Legg Mason ClearBridge Global Growth

The environmental and social characteristics of the product include the binding considerations of: climate change environmental regulation and compliance, energy efficiency, environmental impacts of products and services, innovations to reduce environmental impacts, waste reduction and disposal, health and safety, addressing unmet medical needs, community investment and job creation, community relations, data privacy and security and human capital management.

The product is also bound to consider governance characteristics such as: anti-corruption management, business ethics, capital structure and allocation, financial risk management and oversight, shareholder rights and controls, and quality and integrity of management.

The Fund seeks to achieve its objective through a policy of investing primarily in a portfolio of equity securities of companies listed or traded on regulated markets located anywhere in the world. When selecting investments for the strategy the investment manager seeks to identify companies that appear to offer above average growth potential and trade at a significant discount to the investment manager’s assessment of their intrinsic value. The investment manager applies its environmental, social and governance (ESG) process (as set out in Methodology) to 100% of the portfolio of the Fund in order to maintain a portfolio ESG rating higher than that of the Fund’s investment universe.

The investment manager uses an established proprietary research and engagement process to determine whether a company promotes best practices on ESG issues. This includes generating an ESG rating, through its ESG ratings system, by assessing both quantitatively and qualitatively. This system has four rating levels: AAA, AA, A & B, assigned to companies based on performance on key ESG issues (such as health & safety, gender diversity, climate risk, corporate governance risk, data security), including performance relative to the companies’ industry peer set. Companies that receive a B rating per the proprietary ESG rating system are not considered for investment in this Fund.

The Fund will not invest in companies with significant involvement in the extraction of fossil fuels and mining and companies involved in the production, sale or distribution of dedicated and key components of antipersonnel mines and cluster munitions. The Fund also has no exposure to companies that produce tobacco and its products but may invest in companies that indirectly generate 5% or more of their revenues from tobacco.

The investment manager uses an established proprietary research and engagement process which includes:

• Internal Scoring – Governance Score and Sustainability Score
• Engagement activity and tracking – Environmental, Social or Governance topics and stages of engagement

No index has been designated as a reference benchmark for sustainability.