European SRI Transparency Code · The fund is managed using our general approach to SR investing. LGT Sustainable Equity Fund Global: Launch date: 31/12/2009 Domicile: Principality

European SRI Transparency Code

LGT Sustainable Quality Equity Fund Hedged (EUR)



Disclaimer

This document aims at fulfilling reporting requirements under the European SRI Transparency Guidelines. It does not constitute a

public offering or public advertisement of any financial instruments mentioned herein. This document is not directed at recipients in

any jurisdictions where the receipt of the information contained herein would be unlawful. The receipt of this information is not to

be taken as constituting the giving of investment advice. Each person should make its own independent assessment and should take

its own professional advice in relation to any investment product mentioned herein. Please be advised that investors should always

consult the legal documentation of the investment products mentioned herein. The information contained in this document was

obtained from a number of different sources. LGT exercises the greatest care when choosing the sources of information and

compiling obtained information. Nevertheless errors or omissions in information obtained from different sources cannot be

excluded. LGT does not assume any liability for any direct or indirect damage or loss resulting from the use of this document. This

document and the information contained herein may be reproduced only with the prior written consent of LGT. To the extent that

past performance of investment products is mentioned in this document please note that past performance is not an appropriate

indicator for future performance.



European SRI Transparency Code Version 3.0

The European SRI Transparency Code (the Code) focuses on SRI funds distributed publicly in Europe and has been designed to

cover a range of assets classes, such as equity and fixed income.

All information pertaining to the European SRI Transparency Code can be found at the following website: www.eurosif.org. The code

comes with a Guidance Manual for fund managers on how to best use and respond to the Transparency Code. The present version

of the Code has been approved by the Board of Eurosif on October 3, 2012.

TWO KEY MOTIVATIONS UNDERPIN THIS CODE

1. The opportunity for retail SRI funds to clarify their SRI approach to investors and other stakeholders in an easily accessible

and comparable format.

2. Proactively strengthen a self-regulation that contributes to the development and promotion of SRI funds by setting up a

common framework for transparency best practices.

GUIDING PRINCIPLE

Signatories to the Code should be open, honest and disclose accurate, adequate and timely information to enable stakeholders, in

particular consumers, to understand the ESG1 policies and practices of the fund.

COMMITMENTS FROM SIGNATORIES

The order and exact wording of the questions shall be respected;

Responses should be informative and clear, and the resources and methodologies deployed should be described with as

much detail and precision as possible;

Funds should report data in the currency that they use for other reporting purposes;

Reasons preventing the fund from providing all or part of the information to a given question should be clearly stated and,

in such a case, signatories should state when they will be able to answer the question;

Responses shall be updated at least on an annual basis and should have a precise publication date;

Responses to the Code should be easily accessible from the fund’s and/or fund manager’s website. In any case, signatories

should make it clear where to find the information required by the Code;

Signatories are solely responsible for the answers to the questions, and should state this in their response.

1 ESG stands for Environmental, Social and Governance.



To clarify these commitments, signatories should include at the beginning of the response document the following two statements:

Statement of Commitment

Sustainable and Responsible Investing is an essential part of the strategic positioning and behaviour of LGT Capital Partners. We

have been involved in SRI since 2008 and welcome the European SRI Transparency Code.

This is our fifth statement of commitment and covers the period 01.07.2015 to 30.06.2016. Our full response to the European SRI

Transparency Code can be accessed below and is available in the annual report of the retail funds and on our web site.

Compliance with the Transparency Code

LGT Capital Partners Ltd is committed to transparency and we believe that we are as transparent as possible given the regulatory

and competitive environments that exist in the countries in which we operate. LGT Capital Partners Ltd meets the full

recommendations of the European SRI Transparency Code.

22 June 2015



Code categories

Section 1. Basic Details

1

The Fund Management Company

1a

Provide the name of the fund management company managing the fund(s) to which this code apply.

LGT Capital Partners Ltd. manages the funds to which this code apply.

Contact information

Address: Schützenstrasse 6

CH-8808 Pfäffikon, Switzerland

Telephone: +41 55 415 92 11

Web: www.lgt.com

Alexander Zanker,

ESG Officer LGT CP SLO

[email protected]

Provide general information about The Fund Management Company managing the fund(s) to which this code apply (eg. name,

address, website…).

LGT Capital Partners Ltd. manages the funds to which this code apply. We are the investment centre of the LGT Group for traditional

asset classes and strategy solutions as well as the family office of the Princely House of Liechtenstein.

