This is a marketing communication
For Professional Investors Only

GLOBALEQUITY
Quarterly ESG
Review

Q2
2024

CONFIDENTIAL – NOT FOR REDISTRIBUTION

1

TABLE OF CONTENTS

Section 1

Our Commitments

Section 2

ESG Attributes

Section 3

ESG Overview

Section 4

Carbon Footprint

Section 5

Stewardship – Company engagement and dialogue

Section 6

Stewardship - Proxy Voting

Section 7

Nikko AM Resources & Commitments

2

OUR COMMITMENTS
Purpose Led Future Quality
Purpose led Future Quality Companies:

ESG Integration:

•
•

•
•

•

A focus on companies creating stakeholder value
High and sustainable cash-flow returns delivered by management
teams we trust
We believe that those targeting solutions for today’s problems arelikely to be among the long-term winners•

ESG helps us find Future Quality companies
We undertake ESG research directly and do not delegate ESG
decisions to other teams
ESG factors are analysed at every stage of our investment

Engagement:

Commitments & Resource:

•
•
•

•
•
•
•

ESG ratings are imperfect – engagement helps us understand why
ESG issues are aligned with our long-term investment horizon
We can help companies address their apparent weaknesses

ESG Characteristics Promoted:
•
•
•
•
•

Carbon intensity of the portfolio which is substantially lower
relative to benchmark
Zero violations of the UN Global Compact
Zero ‘very severe’ controversies on environment, humanrights, customers, labour rights or governance (OECDguidelines)
Zero controversial weapons
Zero tobacco

We invest for the future low carbon world
We avoid controversies and UN Global compact violations
Nikko AM’s ESG resource helps us attain best practice
Where appropriate ensure investment policy meets European
Supervisory Authority’s Article 8 Sustainable Financial
Disclosure Regulations

Important Sources & Links:
•
•
•
•
•

ESG White Paper
Future Quality White Paper
Sustainability report 2023
Submission to the UK Stewardship CodeUpon request: PRI; Article 8 SFDR; UN Global Compact

3

PORTFOLIO ESG CHARACTERISTICS
Portfolio has a lower carbon footprint and is not exposed to destructive companies

Carbon footprint Commitment*

Social safeguards

Fund has lower GHG intensity
compared to the benchmark

Fund exposure to companies flagged for certain
frequently used social safeguard screens

47.2
Fund’s GHG intensity(t CO2e/$M Sales)

119.7
Benchmark’s GHG intensity(T CO2E/$M Sales)

UN Global
Compact
violations

NAM Research‘Very severe’controversies

0.0%

0.0%

TobaccoControversial
weapons

0.0%

0.0%

Source:: MSCI ESG Research, NAM Research, June 2024.
Fund is a representative account of the Nikko AM Global Equity Strategy. Benchmark is the MSCI ACWI Net Total Return Index

4

GLOBAL EQUITY PORTFOLIO
30%

29%

26%

26%

• ESG ratings only tell part of the story and are backward looking.

22%

20%
15%

• Not every company is perfect and an improving ESG journey cancreate substantial value.

14%
5% 5%

4% 3%
0% 0%

AAA

AA

A

BBB

BB

Fund

Benchmark

B

CCC

Highest ESG Rated Stocks
Stock

Sector• We engage with the companies that have been flagged by our Future
Quality assessment to help them on a journey of improvement

Lowest ESG Rated Stocks
Portfolio
Weight (%)

ESG
RatingStock

SectorPortfolio
Weight (%)

ESG
Rating

NVIDIA Corporation

Information Technology

6.52

AAA

Meta Platforms Inc

Communication Services

3.85

B

Taiwan Semiconductor
Manufacturing Co., Ltd.

Information Technology

2.99

AAA

Netflix, Inc.

Communication Services

3.37

BB

HOYA CORPORATION

Health Care

2.65

AAA

Masimo Corporation

Health Care

1.16

BB

Coca-Cola Company

Consumer Staples

2.33

AAA

Amazon.com, Inc.

