Realindex is a systematic investment manager that looks to incorporate its ESG awareness within these Funds and their investment process. Specifically this is done through:

1. investment universe selection through avoiding companies in tobacco, controversial and nuclear weapons and United Nations (UN) Global Compact violators, and limiting exposure to thermal coal producers and oil sands;

2. stock selection which may increase exposure to companies that Realindex believes demonstrate greater diversity and more robust governance practices or greater carbon efficiency;

3. portfolio construction through reducing carbon footprint of the portfolio relative to the market cap index; and

4. proxy voting and company engagement.

In determining the investment universe, the Funds exclude the following companies:

– companies involved in the production of tobacco, manufacture of nicotine alternatives and tobacco-based products;

– Controversial and nuclear weapons producers/manufacturers;

– UN Global Compact Violators as identified by Sustainalytics;

– companies that produce more than 10% of their revenue or rely on more than 10% of their power generation from thermal coal; and

– companies where oil sands makes up greater than 10% of a company’s oil and gas production.

Incorporating ESG awareness within the Funds

Realindex believes that ESG considerations are not only important but can add value to the overall portfolio through excess return. These considerations may include governance, diversity and carbon.

Incorporating ESG within portfolio construction

As part of the portfolio construction of the Funds, Realindex aims to reduce the Funds’ overall carbon footprint relative to the carbon intensity of the respective benchmark.

Proxy voting and company engagement

Realindex believes proxy voting and company engagement is an important part of the investment process. Realindex will generally vote in all jurisdictions and on all issues where we have the authority to do so. Realindex will generally vote its proxies in accordance with predetermined proxy voting guidelines based on the proxy adviser Glass Lewis’ ESG guidelines. In regards to engagement, given the systematic methodology employed in the Funds, Realindex may engage with companies based on what it deems to be contentious voting issues such as climate issues, modern slavery and diversity.