1b

Describe the general approach of the fund management company with regards to how it takes environmental, social and

governance (ESG) criteria into consideration.

Mankind is facing major social, ecological and economic challenges, such as climate change and scarcity of resources. However,

challenges also harbour opportunities, which is where our sustainability funds come into the picture.

The strategic initiative «Sustainable Investing» has broad support in the LGT Group. The initiative is based on our corporate values

such as long-term value creation, independence, stability and quality. The Princely Family of Liechtenstein – owner of LGT Group –

strongly backs the initiative, and has made a strategic investment in the LGT Sustainability Funds. This results in the high level

alignment of investment interests between our clients, owner and staff – the like of which is unique in the banking sector.

We invest in companies, organisations and countries, that stand out in terms of sustainability criteria and ensure long-term financial

value creation.

We actively select themes that contribute to increasing sustainable human well-being. We focus on three areas of sustainability

«ESG”: 1) Environment – primarily comprises the consequences of climate change and resource scarcity; 2) Social – comprises labour

and society; 3) Governance – addresses corporate management and transparency.

LGT Group also engages in philanthropy. For many people – as well as for the Princely Family of Liechtenstein – using part of their

assets for a good cause is a matter of genuine importance. LGT Venture Philanthropy provides the opportunity to invest capital in

www.lgt.com

mailto:[email protected]%25



such a way as to achieve the greatest and most enduring social and environmental benefits. Our Venture Philanthropy experts are

constantly examining suitable organizations worldwide and help investors choose and carry out their philanthropic commitment.

Is the fund management company approach towards ESG criteria aligned or inspired by its corporate social responsibility approach?

Yes/No.

If yes, insert a link to the company’s CSR policy. If not, explain why not.

Yes it is, we focus on human wellbeing and environmentally responsible behaviour both at an investment and a corporate level:

http://www.lgt.com/en/lgt-group/sustainability/

Has the fund management company signed the Principles for Responsible Investment?

If yes, please insert the link to the answer to the PRI questionnaire. If not, explain why not.

Yes, LGT Capital Partners is a signatory of UNPRI.

http://www.unpri.org/viewer/?file=wp-content/uploads/Merged_Public_Transparency_Report_LGT-Capital-Partners_2014.pdf

Is the fund Manager a signatory or a member of other international and/or national initiatives supporting SRI practices?

Please answer if you deem this information to be useful.

LGT Capital Partners is a member of Forum Nachhaltige Geldanlagen (FNG, http://www.forum-ng.org/en/) and LGT Group has

signed the Global Compact (https://www.unglobalcompact.org/)

Has the fund management company established an ESG engagement policy?

If yes, describe the policy by outlining its objectives and its methodology and/or, if it is public, insert a link to the policy. If not,

explain why not.

LGT Capital Partners currently does not have a formal engagement policy, but portfolio managers have been practicing

engagement on specific themes like child-labour by communicating directly with the company concerned.

Has the fund management company established a voting policy?

If yes, describe the policy by outlining its objectives and its methodology and/or, if it is public, insert a link to the policy. If not,

explain why not.

Yes, LGT Capital Partners takes this responsibility towards its investors seriously and votes on behalf of them, according to clearly

defined criteria. Please find further details under:

https://www.lgt.com/shared/.content/publikationen/$verwaltung_publikationen/voting_rights_en.pdf

Describe how the fund management company or the group contributes to the promotion and the development of SRI.

LGT Capital Partners is a member of FNG and actively participates in its events, providing panellists and input. LGT Capital Partners

also has links to more local SRI focused groups, e.g. GreenBuzz (http://greenbuzz.ch/) to create awareness and discuss topical

issues. LGT Capital Partners also participates at international conferences.

At a group level we provide internal courses to further the understanding of our relationship managers and investment advisors on

sustainability topics. The aims are technical competence: gaining broad knowledge and in-depth understanding of the specific

fundamentals of sustainable capital investments and advisory competence: being able to confidently communicate subject-relevant

sales arguments

http://www.lgt.com/en/lgt-group/sustainability/

http://www.unpri.org/viewer/?file=wp-content/uploads/Merged_Public_Transparency_Report_LGT-Capital-Partners_2014.pdf

http://www.forum-ng.org/en/

https://www.unglobalcompact.org/


http://greenbuzz.ch/



LGT Capital Partners is a signatory of UNPRI, through which it also develops and promotes SRI.