Consumer Discretionary

5.18

BBB

Sony Group Corporation

Consumer Discretionary

2.10

AAA

Haleon PLC

Consumer Staples

2.40

BBB

Schneider Electric SE

Industrials

2.03

AAA

Ryan Specialty Holdings, Inc.

Financials

2.08

BBB

Amadeus IT Group SA

Consumer Discretionary

1.68

AAA

O'Reilly Automotive, Inc.

Consumer Discretionary

1.99

BBB

Diageo plc

Consumer Staples

1.24

AAA

Amphenol Corporation

Information Technology

1.95

BBB

Microsoft Corporation

Information Technology

6.98

AA

Broadcom Inc.

Information Technology

2.91

A

HDFC Bank Limited

Financials

2.71

AA

Intercontinental Exchange, Inc.

Financials

2.50

A

Source: MSCI ESG Research, June 2024; Data is for a representative account of the Nikko AM Global Equity Strategy
Benchmark is the MSCI ACWI Total Return Net Index
Data supplied as per the MSCI definitions
Reference to individual stocks is for illustration purpose only and does not guarantee their continued inclusion in the strategy’s portfolio, nor constitute a recommendation to buy or sell

5

CLIMATE CHARACTERISTICS
Portfolio Carbon Footprint – 2024 Q2
Top 5 Financed
Emissions (tCO2e)

WeightCarbon intensity

Linde Plc

2.22%

Taiwan Semiconductor
Manufacturing Co., Ltd.

Top 5 Emitters (WACI)

WeightCarbon intensity

3284.12

Linde Plc

2.22%

1130.443.00%

627.25

Taiwan Semiconductor
Manufacturing Co., Ltd.

3.00%

175.22

Amazon.Com, Inc.

5.20%

420.54

Hoya Corp

2.66%

88.77

Schlumberger Nv

1.77%

332.06

Schlumberger Nv

1.77%

68.47

Hitachi Ltd

2.30%

329.79

Encompass Health Corp

2.12%

39.13

Portfolio

BenchmarkCoverage (%)

100.00%98.74%% of the portfolio/bm that the data covers

Reported (%)

86.8%

91.7%

versus % estimated (i.e, the % of data taken from thecompanies themselves rather than estimated by MSCI,
as a measure of accuracy)

Weighted Average Carbon
Intensity (in tCO2/USDm
revenue)

46.7

120.8

Weighted average of emissions/Revenues. Alignedwith recommendations of the TCFD.

Carbon footprint (tC02 / EVIC)

8.4

48.1

Weighted average of emissions/EVIC. EVIC is theenterprise value including cash.

Source:: MSCI ESG Research, June 2024
NOTES: "Weights are adjusted position weights.. For unlisted companies, the sum of total equity and debt is used instead of EVIC. Other definitions may
also make sense, for example, dividing by portfolio value on the reference date or using bond par values instead of market value.
Data is for a representative account of the Nikko AM Global Equity Strategy

Reference to individual stocks is for illustration purpose only and does not guarantee their continued inclusion in the strategy’s portfolio, nor constitute a recommendation to buy or sell

6

GLOBAL EQUITY - ESG ENGAGEMENT SUMMARY
Summary of main ESG Engagement objectives over the last 12 Months
Company

ESG Topic

Objective

StatusEngagementdate
07/12/2023
08/05/2024

AbbottUnderstand risks associated with Infant
Product safety, Anticompetitive formula recall, including around productsafety as well as FTC investigation into
practices
anticompetitive practices.

Closed26/06/2024

26/05/2023
MasimoManagement oversight,
Board composition

Discuss M&A strategy and encourage
greater independent representation on theboard to improve management oversight

Ongoing

22/06/2023
15/11/2023
15/05/2024

HexagonCoca-Cola

Board
composition, Transparency

Biodiversity and plastic pollution

Encourage increased number of
independent directors and transparency inreporting.

