TBLI Conference London, 12 November, 2010

Thematic Investments and/or ESG Criteria –A Fund Selector’s View

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Source: LGT

Founded in 1920

Owned and managed for 80 years by the Princely House of Liechtenstein

Clear business focus on wealth & asset management

Stands for stability and independence

Long-term orientation and alignment of interests are key elements of the business philosophy

Total AuA: USD 90.0 billion

Total AuM: USD 32.3 billion

Number of staff: 1‘884

Locations globally: 29

Wealth Management

LGT Capital Partners

LGT Capital Management

About LGT

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Sustainable Investments at LGTM

arke

t re

turn

Market risk

Private Equity

Equity Funds

Balanced Funds

Bond Funds

PhilanthropyLGT Venture Philanthropy

LGT Sustainable Impact Global Bond Fund (EUR)

LGT Sustainable Impact Global Equity Fund (EUR)

Clean Tech

LGT Sustainable Impact Multi-Asset Class Fund (CHF)LGT Sustainable Impact Multi-Asset Class Fund (EUR)

LGT Sustainable Impact Europe Equity Fund (EUR)

Source: LGTInvestments open up new opportunities, but they also involve risks.Please consult the legal information at the end of this presentation.

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We aim for thematic funds and ESG criteria!

Source: LGTInvestments open up new opportunities, but they also involve risks.Please consult the legal information at the end of this presentation.

SustainableMulti-Asset Class Funds

Them

atic

Fu

nd

Sel

ecti

on

Private Banking

Global sustainability trends offer investment opportunities

We want to take advantage of those trends

At the same time we want to support sustainable development and avoid the risks involved in non-sustainable activities

E S

G

+

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What do we expect from sustainable theme funds?

The funds should contribute positively to the theme and at the same time offer an attractive investment opportunity.

Selection criteria:– Consideration of ESG criteria

– Exclusion of controversial sectors and practices

– Appropriate definition of the theme

– Clear delineation of the investment universe

– Significant theme exposure of all underlyings

– Investment in innovative technologies

– Positive contribution to the theme

Source: LGT

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“Tick-box research” is not the way to go!

Possible ShortcomingsNo consideration of any ESG criteria

Investments in the weapon industry

Inclusion of bottled water producers

Investments with no reference to the water theme

Water exposure of the underlyings is insignificant

Focus on utilities

Investments in companies, which just profit from the theme

0!

Fund 1

Fund 2

Fund ...

Selection Criteria-

--

- using the example of water funds -

Source: LGT

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Mission impossible?

Source: Internet

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Our goal is to find funds that come as close as possible to the “ideal” fund

It is vital for us that the investment philosophy of the funds adheresto the principles of sustainability (big picture!)

To find an appropriate fund, it is important to understand ...

how the managers approach the theme

what their understanding of sustainability is

how well-founded their investment decisions are

We evaluate all the above through intensive conversations with the managers.

Transparency+

Credibility

Source: LGT

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Lessons learned ... and still learning

When we consider ESG criteria, the number of funds is reduced significantly

However, we manage to find sustainable theme funds of good quality

Finding those funds requires a very thorough analysis

The sustainable theme fund segment is in a learning and development process

The trend is towards more sustainability

By engaging in a constructive dialogue with the providers we can support this trend

Source: LGT

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This document is intended solely for the recipient and may not be duplicated, distributed or published either in electronic or any other form without the prior written consent of LGT Group Foundation. This publication is for your information only and is not intended as an offer, solicitation of an offer, public advertisement or recommendation to buy or sell any investment or other specific product. Its content has been prepared by our staff and is based on sources of information we consider to be reliable. However, we cannot provide any undertaking or guarantee as to it being correct, complete and up to date. The circumstances and principles to which the information contained in this publication relates may change at any time. Once published, therefore, information shall not be understood as implying that no change has taken place since its publication or that it is still up to date. The information in this publication does not constitute an aid for decision-making in relation to financial, legal, tax or other consulting matters, nor should any investment or other decisions be made on the basis of this information alone. It is recommended that advice be obtained from a qualified expert. Investors should be aware that the value of investments can fall as well as rise. Positive performance in the past is therefore no guarantee of positive performance in the future. Forecasts are not a reliable indicator of future value developments. The risk of price and foreign currency losses and of fluctuations in return as a result of unfavorable exchange rate movements cannot be ruled out. There is a possibility that investors will not recover the full amount they initially invested. We disclaim without qualification all liability for any loss or damage of any kind, whether direct, indirect or consequential, which may be incurred through the use of this publication. This publication is not intended for persons subject to legislation that prohibits its distribution or makes its distribution contingent upon an approval. Any person coming into possession of this publication shall therefore be obliged to find out about any restrictions that may apply and to comply with them.

It is up to potential investors to obtain comprehensive information and appropriate advice in their home country, country of residence or country of domicile about the applicable legal requirements and any tax consequences, foreign currency restrictions or foreign exchange controls and any other aspects that are of relevance prior to any decision to subscribe to, purchase, own, exchange or redeem such investments, or enter into any other transaction in relation to same.

The securities and rights mentioned in this document may not be purchased or held by investors or for investors domiciled in the USA and/or with US citizenship, nor may such securities and rights be transferred to them.

Legal information

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LGT Capital ManagementContact Details

LGT Capital Management Ltd.Schützenstrasse 68808 PfäffikonSwitzerland

Phone +41 55 415 92 11 Fax +41 55 415 92 30 E-Mail lgt.cm@lgt.comInternet www.lgt.com

Andrea FerchSenior Fund AnalystPhone +41 55 415 93 53 Fax +41 55 415 94 95 E-Mail andrea.ferch@lgt.com

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Picture description

"Artists Exploring the Austrian Alps", c. 1819

HEINRICH REINHOLD1788–1825

Reinhold was born in Gera, near Leipzig, and studied in several places, including Vienna. Having spent a short period working for Napoleon, making engravings of his military triumphal marches, he joined the circle of artists around Josef Anton Koch, who encouraged him in his study of nature and, in particular, of the Alps.The painting was produced following Reinhold's study trip through the Alps in the summer of 1818 and shows a simplified mountain panorama featuring his fellow painters Johann Christoph Erhard and Ernst Welker, the latter accompanying him to Rome one year later.

© Collections of the Prince of Liechtenstein, Vaduz – ViennaLIECHTENSTEIN MUSEUM, Vienna. www.liechtensteinmuseum.at