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    UK Sustainable Previously Investec Asset Management Equity Impact Report Executive Summary Year end 2019 For professional investors and financial advisors only. Not for distribution to the public or within a country where distribution would be contrary to applicable law or regulations. 1

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    This executive summary is an extract of the full report, which may be available upon request. Details on all our holdings in the portfolio are available in the full report. 2

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    Contents Welcome letters 4 Investing towards a sustainable future 6 About Ninety One 7 Objective and approach 8 Q&A with Matt Evans 10 2019 investment performance review 13 Sustainability themes 15 2019 highlights 16 Engagement: 2019 highlights 20 Engagement case study 23 How to read the company impact assessments 24 Sample company impact assessment: ConvaTec 28 Appendix 30 3

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    Welcome I am delighted to present the first annual Impact Report The UK Sustainable Equity Fund seeks to for the Ninety One UK Sustainable Equity Fund. allocate your capital to companies that we believe are not only good Thank you for investing with us. investments, but are helping to make the way the world produces and This report shares insights into the consumes more sustainable. As active sustainability performance and impact managers, we also see the Fund as a of every company in your portfolio. We means for us, on your behalf, to engage also discuss the issues we are engaging in constructive dialogue with the with them on, particularly areas where business community on issues that we see potential for them to widen their matter for the wellbeing of society and impact or improve practices. future generations. Matt Evans Sustainable investing starts with Just as consumers have become more Portfolio Manager accountability. This report holds us conscious of sustainability, so Ninety One accountable for our decisions and UK Sustainable Equity companies are increasingly recognising impacts, just as – through our their wider responsibilities and their engagements with companies and our potential to contribute to society and allocation of capital – we hold protect the environment. We are at the companies accountable for theirs. Our start of a journey, and that is reflected in purpose here is to show you how your this report. But we are enormously capital is being invested responsibly, encouraged by the creativity, and enable you to assess the extent to engagement and willingness to seek which the portfolio is contributing to a more sustainable ways of doing sustainable future. business that many of our investee companies showed last year. In the midst of the many challenges facing the world, it is easy to feel From our engagements with businesses overwhelmed and powerless – throughout the UK, we believe there is especially at times like the present, with real momentum behind the move the coronavirus still wreaking its towards making choices that seek to devastating effects. But if we leave minimise harm to the environment and building a sustainable future to the next have a positive impact on society and person, believing that our small efforts the natural world. won’t make a difference, we will have failed in our responsibilities. We look forward to continuing to engage with our portfolio companies, and with all of you, in the year ahead. Past performance is not a reliable indicator of future results, losses may be made. 4

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    The Sustainable Investing Advisory Forum provides internal oversight of Ninety One’s sustainable investment strategies, including UK Sustainable Equity. The Forum reviews and assesses compliance with the formal Through this work, it has raised their environmental, social and governance awareness of the importance of data, (ESG) guidelines and commitments of and of articulating impact. While the Therese Niklasson the strategies, as well as the positive data does not yet support detailed Global Head of ESG, ‘impact spirit’ of the mandates. Ninety impact analysis for every company in Ninety One the traditional way, this engagement is One’s TIME framework — Transparency, Impact, Measurement and Engagement allowing management teams to think (see overleaf) — defines these more deeply about how they report and commitments and aspirations more fully. how they can assess their impact The Forum encourages debate around through various lenses, including the UN portfolio holdings, with a particular Sustainable Development Goals. focus on areas that may require further We are encouraged that companies’ engagement with a company. understanding and focus on articulating Over the past year, the group has met impact in a wider sense is improving. We on multiple occasions to discuss the will guide but also challenge along the companies in the UK Sustainable Equity way, ever mindful of the importance of portfolio. We have had fruitful protecting the integrity of impact conversations around a broad range of analysis. While we believe in the material ESG issues. importance of intentionality and additionality as cornerstones of true The investment team has put a huge impact, we also believe there should be amount of work into engaging with room for innovation and thought- businesses on sustainability matters. leadership around metrics and themes for impact. We hope to explore this more with the UK Sustainable Equity strategy and we look forward to reporting on our progress. 5

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    Investing towards a sustainable future A proprietary framework to define our sustainable investment approach. time impact We conduct a detailed impact assessment for every investment, which explains how companies are selected based on their contributions engagement We engage with businesses to understand risk and impact, and to improve disclosure and awareness of transformational needs. We also participate in advocacy and collective engagement where it to transformational needs. contributes to the intended transformation. transparency measurement We fully disclose our portfolio holdings, For thematic investment detailing how we intend to identify and measure approaches intentionally impact, and how we engage with each of the targeting impact, we report the companies. We also explain our decisions not impact achieved and disclose to measure or engage and highlight where we where an indicator cannot be feel impact measurement is not possible. reliably calculated. Investment involves risk 6

