Loftus Peak Global Disruption Fund

Responsible Investing Approach

Labour, environmental, social and ethical considerations are formally integrated by the Investment Manager in the investment process, by penalising companies with poor labour, environmental, social and ethical records and/or prospects by applying a higher discount rate when valuing the company's future cash flows. This has the effect of lowering that company's prospective valuation and results in either the company being excluded from investment or included at a lower weight than otherwise. In addition, the Investment Manager may avoid investing in sectors or companies whose activities may be considered harmful to the environment and/or society. This may include, but not be limited to, specific companies whose business activities generate more than 5% of revenue from adult entertainment, alcohol, animal cruelty, fossil fuels, gambling, logging old growth forests, nuclear power, predatory lending, tobacco and weapons.

Loftus Peak identifies companies where its investment thematics align with Sustainable Development Goals. Out of the seventeen SDGs and its six thematics, the Manager has identified three consistent overlaps: energy as a technology as a contributor to Affordable and Clean Energy; Life Sciences as a contributor to Good Health and Well Being; and Connected Devices as a contributor to Safeguarding Peace. The holdings which currently meet SDG goals are outlined annually in the Manager's Sustainability Report.