), social factors (eg employee relations/ strike actions, product responsibility). Depending on the sector of activity, environmental issues may also be considered.

16.3. Additional information.[OPTIONAL]


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