Fortis Investments


ESG. An International Investment Perspective.

Florian Sommer, Head of Sustainability Research
PRI Wo...
Fortis Investments | 2




Contents

  About Fortis Investments
  Our PRI Approach
  Asian Environmental Investment Perspe...
Fortis Investments | 3




About Fortis Investments
Fortis Investments | 4



Business Overview
Key Facts & Figures
  The asset manager of the Fortis group
       Focusing ex...
Fortis Investments | 5



Business Overview
Geographical Operating Model
        Americas                            Europ...
Fortis Investments | 6



Business Overview
Assets under management mix
                AUM by distribution channel       ...
Fortis Investments | 7



Business Overview
Assets under management
                                                      ...
Fortis Investments | 8




Our PRI Approach
Fortis Investments | 9



Principles for Responsible Investments (PRI)
Fortis Investments Approach
  Fortis Investments ha...
Fortis Investments | 10



 SRI Investment Center

  12 sustainable investment
  12 sustainable investment
experts, from 9...
Fortis Investments | 11




PRI Implementation
 Principle 1:                                  Principle 2:
 We will incorp...
Fortis Investments | 12




PRI Implementation

 Principle 3:                                   Principle 4:
 We will seek...
Fortis Investments | 13




PRI Implementation

 Principle 5:                                    Principle 6:
 We will wor...
Fortis Investments | 14




Asian Environmental Investment
Perspective
Fortis Investments | 15




Environmental, social and governance issues
Closely interlinked

          Water Scarcity     ...
Fortis Investments | 16



Environmental Challenges in Asia …

                          16 of the world’s 20 most pollute...
Fortis Investments | 17




… Threathening Economic Growth




                                 Sources: Fortis Investments
Fortis Investments | 18



Fortis Sustainability Radar
Sustainability dynamics: Emerging Asia




                        ...
Fortis Investments | 19



Fortis Sustainability Radar
How do sustainability issues develop?
                             ...
Fortis Investments | 20



Fortis Sustainability Radar
Company response
                          Fortis Sustainability Ra...
Fortis Investments | 21



Fortis Sustainability Radar
The Investment Opportunity Zone
                                   ...
Fortis Investments | 22



Asian Environmental Strategy

          Business                   Fortis Sustainability Radar™...
Fortis Investments | 23



Fortis L Fund Green Tigers
Investment Philosophy
    The Asian environmental space has so far r...
Fortis Investments | 24



A wealth of opportunities
Renewable Energy in China set to grow by 20% p.a.
 Renewable energy i...
Fortis Investments | 25



A wealth of opportunities
Highest wind capacity additions in India
      Expected growth in dif...
Fortis Investments | 26



Clean Energy Focus Asia
Policy Infrastructure for Renewable Energy
                      Feed-i...
Fortis Investments | 27



Clean Energy Focus Asia
Forecasted solar and wind capacity additions
                          ...
Fortis Investments | 28



A wealth of opportunities
Rising demand for water infrastructure

                             ...
Fortis Investments | 29



A wealth of opportunities
High Growth in Water Investment in India



      % annual average gr...
Fortis Investments | 30



A wealth of opportunities
Growing demand for waste management solutions

    China has surpasse...
Fortis Investments | 31



A wealth of opportunities
China unveils USD 586 billion stimulus package


                    ...
Fortis Investments | 32



Fortis L Fund Green Tigers

                    Suzlon Energy                  Hyflux
         ...
Fortis Investments | 33



Why Asia Environmental Focus Now

   The Asian region is facing growing environmental challenge...
Fortis Investments | 34




                   Thank you for your attention!

