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Martin Currie Investment Management

PRI reporting framework 2019

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

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] (C) Implementation: Integration of ESG factors [LEI 08 - 10] Outputs and outcomes [LEI 12 - 13]

Direct - Listed Equity Active Ownership

Overview [LEA 01] Engagement [LEA 02 - 08] Outputs and outcomes [LEA 09 - 11] (Proxy) voting and shareholder resolutions [LEA 12 - 21]

Confidence building measures

Confidence building measures [CM1 01 - 07]

Export Public Responses

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Basic information

OO 01. Signatory category and services

01.1. Select the services and funds you offer

Select the services and funds you offer	% of asset under management (AUM) in ranges
Fund management	0% <10% 10-50% >50%
Fund of funds, manager of managers, sub-advised products	0% <10% 10-50% >50%
Other	0% <10% 10-50% >50%
Total 100%

Further options (may be selected in addition to the above)

Hedge funds

Fund of hedge funds

01.2. Additional information. [Optional]

We are active equity specialists, crafting high-conviction portfolios for client-focused solutions. Investment excellence is at the heart of our business. Central to this philosophy is a stock-driven approach, based on in-depth fundamental research, active ownership of companies and skilled portfolio construction. Effective stewardship of capital is a significant part of our client proposition. Our commitment to this is evident in how we embed environmental, social and governance (ESG) analysis at every stage of the investment process, through corporate engagement, and in the responsible management of our own business. As an affiliate of Legg Mason, we also have the backing of one of the world’s largest asset management firms.

Our five key differentiators are:

Driven by our belief in fundamental research

Long-term investing captures equity growth from high-quality opportunities at sensible valuations.

Committed to high-conviction active management

Rigorous research complements strong valuation discipline, with an independent and dynamic risk function.

Differentiated stewardship and ESG approach

Effective stewardship of our clients’ capital through active ownership and industry-leading ESG analysis.

Delivering tailored equity solutions

Market Aware; Long-Term Unconstrained; Sustainable Income & Growth; and Absolute Returns.

Benefiting from strong corporate backing

Corporate strength and stability combines with a long history of international equity investing.

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).

177 FTE

02.4. Additional information. [Optional]

This figure includes team members from Martin Currie Australia (MCA). Members of this team are employees of Legg Mason Asset Management Australia Limited (LMAMAL), a subsidiary of the Legg Mason group. MCA operate in line with Martin Currie processes and policies and report into the Martin Currie operating structure.

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.

31/12/2018

04.2. Indicate your total AUM at the end of your reporting year.

Include the AUM of subsidiaries, but exclude advisory/execution only assets, and exclude the assets of your PRI signatory subsidiaries that you have chosen not to report on in OO 03.2

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

Not applicable as we are in the fund-raising process

04.4. Indicate the total assets at the end of your reporting year subject to an execution and/or advisory approach.

Not applicable as we do not have any assets under execution and/or advisory approach

04.5. Additional information. [Optional]

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

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

as percentage breakdown

as broad ranges

	Internally managed (%)	Externally managed (%)
Listed equity	>50% 92	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	<10% 8	0 0
Fund of 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
Money market instruments	0 0	0 0
Other (1), specify	0 0	0 0
Other (2), specify	0 0	0 0

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

06.3. Indicate whether your organisation has any off-balance sheet assets [Optional].

Yes

06.5. Indicate whether your organisation uses fiduciary managers.

Yes, we use a fiduciary manager and our response to OO 5.1 is reflective of their management of our assets.

No, we do not use fiduciary managers.

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

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.

66 Developed Markets

34 Emerging Markets

0 Frontier Markets

0 Other Markets

Total 100% 100%

09.2. Additional information. [Optional]

As active equity specialists, we build global, stock-driven portfolios based on bottom-up fundamental research. We recognise that while analysis of near-term prospects for a company will always be important, the majority of the value of a company lies in its ability to generate sustainable long-term returns.

By examining governance and sustainability factors in every company we research, we develop a deeper understanding of the companies we invest in and higher conviction in their ability to outperform over the long term for our clients.

We approach responsible investment in three ways:

Integration

Consideration of ESG factors is fully integrated into our investment process, having been a standard component of our stock research template since 2009. Far from a tick-box exercise, this information is exposed to peer review as part of our process for building an investment case. As with the fundamental analysis of financial factors, we only focus on ESG factors that are relevant and material to the investment case.

Active ownership

Active ownership or 'monitoring and engagement' are essential parts of being a shareholder. It allows us to improve our understanding of investee companies and their governance structures and make informed voting decisions. The materiality and immediacy of a given issue will generally determine the level of our engagement.

Exclusionary screening

We work with a number of segregated clients, tailoring their portfolio to avoid securities of specific companies, sectors or countries based on their ethical or values based concerns. The most common exclusions are no involvement in tobacco products, alcohol, armaments, cluster munitions, nuclear and contraception. We do not have a house policy on this but will incorporate specific requests from our clients.

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