Mutual Fund – House Award – Alternatives

House Award for Alternatives Funds

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Name of firm*

The Flagship Fund's name*

The Fund's ISIN Code*

Data as of the quarter-end

Total Fund Size (including all share classes)*

Total Number of Portfolio Manager(s)*

Total Number of Analysts*

Pillar 2: Portfolio Management
Note: When answering the questions in this pillar, please provide responses directly relevant to this specific fund/strategy. They should NOT be general answers that apply generally to all your firm's funds/strategies. [i] Formula for no. of holdings: Where M1, M2, M3, … M36 = no. of holdings at the end of month 1,2,3 … 36 Average no. of holdings = (M1+M2+M3+ … M36)/36 [ii] Material impacts are events likely to affect a company's operations and/or financial position, positively or negatively. Materiality varies from one industry to another and one business model to another. They may include but are not limited to supply chain, employee welfare, environmental practices, product safety, etc. [iii] Formula for active share: Active share=1/2 ∑_(i=1)^n〖(Wfa-Wia)〗 where Wfa is the weight of security "a" in the fund Wia is the weight of security "a" in the index The formula in words: Sum of difference between each security's portfolio weight and index weight, divided by two (Note - Please include cash in your calculation, as holding cash is an active decision) [iv] Adaptation of the Exposure Draft CFA Institute ESG Disclosure Standards For Investment Products, May 2021
1. Portfolio Limits: does the fund have explicit portfolio limits such as, but not limited to, single country, single sector, single security, single asset class, the correlation between securities, or other spelled-out limits.

We are a Constrained Fund

We are an Unconstrained Fund
Additional Remarks, if any (maximum 250 words)
Constrained Fund - the portfolio manager can deviate from the explicit limits by:

By a maximum of 5 percentage points

By more than 5 percentage points, up to 10 percentage points

By more than 10 percentage points

By any magnitude they choose

We don't know whether this fund has explicit portfolio limits
Unconstrained Fund -

But we ensure that the fund's risk level is aligned with target investors

We have soft guidelines, including but are not limited to a maximum of 40-60% exposure to highly correlated assets or single security, issuer, country, sector, revenue source, asset class, etc.

We have no exposure guidelines at all. The portfolio manager may place 100% of the fund's assets into a single security, a single country, a single sector, a single issuer, a single group of highly correlated assets, cash, etc.

Our portfolio construction does not take into account our target investors' risk/return profile

The question of risk management is irrelevant or does not apply to us
2. Portfolio level ESG characteristics [iv]: We have decided ESG criteria to be used as our portfolio characteristics that include:
Scope 1 and Scope 2 greenhouse gas emissions
asset-weighted percentage of the portfolio invested in green bonds
asset-weighted percentage of the portfolio invested in economic activities deemed to be sustainable by a regulatory or third-party classification standard
board gender diversity
breakdown of energy consumption by type of non-renewable sources of energy
share of investments in investee companies that have been involved in violations of the UN Global Compact principles or OECD Guidelines for Multinational Enterprises
exposure to specific industries, sectors, and geographies with adverse impacts on
ESG issues
exposure to specific industries, sectors, and companies that aid transition to a low-carbon economy
the ratio of "green" investments to "brown" investments
We do not have an established portfolio-level criterion that is based on ESG information or ESG issues
3. ESG based Securities Selection criteria[iv]: We take steps to incorporate financially material ESG information alongside traditional financial information in financial analysis and valuation of the investment product's investments:
The bottom 50% of their industry-based peer group are excluded from our security selection universe
Equity securities that score in the top 50% are then screened for financial criteria, including but not limited to thresholds for earnings growth estimates and price-to-earnings ratios
We do not have an established security selection criterion that is based on ESG information or ESG issues
4. Security weight: What determines the weight of each security?
Please select all that apply:
Liquidity at the security level
Liquidity at the portfolio level
Correlation with other securities in the portfolio
Potential risk-adjusted returns relative to other securities in the portfolio
Potential to produce alpha
Material[ii] ESG merits of the investee
Investee's response to our fund's/firm's engagement on material[ii] ESG issues
Portfolio limits (explicit limits or soft guidelines) such as single issuer, single security, etc.
We have no predetermined guidelines; the portfolio manager acts at their discretion
Additional Remarks, if any (maximum 250 words)
5. Portfolio liquidity in normal markets: When we construct the portfolio, we account for short-to-medium liquidity at the portfolio level under normal market conditions.
Please select only ONE closest answer:

Yes, we aim to be able to liquidate 20%, or less, of the portfolio in 5 trading days