1c

Describe/List your SRI products and the specific resources allocated to your SRI activities.

Briefly describe the SRI fund range (number, assets under management, strategies, ...)

Our SRI fund range consists of 10 different products with three equity, three multi asset class and four bond solutions. In addition we

manage equity and bond mandates for institutional clients. Total AuM: CHF 3.4 bn.

LGT Sustainable Equity Fund Europe:

Launch date: 30/09/2000

Domicile: Principality of Liechtenstein

Legal form: SICAV

ISIN: LI0015327906

The fund is managed using our general approach to SR investing.

LGT Sustainable Equity Fund Global:



Legal form: SICAV

ISIN: LI0106892966


LGT Sustainable Quality Equity Fund Hedged:



Legal form: UCITS under the laws of Liechtenstein

ISIN: LI0183907836


LGT Sustainable Quality Equity Fund Hedged:




ISIN: LI0183907836




LGT Strategy 5 Years:




ISIN: LI0019352926






ISIN: LI0008232220






ISIN: LI0008232162


LGT Sustainable Bond Fund Global:



Legal form: SICAV

ISIN: LI0106892909


LGT Sustainable Bond Fund Global Hedged:



Legal form: SICAV

ISIN: LI0148577948






ISIN: LI0008232030


LGT Sustainable Quality Bond Fund Hedged:




ISIN: LI0183909782




Describe/Detail the resources allocated by the fund management company (organisation, ESG research internal/external, dedicated

portfolio management team,…) and indicate where this information is available.

We have developed dedicated resources in the sustainability segment with specific expertise. In doing so, we have set up a specific

sustainable investment process, featuring negative exclusion criteria and positive criteria. The exclusion criteria are rigidly adhered to

using a proprietary sustainability filter based on data from Asset4 (http://thomsonreuters.com/en/products-

services/financial/company-data/esg-research-data.html) for companies and Inrate (http://www.inrate.com/) for countries,

supranationals and non-publicly traded companies. Inrate covers a universe of approximate 190 countries and more than 100 non-

publicly traded companies or supranationals. We receive and evaluated Asste4 data for more than 4000 publicly listed companies.

Our core analysis tool is called “ESG-cockpit” that is an elaborated database that can be filled with various data regarding ESG-

issues. It adjusts for biases like the regional origin of the companies. Therefore we put our trust in the expertise of internal and

external investment experts with many years of experience in the sustainability sector.

Furthermore we have also set up an ESG Committee with associated sub-committees which reviews the process and the strategy

behind our sustainable investments. A designated ESG officer promotes and coordinates best practice within the firm, partner-level

champion provides strategic direction for the firm's ESG initiatives and represents this strategy on the executive management team.

The seven-member ESG committee coordinates the development of policies/procedures across investment management, reporting

and client service. This committee meets quarterly/semi-annually and reports to the executive management team. The ESG

subcommittees for each business unit ensure that detailed topics are discussed among the relevant participants and decisions, e.g.

on single security issues, can be taken rapidly

http://thomsonreuters.com/en/products-services/financial/company-data/esg-research-data.html

http://thomsonreuters.com/en/products-services/financial/company-data/esg-research-data.html

http://www.inrate.com/



The dedicated ESG portfolio management team is as listed below:

Since November 2009, LGT Capital Management has a dedicated ESG portfolio management team.

1d

Describe the content, frequency and resources allocated/used by the fund management company to inform investors about the

ESG criteria taken into account.

Factsheet

Snapshot

Full prospectus

Simplified prospectus

- Annual report (only available in German)

- Semi-annual report (only available in German)

- Monthly fund factsheets

All documents can be found at https://www.lgt.com/de/anlageloesungen/anlagestilen-themen/nachhaltige-

anlagen/index.html All documents can be found at https://www.lgt.com/de/anlageloesungen/anlagestilen-

themen/nachhaltige-anlagen/index.html

In our quarterly reporting we compare the ESG portfolio quality (corporates) with the benchmark in order to have an indication on

the impact on society and environment. ESG data is based on our proprietary ESG framework and sourced from Asset4. On all three

pillars ESG performance is well above the benchmark.

https://www.lgt.com/de/anlageloesungen/anlagestilen-themen/nachhaltige-anlagen/index.html

https://www.lgt.com/de/anlageloesungen/anlagestilen-themen/nachhaltige-anlagen/index.html



The SRI Fund(s)

1e

Provide the name of the fund(s) to which this Code applies and its (their) main characteristics.

