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La Financière Responsable

PRI reporting framework 2020

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%	Please specify Advisory
Total 100%

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

Hedge funds

Fund of hedge funds

01.2. Additional information. [Optional]

OO 02. Headquarters and operational countries

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

France

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).

10 FTE

02.4. Additional information. [Optional]

Our 4 portfolio managers also are ESG analysts.

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]

We dont' have subsidiaries. We collaborate with Mapfre AM which owns 25% of our capital.

OO 04. Reporting year and AUM

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

31/12/2019

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 assets which are subject to an execution and/or advisory approach. Provide this figure based on the end of your reporting year

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

04.5. Additional information. [Optional]

We share with Mapfre AM management of funds, by the way we just define the ESG eligibility of securities to the fund.

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

	Internally managed (%)	Externally managed (%)
Listed equity	>50% 91	0 0
Fixed income	<10% 5	<10% 3
Private equity	0 0	0 0
Property	0 0	0 0
Infrastructure	0 0	0 0
Commodities	0 0	0 0
Hedge funds	0 0	0 0
Fund of hedge funds	0 0	0 0
Forestry	0 0	0 0
Farmland	0 0	0 0
Inclusive finance	<10% 1	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

as broad ranges

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]

La Financière Responsable directly manages the entire portfolio of all these funds, with the exception of Mapfre Capital Responsable. Indeed, this fund is managed jointly with our partner Mapfre. It is a diversified fund in which La Financière Responsable manages the ESG eligibility of issuers of corporate bonds, manages the equity pocket. Bond financial management is carried out by Mapfre.

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.

Internally managed	0 SSA 8.9 Corporate (financial) 91.1 Corporate (non-financial) 0 Securitised Total 100%
Externally managed	100 SSA 0 Corporate (financial) 0 Corporate (non-financial) 0 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 or investments.

Asset class breakdown	Segregated mandate(s)	Pooled fund(s) or pooled investment(s)	Total of the asset class (each row adds up to 100%)
[b] Fixed income - SSA	0% <10% 10-50% >50 %	0% <10% 10-50% >50 %	100%

08.2. Additional information. [Optional]

La Financière Responsable directly manages the entire equity pocket of Mapfre Capital Responsable. Indeed, this fund is managed jointly with our partner Mapfre. It is a diversified fund in which La Financière Responsable manages the ESG eligibility of issuers of corporate bonds, govies ESG elibility is carried by Mapfre. Bond financial management is carried out by Mapfre.

OO 09. Breakdown of AUM by market

09.1. Indicate the breakdown of your organisation’s AUM by market.

100 Developed Markets

0 Emerging Markets

0 Frontier Markets

0 Other Markets

Total 100% 100%

09.2. Additional information. [Optional]

La Financiere Responsable (LFR) is an asset manager, specialized in the selection of european listed stocks, according to its specific method of management : the Integral Value Approach IVA®. La Financiere Responsable manages open-ended and semi-closed funds for institutional investors and intermediated private investors.
This discretionary management method aims at selecting values after a detailed analysis of, successively :
- 1 . the business and strategy of the underlying company, (strategy analysis based on Michael E. Porter's works)
- 2 . the implementation of this strategy and the company's real practices with all its stakeholders (extra-financial analysis)
- 3 . the financial profile of the company and its stock valuation on the markets (financial and valuation analysis)
Because of its attention to companies'strategy and business development potential, this method concentrates LFR fund managers towards "growth" stocks.
The Integral Value Approach IVA® is a SRI (Socially Responsible Investment) management method, because of the integration of non-financial data, during the stock analysis process, even before its financial review.
If the investment process of La Financiere Responsable is mainly based on the selection of growth stocks, the fund management team also relies on a macroeconomic diagnosis, established upstream by our economist E. Lechypre, and the Chief Economist of MAPFRE, Alberto Matellan to identify global development trends (top down analysis).
Ultimately, the objective of La Financiere Responsable is to obtain in the long run a good financial performance for investors, by investing in companies managed and organized to:
- develop a full, balanced and sustainable growth, allowing all stakeholders (staff, environment, customers, suppliers, civil society and shareholders) to benefit from the economic growth.
- have a better resilience to the time-to-time shocks of the real economy.
LFR's investment strategy is intended for the following investors :
- Institutional investors
- Banks and financial companies, for their proprietary accounts or for their clientele.
- HNW individuals through their private managers or IFAs
- Corporates
- Employees saving schemes.
La Financiere Responsable has also benefited each year since 2010 from a research tax credit from the French Ministry of Education and Research. For the last review in november 2018, the SRI label supported by the French public authorities was awarded to all La Financière Responsable’s funds. We remind that in 2016 La Financiere Responsable was the first independent asset manager to have its funds awarded this State label. In December 2017, La Financière Responsable won the French state-backed award – the CSR Challenge Trophy for the Responsible Finance (Trophée RSE pour la Finance Responsable) -- for its socially responsible investment approach. In 2019, its 3 directly managed funds still benefited the SRI Label.

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