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    About Ninety One Ninety One is an independent, active global asset manager dedicated to delivering compelling outcomes for its clients, managing more than £103.4 billion in assets (as at 31 March 2020). Established in South Africa in 1991, as Investec Asset Management, the firm started offering domestic investments in an emerging market. In 2020, almost three decades of organic growth later, the firm demerged from Investec Group and became Ninety One. Today the firm offers distinctive active strategies across equities, fixed income, multi-asset and alternatives to institutions, advisors and individual investors around the world. General risks: The value of investments, and any income generated from them, can fall as well as rise. Where charges are taken from capital, this may constrain future growth. Past performance is not a reliable indicator of future results. If any currency differs from the investor’s home currency, returns may increase or decrease as a result of currency fluctuations. Investment objectives and performance targets are subject to change and may not necessarily be achieved, losses may be made. Specific risks: Derivatives: The use of derivatives is not intended to increase the overall level of risk. However, the use of derivatives may still lead to large changes in value and includes the potential for large financial loss. A counterparty to a derivative transaction may fail to meet its obligations which may also lead to a financial loss. Equity investment: The value of equities (e.g. shares) and equity-related investments may vary according to company profits and future prospects as well as more general market factors. In the event of a company default (e.g. insolvency), the owners of their equity rank last in terms of any financial payment from that company. Geographic / Sector: Investments may be primarily concentrated in specific countries, geographical regions and/or industry sectors. This may mean that the resulting value may decrease whilst portfolios more broadly invested might grow. This document was printed on 100% recycled material at a factory powered by 100% renewables, using zero water and chemicals, and generating no waste to landfill. 7

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    Ninety One UK Sustainable Equity objective and approach Seeking to contribute positively to a more sustainable future and deliver strong financial returns Differentiated Differentiated approach that Core holding combines ESG, investment Core holding for clients in returns and impact UK equities, diversified by theme and market cap Experienced Experienced and highly rated fund manager and team Outperformance Seeking outperformance of benchmarks and Engagement peer groups Engagement, innovative monitoring and transparent reporting High conviction High conviction portfolio, backed by in-depth proprietary fundamental research t s Performance targets are subject to change and may not be achieved, losses may be made. For further information on indices and investment process, please see the Important information section. 8 8

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    Our three pillars of sustainability 1 Financial sustainability Sustainable investment returns 2 from Ninety One’s proven Quality approach Internal sustainability Sustainably run businesses aligned with the long-term interests of key stakeholders 3 Positive impact Products and services that directly contribute to a more sustainable future three pillars of sustainability 9

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    Q&A Q&A with Matt Evans, Portfolio Manager, Ninety One UK Sustainable Equity Fund What does the Fund aim to achieve from a sustainability and impact perspective? We aim to allocate capital to companies that are having a positive impact on key societal or environmental themes, each of which we regard as crucial in supporting the transition to a more sustainable future. For a company to be included in the portfolio, we must be able to assess and measure its impact – though we acknowledge that developing appropriate sustainability metrics takes time. As we detail in this report, this is an issue we engage closely with companies on. Why take this approach? For too long businesses have tended to operate in isolation, focusing on generating returns and looking after their own interests. This is changing. Companies are increasingly recognising that commerce, society and the environment are interdependent and interconnected. We believe that the companies that really understand this are well placed to thrive, while contributing to building a better world. As allocators of capital on behalf of our investors, we have a responsibility and an opportunity to influence this transition. What can investors expect from the Fund? Our first responsibility is to try to help investors achieve their financial goals. But we are just as committed to allocating their capital to companies that are making a valuable contribution to society and/or the environment, whether directly through their products and services or through the way they do business. Investors can also be sure we will do our utmost to be open and transparent in our reporting, using our Impact Report to highlight where companies are contributing and how this is driving the transition to a sustainable future. 10