                                      Singap...
Fortis Investments | 35




Appendix
Fortis Investments | 36



Fortis L Fund Green Tigers
Bottom up investment process

           Step 1                     ...
Fortis Investments | 37



 Fortis L Fund Green Tigers
 Dedicated team and local resources
  Global Environmental         ...
Fortis Investments | 38



 International SRI Advisory Committee
                                   Prof. Karl-Henrik Robe...
Fortis Investments | 39



Fortis L Fund Green Tigers      diversified stock bets

Portfolio Details




                 ...
Fortis Investments | 40




Fortis L Fund Green Tigers
Performance
                                                       ...
Fortis Investments | 41



Fortis L Fund Green Tigers
The right time to invest in the newcomers!
  Strong business case: A...
Fortis Investments | 42



Fortis L Fund Green Tigers
Fund Details
    Name:                                              ...
Fortis Investments | 43



Why an Environmental Focus Now?
Current valuations… and momentum!
                     Our alph...
Fortis Investments | 44




Improving our ESG Performance
Fortis Investments
   Fortis Investments is committed to improve...
Fortis Investments | 45




Improving our ESG Performance
Fortis Group
   Fortis Group is committed to ongoing improvement...
Fortis Investments | 46




Further Information
PRI Co-ordinator


Florian Sommer

Head of Sustainability Research
SRI Inv...
Fortis Investments | 47




This document has been prepared solely for informational purposes and does not constitute 1) a...
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PRI Asia Environmental Investment Focus

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PRI Asia Environmental Investment Focus

