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Responsible Investment and StewardshipWe believe that embedding responsible investment into our global investment practices is an essential component of long-term investing and is in the best long-term interests of our clients. We also recognise our significant responsibilities as stewards of our clients’ assets, which ensures that we always act in our clients’ best interest and work to protect and enhance their capital over the long-term.

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Responsible investment in focusOur approach to responsible investmentWe are committed to being a global leader in responsible investment. To achieve this, we focus on integrating environmental, social and governance (ESG) factors into all of our investment processes and ownership practices, across our diverse range of asset classes.

ESG issues are considered in the same manner as traditional financial issues in terms of their capacity to affect long-term investment performance.

We are active stewards of our clients’ capital, and an important part of all our teams’ investment process is active engagement with companies on their ESG performance, practices, risks and opportunities. Each of our investment teams also has access to value-adding ESG data, research and resources to help them make the best possible investment decisions.

Why it’s importantAs a fiduciary, we always act in the long-term interests of our clients. This underpins our focus on responsible investment, as we believe that ESG issues are material investment issues that have the potential to impact investment performance over all time periods, particularly the long-term.

Global leadershipOne of the goals of our business is to be recognised as a global leader in responsible investment by our clients, stakeholders, peers and industry. We seek to achieve this by ensuring we employ the mindset, thinking and actions of a responsible asset manager at all levels, and in all areas, of our global business.

We seek to enhance our participation in thought leadership work and industry collaboration to promote higher standards of practice in the markets where our clients’ money is invested. We actively support a range of industry initiatives related to responsible investment, as well as focusing on greater collaboration between industry groups. This work seeks to help identify gaps in addressing key issues and supports other industry groups in the pursuit of common interests.

Our strategic pillarsOur strategy focuses on the three key pillars of quality, engagement and stewardship:

Strong governance framework

Strong governance framework

Strong governance framework

Quality High quality

investment practices and processes

EngagementCulture which supports

principles of stewardship and responsibility.

Strong RI knowledge and skills

StewardshipStrong client focus and long-term relationships.

Global and local industry voice

Global Responsible Investment Leadership

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Our PurposeIn response to the development and release of a number of stewardship codes globally in recent years, we decided to formalise our global position on stewardship. In November 2013 we published our Global Stewardship principles which details our approach across our entire business. We also took the time to remind ourselves as to the fundamental purpose of our business.

– We are managers and stewards of our clients’ assets.

– We have responsibilities as well as ownership rights in relation to the companies in which we invest. In addition, we play a significant role in maintaining the integrity and quality of the markets in which we operate and allocating capital to productive purposes. We discharge these responsibilities prudently.

– We aim to protect our clients’ capital and, through sound judgement and detailed analysis, deliver the best risk-adjusted returns for them over the long term.

– We never allow the pursuit of personal gain to take precedence over our clients’ interests.

The ownership obligations that we execute on behalf of our clients rest upon these fundamental principles.

Our governance frameworkAcross our global organisation we have investment teams that invest in a broad range of asset classes around the world, including equities, debt, unlisted infrastructure and multi-sector. Each team has their own unique investment process with responsible investment practices applied in a way which complements their investment approach. Our Global Stewardship Principles and Responsible Investment Policies are common threads that tie our diverse investment capabilities together.

This strength through diversity however comes with its own set of challenges. In order to maintain the highest standards across the organisation, it is essential to maintain a strong governance framework and organisational culture around responsible investment. This governance framework is supported by the Global Responsible Investment Committee and the ESG Committee.

CollaborationWe believe the promotion of responsible investment principles and collaboration among industry participants is essential to the broader objective of achieving sustainable financial markets and a sustainable economy. CFSGAM has a strong track record of supporting a variety of initiatives both financially and with our people.

Some of the collaboration initiatives that we are members of, or have participated in, include the Principles for Responsible Investment, Investor Group on Climate Change, United Nations Environment Programme Finance Initiative, Financial Services Council and the UK Sustainable Investment Forum.