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    What impact can investors expect to have? I think our investors share our belief that, while none of us can change the world alone, we should all aspire to make responsible choices and contribute positively in whatever way we can. Investors provide the capital that allows companies to grow and develop. By putting their savings in the UK Sustainable Equity Fund, we hope to enable them to direct their capital towards supporting the growth of companies with sustainable products, services and/or practices. And as I just alluded to, as an active fund we are engaged in an active dialogue with companies on issues of environmental and social importance. In what ways do portfolio companies make an impact? We align portfolio companies to our sustainability themes, each of which we believe is important to creating a sustainable future. From making transport greener to developing medicines that cure devastating conditions to opening access to financial services or education opportunities, every portfolio company contributes positively. To give just one example aligned with environmental themes: Ceres Power, a UK-based fuel-cell business, applies its technology to clean-energy storage and electric vehicles. Social impact areas addressed by the Fund include education, health care and, of increasing importance, protecting our digital identities. This report details ‘positive impact’ and ‘internal sustainability’ separately. Can you explain? ‘Positive impact’ considers how the products and services a company delivers address the 10 sustainability themes (see page 15). ‘Internal sustainability’ addresses the way a company does business: from the environmental effects of its operations, to how it sources raw materials and deals with suppliers, to the way it treats employees. A company like Unilever, for example, has limited positive impact via its products — we all need shampoo and other products that it supplies, but these don’t contribute directly to making the world more sustainable. But in several respects Unilever sets the global standard for internal sustainability: from reducing packaging to minimising the environmental impact of its production lines to social initiatives, it is breaking new ground and setting an example for other companies to aspire to. A sustainable future will require companies to improve both of these areas of sustainability. To measure impact, set meaningful goals and make progress, it really helps to think about them separately. This is not a recommendation to buy, sell or hold a particular security. The portfolio may change significantly over a short space of time. 11

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    What do you mean by engagement? And what do you hope to achieve by it? Engagement is about much more than voting at annual general meetings – though that is important. Whenever we vote against management, we follow up to discuss the issue with the company and seek a constructive way forward. But much more than that, to us engagement means focused and purposeful dialogue with a company on issues that matter to the investment case. All companies can continually improve and, as an active manager, we have the access and opportunity to raise issues and encourage them to make progress. Across Ninety One, areas of engagement have included the use of reverse factoring, labour relations, remuneration and many other issues. We are also increasingly engaging in areas that are socially and environmentally material for the UK Sustainable Equity Fund, with companies such as Experian, Ceres Power, Clinigen and Accsys Technologies. We monitor and track engagements, follow up consistently and then assess if the engagement has made a positive difference. We are in the early stages of this process but are very encouraged by the access to and responsiveness from management teams we are receiving. This is not a recommendation to buy, sell or hold a particular security. The portfolio may change significantly over a short space of time. 12 12

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    2019 investment performance review Despite anxiety over Brexit, periodic sabre rattling in the US-China trade dispute, and concern over the slowing of the global economy, 2019 was ultimately a very positive year for UK and global equities. This was due in large part to a strong stock-market rally towards year-end as Beijing and Washington appeared close to settling their differences; the potential for a The Ninety One UK Sustainable Equity no-deal Brexit seemed to be fading; and Fund returned 33.6% in 2019 (in GBP, the ruling Conservative party won a net of fees), outperforming the 19.2% resounding victory in the December UK return on the FTSE All Share Index, and general election, which investors the 22.4% return for the IA UK All perceived as a positive result for British Companies sector. The positive businesses, at least relative to the most contributors to performance in the year likely alternative. spanned a broad spread of industry sectors and sustainability themes, reflecting the portfolio’s focus on +34%* providing diverse exposure to good quality companies that are making a positive impact on society and/or the environment. The UK Sustainable Equity Ninety One Fund does not invest in alcohol, UK Sustainable Equity gambling, tobacco, controversial performance review weapons, adult entertainment and the heavy extractive industries. +19% FTSE All Share Past performance is not a reliable indicator of future results, losses may be made. Source: Morningstar, Ninety One as at December 2019 *GBP, net of fees, excluding initial charges for the I Acc share class 13