Yes, we aim to be able to liquidate 20%-30% of the portfolio in 5 trading days

Yes, we aim to be able to liquidate 30-40% of the portfolio in 5 trading days

Yes, we aim to be able to liquidate 40-50% of the portfolio within 5 trading days

Yes, we aim to be able to liquidate within 1-2 trading days at least 25-40% of any single position whose market value drops by 5% or more in a single day

Our liquidity targets are better than the above (please specify in maximum 250 words)

Our liquidity targets are less than the above (please specify in maximum 250 words)

No, we do not consider portfolio liquidity under normal market conditions
Please specify the liquidity targets in maximum 250 words.
6. Portfolio liquidity in stressed markets: One key factor we consider when we construct the portfolio level is liquidity at the portfolio level under stressed market conditions.
Please select only ONE closest answer:

Yes, we aim to be able to liquidate 10%, or less, of the portfolio in 5 trading days if trading volume halves

Yes, we aim to be able to liquidate 10%-20% of the portfolio in 5 trading days if trading volume halves

Yes, we aim to be able to liquidate 20-30% of the portfolio in 5 trading days if trading volume halves

Yes, we aim to be able to liquidate 30-40% of the portfolio within 5 trading days if trading volume halves

Yes, we aim to be able to liquidate within 1-2 trading days at least 15-30% of any single position whose market value drops by 5% or more in a single day

Our liquidity targets are better than the above (please specify in maximum 250 words)

Our liquidity targets are less than the above (please specify in maximum 250 words)

No, we do not consider portfolio liquidity under stressed market conditions
Additional Remarks, if any (maximum 250 words)
Please specify the liquidity targets in maximum 250 words.
7a. Investment Bases: Our investment decisions are substantively based on the following.
Please select all that apply:
Security's liquidity in the secondary market
Valuation
Target price
Risk/return profile of a security relative to other positions in the portfolio
Investee's cash flow
Investee's ability to meet liabilities promptly/ credit quality
The ability of investee to benefit from structural changes in its industry
Investee's key management's track record
Validity of our investment thesis
Downgrade/upgrade of the investee by our analysts
Downgrade/upgrade of the investee by sell-side analysts
Rumors
ESG factors improving
Investee's response to our fund's/firm's ESG engagement
Market timing
Signals generated by our quantitative, big data models or other similar methods
The security's drawdown exceeds our limits within a given time frame
Environmental factors have (or likely will have) a material[ii] impact on the investee's earnings, cash flow, competitiveness, business resilience, reputation, and other risk-return balance
Social factors have (or likely will have) a material[ii] impact on the investee's earnings, cash flow, competitiveness, business resilience, reputation, and other risk-return balance. In the case of investing, the material impact is positive.
Governance factors have (or likely will have) a material[ii] impact on the investee's earnings, cash flow, competitiveness, business resilience, reputation, and other risk-return balance. In the case of investing, the material impact is positive.
We do not have a system or method of arriving at a basis for investment/divestment. The portfolio manager acts according to their wishes.
Additional Remarks, if any (maximum 250 words)
7b. Divestment Bases: Our divestment decisions are substantively based on the following.
Please select all that apply:
Security's liquidity in the secondary market
Valuation
Target price
Risk/return profile of a security relative to other positions in the portfolio
Investee's cash flow
Investee's ability to meet liabilities promptly/ credit quality
The ability of investee to benefit from structural changes in its industry
Investee's key management's track record
Validity of our investment thesis
Downgrade/upgrade of the investee by our own analysts
Downgrade/upgrade of the investee by sell-side analysts
Rumors
ESG factors deteriorating
Investee's response to our fund's/firm's ESG engagement
Market timing
Signals generated by our quantitative, big data models or other similar methods
The security's drawdown exceeds our limits within a given time frame
Environmental factors have (or likely will have) a material[ii] impact on the investee's earnings, cash flow, competitiveness, business resilience, reputation, and other risk-return balance
Social factors have (or likely will have) a material[ii] impact on the investee's earnings, cash flow, competitiveness, business resilience, reputation, and other risk-return balance. The material impact is negative, and the investee is not taking adequate steps to address these material social factors.
Governance factors have (or likely will have) a material[ii] impact on the investee's earnings, cash flow, competitiveness, business resilience, reputation, and other risk-return balance. The material impact is negative, and the investee is not taking adequate steps to address these material governance factors.
We do not have a system or method of arriving at a basis for investment/divestment. The portfolio manager acts according to their wishes.
Additional Remarks, if any (maximum 250 words)
8. Research resources: How many securities does each analyst responsible for this fund cover on average?