Global Stewardship Principles

The aim of our stewardship activities is to protect and enhance the value of our clients’ capital. Our Global Stewardship Principles outline our approach to ensuring that clients’ interests are at the core of our investment processes. The Principles encompass the areas highlighted below and direct how these stewardship activities will be monitored, assured and reported on.

Managing conflicts of interest

At all times, the interests of our clients are put first and we are committed to implementing the highest standards of governance and control.

Monitoring and reporting

In addition to regular meetings with company management, all our equity and direct investment teams regularly monitor company performance, including that of the board and management. We also maintain via our proxy voting service, records of all votes cast and include a summary of this activity in our annual responsible investment report.

Engagement

Our engagement approaches will be tailored to individual companies and the specific issues in question. Effective engagement with companies relies on trust and a credible approach as well as the exercise of our authority as a shareholder (or bondholder) to achieve constructive outcomes to the benefit of our clients’ interests.

Collaboration

There are occasions where we will actively collaborate with other investors to meet certain specified common objectives or to improve the quality of the markets where we invest our clients’ capital.

Voting

The execution of our clients’ voting rights is a responsibility that is taken seriously. We will vote on all issues and in all jurisdictions where we have the authority to do so.

Disclosure

We provide our clients with regular reports on our stewardship activities through specific client reports and our annual responsible investment report.

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Responsible Investment and Stewardship

Disclaimer

The information contained within this document is generic in nature and does not contain or constitute investment or investment product advice. The information has been obtained from sources that First State Investments (“FSI”) believes to be reliable and accurate at the time of issue but no representation or warranty, expressed or implied, is made as to the fairness, accuracy, completeness or correctness of the information. Neither FSI, nor any of its associates, nor any director, officer or employee accepts any liability whatsoever for any loss arising directly or indirectly from any use of this document.

This document has been prepared for general information purpose. It does not purport to be comprehensive or to render special advice. The views expressed herein are the views of the writer at the time of issue and may change over time. This is not an offer document, and does not constitute an investment recommendation. No person should rely on the content and/or act on the basis of any matter contained in this document without obtaining specific professional advice.

The information in this document may not be reproduced in whole or in part or circulated without the prior consent of First State Investments. This document shall only be used and/or received in accordance with the applicable laws in the relevant jurisdiction. The SFC has not reviewed the contents of this website.

In Hong Kong, this document is issued by First State Investments (Hong Kong) Limited and has not been reviewed by the Securities & Futures Commission in Hong Kong. In Singapore, this document is issued by First State Investments (Singapore) whose company registration number is 196900420D. First State Investments is a business name of First State Investments (Hong Kong) Limited. First State Investments (registration number 53236800B) is a business division of First State Investments (Singapore).

About usFirst State Investments is the international operation of Colonial First State Global Asset Management (‘CFSGAM’), the consolidated asset management business of the Commonwealth Bank of Australia. CFSGAM is one of the largest Australian-based investment managers with offices in Sydney, Melbourne, Auckland, London, Edinburgh, Paris, Frankfurt, New York, Louisville, Dubai, Hong Kong, Singapore, Jakarta and Tokyo.

First State Investments offers a range of product solutions to institutional and retail investors globally across a diverse range of asset classes, including Australian equities, worldwide equities, Asia Pacific and Global Emerging Markets equities, global resources, global property securities, global listed infrastructure securities, global fixed income and credit, emerging markets debt, short-term investments and direct infrastructure investments.

Our approach to investment is driven by a commitment to providing the best possible outcomes over the long term for our investors. To achieve this, we ensure our interests are aligned with our investors and uphold a culture of always acting in our clients’ best interests.

Additional InformationMore information on our approach to responsible investment can be found on our website at http://www.firststateinvestments.com/hk/responsibleinvestment/

Telephone Email

Will Oulton Global Head of Responsible Investment +44 (0) 20 7332 6529 Will.Oulton@firststate.co.uk

Pablo Berrutti Head of Responsible Investment Asia Pacific +61 (0) 2 9303 0433 Pablo.Berrutti@colonialfirststate.com.au

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