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    Contributors and detractors At the stock level, the leading contributors to relative returns included two of our selections in the financial services sector. The shares of AJ Bell (accessible finance/accessible education), which provides low-cost online investment and broking services, gained on strong asset growth in 2019, which supported margin and profit gains. London Stock Exchange Group (which we rate neutral for positive Several of our technology companies were also among the top impact, but which scores highly for contributors to relative returns. They included GB Group (societal & internal sustainability) performed workplace safety; accessible finance), which benefited from strong strongly, partly as investors welcomed demand for the identity and location verification and fraud-prevention its move to accelerate the growth of its solutions it offers businesses, fuelled partly by the continued move to information services business via the online commerce and consumers’ need for protection from the acquisition of Refinitiv. ever-rising incidences of digital fraud. Kainos Group (societal & workplace safety & security) also contributed. The Belfast-based software company is a key supplier to the UK government’s digital transformation programme, and its shares benefited particularly from the market’s more upbeat view on the UK’s political and economic outlook towards year-end. Pharma company PureTech Health (accessible healthcare), which specialises in developing medicines for BIG (brain, immune system, gut) conditions, also contributed, its shares rising sharply on good progress in developing its product pipeline. In a challenging year for the traditional energy sector, we also benefited from not owning the oil & gas majors in the benchmark, given that we do not invest in the heavy extractive industries. Detractors from relative returns included Nanoco (climate change & clean energy), which develops nanomaterials for use in a range of commercial applications. The company had a difficult year, losing a major contract after a change in direction by a key business partner. Shares in infrastructure construction group Costain (sustainable infrastructure; water) suffered after it lowered revenue estimates in mid-2019 following delays to a number of projects. BT (sustainable infrastructure; societal & workplace safety) was another detractor following a tough year for the telco, which faced regulatory headwinds and pricing pressures in key markets. Reckitt Benckiser (accessible healthcare) also detracted. Its shares were weak partly on anaemic results in its healthcare business, but we are positive on its long-term potential and see advantages in the relatively defensive nature of this stock in the nearer term. Other detractors included the fact that we do not hold British American Tobacco, which performed strongly, given that we do not invest in the tobacco industry. Please refer to the quarterly UK Sustainable Equity commentaries for more recent performance attribution. 14

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    Sustainability themes Ninety One’s Quality investment team has developed a proprietary framework of investible ‘sustainability themes’ focused on the transformation towards a sustainable future, mapped against the UN Sustainable Development Goals (SDGs). The companies in the Ninety One UK Sustainable Equity portfolio are aligned with one or more of these themes. Ninety One themes Ninety One themes Society Environment Climate change and Accessible finance clean energy Accessible healthcare Water Accessible education Protecting ecosystems Societal and workplace Efficient use of resources safety and security Sustainable infrastructure Energy efficiency 15

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    2019 highlights: Positive impact metrics Research & development (R&D) spending* 3.8% 0.6% Portfolio R&D spending / revenue FTSE R&D spending / revenue £21bn FTSE All Share total £13.5bn Portfolio total positive 16

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    Societal and workplace safety 4.8bn identities verified by portfolio companies Accessible healthcare 100 300,000+ number of countries people supported where healthcare access who are living with has been widened chronic conditions 111m vaccine doses donated to GAVI, The Vaccine Alliance Accessible finance £6.5bn e Loans to SMEs Climate change and clean energy 6,793,000 tCO2e Carbon avoided for companies (where currently measurable) *of companies that report 17

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    2019 highlights: Internal sustainability metrics Gender diversity Gender diversity at senior levels (portfolio average) 28% 24% Women Women in senior on boards management Gender pay gap (portfolio average) 18.1% 0% (vs 19.9% Gender pay gap in 2018) (no difference in male/female pay) FDM Nanoco Reckitt Benckiser at three portfolio companies 2018 2019 internal 18

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    Carbon data Carbon intensity (t/CO2e per GBP1m of sales) 1,254.6 4,772.7 Ninety One UK FTSE All Sustainable Equity Share Index portfolio (26% of benchmark) Carbon footprint (t/CO2e per GBP1m invested)* FTSE All Share Index 164.3 9,077.3 Ninety One UK Sustainable Equity portfolio OCE FOO / TNE TPR MNO INT RIVN / EN E/ VIR ONM ENT 3% of benchmark 30.2 297.1 TN EM NO RI VN E/ FO OT PR INT /E NV IRO NM EN T Scopes 1 and 2 Scope 1, 2 and 3 FO OT PR IN T/ EN VIR ON ME NT /E CO Renewable energy Energy consumed in operations from 72% renewable sources of portfolio 26% Portfolio companies reporting renewable energy companies that consumption; a further 15% report have targets for renewable energy use but do not report *Scope 1 = direct carbon emissions; Scope 2 = indirect emissions from purchased electricity; Scope 3 = all other indirect emissions in the value chain. 19