Encourage more ambitious plastic
reduction programs

Monitor30/08/2023

16/06/2023
12/09/2023
Ongoing
28/02/2024

Activity
Ongoing controversy re. infant formula recall. A recent court case
(March 2024) saw a ruling against Reckitt Benckiser over concernswith infant death. Regarding allegations of anticompetitive practices,
the company is fully cooperating with the FTC investigation.
Following further engagement, including a visit to the company HQ in
Chicago and discussions with sell side analysts who cover the stock,
we became increasingly convinced that the infant formula litigation
would remain an overhang on the shares for at least one year. Given
the highly unpredictable nature of this kind of litigation, we felt that thecompany would have limited ability to control the outcome anddecided to exit the position.
Dispute between activist and management. We encouraged increased
board independence for better CEO oversight. Board composition has
been improving but still room for improvement. Activist proposed newboard independent members at July 2024 AGM, which we would havesupported had the AGM not been postponed by management, after it
filed a lawsuit against activist for misstatement in proxy filings.
Discussion on governance following short-seller attack.
We
encouraged the appointment of independent director, which the board
did. Commitment to greater reporting transparency in 2024. At the
April 2024 AGM, two new independent directors were appointed
bringing the board to a majority independence. Still, we noted roomfor further improvements as audit and remuneration committees are
not majority independent. We therefore voted against audit committee
members at the AGM. We also voted against the Performance shareplan due to lack of disclosure behind performance targets.
Letter sent to requesting comment on progress regarding
reusable packaging targets and plastic pollution. We decided to
escalate through collaboration.
Meeting with investors held in
February 2024 discussing consistency of Coca-Cola's strategy withthat of its bottling company Coca-Cola Europacific Partners,

7
Reference to individual stocks is for illustration purpose only and does not guarantee their continued inclusion in the strategy’s portfolio, nor constitute a recommendation to buy or sell

ESG ENGAGEMENT SUMMARY
Summary of main ESG Engagement objectives over the last 12 Months
Company

ESG Topic

Nestlé*Biodiversity andplastic pollution

Linde

Climate change

O'Reilly Automotive

ChampionX

Schlumberger

AmazonClimate change

Climate change

Climate change

Objective
Encourage more ambitious plastic
reduction programs

Status Engagement date
03/07/2023
Ongoing
12/09/2023
31/10/2023

Consider challenging climate targets
linked to remuneration

Ongoing

Raise expectations around climate
strategy and encourage greater
disclosure around scope 3 initiatives

MonitorEncourage adoption of scope 1 and 2
carbon emissions reductions targets,
as well as disclosure of scope
3 emissions

07/12/2023
31/10/2023
30/11/2023
31/10/2023
Closed30/11/2023

Encourage adoption of Science-based
Monitortargets

Monitor Amazon’s approach to
Safety, Labour management workers’ safety and labour
management

Monitor

09/11/2023
28/11/2023

05/06/2024

Activity
Meeting with sustainability team to discuss approach to plastic
pollution reduction. Considering the scale of the challenges, we
decided to leverage investor collaboration. We signed up an
investor letter raising expectations around plastic pollution.
Letter sent and meeting held to discuss expectations around GHG
emissions targets linked to annual bonus, Scope 3 emissions andEU taxonomy reporting. Ahead of 2024 AGM, we decided tosupport all resolutions as maximum the bonus target linked to CO2emissions reduction target is considered challenging.
Letter sent and meeting with head of sustainability.
Clear
disclosure improvements last few years. We encouraged further
disclosure around scope 3, the largest footprint for the company.
Letter sent and Meeting with new Head of Sustainability. Evidenceof progress in approach to sustainability and climate. Further
progress expected but it is slow moving company/ methodical. SLB
announced acquisition of ChampionX which we see as positive interms of progressing Climate commitments. Engagement closed
following sale of the position.
SLB confirmed engagement with SBTi. It cannot get accreditationas certification is not currently available for sector. We will
monitor developments. We are in process of monitoring also
integration of ChampionX into the SLB sustainability commitments.
On the back of controversies related to labour management, At the2024 AGM, we supported a shareholder resolution to Commissiona Third-Party Audit on Working Conditions. We then engaged with
Amazon to better understand their approach to worker safety andmanagement of labour standards.