Describe the main characteristics of the fund(s): geographical focus, asset class, SRI strategy used (use the classification provided by

Eurosif/EFAMA).





ISIN: LI0183907836

Portfolio Manager: Marc Gonzales, BSc

The LGT Sustainable Quality Equity Fund is an actively managed equity portfolio using sustainable criteria, which primarily invests

globally in sustainable companies with higher quality orientation within their investment universe. To choose these companies, high

quality criteria are set with focus on stability & risk in the balance sheet, profitability & growth as well as governance & sustainability.

This equity fund invests in particularly in companies with strong business models and higher dividend yields. The fund has a global

investment focus, and applies a screening and integration approach with regard to SR investing.

Risk and Reward Profile:

The LGT Sustainable Equity Fund Global has been classified as category 5, as its unit price usually fluctuates strongly, which means

that both the risk of loss and profit opportunities are high.

1f

What is (are) this (these) fund(s) trying to achieve through taking into account ESG criteria?

For instance, financing a specific sector, reducing risks, support better CSR practices, develop new value creation opportunities,

other objectives.

If part of the fund(s) assets is invested in unlisted organisations with high social, community or impact investing relevance, please

specify.

ESG information (Environment, Social, and Governance) helps us understand our investments more holistically and identify issues

and related risks and opportunities arising from the sustainability megatrend:

Environment: emission reduction, energy efficiency, waste disposal, lack of resources, bio¬diversity etc.

Social: health and education, population growth and an ageing population, consumer behaviour etc.

Corporate Governance: Transparency and supervision, responsibility and liability etc.

These topics will feature in politics and the economy in equal measure over the coming years.

Many companies have been involved with the topic “sustainability” for several years. They have recognised this will improve the

long-term competitiveness in the future and competitive advantages can be achieved. Only companies, countries and regions that

apply sustainable principles will survive in the market over the long run.

In addition to these fundamental considerations, numerous academic studies show a positive relationship between sustainability and

profitability. In over 50% of the cases, the concept of sustainability had a positive effect on performance.

The reasons for this positive effect are factors like a holistic risk management, lower costs, more transparent corporate governance,

better reputation, greater innovation potential and a better quality of the management.



Relation between sustainability and performance

(summary of 36 studies, source: Mercer 2009)

We are convinced that sustainable management will continue to gain in importance. Due to this development there are new

investment opportunities in the global financial markets which we want to make use of with our sustainable funds.

Part of our funds are invested in Microfinance funds. Microfinance aims to provide small loans to individuals and small businesses in

developing countries to enable entrepreneurial activity.

Positive Neutral-Positive

Neutral Neutral-Negative

Negative0%

10%

20%

30%

40%

50%

60%



Section 2. Approach to ESG Evaluation of Companies

2a

What fundamental principles underlie the ESG research methodology?

Describe the principles, standards or norms on which the ESG analysis is based for each of the environmental, social/societal and

governance dimensions. Include brief comments about how stakeholders are consulted, as appropriate.

With our “Sustainable Investing” approach, we invest in companies, countries and supranationals that stand out in regard to our

sustainability criteria, and that ensure long-term value creation from the financial perspective. We focus partially on themes that

contribute to improving human well-being. According to our definition, we want to contribute to equitable social development as

well as preserving natural resources.

For companies we focus on the three dimensions “Environment”, “Social” and “Corporate Governance”.

For countries, we focus on the three dimensions “Institutional framework” (human rights, democracy, governance of law and

corruption), “Environment” (preservation of the resource base) and “Social” (equitable social development).

For supranationals, the most important criteria is the effective impact of the projects financed by the institution. Financing

controversial industries and projects are assessed.

Cornerstones of “LGT Sustainable Investing” approach

We also group wide exclude companies that are involved in the production of controversial weapons. This exclusion is based on a

norms based screening provided by GES (http://www.globalengagementservices.ch/).

2b

What internal and external resources are used to carry out this research?

Describe the general information used to carry out the ESG research: internal analysis, ESG rating agencies, other external sources of

information.