Fewer than 50

50 - 69

70 - 89

90 - 109

110 - 129

130 or more
9. Research depth: What types of research do you rely on to make investment decisions?
Select all that are applicable:
Our proprietary financial models
Site visits to investees' facilities: We observe operational employees' effectiveness, productivity, attitude, initiative
Site visits to investees: We observe the key processes or production of items that are salient to the investees' competitiveness
One-to-one conversations with investees' management outside of scheduled conferences for all investment analysts
We verify investees' claims with informed third parties, including but not limited to suppliers, customers, distributors, competitors, and industry specialists
Earnings conference calls or meetings with investees' management which are scheduled for all investment analysts
Independent consultants specializing in specific sectors, technologies, geographies, economies, factors, etc.
Sell-side brokers' research
None of the above
Additional Remarks, if any (maximum 250 words)
10. Actual Example - Please provide an ACTUAL example of how you executed ONE of the following, in a maximum of 500 words.

How you managed portfolio liquidity during a time of market stress. What critical decisions did you make, and what were the rationale and outcome?

How did you manage the risks of a constrained/unconstrained fund during challenging market conditions, and how did these actions align with investors?

What was your thought process behind security weight/investment/divestment into specific securities

How did you integrate ESG into the investment/divestment decision-making process, and what is the outcome?

How was a period of relatively high turnover among the portfolio managers or analysts managed, and what was the outcome?

Other areas related to how the portfolio is managed and how does that serve investors' needs?
Please briefly describe the critical challenge/s, actions taken, results and lessons learned:

Pillar 3: Performance & Risk Management
Note: When answering the questions in this pillar, please respond directly relevant to this specific fund/strategy. They should NOT be general answers that generally apply to all your firm's funds/strategy. [i] Definition of concrete: Explicitly and clearly defined framework, parameters, principles, methods/techniques, and objectives are available for imminent implementation [ii] example of investment cap: Each investor is limited to 10% of the fund's total AUM or another quantum [iii] Formula for investment cap: [(Each investor's current investment + his/her intended future investment) / fund's total AUM post new investment from the investor]*100% Example: Current fund AUM is $100 mn; investor K has a current investment of $9 mn and wishes to make a further investment of $1 mn; therefore, K's total $10 mn constitutes 9.9% of total post-investment AUM. [iv] Definition of recovery: Fully regaining the loss made. For example, the fund's drawdown was -50% during the period. How long did it take to make gains of 100% to make a full recovery?
1. Alpha sources: What were the significant sources of alpha over the last 3 years?
You may choose more than one option:
Securities mispriced by the market
Securities misunderstood by the market
Securities that benefited from cyclical factors
Securities that are relatively inaccessible by retail investors and/or smaller institutional asset owners
Securities in special situations
Picking up securities with solid fundamentals during times of market panic
Risk budgeting and allocation
Asset allocation to specific sectors, geographies, asset classes
We have no alpha sources
We think sources of alpha are not important
Additional Remarks, if any (maximum 250 words)
2. Stress test: Have stress tests been performed on this fund or strategy in the last 3 years?
Please select only one answer:

Yes

No, but we have concrete[i] plans, with a definite schedule, to perform at least one stress test within the next 12 months

No, and we have NO concrete[i] plans to perform any stress test within the next 12 months

We do not know whether any stress test has been performed during this time, and we are not aware of concrete plans for one

Inception period less than 3 years
Additional Remarks, if any (maximum 250 words)
Selected: Yes - Stress test scenarios were applied in the stress test that has already been performed?
Please select all that apply:
Market volatility rising materially
Asset prices falling materially (or, in the case of short positions, rising materially)
Liquidity shrinking rapidly and materially
The fund's risk/return exceeding target investors' profile
Correlations rising rapidly among diverse asset classes/sectors/geographies/etc
Interest rates rising substantially
Bond yield spreads widening significantly
Net outflows for your fund or strategy rising materially
Our fund passed the stress test
We did not pass the test, but we have addressed (or are addressing/have concrete[i] plans to address) the portfolio's ability to protect investors' capital in stressed market conditions
We are waiting for the results of the stress test at the time of this submission
We cannot divulge the results of the stress test
Selected: No, but we have concrete[i] plans - What scenarios will you use?
Please select all that apply:
Market volatility rising materially
Asset prices falling materially (or, in the case of short positions, rising materially)
Liquidity shrinking rapidly and materially
The fund's risk/return exceeding target investors' profile
Correlations rising rapidly among diverse asset classes/sectors/geographies/etc
Interest rates rising substantially
Bond yield spreads widening significantly
Net outflows rising materially from this strategy or fund
3. Investment cap per investor[ii]: Do you limit each investor's investment to a certain percentage of the fund's total AUM to restrict overexposure to any single investor?