*Stock no longer held in portfolio

8
Reference to individual stocks is for illustration purpose only and does not guarantee their continued inclusion in the strategy’s portfolio, nor constitute a recommendation to buy or sell

ENGAGEMENT CASE STUDY: ABBOTT LABORATORIES
Litigation risks related to infant formula
Target Companies: Abbott Laboratories
Theme: Product Safety & marketing
Context: In February 2022, Abbott recalled powder infant formula products from its Michigan facility due to contamination concerns, impacting about
USD600 million in annual sales. The FDA's investigation revealed bacterial contamination, though not in any formula sold to consumers, and halted
production, leading to a significant shortage of infant formula in the US. Abbott lost half of its infant formula market share amid consumer outrage over therecall. A consent decree with the FDA in May allowed Abbott to plan for resuming production. The shortage of infant formula milk also brought to light theoligopolistic nature of the US market for this product, driving the FTC to launch an investigation into anticompetitive practices.
In March 2024, a court case in Illinois ruled against Reckitt Benckiser in a case relating to an infant death caused by necrotizing enterocolitis (NEC – bowl
disease) while using specialty infant formula. The litigation pointed to failure to warn consumers that its product could trigger NEC. Abbott, as primary
producer of specialty infant formula in the US, is also involved in similar litigation related to NEC and its share price has been negatively impacted by thisnews.
Activity: Since 2022, we engaged with Abbott on multiple occasions to understand the litigation risks associated with the recall of infant formula and the FTC
investigation. We engaged to better understand the incident but also to address discrepancies between Abbott’s statements and FDA findings, and advocate
for improved safety standards. We aimed to ensure the company’s commitment to these standards and assess the impact on our investment thesis and themateriality of this controversy. Through our meetings, we felt Abbott’s response had been appropriate: consulting with industry experts to implement thelatest technological advancements in food manufacturing processing, increasing finished product testing, implementing auto-sampling technology andenhancing electronic records to provide real-time data on each batch. Abbott successfully regained market share as a result.
After the ruling against Reckitt Benckiser in March 2024, we further engaged with the company – including a visit to Abbot’s Headquarter in Q2 2024 - as wellas with industry experts. Our research and engagement led us to believe there are not any signs of malpractice at Abbott related to its infant formula
products – there is no strong scientific evidence to prove that infant formula causes NEC. However, we became increasingly convinced that this latest infant
formula litigation would remain an overhang on the shares for at least one year, if not more.
Outcome: Given the highly unpredictable nature of this kind of litigation, we felt that the company would have limited ability to take control of its own
destiny, even if there is no direct sign of malpractice. Additionally, it became clearer to us that the company’s management team was not running the balance
sheet efficiently, allowing cash to build up rather than effectively allocating it to value accretive opportunities. This made share price appreciation look evenless likely in the medium term. Consequently, we decided to sell out of our position entirely.
Reference to individual stocks is for illustration purpose only and does not guarantee their continued inclusion in the strategy’s portfolio, nor constitute a recommendation to buy or sell
Source: Nikko AM

Next steps:

9

ENGAGEMENT CASE STUDY: MASIMO
Reinforcing oversight of management through board improvements
Target Companies: Masimo Corp
Theme: Management oversight, Board composition
Context: In 2022, we actively engaged with Masimo to understand the unexpected acquisition of Sound United in February 2022. This led to questions overchecks and balances within Masimo’s Board, especially for the founding CEO. We highlighted the importance of continued engagement with the company on
corporate culture and the balance of power at Board level, between the CEO and other Directors. Towards the end of 2022, Masimo was the target by ashareholder activist (Politan) campaign highlighting the urgent need for increased independent oversight and greater accountability on the Masimo Board.
This led to two proxy battle in both 2023 and 2024 (ongoing). In 2023, Politan successfully appointed two new independent directors to the Board. In March
2024, following Masimo’s announcement that it is exploring a spin-off of its audio business (formerly Sounds United), Politan announced proposing two new
Board members at the meeting, citing the importance of providing independent oversight to this potential spin-off. If Politan wins the proxy battle again,
then the Board would have a truly independent majority for the first time; shareholder alignment would be significantly improved.
Activity: We have held numerous calls with the company since November 2022 to discuss governance and activists’ concerns, including with Masimo’s CFO.
We met in May 2023 to specifically receive an update on the ongoing dispute between activists and management. There were signs that the company are
addressing the need for change, although slowly. After speaking to the company in June 2023 ahead of the shareholder meeting, we felt that the board stillrequired more independence/oversight of the CEO and supported Politan nominated directors. In May 2024, we held another meeting to discuss spin-off
considerations and the evolution of ongoing activist battle, after Politan announced the proposal to appoint independent directors at the 2024 AGM.
Outcome: At the 2023 AGM, Politan won the proxy battle and the two new independent directors nominated were appointed to the Board. Following thismeeting, Masimo decided to appoint two other directors: a former Disney CEO and a 79-year-old, former Chairman of Hill Rom. While overall independent
oversight increased, this still did not bring a true independent majority to the board. The collaboration between Masimo management and directors andPolitan appointed directors continued to be difficult, confirming the need for further independent management oversight in 2024, as suggested by Politan.
However, the end of July AGM was postponed after Masimo filed a lawsuit against Politan, seeking to force the activist investor to correct "material
misstatements and omissions" in its proxy materials.
Next steps: We will monitor ongoing litigations between Politan and Masimo and the confirmation of new AGM in September. Masimo remains a greatcompany with tremendous track record for delivering innovation. The core of the business remains very strong, but execution needs to be tighter. Greater
oversight of management should make such innovation delivered in a more cost-effective fashion, which will likely benefit shareholder.

Reference to individual stocks is for illustration purpose only and does not guarantee their continued inclusion in the strategy’s portfolio, nor constitute a recommendation to buy or sell
Source: Nikko AM

10

PROXY VOTING
Proxy Voting 12m Rolling Summary
Global Equity Strategy - Breakdown of Voting
PeriodNumber of Meetings

Number of Items Voted

Q3 2023
Q4 2023
Q1 2024
Q2 2024
Rolling 12 Months

8
4
11
60

94
54
173
944

83

1265

1162

Votes Against
Management Recommendations
Number
Percentage
1
1.1%
4
7.4%
6
3.5%
67
7.1%
78

Vote Instructions

For

Against

3
One Year

9Withhold

Abstain

6.2%

AgainstManagement
Recommnedation
SupportManagement
Recommnedation

93.8%

1187

93.8%

Votes by Category
41

Shareholder

91

6.2%

Votes For Management
Recommendations
Number
Percentage
93
98.9%
50
92.6%
167
96.5%
877
92.9%

18

Takeover Related

6

Routine Business

98

Non-Routine Business

10

E&S

7

Director Related

1222
SupportManagement
Recommnedation2

Director Election

597

39

Compensation

139

14

Company Articles

19

1

AgainstManagement
Recommnedation

Capitalization

69

1

Audit Related

79

1

0%

20%

40%

60%

80%

100%

Source: Nikko AM ; ISS
As at end of June 2024

11

GLOBAL SUSTAINABLE INVESTMENT
Asian leader for ESG and Stewardship

Commitments

ESG ResourcesGroup PresidentGroup Chief Investment Officer• Task Force on Climate-related Financial • UN Principles forDisclosures (TCFD)

Responsible• Net Zero Asset Managers

Investment• Asia Investor Group on

initiative (NZAMi)

Global Head of Sustainable
Investment• Japan Stewardship CodeRegional ESG
Specialists

ESG ResearchandIntegration

Stewardship

ESG Data &Reporting

ESG
Regulation

Global Sustainable Investment department comprising a total of 14
specialists, as of December 2023, and further expanding.

