Investing to improve

For professional clients and qualified investors only

BMO SDG Engagement Global Equity Fund

Quality matters

The bar we set when investing is high. Alongside strict criteria around the quality and value of a company, there

must be clear opportunity for SDG-linked engagement.

Driving improvement

We seek to drive targeted improvement, focusing on how companies address ESG risks, opportunities and impacts. Engagement is structured around the

SDGs and their underlying targets.

Measuring our impact

We monitor and measure the impact of our dialogue around defined SDG

targets. We want to see improvement and continually assess the progress

each company is making.

Investing to improveThe Fund is orientated around a clear ethos of invest, engage and improve

Invest Engage Improve

Since the 2030 Agenda for Sustainable Development was adopted by all UN Member States in 2015, much progress has been made to meet the Agenda’s goals. With only 10 years left to 2030, all stakeholders must focus on decisive action. Whilst many companies now have sustainability strategies, robust implementation and an acceleration towards meaningful and lasting change is now imperative.

SDGs: a framework for investors

The SDG framework provides an ambitious roadmap towards a more sustainable world. We believe it is a useful tool for companies and investors to be able to contribute to

achieving the objectives of the 2030 Agenda. The framework has created a common language between stakeholders, and we are seeing that has a positive impact within our engagement.

BMO SDG Engagement Global Equity Fund

There is a growing recognition that we can align our investment decisions with our values. Ultimately, we want our money to drive improvement in the world around us. This is exactly what our BMO SDG Engagement Global Equity Fund is designed to achieve. Our ambition is not only to deliver attractive investment returns but to demonstrate positive progress towards achieving SDG targets.

Page 2For professional clients and qualified investors only%

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BMO SDG Engagement Global Equity Fund I Acc USDMSCI AC World SMID Cap NR

May-20Mar-20Jan-20Nov-19Sep-19Jul-19May-19Mar-19

Past performance should not be seen as an indication of future performance. Changes in rates of exchange may also reduce the value of your investment.

Relative performance since launch (to end of May 2020) has been strong. The Fund has outperformed the MSCI AC World SMID Cap NR index by almost 300bps over the past 12 months and in excess of 800bps since inception – posting positive returns against a benchmark that has posted negative returns. This covers both a period of rising markets in 2019, significant declines in Q1 2020 and the subsequent ongoing recovery, with the Fund delivering resilient returns in volatile conditions underpinned by the focus on high quality businesses with strong balance sheets. Stock selection has dominated but asset allocation trends have also been provided a gentle tailwind. Healthcare has delivered about 375bps of the alpha, with Energy, Real Estate and Consumer Discretionary also each individually contributing more than 100bps. By contrast Financials has been the sole sector that has lagged by more than 100bps since inception. Our three largest stock specific contributions since launch have come from Hoya ( Japan), Halma (U.K.) and Descartes Systems (Canada).

Name BMO SDG Engagement Global Equity Fund

Launch date 01-Mar-19

Invests in Global equities, Small & mid-sized companies (US$1–25bn)

Style Quality growth

Holdings 40–60

Benchmark MSCI ACWI SMID Cap Index NR

Fund managers

Jamie Jenkins, Nick Henderson

Fund type SICAV, Luxembourg

Key facts

Jamie JenkinsManaging Director and Co-Head of Global Equities

Nick HendersonDirector, Global Equities

We seek investment opportunities right across the world and we set strict criteria around both the quality we look for, the price we pay and the SDG target linkage we require of our companies.

Performance since inception

Percentage growth %

2019/20 2018/19 2017/18 2016/17 2015/16

BMO SDG Engagement Global Equity Fund I Acc USD 1.49 n/a n/a n/a n/a

MSCI AC World SMID Cap NR -1.39 n/a n/a n/a n/a

Source: Lipper, net of fees in USD, 31 May 2020

Discrete performance vs. benchmark – 12 month rolling (US$, net of fees)

Invest

Page 3For professional clients and qualified investors only

Having already assessed applicable SDG targets for engagement with a given company, preceding investment we communicate these to the companies within the portfolio, setting out our expectation for open dialogue with them. In March 2020, a year since inception of the portfolio, we then asked the companies in the Fund about the impact of our interactions with them, as we are committed to ever improving the attributable nature of our engagement. We are excited to continue the dialogue with companies, and to be ever deepening the conversation around the SDG targets, in order to help to drive more change3.