We delegate most of the research to an external specialist provider. We maintain an intense corporation with “Asset4”

(http://www.asset4.com). Asset4 was founded in Zug (Switzerland) in 2003, has been later acquired by Thomson Financial, and has

evolved into one of the leading sustainable data providers. The company has a clear focus on environmental, social and governance

http://www.globalengagementservices.ch/

http://www.asset4.com/



issues (ESG) and provides the most comprehensive set of comparable and up-to-date information. Asset4 provides us with raw

sustainability data on companies as well as software programmes, which deliver extensive analysis possibilities, support us in our

securities and themes selection and ensure compliance with our sustainability criteria.

Since the end of 2012 we do also maintain a partnership with Inrate (http://www.inrate.com/), especially for our Sustainable Fixed

Income products.

In a final step, however, the portfolio manager and the SRI analysts are responsible for the active portfolio management within the

sustainable investment universe provided by Asset4.

2c

Which ESG analysis criteria are used?

Indicate what the main criteria for each of the environmental, social/societal and governance dimensions are. Specify if these criteria

differ according to sectors, the geographical zones, the type of company, … If appropriate, provide an example.

The investment universe is restricted over a number of stages to ensure that only those companies that add value over the long

term and contribute to improving human well-being find their way into the portfolio.

Companies that generate income from tobacco, gambling, weapons, pornography or have child labour controversies are excluded

(negative screening) from the global universe of around 4100 companies we have sustainability data from. A 5% revenue quota is

applied for tobacco, gambling, pornography and arms. Companies involved in child labour cases are always excluded, i.e. the

respective quota is 0%.

Elimination of firms by negative screening

We also group wide exclude companies that are involved in the production of controversial weapons. This exclusion is based on a

norms based screening provided by GES (http://www.globalengagementservices.ch/).

Our applied set of ESG indicators is designed to objectively and transparently compare companies’ ESG performances in each area

identified as relevant by thorough in-house research. Here we focus our analysis on measures that are material and for which

information is sufficiently widely reported to allow meaningful comparison, while not being so widely harmonized and homogenous

that it provides no proper differentiation between companies. Where possible we apply a combination of such indicators that

(a) provide useful and effective means of measuring results already achieved by a company in ESG (e.g. energy consumption)

(b) are more forward looking with focus on ESG policies, processes and their implementation (e.g. adoption of new standards).

http://www.inrate.com/

http://www.globalengagementservices.ch/



We believe in focusing on fewer, but better, indicators and being flexible in adjusting to emerging trends while screening out

already widely accepted norms that do not leave much room for differentiation and added value.

The design of our ESG indicators, which is an ongoing process, comprises the following main steps:

- identify the key ESG issues that companies face

- differentiate between common and sector-specific ESG issues

- identify objective, available data that provide a basis to evaluate companies performance on these issues

- combine data that are covering the same ESG issues while complementing each other by defining

- objective, transparent rules to construct corresponding ESG indicators (KPIs – key performance indicators)

We use approximately 40 KPIs per company across the pillars indicated above. The majority of these KPI are the same across all

companies, but some are sector specific. The KPIs which are the same across all sectors are denoted A indicators and those which

are variable among sectors are (only in the environment and the social pillars) are denoted B indicators. Some examples of A

indicators are given in the figure above. There are in total 7 A and 6 potential B indicators, 11 A and 5 potential B indicators, and 11 A

indicators for Environment, Social and Governance respectively. An example of a B indicator for the information technology sector

would be “R&D investment in eco-designed products and services”.

A scoring algorithm is applied to each ESG indicator in order to assign a score between 0% and 100% to all relevant companies. The

score is a measure of companies level of ESG achievement on the respective ESG issue, always relative to all other (relevant)

companies. The ESG indicator scores are then aggregated into pillar scores for CG, EN and SO and finally on into ESG scores which

again range between 0% and 100% for each company measuring their relative ESG performance.

The management of ESG factors by companies strongly depends on their corporate size and their regional origin and is in turn

dependent on the type of ESG issue under consideration. Therefore the scoring algorithm actively takes regional and size aspects

into account with the objective to mitigate existing ‘biases’ while preserving the original information content in the underlying data.

2d

What is your ESG analysis and evaluation methodology (how the investment universe is built, rating system, …)?

Describe the ESG evaluation/rating system and how it is built by explaining how the various ESG criteria are articulated. If

appropriate, provide an example.

The investment universe is restricted over a number of stages to ensure that only those companies that add value over the long

term and contribute to improving human well-being find their way into the portfolio.