2019

2020

• Inaugural Task Force on
Climate-related Financial
Disclosures (TCFD) Report• Published inaugural annual
Sustainability Report for2019• Achieved firmwide carbon
neutral certification• Launched first global
working group – the Global
Racial Equality Group

Climate Change• The UK Stewardship Code (UKSC)• International Corporate
Governance Network• GFANZ Japan Chapter• Climate Action 100+ (CA100+)• 30% Club Investor
Work Group (Japan)• Nature Action 100 (NA100)• Women’s Empowerment Principles

• CDP

2021
• Joined Net Zero AssetManagers initiative• Established global Diversity& Inclusion policy

2022

2023

• Established global
Sustainable Investment
department• Expanded the Global
Sustainable Investment
department• Became signatory to the UK
Stewardship Code (UKSC)• Introduced climate scenario
analysis in TCFD report• Set 2030 interim target for2050 net zero goal

• Supported NA100 principles

12

RISKS
Emerging markets risk – the risk arising from political and institutional factors which make investments in emerging markets less liquid andsubject to potential difficulties in dealing, settlement, accounting and custody.
Currency risk – this exists when the strategy invests in assets denominated in a different currency. A devaluation of the asset's currency
relative to the currency of the Sub-Fund will lead to a reduction in the value of the strategy.
Operational risk – due to issues such as natural disasters, technical problems and fraud.
Liquidity risk – investments that could have a lower level of liquidity due to (extreme) market conditions or issuer-specific factors and orlarge redemptions of shareholders. Liquidity risk is the risk that a position in the portfolio cannot be sold, liquidated or closed at limited costin an adequately short time frame as required to meet liabilities of the Strategy.
Sustainability risk – The risk arising from any environmental, social or governance events or conditions that, were they to occur, could causematerial negative impact on the value of the investment.
Specific sustainability risk can vary for each product and asset class, and include but are not limited to: Transition Risk, Physical Risk, Social
Risk and Governance Risk.
If you intend to invest in the UCITS Fund, please refer to the Fund Prospectus in order to identify whether the Sub-Fund will manage
sustainability factors within the meaning of the SFD Regulation (EU) 2019/2088: an article 6 (limited to analysing sustainability risk as part ofits risk management process), an article 8 (which also promotes certain environmental and social characteristics) or article 9 (which hassustainable investment as its primary objective).

