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UBS Asset Management

PRI reporting framework 2018

Basic information [OO 01 - 09] Asset class implementation gateway indicators [OO 10 - 12] Peering questions [OO LE 01 - INF 03]

Strategy and Governance

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]

Direct - Listed Equity Incorporation

ESG incorporation in actively managed listed equities [LEI 01 - 10] Implementation processes [LEI 01 - 10] (A) Implementation: Screening [LEI 04 - 06] (B) Implementation: Thematic [LEI 07] (C) Implementation: Integration of ESG issues [LEI 08 - 10] ESG incorporation in passively managed listed equities [LEI 11] Outputs and outcomes [LEI 12 - 14]

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] 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]

Direct - Fixed Income

ESG incorporation in actively managed fixed income [FI 01 - 13] Implementation processes [FI 01 - 03] (B) Implementation: Thematic [FI 08 - 10] (C) Implementation: Integration [FI 11 - 13] ESG incorporation in passively managed fixed income [FI 14] Outputs and outcomes [FI 18 - 19]

Direct - Property

Overview [PR 01] Fundraising of property funds [PR 02 - 03] Pre-investment (selection) [PR 04 - 06] Selection, appointment and monitoring third-party property managers [PR 07] Post-investment (monitoring and active ownership) [PR 08 - 14] Overview [PR 08] Property monitoring and management [PR 09 - 10] Property developments and major renovations [PR 11] Occupier engagement [PR 12 - 13] Community engagement [PR 14] Outputs and outcomes [PR 15 - 16]

Direct - Infrastructure

Overview [INF 01 - 02] Fundraising of infrastructure funds [INF 03 - 04] Pre-investment (selection) [INF 05 - 09] Selection, appointment and monitoring of third-party operators [INF 10] Post-investment (monitoring and active ownership) [INF 11 - 16] Overview [INF 11] Infrastructure monitoring and operations [INF 12 - 14] Infrastructure maintenance [INF 15] Stakeholder engagement [INF 16] Outputs and outcomes [INF 17 - 18] Communication [INF 19]

Assurance

Assurance [CM1 01.1 - 01.7]

Export Public Responses

You are in Direct - Fixed Income » ESG incorporation in actively managed fixed income » (A) Implementation: Screening

(A) Implementation: Screening

FI 04. Types of screening applied

04.1. 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

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

Negative Screening: We are able to incorporate negative screening lists for securities, issuers or certain sectors provided by clients into our investment process.

Positive/ Best-in class screening: We are able to tailor our investment management approach to accommodate SRI constraints within mandates directed by our clients.

04.3. Additional information. [Optional]

FI 05. Negative screening - overview and rationale

05.1. Indicate why you conduct negative screening.

Corporate (financial)

Corporate (fin)

For legal reasons

For non-legal reasons

Corporate (non-financial)

Corporate (non-fin)

For legal reasons

For non-legal reasons

05.2. Describe your approach to ESG-based negative screening of issuers from your investable universe.

Norms-based Screening: UBS Asset Management has implemented a process to prevent investments in companies involved in the development, production or purchase of cluster munitions and antipersonnel mines for our actively managed corporate (non-financial) fixed income assets. The firm's Sanctions Compliance Committee issues a list of affected companies based on information provided by an external advisor. Changes are implemented by the responsible Portfolio Managers. Portfolios undergo regular pre and post-trade compliance checks.

Negative Screening: Directed by client requests, we are able to incorporate negative screening lists for securities, issuers or certain sectors provided by clients into our investment process.

05.3. Additional information. [Optional]

FI 06. Examples of ESG factors in screening process (Not Completed)

FI 07. Screening - ensuring criteria are met

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

Type of screening	Checks
Negative/exclusionary screening?	Checks are performed to ensure that issuers meet screening criteria We ensure that data used for the screening criteria is updated at least every 2 years. Automated IT systems prevent our portfolio managers from investing in excluded issuers or bonds that do not meet screening criteria Audits of fund holdings are undertaken regularly by internal audit or compliance functions Other, specify None of the above
Positive/best-in-class screening	Checks are performed to ensure that issuers meet screening criteria We ensure that data used for the screening criteria is updated at least every 2 years. Automated IT systems prevent our portfolio managers from investing in excluded issuers or bonds that do not meet screening criteria Audits of fund holdings are undertaken regularly by internal audit or compliance functions Other, specify None of the above
Norms-based screening	Checks are performed to ensure that issuers meet screening criteria We ensure that data used for the screening criteria is updated at least every 2 years. Automated IT systems prevent our portfolio managers from investing in excluded issuers or bonds that do not meet screening criteria Audits of fund holdings are undertaken regularly by internal audit or compliance functions Other, specify None of the above

07.2. Additional information. [Optional]

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