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Environment Agency Pension Fund

PRI reporting framework 2018

Asset class implementation gateway indicators [OO 10 - 12] Peering questions [OO LE 01 - INF 03]

Investment policy [SG 01 - 04] Objectives and strategies [SG 05 - 06] Governance and human resources [SG 07 - 08] Promoting responsible investment [SG 09 - 11] Outsourcing to fiduciary managers and investment consultants [SG 12] ESG issues in asset allocation [SG 13 - 15] Asset class implementation not reported in other modules [SG 16 - 17] Innovation [SG 18] Communication [SG 19]

Indirect – Manager Selection, Appointment and Monitoring

Listed Equity and Fixed Income Strategies [SAM 01] Selection [SAM 02 - 03] Appointment [SAM 04] Monitoring [SAM 05 - 07] Outputs and outcomes [SAM 08 - 09]

Direct - Listed Equity Active Ownership

Engagement [LEA 01 - 14] 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] Process for engagements conducted with/on your behalf by service providers [LEA 07 - 08] General processes for all three groups of engagers [LEA 09 - 10] Outputs and outcomes [LEA 11 - 14] (Proxy) voting and shareholder resolutions [LEA 15 - 24] Overview [LEA 15] Process [LEA 16 - 20] Outputs and outcomes [LEA 21 - 24]

Assurance

Assurance [CM1 01.1 - 01.7]

Export Public Responses

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Basic information

OO 01. Signatory category and services

01.1. Select the type that best describes your organisation or the services you provide.

Non-corporate pension or superannuation or retirement or provident fund or plan

Corporate pension or superannuation or retirement or provident fund or plan

Insurance company

Foundation

Endowment

Development finance institution

Reserve - sovereign or government controlled fund

Family office

Other, specify

01.3. Additional information. [Optional]

The Environment Agency Pension Fund (the Fund/ EAPF) is a defined benefit Local Government Pension Scheme with 39,500 beneficiaries and assets of around £3.5 billion. The participation rate of eligible beneficiaries is 95 per cent and the funding level at 31 March 2017 was estimated at 102 per cent.

As long-term investors, with liabilities reaching beyond 2100, our aim is to deliver a truly sustainable Pension Fund by ensuring that it is affordable, delivers financially to meet the objectives of our scheme employers and is invested responsibly.

OO 02. Headquarters and operational countries

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

United Kingdom

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).

6 FTE

02.4. Additional information. [Optional]

The UK Government government has introduced regulations that require Local Government Pension Scheme (LGPS) Funds to pool investments, in order to improve efficiency. As a result of this, Brunel Pension Partnership Ltd (Brunel) was set up to pool investment assets across 10 LGPS Funds. These include our Environment Agency Pension Fund (EAPF) and 9 other Local Government Funds.

As the management of assets has moved to Brunel the EAPF team size has reduced. However, we see pooling as an opportunity to extend our globally recognised work on responsible investment to the benefit of the wider pool of funds and their beneficiaries.

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]

OO 04. Reporting year and AUM

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

31/03/2018

04.2. Indicate your total AUM at the end of your reporting year, Exclude subsidiaries you have chosen not to report on and any advisory/execution only assets.

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

04.5. Additional information. [Optional]

EAPF total is £3,424,465,614.52 as of 31 March 2018, which is a total of US$ 4,803,840,364,05.

Please note that the USD conversion rate in OO 4.2 is as of December 2017.

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. Select how you would like to disclose your asset class mix.

as percentage breakdown

	Internally managed (%)	Externally managed (%)
Listed equity	0 0	>50% 50.8
Fixed income	0 0	10-50% 32.9
Private equity	0 0	<10% 3.3
Property	0 0	<10% 5.5
Infrastructure	0 0	<10% 2.9
Commodities	0 0	0 0
Hedge funds	0 0	0 0
Forestry	0 0	<10% 0.6
Farmland	0 0	<10% 0.7
Inclusive finance	0 0	0 0
Cash	<10% 0.5	0 0
Other (1), specify	0 0	<10% 2.8
Other (2), specify	0 0	0 0

'Other (1)' specified

          Private debt

as broad ranges

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

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

These figures are rounded approximations. For exact asset allocations please refer to our Annual Report and Financial Statements 2017/18 available at www.eapf.org.uk

OO 07. Fixed income AUM breakdown

07.1. Provide to the nearest 5% the percentage breakdown of your Fixed Income AUM at the end of your reporting year, using the following categories.

Externally managed

48.3 SSA

16.6 Corporate (financial)

29.7 Corporate (non-financial)

5.4 Securitised

Total 100%

OO 08. Segregated mandates or pooled funds

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

Provide a breakdown of your organisation’s externally managed assets between segregated mandates and pooled funds.

Asset class breakdown	Segregated mandate(s)	Pooled fund(s)	Total of the asset class (each row adds up to 100%)
[a] Listed equity	0% <10% 10-50% >50 %	0% <10% 10-50% >50 %	100%
[b] Fixed income - SSA	0% <10% 10-50% >50 %	0% <10% 10-50% >50 %	100%
[c] Fixed income – Corporate (financial)	0% <10% 10-50% >50 %	0% <10% 10-50% >50 %	100%
[d] Fixed income – Corporate (non-financial)	0% <10% 10-50% >50 %	0% <10% 10-50% >50 %	100%
[e] Fixed income – Securitised	0% <10% 10-50% >50 %	0% <10% 10-50% >50 %	100%
[f] Private equity	0% <10% 10-50% >50 %	0% <10% 10-50% >50 %	100%
[g] Property	0% <10% 10-50% >50 %	0% <10% 10-50% >50 %	100%
[h] Infrastructure	0% <10% 10-50% >50 %	0% <10% 10-50% >50 %	100%
[k] Forestry	0% <10% 10-50% >50 %	0% <10% 10-50% >50 %	100%
[l] Farmland	0% <10% 10-50% >50 %	0% <10% 10-50% >50 %	100%
[o] Other (1), specify	0% <10% 10-50% >50 %	0% <10% 10-50% >50 %	100%

08.2. Additional information. [Optional]

Other = private debt

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 %
Total100%

09.2. Additional information. [Optional]

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