Responsible Investing

As stewards of our client’s funds, we aim to deliver returns that will enable our clients to achieve their long-term investment objectives.

Overview ESG Integration Reports Policies Voting Rights

Overview

We believe that companies with sound business practices, including strong corporate governance and responsible management of material environmental and social issues, have better success and deliver stronger financial performance over time. Conversely, companies that have poor environmental, social or corporate governance practices present risks and controversies that may hinder their financial performance.

Our industry analysts investigate these ESG risks and opportunities through our in-house research process, which is complemented by independent third-party research. Conclusions are integrated into the investment decision-making process. The timing of investments is subsequently made based on fair value, pricing and timing considerations.

ESG Integration

Environment

Through in-depth knowledge and research of an industry’s competitive landscape and regulatory context, along with management dialogue, we evaluate a company’s adherence to environmental restrictions and regulations and determine whether they are acting responsibly. We are alert to significant polluters or those creating large environmental liabilities. Companies that innovatively leverage their existing research platforms to develop new, sustainable technologies and solutions can be favored.

Social

We are drawn to companies that create real sustainable value for their clients and where the benefits are shared equitably between stakeholders. With a primary focus on large high-profile companies around the world, we gain comfort that the social issues of these firms are continuously monitored and scrutinized by the market and that their labor policies are highly visible. As a firm, we have never invested in companies with significant revenues coming from the tobacco industry. In addition to the ethical aspects, our fear is that these companies could at some point incur significant health-related liabilities. In addition, we have not wished to profit from the gaming industry and have hence avoided all investment in this sector. We are committed to shareholder advocacy in order to proactively influence corporate decisions to encourage companies to improve their labor practices and policies.

Governance

Oversight of ESG integration resides with LetkoBrosseau’s management committee, and ultimately with its Board of Directors. Furthermore, the firm’s investment committee, comprised of all our investment analysts and portfolio managers, is responsible for ensuring that every material ESG consideration is incorporated into the analysis and selection of each investment.

Reports

LetkoBrosseau Sustainable Investing Report

Since its inception in 1987, LetkoBrosseau has prioritized Environmental, Social and Governance (ESG) factors in our investment research and seamlessly integrated them into our fundamental research process. We believe it’s possible to do good while doing well. Our ongoing engagement with companies always includes the study of ESG risks and opportunities.

Learn more about ESG integration within our firm by consulting our Sustainable Investing Report.

Sustainable Investing Report 2025

PRI Report

PRI reporting is the largest global reporting project on responsible investment. It was developed with investors, for investors.

PRI signatories are required to report publicly on their responsible investment activities each year. In turn, they receive a number of outputs, including a public and private Transparency Report.

PRI Report 2025

Policies

We believe that companies with sound business practices, as well as strong management teams supported by robust corporate governance responsibly managing material environmental and social issues, have better success and deliver stronger financial performance over time. Conversely, companies with poor environmental, social, or corporate governance practices present risks and controversies that may hinder their financial performance.

Consistent with this foundational belief, and our fiduciary duty to act in the best interest of our clients in managing the capital they have entrusted to us, we evaluate material environmental, social and governance (“ESG”) issues to understand the risks these present for investors. This evaluation is integrated into our investment process as we endeavour to mitigate risks and enhance returns for our clients over the long term.

The Responsible Investment Policy sets out how LBA integrates material ESG considerations into our investment process and stewardship practices in satisfying our fiduciary obligations to our clients.

Responsible Investment Policy (PDF)

As a long-term investor, we recognize that environmental, social and governance (ESG) factors can significantly influence a company’s long-term financial performance and resilience. Integrating these factors into our investment process is essential to preserving and enhancing the value of the assets we manage.

As part of our investment activities, we understand our fiduciary duties and are committed to engaging regularly with our investee companies to gain a comprehensive understanding of their strategy, operations, and material ESG issues. These discussions allow us to assess their ESG practices, understand the risks they face, and identify opportunities for improvement.

We believe that active, constructive dialogue with portfolio companies is a core element of responsible investment. Through engagement, we aim to promote strong governance and the effective management of ESG risks and opportunities that may affect long-term shareholder value. These discussions allow us to ask insightful questions, provide meaningful feedback, and encourage continuous improvement. Our approach is to engage directly with companies, as we believe impactful change is more likely when we have a seat at the table.

ESG Engagement Policy (PDF)

Sustainable Investing Regarding the Funds

LetkoBrosseau, the manager of various investment funds (the “Funds”), considers ESG-related factors as part of its overall investment process regarding issuers that are subject to equity investments, alongside traditional financial factors, when making investment decisions. By combining financial and ESG risk analysis into the investment management process, LetkoBrosseau believes this better helps to manage risk and identify opportunities to generate long-term returns for the Funds. The consideration of how non-financial risks may be financially relevant to issuers is one of the assessments LetkoBrosseau uses to guide the investment decisions.

Generally, ESG factors are not likely to drive an investment decision, save for a situation where the ESG risks related to a potential investee company are sufficiently extreme as to make it difficult to make an accurate assessment of the intrinsic value of the business. In this case, LetkoBrosseau will exclude the potential investee company from consideration for the portfolio of the Fund. LetkoBrosseau also applies an exclusionary or negative screening process pursuant to which it has identified specific industries it chooses its portfolios not to be exposed to or profit from, such as tobacco, gambling, pornography and companies involved in the mining of thermal coal, subject to de minimis thresholds.

ESG integration is not a primary objective nor strategy employed by the Funds, and the Funds are not intended to generate any ESG outcomes. ESG factors may play a limited role, and are not necessarily weighted heavily, in the Funds’ investment decision-making process. The ESG integration approach is focused on understanding all financially material information to deliver strong risk adjusted returns for the Funds and their investors.

Voting Rights

We believe the voting right is one of the most important rights inherent to shareholding. LetkoBrosseau takes very seriously its responsibility of ensuring that proxies received are voted and that the decisions taken represent the long-term interests of shareholders. In general, we promote equal treatment of all shareholders and vote against restricting the composition or conduct of the Board of Directors. We also seek to ensure that executive compensation and option plans are fair, reasonable, and minimize shareholder dilution.

Proxy Voting Record – 2025 (PDF)

Proxy Voting Policy (PDF)