From the global investment universe to the sustainable portfolio

For the first step in the definition of the universe of eligible investments please refer to question 2c

In the remaining universe, which is still extensive, we focus on positive investment opportunities in the sustainability sector. We see

such opportunities in companies that actively pursue strategies to reduce emissions, to improve energy efficiency, to adhere to

good employment conditions and providing training and to have transparent corporate governance. In assessing a company based

on sustainability criteria, we developed a proprietary ESG Rating based on Asset4 data.

Focus on investment opportunities – positive screening for companies (illustrative examples)

When analyzing a company, it is important to have a strong emphasis on ESG topics. They should contribute to the optimisation of

the financial figures. With the ESG Cockpit, it is possible to combine general and sector specific ESG data. The result is a ranking



based on the criteria. The worst 25% of the companies are recommended for exclusion and the focus is on companies that improve

relatively over time. Overall the portfolio has to have an ESG score above benchmark.

The precise aggregation methodology is described further in 2c.

2e

How frequently is the ESG evaluation reviewed?

Please briefly explain the methodology update process and who is involved. If appropriate, explain if the methodology has changed

in the past 12 months and the nature of the key changes.

We update the tools at least on a monthly basis. In addition, we have regular reviews in place to improve the process step by step.

In January 2015, we added new KPIs dealing with environmental and social issues to our KPI set used for corporates.



Section 3. Fund Management Process

3a

How do you take into account ESG criteria when defining the universe of eligible investments ?

If appropriate, describe the eligibility threshold and the resulting level of selectivity.

By applying sustainability criteria, the investment universe is reduced by approximately 30%. The next step is an analysis of the

companies’ financial data. For this purpose, we analyse the companies in detail. Our fundamental analysis is based on the bottom-

up approach.

We check each company regarding the following criteria:

Fundamental Screening

Companies, that fulfil our fundamental requirements, are analysed. This analysis is based on a model that draws conclusions on the

development and drivers of the business. It includes an in depth “Due Diligence” process. At this stage, we look at the price targets

in different scenarios. These price targets have a substantial impact on the portfolio construction. Companies that show the largest

discount regarding their intrinsic value get the highest weighting within the portfolio.



Identification of superior quality companies

Each company that has successfully passed through the investment process fulfils our sustainable- and evaluating criteria’s. Hence, it

guarantees that we only invest in sustainable and value-creating companies, meaning that we do not invest in companies that only

show high ESG scores, but degrade shareholder value.

We do not invest in companies without an ESG rating. If no rating is provided by Asset 4 a questionnaire is sent to the unrated

company in order to get their data to our KPI based questions. The quality of the input is then assessed by the ESG subcommittee

and a decision made whether the company will be included in the investable universe or not.

Over the last 12 months, the fund has not divested from any stock based on ESG criteria.

3b

How do you take ESG criteria into account into the portfolio construction?

Describe how you link ESG selection with the financial analysis or with portfolio management. More precisely, describe how the

results of the analysis of each of the dimensions (E, S and G) are integrated into the investment / divestment process. If applicable,

state where you provide information on divestments occurred in the past year on the basis of ESG criteria? If appropriate, explain

how potential ESG weightings are defined and describe your treatment of companies that are not subjected to an ESG analysis.

The portfolio construction is based on one hand on our sustainability criteria, which are in turn based on the three ESG factors. On

the other hand, our sustainability approach takes into account long-term investment opportunities, thus opening up promising

risk/return potential.

Combination of classic financial and sustainability analysis

3c

Does (do) the fund(s) have a specific ESG engagement policy?

Please explain what you mean by engagement. Describe how you select the companies/themes for engagement activities and the

impact on the portfolio management of the fund(s). Who undertakes engagement on behalf of the fund (internal and/or service

providers)?

There is currently no formal engagement policy in place, but portfolio managers have been practicing engagement on specific

themes like child-labour by communicating directly with the company concerned.

E S

G

E S

G

E S

G

E S

G

The sustainability approach allows an additional consideration of long term risk/returninvestment opportunities – as a more comprehensive approach,

its return prospects appear very promising.

Sustainability analysisClassical financial analysis



3d

Does (do) the fund(s) have a specific voting policy integrating ESG criteria?

Yes, our proxy voting policy integrates ESG criteria, please see answer to 1b)

3e

Does (do) the fund(s) engage in securities lending activities?

No, the fund does not engage in securities lending.



3f

Does (do) the fund(s) use derivative instruments?

