Lonsec Webinar SeriesEverything is Broken

Moderator: Brook Sweeney, Senior Investment Consultant, Lonsec

1. Introduction

2. Richard Brandweiner: Chief Executive Officer, Pendal

3. Tony Adams: Head of Sustainable Investment Research, Equities Research

4. Panel

5. Q&A

6. Closing

Agenda

Lonsec Managed Accounts

• Professional expertise

• Research driven and backed

• Well-resourced and experienced

• Rigorous governance process

• Tailored and flexible solutions

• Best ideas portfolio construction

Brook SweeneyLonsecSenior Investment Consultant

Partners

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CPD AccreditationPortfolio Construction Forum

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Disclaimer

The content, presentations and discussion topics covered during this event are intended for licensed financial advisers and institutional clients only and are not intended for use by retail clients. No representation, warranty or undertaking is given or made in relation to the accuracy or completeness of the information presented.

Except for any liability which cannot be excluded, Lonsec, its directors, officers, employees and agents disclaim all liability for any error or inaccuracy in, misstatement or omission from, these presentations or any loss or damage suffered by the attendee or any other person as a consequence of relying upon the information presented.

Lonsec advises that all content presented at this event by any Symposium partner (not part of the Lonsec group of companies) is 3rd party content and forms representations and opinions of those 3rd parties alone. The contents of the presentations at this event are not in any way endorsed by Lonsec.

ESG vs SustainabilityWhat is your client really looking for?

Richard BrandweinerPendalChief Executive Officer

Tony AdamsLonsecHead of Sustainable Investment Research, Equities Research

What ESG means depends on what universe you are in

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If you live in Institutional Fund Manager world:

ESG means you consider and value the ESG risks that firms are taking and you buy stocks if you think you are getting a big enough monetary payoff for the risks they pose to the firm.

If you live in the real world:

ESG means you consider and understand the ESG risks that firms are taking and you DON’T buy stocks if you think the risks to the firm or the individual, the planet or society are bigger than a certain threshold.

Lonsec believes that the incorporation of Environmental, Social and Governance considerations into investment analysis by fund managers is likely to improve risk or return outcomes and should ultimately translate into a higher potential for a manager to achieve their investment objective

Lonsec has broadened its ESG practice assessment to cover all managers, sectors and product types, with the potential to impact the overall rating a product receives.

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E.S.G.

It IS: An Investment Approach• Consider Environmental, Social and

Governance issues as part of the investment approach

• Understand the risks and opportunities

• Engage with companies

• Active voting decisions

It IS NOT: An Outcome • Says nothing about the portfolio structure

• Does not guarantee environmentally or socially positive portfolios

• Is NOT about exclusions

The need for our Sustainability reports:

• Managers are implementing a range of approaches to ESG that do not always deliver intuitive portfolio outcomes

• Being assessed as a manager who is a leading integrator of “ESG” does NOT mean that they have sustainable, ethical or green portfolios

• Greenwashing and misleading fund branding continues

• A wide range of data providers and managers are creating a plethora of ESG data and scores that do not answer the simple question for investors:

How much “goodness” is in this portfolio?

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Lonsec’s approach to RI research

E.S.G. Sustainability ScoreAssessment of a fund manager’s investment processes against the Principles for Responsible Investment (PRI)

Assessment of a fund manager’s investment portfolio against the UN’s 17 Sustainable Development Goals

Captured via questionnaire, desk research & interview

Portfolio holdings analysed against Sustainable Platform’s company data

Qualitative assessment of both facts & opinionCombination of:• Contribution to global good,• Exposure to controversial industries

Incorporated into Lonsec’s investment rating& report

A separate Sustainability rating & report

Displayed as a BIOmetric in iRate Supplementary report & search criteria in iRate

Lonsec Sustainability Score

Bottom 10%Bottom 10% - 30%

Middle 40%Top 10% - 30%Top 10%

Lonsec Webinar SeriesEverything is Broken

Q & APlease submit your questions in the control panel underneath the questions section

Get in touch1300 826 395

Info@Lonsec.com.au

Lonsec.com.au

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Contact detailsNational Sales Team

Steven JessopHead of Licencee and IFA Sales

Metropolitan Brisbane, South QLD,

Metropolitan Sydney, North NSW & WA

E: Steven.Jessop@lonsec.com.au

T: +61 422 014 888

Chris SchroderHead of Business DevelopmentTasmania, SE Victoria, Metropolitan Melbourne

E: Chris.Schroder@lonsec.com.au

M: +61 423 736 705

Jeremy WeberBusiness Development ManagerSouth Australia, Regional Victoria& Metropolitan Melbourne

E: Jeremy.Weber@lonsec.com.au

M: +61 410 609 277

Neil PattinsonBusiness Development ManagerMetropolitan Brisbane, North QLD, Metropolitan Sydney, South NSW & ACT

E: Neil.Pattinson@lonsec.com.au

M: +61 439 900 280

Thank you