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    Engagement: 2019 highlights In 2019, the UK Sustainable Equity team conducted well over 100 meetings with portfolio companies. In all, Ninety One’s Quality team, of which UK Sustainable Equity is part, conducted over 300 engagements during the year. After more than a year since the inception of the Ninety One UK Sustainable Equity Fund, our understanding has increased enormously of the data currently available for our companies, what may be possible and the areas where they should strive for greater disclosure. Our approach is focused on understanding the key areas of materiality for a business and the sustainability theme to “As a business we are active which they are aligned. Detail on the (not passive or activist) engagement topics for each company is included in the company impact investors. assessments in this report. Engagement We believe that effective is a continual process and requires boards and management monitoring, follow-up and a focus on that are aligned with our desired outcomes. As we progress, we long-term objectives should look forward to sharing the results. be supported.” Hendrik du Toit, CEO, Ninety One, Source: Ninety One Annual Stewardship Report 20

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    116 Meetings with portfolio companies 23 Site visits included in our meetings with portfolio companies 651 Items voted on at AGMs (100% of voteable items) 647 Votes ‘for’ 4 Votes ‘against’ (concerning the re-election of directors that we determined as having too many other commitments) 21

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    Engagement topics We initiated engagements across most of our holdings, on topics including: ɽ Board composition ɽ M&A strategy ɽ Capital allocation ɽ Sustainability and other data reporting Data reporting and carbon disclosure Several companies approached us for feedback on the reporting of ESG-related metrics. We are currently engaging with them on this issue, and have been invited to discuss metric reporting and its importance at committee level. To encourage better carbon disclosure, we also engaged via CDP (formerly The Carbon Disclosure Project; see ‘Engagement examples’). The UK Sustainable Equity team co-signed over 20 CDP letters to companies in 2019, with 34 CDP letters signed by Ninety One in total during the year. Our engagement approach Engagement is integral to our investment approach. We aim to encourage strong governance that delivers sustainable value creation for all key stakeholders. Our coordinated and structured process for engagement leverages the experience and skills of Ninety One’s independent ESG team. As responsible shareholders seeking appropriate returns for our clients, we aim to have independent, high-quality engagements with management teams and boards, with clear goals and milestones. Collaborative engagements with similarly aligned shareholders will primarily be to promote good governance, but can also the reflect concerns of our investor base, such as climate change and diversity, and may be thematic or region-specific in nature. We prioritise communicating with our clients and would only seek to engage via the media as a last resort. Our guiding principles for engagement include the following: ɽ Our primary mandate is to outperform our return objectives. We don’t engage solely to promote other stakeholders’ interests. ɽ We see every company meeting as a chance to reinforce our knowledge of how value is created and what is critical to the appreciation of our investments. ɽ We focus on issues that we regard as relevant to returns and where we can contribute positively. 22

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    Engagement case study Ceres Power: a fuel-cell technology 2005-2017 and engineering Matt Evans has followed and engaged with the company for many years prior to joining Ninety One. company Historically we found the business to be overly capital intensive, and commercialisation prospects were too opaque. “Over the next 12 months we will review how best to 2018 Re-engaged to understand commercialisation of implement a non-financial technology. Onboarding partners who can work reporting system covering our with Ceres’ technology using licence agreements energy use and greenhouse and royalties facilitates the transition to a capital gas emissions. This will help us light model, while retaining control of valuable to actively seek out intellectual property. opportunities to manage our July 2018 fund raise of £20m alongside environmental impact.” Weichai strategic investment. Ceres Power We invested in Ceres in July 2018. 2019 Engaged to encourage better disclosure and focus on impact metrics. Matt co-presented with Ceres Power at a wealth management conference, highlighting investor interest in this topic. Ceres launched its sustainability policy, setting out a roadmap of planned ESG improvements. ESG As our business grows, we are determined to manage our growth while focusing on environmental, social and governance (ESG) issues. As a business rooted in environmental improvement, this comes naturally to us. For the first time, we are reporting our progress against the UN’s Sustainable Development Goals (SDGs), and have defined our own ESG policy, further details of which can be found on page 24. Source: Ninety One, Ceres Power 2019 Annual Report, Ceres Power ESG & Sustainability September 2019. This is not a recommendation to buy, sell or hold 2020 Matt Evans invited to meet with newly a particular security founded ESG committee at Ceres Power. 23