13

IMPORTANT INFORMATIONThis document is prepared by Nikko Asset Management Co., Ltd. and/or its affiliates (Nikko AM) and is for distribution only under such circumstances as may be permitted by applicable laws. This document does notconstitute personal investment advice or a personal recommendation and it does not consider in any way the objectives, financial situation or needs of any recipients. All recipients are recommended to consult with
their independent tax, financial and legal advisers prior to any investment.
This document is for information purposes only and is not intended to be an offer, or a solicitation of an offer, to buy or sell any investments or participate in any trading strategy. Moreover, the information in thisdocument will not affect Nikko AM’s investment strategy in any way. The information and opinions in this document have been derived from or reached from sources believed in good faith to be reliable but have notbeen independently verified. Nikko AM makes no guarantee, representation or warranty, express or implied, and accepts no responsibility or liability for the accuracy or completeness of this document. No relianceshould be placed on any assumptions, forecasts, projections, estimates or prospects contained within this document. This document should not be regarded by recipients as a substitute for the exercise of their own
judgment. Opinions stated in this document may change without notice. In any investment, past performance is neither an indication nor guarantee of future performance and a loss of capital may occur. Estimates of
future performance are based on assumptions that may not be realised. Investors should be able to withstand the loss of any principal investment. The mention of individual securities, sectors, regions or countries
within this document does not imply a recommendation to buy or sell.
Nikko AM accepts no liability whatsoever for any loss or damage of any kind arising out of the use of all or any part of this document, provided that nothing herein excludes or restricts any liability of Nikko AM underapplicable regulatory rules or requirements.
All information contained in this document is solely for the attention and use of the intended recipients. Any use beyond that intended by Nikko AM is strictly prohibited.
Japan: The information contained in this document pertaining specifically to the investment products is not directed at persons in Japan nor is it intended for distribution to persons in Japan. Registration Number:
Director of the Kanto Local Finance Bureau (Financial Instruments firms) No. 368 Member Associations: The Investment Trusts Association, Japan/Japan Investment Advisers Association.
United Kingdom: This document is communicated by Nikko Asset Management Europe Ltd, which is authorised and regulated in the United Kingdom by the Financial Conduct Authority (the FCA) (FRN 122084). This
document constitutes a financial promotion for the purposes of the Financial Services and Markets Act 2000 (as amended) (FSMA) and the rules of the FCA in the United Kingdom, and is directed at professional clientsas defined in the FCA Handbook of Rules and Guidance.
Luxembourg and Germany: This document is communicated by Nikko Asset Management Luxembourg S.A., which is authorised and regulated in the Grand Duchy of Luxembourg by the Commission de Surveillance duSecteur Financier (the CSSF) as a management company authorised under Chapter 15 of the Law of 17 December 2010 (No S00000717) and as an alternative investment fund manager according to the Law of 12 July
2013 (No. A00002630).
United States: This document may not be duplicated, quoted, discussed or otherwise shared without prior consent. Any offering or distribution of a Fund in the United States may only be conducted via a licensed andregistered broker-dealer or a duly qualified entity. Nikko Asset Management Americas, Inc. is a United States Registered Investment Adviser.
Singapore: This document is for information to institutional investors as defined in the Securities and Futures Act (Chapter 289), and intermediaries only. Nikko Asset Management Asia Limited (Co. Reg. No. 198202562H)
is regulated by the Monetary Authority of Singapore.
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and their authorised representatives only
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AM is not making any representation with respect to the eligibility of any person to acquire any financial investment product or service. The offering and sale of any financial investment product is subject to theapplicable regulations of the Republic of Korea. Any interests in a fund or collective investment scheme shall be sold after such fund is registered under the private placement registration regime in accordance with theapplicable regulations of the Republic of Korea, and the offering of such registered fund shall be conducted only through a locally licensed distributor.
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Bahrain and this document is intended to be read by the addressee only and must not be passed to, issued to, or shown to the public generally.
Kuwait: This document is not for general circulation to the public in Kuwait. The Strategy has not been licensed for offering in Kuwait by the Kuwaiti Capital Markets Authority or any other relevant Kuwaiti government
agency. The offering of the Strategy in Kuwait on the basis a private placement or public offering is, therefore, restricted in accordance with Decree Law No. 7 of 2010 and the bylaws thereto (as amended). No private or
public offering of the Strategy is being made in Kuwait, and no agreement relating to the sale of the Strategy will be concluded in Kuwait. No marketing or solicitation or inducement activities are being used to offer ormarket the Strategy in Kuwait.
Kingdom of Saudi Arabia: This document is communicated by Nikko Asset Management Europe Ltd (Nikko AME), which is authorised and regulated by the Financial Services and Markets Act 2000 (as amended) (FSMA)
and the rules of the Financial Conduct Authority (the FCA) in the United Kingdom (the FCA Rules). This document should not be reproduced, redistributed, or sent directly or indirectly to any other party or published infull or in part for any purpose whatsoever without a prior written permission from Nikko AME.

