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Colonial First State Global Asset Management (including First State Investments)

PRI reporting framework 2017

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Investment policy

SG 01. RI policy and coverage

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

01.1. Indicate if you have an investment policy that covers your responsible investment approach.

01.2. Indicate the components/types and coverage of your policy.

Select all that apply

Policy components/types

Coverage by AUM

01.4. Indicate what norms you have used to develop your investment policy that covers your responsible investment approach.

other (1) description

          Global Stewardship Codes
        

other (2) description

          CFA Institute - Asset Manager Code of Professional Conduct
        

01.6. Provide a brief description of the key elements, any variations or exceptions to your investment policy that covers your responsible investment approach. [Optional]

Our Realindex team use a fundamental systematic approach to investing (smart beta) and have yet to incorporate ESG factors into their investment process beyond specific client instructions to exclude certain companies. However, the team has conducted research on various ESG factors and is in the process of developing its approach. Realindex are also covered by the cluster munitions and sanctions exclusions.

Our short-term investments (cash) team rely on the counterparty ESG reviews performed by the fixed income team for engagement with counterparties. 

Our unlisted infrastructure and fixed income team have an asset class specific guidelines. For fixed income this relates to stranded asset risks. Across the organisation we have developed Stranded Assets and Human Rights guidelines. 


SG 02. Publicly available RI policy or guidance documents

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

02.1. Indicate which of your investment policy documents (if any) are publicly available. Provide a URL and an attachment of the document.

02.4. Additional information [Optional].

All of our policies and reporting can be accesses on our website at:

http://www.cfsgam.com.au/au/insto/responsible_investment/reports_and_policies/ 

We report annually on our progress and the approach taken to RI by our investment teams:

http://ri.firststateinvestments.com?


SG 03. Conflicts of interest

03.1. Indicate if your organisation has a policy on managing potential conflicts of interest in the investment process.

03.2. Describe your policy on managing potential conflicts of interest in the investment process.

Conflicts of interest may arise from time to time in the course of our business activities. At all times the interests of our clients are put first and we are committed to implementing the highest standards of governance and control. In recognition of this, FSI maintains and implements a conflicts of interest policy.

Our conflicts of interest policy sets out how FSI define, record, monitor, escalate and resolve potential conflicts. Our conflicts of interest policy is available at http://www.firststateinvestments.com in the About Us > Policies section of the website.

03.3. Additional information. [Optional]


SG 04. Identifying incidents occurring within portfolios

04.1. Indicate if your organisation has a process for identifying and managing incidents that occur within portfolio companies.

04.2. Describe your process on managing incidents

          Incidents at portfolio companies are monitored and managed by the investment teams directly (see our annual RI Report for a detailed description of each investment team's approach - http://ri.firststateinvestments.com/2016/investment-team-profiles.htm) and via quarterly reporting to our Global Investment Committee (GIC). 

Each actively managed investment team has processes in place to capture and manage incidents as they occur, including assessment of the issue and engagement with companies. In some cases the investment case may be changed based on the issue or the company's response to it. 

The GIC receives quarterly reporting (currently only for equity teams, fixed income is to be rolled out in the second half of 2017) that draws on our two ESG research providers Sustainalytics and MSCI Governance and our controversy monitoring service Reprisk. In particular changes in ratings and new incidents are captured. The reporting is generated independently by the Responsible Investment team with each investment team having the opportunity to comment on the findings. The GIC can request further information from investment teams including engagement plans. 

The GIC is chaired by the CEO and includes the CIO's from each asset class except unlisted infrastructure.
        

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