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    How to read the company impact assessments The company impact assessments are grouped under the relevant sustainability theme (see p.15). Company summary Total return in 2019 Close Brothers (CBG) and business update. Close Brothers (CBG) provides financial services to small businesses and +21.11% individuals in the UK. In 2019, CBG delivered a solid performance in a challenging 2019 total return environment. Adjusted operating profit decreased 3% while it continued to invest. Description of company’s The main banking division achieved good income growth and maintained low bad-debt ratios. The asset management division achieved strong net inflows. The primary areas of impact. securities business saw operating profit fall relative to a strong prior year amid challenging conditions. Positive Impact rationale – CWR CBG provides SMEs with access to financial services. In some areas, SMEs are underserved by Positive impact score Impact larger financial institutions. – SMEs are vital to the UK economy. After larger banks pulled back after the Global Financial Crisis, CBG is based on % of 3.0 filled the gap in supporting SMEs. Widespread support for SMEs and individuals CBG provides financial support to small businesses and individuals in the UK, helping customers with revenue and R&D varying needs access financial services. aligned to the relevant The Asset Finance commercial business provides loans of an average size of £40,000 to c.27,000 customers. It provides commercial asset financing, hire-purchase and leasing solutions. The Motor Finance business provides c.260,000 customers with an average loan size of £7,000, primarily point-of- sale finance for acquisition of used vehicles. The Premium Finance business finances insurance payments sustainability theme, for over 2m companies and individuals, allowing customers to spread the cost of insurance premiums over a number of instalments. Average loan sizes are c.£500. Internal sustainability Internal Operational sustainability Supply chain Employees & diversity and reflects the CBG’s carbon emissions fell 12% CBG’s banking division has CBG’s board diversity goal (30% Sustainability score is based on a (16% per employee) in 2019 from a year earlier. Targets include a signed the CIPS Ethical Code of Conduct, which female) was achieved in 2019, ahead of the 2020 target date. A more impact of a thorough review of a 1.0 20% improvement in fleet-vehicle emissions by and zero waste to landfill by 2021. Head office uses a waste contractor that already aims to eliminate modern slavery within supply chains. ambitious target will be set for 2025. The company’s gender pay gap for employees in the same salary band was 2.8%, with females disadvantaged. company’s products ensures zero waste to landfill. The company supports employees company’s sustainable Given the nature of the business, through training, flexible working CBG’s direct environmental impact is limited. arrangements and financial incentives. and services within use of resources and Impact outlook and engagement the theme. the long-term interests CBG scores well for internal sustainability, though its impact is limited given the nature of the business. Its external impact relates to the fact that it plays an important role in making finance accessible to customers with a range of requirements, especially SMEs. Engagement topics include consideration of more ambitious internal sustainability targets, though we acknowledge the progress here, and the gender pay gap. of key stakeholders. Summary of key impact areas, how they drive the investment case, and priority topics for engagement. 24

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    By revenues, 32.3% of your portfolio is directly linked to a positive impact. A guide to our impact scores Positive impact score 1 (high) to 4 (low) Neutral 1 = +75% of revenue aligned to the theme; For companies whose products and services serve a 4 = 10% of revenue aligned to the theme. need but cannot easily be categorised as positive. See ‘neutral’ theme section for more detail. Positive impact 1 2 3 4 Alignment of portfolio by theme 30% 25% 20% 15% 10% 5% 0% Accessible education Accessible finance Accessible healthcare Climate change and clean energy Efficient use of resources Energy efficiency Protecting ecosystems Societal and workplace safety and security Sustainable infrastructure Water Neutral Themes Impact adjusted theme Within the Impact Assessment framework, we assess the degree to which a company’s products or services genuinely contribute towards a given sustainability theme. We typically quantify this by analysing the proportion of revenue or share of R&D spend aligned with that theme. Internal sustainability score 1 (low risk) to 4 (medium to high risk) Internal sustainability score of Ninety One UK Sustainable Equity 1 = strong internal sustainability; Low risk, 19.5% 4 = internal processes are less developed Low-medium risk, 44.3% and/or less well measured. Medium risk, 35.3% Medium-high risk. 0.9% Internal sustainability - - 1 2 3 4 Source: Ninety One, 31 December 2019 25

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    Sample company impact assessment Details on all our holdings in the portfolio are available in the full report. 27

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    Accessible Accessible healthcare Enabling access to healthcare, particularly to people who have lacked access, reduces inequality and brings societal benefits. We look for companies that play a part in the healthcare value chain, from medicine and equipment manufacturers to distributors of healthcare supplies. We consider the scale and reach of stakeholders in this value chain to ensure that we capture those truly enabling access to healthcare for the underserved. Metrics include estimated number of individuals with increased access to health care services or medicines, new medical solutions developed and people supported by healthcare education. Novel medicines and medical solutions developed by companies in this theme — 39 28