20% of our engagement has been around SDG 12, where we have been talking to companies about improving environmental and social management, and utilising resources in the most efficient of ways. Waste management and packaging innovation comes in here, alongside the move to a more circular economy. 19% of our engagement that has linked to SDG 8 around ensuring the application of labour management policies that provide a diverse, non-discriminatory and safe workplace, where workers are treated well.

Claudia WearmouthDirector and Co-Head of Responsible Investment

Emma LuptonVice President, Analyst, Responsible Investment

We believe that for the SDGs to be achieved, companies need to be part of the solution and that through engagement we can help to move companies in the right direction. For this strategy, we have the aim of delivering engagement that is ambitious in nature, focuses on the additionality with regards to the impact we can have, and that the change is attributable to our work – “triple A engagement”.

Stewardship highlights

companies engaged2

engagements1

countries covered by engagement

96%

151

18

1 On holdings as at year end, 31st March 2020. This number doesn’t include engagements done on companies sold prior to that date. 2 1st March 2019 – 31st March 2020. 3 Out of 18 respondents.

Top SDGs engaged

20%

19%

10% 10%

Engage

Page 4For professional clients and qualified investors only

No

16.5

16

.a No SDG

6.4

8.8

12.2

13.a

13.2

13.1

12.6

12.5

1

0.5%

16%

5%

10.5 %

21 %

37%

19 milestones

achieved

For each company in the portfolio we monitor and measure the impact of our dialoguearound defined SDG targets. We want to see improvement and continually assess theprogress each company is making. Our constructive, strategic approach to engagement continues to help us achieve positive outcomes for companies and societies, which we call ‘milestones’.

With 21% of our milestones linking to SDG 13, we have seen positive advancement of the development and implementation of climate strategies within the companies we hold. Of note we have seen the Thai bank, Kasikornbank, strengthen its ESG criteria in lending and also perform climate scenario analysis.

37% of our milestones link to SDG 12 with much of this relating to the improvement of general sustainability within companies, for instance at the Japanese electro-optics, ophthalmic and medical device equipment maker Hoya, and the US healthcare provider ICON. We are also seeing environmental improvements to packaging with examples being at Kerry Group and Smurfit Kappa Group.

16% of our milestones do not have a direct link to a specific SDG target; however, these link to corporate governance themes. We view these as an essential building block in creating more sustainable companies, but not always linking to a specific SDG target.

Target: 6.4

Milestone: ««

Improvements in water management

Exceeded its 2020 water intensity reduction target, with a 9% reduction in 2019; completed a water risk mapping assessment using the Aqueduct tool; and trained over 1,000 farmers in conservation agriculture. These measures will help the company better manage its exposure to water-related risks. We have been engaging the company on water management throughout direct operations and the supply chain since 2017.

Kerry Group Plc

Target: 12.6

Milestone: ««

Developed ESG risk management framework

Developed a five-year Sustainable Action Plan, focusing on improving the approach to addressing ESG risks in lending transactions to companies in four industries with high sustainability risks, including palm oil and energy. This plan will strengthen credit risk management practices and, therefore, protect the quality of the loan portfolio. Our engagement with the bank on this issue has included a meeting with the CEO at their headquarters.

Bank Mandiri Persero

Target: 12.2

Milestone: «

Became a founding member of paper-based packaging initiative

Became a founding member of a new industry alliance to boost the contribution of paper-based packaging in a circular and sustainable economy. This will help the company improve the management of environmental risks and opportunities related to packaging, one of the material ESG issues we have engaged the company on.

Smurfit Kappa Group PLC

Summarised targets shown page 5

Improve

Page 5For professional clients and qualified investors only

For professional investors and qualified investors only.

This financial promotion is issued for marketing and information purposes only by BMO Global Asset Management in Finland, France, Germany, Italy, the Netherlands, Norway, Spain, Sweden, Switzerland, and the UK.