If yes describe,

(i) their nature

(ii) the objective(s)

(iii) the potential limits in terms of exposure

(iv) if appropriate, their impact on the SRI quality of the fund

The fund uses listed equity derivatives for hedging purposes, i.e. to reduce equity market exposure. The fund also uses currency

forwards to hedge foreign currency risk on holdings not denominated in the fund’s base currency. The applicable limits are

according to the UCITS guidelines.

3g

Is a share of the fund(s) invested in unlisted entities pursuing strong social goals?

The LGT Sustainable Bond Fund is invested in two ResponsAbility Microfinance funds. Microfinance aims to provide small loans to

individuals and small businesses in developing countries to enable entrepreneurial activity.



Section 4. Controls and ESG Reporting

4a

What internal/external control procedures are in place to ensure the compliance of the portfolio with the ESG rules defined in

section 3 of this Code?

State who is carrying out the controls, their frequency and within which timeframe the fund(s) have to comply should a breach be

detected.

The comprehensive analysis programmes of Asset4 support the security and theme selection and ensure the adherence with ESG

investment criteria.

Furthermore, every portfolio manager is responsible for the selected securities in the portfolio. LGT tracks in-house the match of the

portfolio holdings with the ESG database in order to assure that the portfolios are compliant within the given framework.

Finally, the independent unit «Group Asset Management Compliance” tracks our negative screening process. In case of a violation,

the issue is identified and recorded on an exception list, the portfolio manager will be informed and the relevant security will be

sold.

Any active breach has to be rectified within 24 hours a passive breach within 5 working days.

4b

Please list all public media and documents used to inform investors about the SRI approach to the fund, and include URLs. This

should include a link to the detailed, no more than 6 months old, list of holdings of the fund(s).

Prospectus

(semi-) Annual report

Addendums

KIID

Fund Fact Sheet

Dedicated SRI Web page(s) at company / fund level (if applicable)

Engagement/voting policy/votes (if applicable)

Link to Web page of ESG Analysis provider(s) (if applicable)

URL to the research findings that are available to investors (if appropriate)

Detailed fund holdings (no more than 6 months old)

CSR Policy of the Company l (if applicable)

Other (please list):

Fund Fact Sheets

http://www.lgt.com/export/shared/downloads-external/factsheets/LGT_Sustainable_Quality_Equity_Fund_xEURx_B_de.pdf

KIID

http://www.lgt.com/export/shared/downloads-

external/prospekte/KIID_LGT_Sustainable_Quality_Equity_Fund_Hedged_xEURx_B_de.pdf

Prospectus

http://www.lgt.com/export/shared/downloads-external/prospekte/121019_Prospekt_LGT_Quality_Funds_en.pdf

Latest reports

https://www.lgt.com/export/shared/downloads-external/halbjahresberichte/LGT_Quality-Funds_OGAW-HJB-2014_FINAL_de.pdf

http://www.lgt.com/export/shared/downloads-external/jahresberichte/LGT_Quality_Funds_Geschaeftsbericht_de.pdf

http://www.lgt.com/export/shared/downloads-external/factsheets/LGT_Sustainable_Quality_Equity_Fund_xEURx_B_de.pdf

http://www.lgt.com/export/shared/downloads-external/prospekte/KIID_LGT_Sustainable_Quality_Equity_Fund_Hedged_xEURx_B_de.pdf

http://www.lgt.com/export/shared/downloads-external/prospekte/KIID_LGT_Sustainable_Quality_Equity_Fund_Hedged_xEURx_B_de.pdf

http://www.lgt.com/export/shared/downloads-external/prospekte/121019_Prospekt_LGT_Quality_Funds_en.pdf

https://www.lgt.com/export/shared/downloads-external/halbjahresberichte/LGT_Quality-Funds_OGAW-HJB-2014_FINAL_de.pdf

http://www.lgt.com/export/shared/downloads-external/jahresberichte/LGT_Quality_Funds_Geschaeftsbericht_de.pdf



Dedicated sustainability pages

http://www.lgt.com/en/investment-solutions/investment-styles-topics/sustainable-investments/

https://www.lgt.com/en/lgt-group/sustainability/

Voting policy


http://www.lgt.com/en/investment-solutions/investment-styles-topics/sustainable-investments/

https://www.lgt.com/en/lgt-group/sustainability/




Portfolio Holdings LGT Sustainable Quality Equity Fund (EUR)