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    ConvaTec (CTEC) ConvaTec (CTEC) provides medical products and technologies in the areas of +4.28% wound care, ostomy care, continence and critical care, as well as infusion 2019 total return devices. It operates in over 110 countries and offers some innovative products and solutions in growth areas of the healthcare sector. In 2019, CTEC made good progress against its Transformation Initiative. It also appointed a new CEO with a strong track record. Performance was in line with guidance, with CTEC achieving 2.3% organic growth. Positive Impact rationale – CTEC’s products deliver clinical and economic benefits, in particular infection prevention, improved Impact patient outcomes and reduced total cost of care. Improving lives 2.0 CTEC’s medical devices are widely reimbursed in its key regions, making them accessible to many people and therefore having a significant positive impact on health and wellbeing. The company also provides guides and ongoing support to help people find the right device, with participants in its me+ programme (which provides advice and help to people after stoma surgery) exceeding 300,000. Internal Operational sustainability Supply chain Employees & diversity CTEC’s energy consumption To monitor supplier Female representation within Sustainability decreased by 6% in 2019, driven environmental and social senior management was by efficiency gains across most standards, CTEC has engaged a maintained at 25% in 2019, falling 2.0 manufacturing sites in both gas and electricity use. Diesel consumption increased by 17% while natural-gas use decreased third-party supply-chain assessor. In 2019, CTEC narrowed its analysis to 50 of its most significant suppliers, short of a 2020 target of 30%+. CTEC’s median hourly pay gap (for UK employees) narrowed to 14.6% in 2019, but remained below by 7%. In 2019, CTEC procured down from 100. However, in the UK average of 17.3%. In 2018, 100% renewable electricity for all 2019 still only 41% of invited CTEC introduced a new safety UK facilities. Green gas certificates suppliers had completed the performance database to track also enabled CTEC’s UK facilities assessment. Of those that had, health & safety issues. During to effectively generate zero GHG 22% fell below the targeted 2019, it saw no fatalities and a emissions for 80% of 2019. threshold overall. CTEC says it continued reduction in its lost time Globally, CTEC is targeting energy is unlikely to terminate injury rate. The number of animals savings of 10% vs 2018 by 2023 – relationships immediately where used in R&D testing was reduced in 2019 it saw a 19% reduction, additional 'red flags' are absent. from 61 in 2018 to 18 in 2019. leaving it well on track. Impact outlook and engagement CTEC’s widely used medical devices have a clear positive impact, and the investment case for CTEC is also strong. Following management change and a new strategy, the potential of the business looks compelling, with a refocusing on core strengths and investment to retain and develop market-leading positions in key product areas. From an internal impact perspective, though progress on management diversity is lacking, CTEC provides detailed reports on all aspects of internal sustainability and has evidenced progress in almost all areas. Engagement areas include monitoring progress on its supply-chain initiative and what action it will take regarding suppliers that do not meet the set standards. Other topics include progress towards diversity and energy-efficiency targets. 29

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    Appendix UK Sustainable Equity Fund Calendar year performance (%) 2019 UK Sustainable Equity Fund I Acc* 33.6 Benchmark 19.2 Sector 22.4 Source: Morningstar, dates to 31 December 2019, NAV based, (net of fees, excluding initial charges), total return, in GBP. *UK Sustainable Equity inception date: 01 January 2019. Benchmark: FTSE All Share. Sector: IA UK All Companies. For further information on indices please see the Important information section. Top relative contributors and detractors 31 December 2018 to 31 December 2019 Relative contributors Relative detractors Royal Dutch Shell 3.17 AstraZeneca PLC -1.03 ITM Power PLC 2.75 British American Tobacco -0.97 Ceres Power 2.10 Informa -0.70 London Stock Exchange Group 2.02 Ricardo -0.66 HSBC 2.02 PayPoint -0.52 This is not a buy, sell or hold recommendation for any particular security. The calculation methodology and a full list of the portfolio’s holdings and their contribution to overall performance over the period (subject to a reasonable time embargo for commercial reasons) are available on request. For further information on specific portfolio names, please see the Important information section and indices. Past performance is not a reliable indicator of future results, losses may be made. 31