14

IMPORTANT INFORMATIONThis document does not constitute investment advice or a personal recommendation and does not consider in any way the suitability or appropriateness of the subject matter for the individual circumstances of any
recipient. In providing a person with this document, Nikko AME is not treating that person as a client for the purposes of the FCA Rules other than those relating to financial promotion and that person will nottherefore benefit from any protections that would be available to such clients.
Nikko AME and its associates and/or its or their officers, directors or employees may have or have had positions or material interests, may at any time make purchases and/or sales as principal or agent, may provide or
have provided corporate finance services to issuers or may provide or have provided significant advice or investment services in any investments referred to in this document or in related investments. Relevant
confidential information, if any, known within any company in the Nikko AM group or Sumitomo Mitsui Trust Holdings group and not available to Nikko AME because of regulations or internal procedure is notreflected in this document. The investments mentioned in this document may not be eligible for sale in some states or countries, and they may not be suitable for all types of investors.
Oman: The information contained in this document nether constitutes a public offer of securities in the Sultanate of Oman as contemplated by the Commercial companies law of Oman (Royal decree 4/74) or the
Capital Markets Law of Oman (Royal Decree80/98, nor does it constitute an offer to sell, or the solicitation of any offer to buy non-Omani securities in the Sultanate of Oman as contemplated by Article 139 of the
Executive Regulations to the Capital Market law (issued by Decision No. 1/2009). This document is not intended to lead to the conclusion of any contract of whatsoever nature within the territory of the Sultanate of
Oman.
Qatar (excluding QFC): The Strategies are only being offered to a limited number of investors who are willing and able to conduct an independent investigation of the risks involved in an investment in such
Strategies. The document does not constitute an offer to the public and should not be reproduced, redistributed, or sent directly or indirectly to any other party or published in full or in part for any purpose
whatsoever without a prior written permission from Nikko Asset Management Europe Ltd (Nikko AME). No transaction will be concluded in your jurisdiction and any inquiries regarding the Strategies should be madeto Nikko AME.
United Arab Emirates (excluding DIFC): This document and the information contained herein, do not constitute, and is not intended to constitute, a public offer of securities in the United Arab Emirates andaccordingly should not be construed as such. The Strategy is only being offered to a limited number of investors in the UAE who are(a) willing and able to conduct an independent investigation of the risks involved in an investment in such Strategy, and (b) upon their specific request. The Strategy has not been approved by or licensed orregistered with the UAE Central Bank, the Securities and Commodities Authority or any other relevant licensing authorities or governmental agencies in the UAE. This document is for the use of the named addressee
only and should not be given or shown to any other person (other than employees, agents or consultants in connection with the addressee's consideration thereof).
No transaction will be concluded in the UAE and any inquiries regarding the Strategy should be made to Nikko Asset Management Europe Ltd.
MSCI: The MSCI information may only be used for your internal use, may not be reproduced or redisseminated in any form and may not be used as a basis for or a component of any financial instruments or products
or indices. None of the MSCI information is intended to constitute investment advice or a recommendation to make (or refrain from making) any kind of investment decision and may not be relied on as such.
Historical data and analysis should not be taken as an indication or guarantee of any future performance analysis, forecast or prediction. The MSCI information is provided on an “as is” basis and the user of thisinformation assumes the entire risk of any use made of this information. MSCI, each of its affiliates and each other person involved in or related to compiling, computing or creating any MSCI information (collectively,
the “MSCI Parties” ) expressly disclaims all warranties (including, without limitation, any warranties of originality, accuracy, completeness, timeliness, non-infringement, merchantability and fitness for a particularpurpose) with respect to this information. Without limiting any of the foregoing, in no event shall any MSCI Party have any liability for any direct, indirect, special, incidental, punitive, consequential (including,
without limitation, lost profits) or any other damages. (www. msci.com).

Nikko Asset Management Europe Ltd
Level 5, City Tower, 40 Basinghall Street, London, EC2V 5DE
United Kingdom
Phone: +44 (0)20 7796 9866
Email: EMEAenquiries@nikkoam.com
Authorised and Regulated by the Financial Conduct Authority
Number 122084

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