As of 19.06.2015

Amcor (640267)

Amer Wtr Works (3382941)

Anh-Busch (1147290)

Apple (908440)

Baxter Intl (911702)

BCE (2614125)

BHP Billiton (640390)

Brambles (2373150)

Coca-Cola (919390)

Colgate (919477)

ComfortDelGro (1561746)

ConocoPhil (1330331)

DANONE (487663)

Diageo (837159)

Essilor (497537)

Givaudan (1064593)

Google -A- (1916494)

Hasbro Inc (938042)

Hengan Intl Grp (10819201)

J & J (943981)

KDDI (249625)

Kone (2028477)

Linde (340045)

M&T Bk (913685)

McDonald's (950605)

Medtronic (25187155)

Microsoft (951692)

MTN Grp (1480505)

Nestle (3886335)

Novartis (1200526)

Novo-Nordisk B (23159222)

Ntl Grid (2184727)

Oracle (959184)

PepsiCo (961618)

President Chain (702016)

Reckitt Ben Grp (3406783)

Reed Elsevier (3637167)

Roche Hldg (1203204)

Royal Dutch Shell (1987674)

SAP (345952)

SCA -B- (614418)

Sky (325444)

Sodexo (509031)



Telenor (1160189)

Telstra (720464)

Total (524773)

UNICHARM (764014)

Unilever (2477074)

Unitedhealth Grp (1078451)

Vermilion Egy (11711184)

Waste (933404)

Wells Fargo (966021)



Additional

If applicable, specify what the amount of donations and the percentage of management fees that the fund gave to charities in the

last year.

________________________________

COMMITMENT FROM EUROSIF AND THE NATIONAL SUSTAINABLE INVESTMENT FORUMS

• Eurosif is responsible for maintaining and publicising the Transparency Code.

• Eurosif promotes received responses to the Code on its website.

• Eurosif maintains a “transparent” logo that is awarded to those funds complying with the Code and whose answers have

been sent to Eurosif. Complying funds can use this logo in their marketing collateral, in accordance with the Logo Specifi cations

Manual (see. www.eurosif.org) and provided the Code is up to date.

• Eurosif commits to reviewing the Code. The process for reviewing the Code will be open and inclusive.European SRI

Transparency Code



About Eurosif

The European Sustainable Investment Forum (Eurosif) is the leading European membership association whose mission is to develop

sustainability through European financial markets. Eurosif works as a non-for-profit partnership of the national Europe-based

national Sustainable Investment Forums (SIFs) with the support and involvement of Member Affiliates.

Eurosif Member Affi liates include a range of organisations covering the value chain of the sustainable investment industry, from

institutional investors, asset managers to fi nancial services providers, ESG analysis fi rms, academic institutes and NGOs.

Eurosif speaks authoritatively and broadly on SRI (sustainable and responsible investment) issues. The main activities of Eurosif are

public policy, research and creating platforms for nurturing sustainable investing best practices. For more details, please see

www.eurosif.org.

National sustainable investment forums in Europe to date include:

• Dansif, Denmark

• Finsif, Finland

• Forum Nachaltige Geldanlagen* (FNG) e.V., Austria, Germany, Liechtenstein and Switzerland

• Forum per la Finanza Sostenibile*(FFS), Italy

• Forum pour l’Investissement Responsable* (FIR), France

• Norsif, Norway

• Spainsif*, Spain

• Swesif*, Sweden

• UK Sustainable Investment and Finance Association* (UKSIF), UK

• Vereniging van Beleggers voor Duurzame Ontwikkeling* (VBDO), the Netherlands

*Member of Eurosif

For further information on Eurosif or more details on the European SRI Transparency Code, please look at our website,

www.eurosif.org and contact Eurosif at +32 (0)2 274 14 35 or by email at [email protected].

Eurosif A.I.S.B.L.

331, rue du Progrès, 1030 Brussels, Belgium

Tel. : +32 (0)2 274 14 35

Disclaimer – Eurosif does not accept responsibility or legal liability for errors, incomplete or misleading information provided by

signatories in their responses to the European SRI Transparency Code. Eurosif does not provide any financial advice nor endorse any

specific funds, organizations or individuals.

www.eurosif.org

www.eurosif.org

[email protected]

Documents

European SRI Transparency Code · The fund is managed using our general approach to SR investing. LGT Sustainable Equity Fund Global: Launch date: 31/12/2009 Domicile: Principality