As TriAlpha is a public signatory to the Code for Responsible Investing in South Africa (“CRISA”) we have committed to the following:

• we will incorporate ESG issues into investment analysis and decision-making processes;
• we will be active owners and incorporate ESG issues into our investment processes;
• we will seek appropriate disclosure on ESG issues by the entities in which we invest;
• we will promote acceptance and implementation of the Code within our industry;
• we will work together to enhance our effectiveness in implementing the Code; and
• we will report on our activities and progress towards implementing the Code.

In an effort to evaluate the appropriateness of the ESG factor integration approach utilised by our underlying managers, we have developed a systematic approach that enables us to assign an ESG factor integration score to prospective/existing portfolio managers. We in turn use these factor scores in our investment analysis, decision-making and post-implementation managing process.

By utilising such a systematic framework, we aim to provide ongoing transparency with regards to the way our organisation approaches and manages ESG risks across the different portfolios we manage. We have formulated the ESG Risk Factor Integration Framework in such a way that it not only meets the directive of the 2011 Amendment to the Pension Fund Act but also CRISA.