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    Important information This communication for institutional investors and financial advisors only. It is not to be distributed to retail customers who are resident in countries where the Fund is not registered for sale or in any other circumstances where its distribution is not authorised or is unlawful. Please visit www. ninetyone.com/registrations to check registration by country. If you are a retail investor and receive it as part of a general circulation, please contact us at www.ninetyone.com/contactus. The information may discuss general market activity or industry trends and is not intended to be relied upon as a forecast, research or investment advice. There is no guarantee that views and opinions expressed will be correct. The investment views, analysis and market opinions expressed may not reflect those of Ninety One as a whole, and different views may be expressed based on different investment objectives. Ninety One has prepared this communication based on internally developed data, public and third party sources. Although we believe the information obtained from public and third party sources to be reliable, we have not independently verified it, and we cannot guarantee its accuracy or completeness. Ninety One’s internal data may not be audited. Ninety One does not provide legal or tax advice. Prospective investors should consult their tax advisors before making tax-related investment decisions. The Fund is a sub-fund of the Ninety One Funds Series range (series i - iv) which are UCITS incorporated in England and Wales as investment companies with variable capital. Ninety One Fund Managers UK Ltd (registered in England and Wales No. 2392609 and authorised and regulated by the Financial Conduct Authority) is the authorised corporate director of the Ninety One Funds Series range. This communication is not an invitation to make an investment nor does it constitute an offer for sale. Any decision to invest in the Fund should be made after reviewing the full offering documentation, including the Prospectus, which sets out the fund specific risks. Fund prices and copies of the Prospectus, annual and semi-annual Report & Accounts, Instruments of Incorporation and the Key Investor Information Documents may be obtained from www.ninetyone.com. THIS INVESTMENT IS NOT FOR SALE TO US PERSONS. Except as otherwise authorised, this information may not be shown, copied, transmitted, or otherwise given to any third party without Ninety One’s prior written consent. © 2020 Ninety One. All rights reserved. Issued by Ninety One, July 2020. Indices Indices are shown for illustrative purposes only, are unmanaged and do not take into account market conditions or the costs associated with investing. Further, the manager’s strategy may deploy investment techniques and instruments not used to generate Index performance. For this reason, the performance of the manager and the Indices are not directly comparable. If applicable MSCI data is sourced from MSCI Inc. MSCI makes no express or implied warranties or representations and shall have no liability whatsoever with respect to any MSCI data contained herein. The MSCI data may not be further redistributed or used as a basis for other indices or any securities or financial products. This report is not approved, endorsed, reviewed or produced by MSCI. None of the MSCI data 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. If applicable FTSE data is sourced from FTSE International Limited (‘FTSE’) © FTSE 2020. Please note a disclaimer applies to FTSE data and can be found at www.ftse.com/products/downloads/FTSE_Wholly_Owned_Non-Partner.pdf Investment Team There is no assurance that the persons referenced herein will continue to be involved with investing for this Fund, or that other persons not identified herein will become involved with investing assets for the Manager or assets of the Fund at any time without notice. References to specific and periodic team meetings are not guaranteed to be held or fully attended due to reasonable priority driven circumstances and holidays. Investment Process Any description or information regarding investment process or strategies is provided for illustrative purposes only, may not be fully indicative of any present or future investments and may be changed at the discretion of the manager without notice. References to specific investments, strategies or investment vehicles are for illustrative purposes only and should not be relied upon as a recommendation to purchase or sell such investments or to engage in any particular Fund. Portfolio data is expected to change and there is no assurance that the actual portfolio will remain as described herein. Performance Target The target is based on Manager’s good faith estimate of the likelihood of the performance of the asset class under current market conditions. There can be no assurances that any Fund will generate such returns, that any client or investor will achieve comparable results or that the manager will be able to implement its investment strategy. Actual performance of Fund investments and the Fund overall may be adversely affected by a variety of factors, beyond the manager’s control, such as, political and socio-economic events, adverse changes in the interest rate environment, changes to investment expenses, and a lack of suitable investment opportunities. Accordingly, target returns may be expected to change over time and may differ from previous reports. Specific Portfolio Names References to particular investments or strategies are for illustrative purposes only and should not be seen as a buy, sell or hold recommendation. Unless stated otherwise, the specific securities listed or discussed are included as representative of the Fund. Such references are not a complete list and other positions, strategies, or vehicles may experience results which differ, perhaps materially, from those presented herein due to different investment objectives, guidelines or market conditions. The securities or investment products mentioned in this document may not have been registered in any jurisdiction. More information is available upon request.

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    United Kingdom 55 Gresham Street London, EC2V 7EL Telephone: +44 (0)20 3938 1900 enquiries@ninetyone.com www.ninetyone.com www.ninetyone.com CS_92 Telephone calls may be recorded for training, monitoring and regulatory purposes and to confirm investors’ instructions. For more details please visit www.ninetyone.com/contactus.

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