Reserved for professional clients as defined by the European Directive 2014/65/EU (“MiFID II”) and is not for retail distribution.

The Fund is a sub fund of BMO Investments (Lux) I Fund, a société d’investissement à capital variable (SICAV), registered in Luxembourg and authorised by the Commission de Surveillance du Secteur Financier (CSSF).

English and German language copies of the Fund’s Prospectus and English, Dutch, Finnish, French, German, Italian, Norwegian, Spanish and Swedish language copies of the key investor information document (KIID) can be obtained from BMO Global Asset Management, Exchange House, Primrose Street, London EC2A 2NY, telephone: Client Services on 0044 (0)20 7011 4444, email: client.service@bmogam.com or electronically at www.bmogam.com. Please read the Prospectus before taking any investment decision.

In Spain, BMO Investments (Lux) I Fund is registered with the CNMV under No. 668. The Fund is a non-Spanish collective investment scheme duly registered with the CNMV for marketing in Spain. The fund should be subscribed to through locally authorised appointed distributors. Investors must read the relevant Prospectus and KIID for each Fund they want to invest before subscribing. All other statutory documentation, as well as the NAV can be obtained from www.bmogam.com.

In Switzerland, the Prospectus, Key Investor Information Document, Articles of Association, Annual and Interim Reports in German, as well as further information, can be obtained free of charge from our Swiss Representative: Carnegie Fund Services S.A., 11, rue du Général Dufour, CH-1204 Geneva, Switzerland, Web: www.carnegie-fund-services.ch. The paying agent is Banque Cantonale de Genève, 17, quai de l’Ile, CH-1204 Geneva. The current prices can be found at: www.fundinfo.com.

The information provided in the marketing material does not constitute, and should not be construed as, investment advice or a recommendation to buy, sell or otherwise transact in the Funds.

The Funds or securities referred to herein are not sponsored, endorsed, issued, sold or promoted by MSCI, and MSCI bears no liability with respect to any funds or securities or any index on which such funds or securities are based. The prospectus contains a more detailed description of the limited relationship MSCI has with BMO Asset Management Limited and any related funds.

© 2020 BMO Global Asset Management. Financial promotions are issued for marketing and information purposes; in the United Kingdom by BMO Asset Management Limited, which is authorised and regulated by the Financial Conduct Authority; in the EU by BMO Asset Management Netherlands B.V., which is regulated by the Dutch Authority for the Financial Markets (AFM); and in Switzerland by BMO Global Asset Management (Swiss) GmbH, which is authorised and regulated by the Swiss Financial Market Supervisory Authority (FINMA). Telephone calls may be recorded. 957512_G20-1019 (06/20). This item is approved for use in the following countries; FI, FR, DE, IT, NL, NO, ES, SE, CH, UK.

Summarised targets6.4 Increase water-use efficiency to address water scarcity; 8.8 Protect and promote safe working environments for all workers; 12.2 Sustainably manage and make efficient use of natural resources; 12.5 Reduce waste through prevention, reduction, recycling and reuse; 12.6 Encourage companies to adopt sustainable practices and enhance ESG reporting; 13.1 Strengthen adaptive capacity to climate-related events; 13.2 Integrate climate change plans into policies and strategies; 13.a Address climate change mitigation for developing countries; 16.5 Reduce corruption and bribery in all their forms; 16.a Strengthen national institutions to combat terrorism and crime.

Key risks

The value of investments and any income from them can go down as well as up and investors may not get back the original amount invested.

Changes in interest rates and inflation expectations could have an effect on the value of your investment.

Investments in smaller companies carry a higher degree of risk as their shares may be less liquid and investment values can be volatile.

How BMO Global Asset Management can help you

BMO Global Asset Management incorporates material ESG issues into its investment processes across asset classes. We also offer our Responsible Funds range, which invests in companies operating sustainably and excludes those not meeting our ethical and ESG criteria, and our reo® engagement service, through which we provide engagement and voting services covering global equities and credit.

reo® is a registered trademark of BMO Asset Management (Holdings) PLC.