Yes, we currently have a cap and the maximum[iii] each investor can invest into the fund:

No, we do NOT currently have a cap but have concrete[i] plans to institute one within the next 12 months

No, we do not currently have a cap and have NO definite plans for one
Selected: Yes, we currently have a cap and the maximum[iii] each investor can invest into the fund:

Each investor is allowed to invest a maximum of up to 10% of the Fund's AUM

Each investor is allowed to invest a maximum of up to 11-15% of the Fund's AUM

Each investor is allowed to invest a maximum of up to 16-20% of the Fund's AUM

Each investor is allowed to invest a maximum of up to 21-30% of the Fund's AUM

Each investor is allowed to invest a maximum of up to 31-40% of the Fund's AUM

Each investor may account for more than 40% of the Fund's AUM
4. Drawdown recovery: How long did it take for the fund to recover[iv] from its maximum drawdown since inception?
Please select only one answer

6 weeks or fewer

7-12 weeks

13-18 weeks

19-24 weeks

25-30 weeks

31-37 weeks

38-43 weeks

44-49 weeks

50 weeks or more

The fund's drawdown occurred less than 24 weeks ago, at the time of this submission, and has not yet fully recovered

We prefer not to divulge information about the fund's recovery from its steepest drawdown during this period
5. Actual Example - Please provide an ACTUAL example of how you executed ONE of the following, in a maximum of 500 words.

What steps did you take in response to the results of your stress test/s?

How did you respond to the maximum drawdown period, and what was the rationale behind the decisions taken?

How did you steer the fund to full recovery after the maximum drawdown?
Please briefly describe the critical challenge/s, actions taken, results and lessons learned:

Pillar 4: Stewardship
Note: When answering the questions in this pillar, please respond directly relevant to this specific fund/strategy. They should NOT be general answers that generally apply to all your firm's funds/strategy. [i] Stewardship is a set of behaviors, principles, and/or policies guiding responsible shareholding. Stewards invest with awareness of the investees' ability to create long-term value not just for shareholders but also for society and the economy. [ii] Material impacts are events likely to affect a company's operations and financial position, positively or negatively. Materiality varies from one industry to another and one business model to another. They may include but are not limited to supply chain, employee welfare, environmental practices, product safety, etc. [iii] Definition of concrete: Explicitly and clearly defined framework, parameters, principles, methods/techniques, and objectives are available for imminent implementation [iv] Adaptation of the Exposure Draft CFA Institute ESG Disclosure Standards For Investment Products, May 2021
1. Stewardship Activity: Engagement activities [iv] have been undertaken on behalf of investors to put stewardship into effect. These activities include:
Participation in a shareholder meeting
Casting, abstaining, or withholding a vote on a management or shareholder resolution, on management or shareholder resolution
Filing a shareholder resolution
Commencement, continuation, modification, or discontinuation of an engagement with an investee company
Enforcement of covenants
Exercise of warrants or embedded options
Lending of securities
Taking a seat on the board of directors of an investee company, hiring, firing, and directing the management of an investee company
Maintenance and improvement of real estate and physical assets
Advocating for strong environmental, social, or governance practices
Stating a position or advocating for or against public policies or proposals that affect, or may affect, the investment product
2. Stewardship Monitoring scope: Our stewardship for investees/potential investees monitoring scopes include the following:
On material[ii] environmental issues
On carbon footprint and exposures to climate risk
On material[ii] social issues
On material[ii] governance issues
On corporate culture and remuneration
On capital structure
On strategy
On overall material risks
On transparency
We do not currently monitor any of the above, BUT we have concrete[iii] plans to begin monitoring at least some of the above within the next 12 months
Do not do any of the above and have no concrete[iii] plans to do so
Additional Remarks, if any (maximum 250 words)
3. Stewardship Team: A dedicated stewardship team [iv] is set up to flag specific companies and issues for engagement which includes the undertakings below:
All written communications and meeting records, including targeted outcomes of the engagement, are logged in the stewardship management system
Engagement is undertaken with the intent to improve a company's environmental and social resource management and to reduce risks related to environmental and social practices or activities
Engagement activities include in-person and virtual meetings, written correspondence, and emails
Engagement may occur with a company's board of directors, executive management, or investor relations and may be conducted independently or in collaboration with other investors through the fund's proxy voting and engagement service provider
The Fund's Stewardship Team reviews progress toward each engagement effort quarterly against the targeted outcomes and determines next steps as needed
Additional Remarks, if any (maximum 250 words)
4. Proxy Voting: At the product level, we have transparent proxy voting [iv] policies that are unique to this particular investment strategy:

Yes

We do not vote

We cannot/prefer not to divulge our voting practices
Additional Remarks, if any (maximum 250 words)
Selected: Yes*
We disclose that the portfolio managers undertake proxy voting for the investment product while investee engagements are handled at the organizational level
The firm's Proxy Voting Committee purely determines voting decisions
The firm's Proxy Voting Committee determines voting decisions in conjunction with input from the strategy teams and a third-party proxy advisor
All proxy votes are recorded and stored in our internal proxy voting and engagement system
When voting against management, the following issues are typically prioritized based on:
We may vote against management on an issue, and when the Proxy Voting Committee has voted against management on an issue:
Selected: When voting against management, the following issues are typically prioritized based on:
Their potential to affect a company's financial performance
Board independence
Accountability
Shareholder rights
Transparency
Esg reporting
Workplace health and safety issues
Environmental resource management issues that may increase the likelihood of regulatory fines or risks
Selected: We may vote against management on an issue, and when the Proxy Voting Committee has voted against management on an issue:
The engagement team initiates an engagement effort to discuss our specific concerns with management
We engage with companies to encourage best governance practices, including those related to reporting on material ESG information
An engagement effort will be initiated, and a file is created in our proxy voting and engagement system that includes the company name, the specific issue identified, the targeted outcome, and a copy of the initial written communication
An automatic alert for review of each individual engagement effort is put in place based on the recommended follow-up time frame
Engagement efforts and progress are tracked and reviewed on an ongoing basis by the engagement team
Continued engagement efforts are recommended per our engagement policy
All written communications and summaries of any meetings with company management are documented and maintained in the centralized internal database
The engagement team provides quarterly updates to portfolio managers and meets with them as needed
5. Voting Disclosure: Please select the statements that describe your firm's practices related to voting.
You may select more than one statement:
Our disclosure on voting is available to ALL investors, from retail to institutional asset owners, without them having to make a request, i.e., the disclosure is on our website or another electronically accessible venue
Our disclosure on voting is available ONLY to institutional asset owners, including family offices, without them having to make a request, i.e., the disclosure is electronically accessible to them
We disclose our votes and rationale ONLY if an investor asks for disclosure
In our disclosures, we explain in plain, clear, unambiguous language the rationale behind every vote
In our disclosures, we explain the rationale behind every vote, BUT we do not make an effort to present it in plain language, clear, unambiguous language
We do not currently disclose our votes and rationale, but we have concrete plans to do so within the next 12 months
We do not disclose and have no plans to disclose our voting
We do not vote
We cannot/prefer not to divulge our voting practices
Additional Remarks, if any (maximum 250 words)
6. Engagement frequency: Teamwide over the last 1 year, we have engaged with investees/potential investees on the material[ii] issues selected above:
Please include both collective engagement and engagement conducted on your own.

Once a year on average

Twice a year on average

Once a quarter on average

Once every two months on average

Once a month on average

More frequently than once a month on average

We currently have no engagement
Additional Remarks, if any (maximum 250 words)
7. Engagement Disclosure: Do you disclose your key engagement activities, along with the outcomes, to investors?

Yes, we disclose in a separate report devoted to stewardship (electronic or printed)

Yes, we disclose as part of scheduled reporting, such as factsheets and annual reports, etc

Yes, we disclose on our website, which is accessible to investors

Yes, we disclose but only when investors request for it

No, we do not currently disclose, but we have concrete[iii] plans within the next 12 months

No, we do not currently disclose and have no concrete[iii] plans to disclose
Additional Remarks, if any (maximum 250 words)
8. Actual Example - Please provide an ACTUAL example of how you executed ONE of the following, in a maximum of 500 words.

An investment/divestment/change in security weight resulting from your engagement activities

How your stewardship code/framework/philosophy/methods/approach has, or has, evolved over the years. How do these changes affect investors and the community your firm operates in?

How you've adapted your firm's stewardship practices/approaches for Asia, the rationale behind the adaptation/s and the outcome/s
Please briefly describe the critical challenge/s, actions taken, results and lessons learned:
Pillar 5: Corporate Responsibility and Strength
Please complete this pillar in separate "Pillar 5: Corporate Responsibility and Strength" questionnaire. You will only need to respond to Pillar 5 ONCE for all your firm's investment strategies.
Please provide the following attachments:
- Prospectus
- Fact Sheet (Oldest Share Class)
- Fact Sheet (Newest Share Class)
- KFS
Attachments*

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House Award for Alternatives Funds

Pillar 1: Investment Approach

Pillar 2: Portfolio Management

Pillar 3: Performance & Risk Management

Pillar 4: Stewardship

Company Address

Email Address

Telephone Number