  1. 1. Fortis Investments ESG. An International Investment Perspective. Florian Sommer, Head of Sustainability Research PRI Workshop, January 2009 08 January 2009 Designator | author 1
  2. 2. Fortis Investments | 2 Contents About Fortis Investments Our PRI Approach Asian Environmental Investment Perspective
  3. 3. Fortis Investments | 3 About Fortis Investments
  4. 4. Fortis Investments | 4 Business Overview Key Facts & Figures The asset manager of the Fortis group Focusing exclusively on investment management Strictly autonomous M2 rating awarded by Fitch Ratings (reaffirmed in October 2008) Active investment manager, fundamental research-based Global network of some 40 dedicated investment centres Eur 192 billion of assets under management Diversified client base (retail vs. institutional; by country) and asset mix 1711 Institutional clients 1979 Distribution Partners clients Over 2000 employees Solid profitability *Per September 30 2008
  5. 5. Fortis Investments | 5 Business Overview Geographical Operating Model Americas Europe Nordics, Russia and CIS Amsterdam Almaty Brussels Oslo Düsseldorf Stockholm Global footprint … Frankfurt Helsinki Geneva Copenhagen London St Petersburg Luxembourg Paris Moscow …servicing a diversified client base Madrid strongly geared to Milan Boston New York Vienna external sources … Warsaw Toronto Zurich Chicago Athens Beijing Istanbul Hong Kong Shanghai …with a well diversified Taipei Seoul asset mix of top quartile Dubai Tokyo products Mumbai Jakarta Sao Paulo Singapore Melbourne Santiago Sydney Buenos Aires Asia, Middle East, Africa, and Turkey
  6. 6. Fortis Investments | 6 Business Overview Assets under management mix AUM by distribution channel AUM by geography Others 6% Asia Pacific 11% Distribution Europe 80% Latin America 2% Partners 45% Institutional N. America 7% 49% AUM per asset class FoF 2% Fix Funds 7% Money Market 14% Bonds 31% Equity 21% Balanced 25% All figures per September 30 2008; the breakdown per asset class is currently an estimation for the combined entity and may be revised
  7. 7. Fortis Investments | 7 Business Overview Assets under management Asset growth breakdown Evolution End Q3 2008 250 0 200 192.4 -5 -10 AUM in EUR bn 150 133 121 EUR bn 105.1 -15 100 87.1 82.2 79.4 77.9 69.2 72.7 -18.2 -20 50 -25 0 -24.9 1999* 2000* 2001 2002 2003 2004 2005 2006 2007 End -30 Q3 2008 Net asset flow Return effect (*) For ease of comparison, 1999 and 2000 have been re-calculated to take into account a transfer of Group Assets to the in-house insurance companies of Fortis which was effective end Q3 2001 and involved AUM of euro 28.1 billion
  8. 8. Fortis Investments | 8 Our PRI Approach
  9. 9. Fortis Investments | 9 Principles for Responsible Investments (PRI) Fortis Investments Approach Fortis Investments has signed the PRI in 2007. The Principles are based on the premise that ESG issues Board / Executive Committee can affect investment performance and that the Leadership appropriate consideration of these issues is part of delivering superior risk-adjusted returns and is therefore Investment Investment firmly within the bounds of investors’ fiduciary duties. Centre Centre SRI Investment The investment division of Fortis Investments is made Centre up of 40 autonomous investment centers that are specialised in different asset classes and product areas. PRI Co-ordination Investment Investment Centre The SRI investment center, supported by the Board / Centre Executive Committee, acts as a centre for excellence in Investment terms of establishing the link between ESG issues and Centre investment consequences, and mainstreaming the PRI principles across Fortis Investments.
  10. 10. Fortis Investments | 10 SRI Investment Center 12 sustainable investment 12 sustainable investment experts, from 9 different experts, from 9 different countries, with 117 years countries, with 117 years professional experience and professional experience and fluent in 10 languages. fluent in 10 languages. Truly integrated team Truly integrated team combining both sustainability combining both sustainability and investment expertise. and investment expertise. Autonomous investment Autonomous investment centre based in Frankfurt. centre based in Frankfurt
  11. 11. Fortis Investments | 11 PRI Implementation Principle 1: Principle 2: We will incorporate ESG issues into We will be active owners and incorporate investment analysis and decision-making ESG issues into our ownership policies and processes practices. Action: Action: Launched an online ESG Portal enabling all Integrated specific ESG criteria in the investment centres at Fortis Investments to company wide Proxy Voting policy. access company ESG analysis. Improved reporting on ESG related Proxy The analysis, compiled by SRI investment Voting. centre, helps to identify both ESG related investment risks and opportunities.
  12. 12. Fortis Investments | 12 PRI Implementation Principle 3: Principle 4: We will seek appropriate disclosure on ESG We will promote acceptance and issues by the entities in which we invest. implementation of the Principles within the investment industry. Action: Action: Request for appropriate ESG disclosure Ongoing dialogue with data providers and according to GRI guidelines is integrated in brokers on specific ESG issues / research company wide Proxy Voting policy. requests. Selected engagement with companies on Launched tailored ESG investment solutions. ESG disclosure issues.
  13. 13. Fortis Investments | 13 PRI Implementation Principle 5: Principle 6: We will work together to enhance our We will each report on our activities and effectiveness in implementing the Principles. progress towards implementing the Principles. Action: Action: Fortis Investments actively participates in a Framework for understanding ESG number of networks aimed at delivering the investment risks and opportunities outlined on Principles (e.g. PRI Emerging Markets group, SRI website www.sri.fortis.com. Carbon Disclosure Project). Completed PRI Reporting and Assessment Presentations at PRI events in Frankfurt and questionnaire. Asia.
  14. 14. Fortis Investments | 14 Asian Environmental Investment Perspective
  15. 15. Fortis Investments | 15 Environmental, social and governance issues Closely interlinked Water Scarcity Rising Food Prices Transparency & Disclosure Air Pollution Social Access & Poverty Shareholder GHG Emissions protection Human / Labour Natural Resource Rights Non compliance with Depletion environmental and Product Safety social regulation Waste Problem Urbanisation Bribery & Corruption Eco-Toxicity Demographic Change Sources: Fortis Investments
  16. 16. Fortis Investments | 16 Environmental Challenges in Asia … 16 of the world’s 20 most polluted cities are in China. India has 16 percent of the world's population, 2.5 percent of the land mass and 4 percent of the world's water resources. China is set to overtake the US to become the world’s largest energy consumer soon after 2010, and even earlier is set to become the world’s largest carbon emitter. Over 90% of waste in most parts of Asia is still dumped or land filled. Governments are increasingly concerned that the environmental crisis could lead to social unrest. Sources: Fortis Investments
  17. 17. Fortis Investments | 17 … Threathening Economic Growth Sources: Fortis Investments
  18. 18. Fortis Investments | 18 Fortis Sustainability Radar Sustainability dynamics: Emerging Asia Greenhouse Gases (E) Nanotechnology (E) Water Scarcity (E) Air Pollution (E) Biodiversity (E) Food Crisis (S) Asbestos (S) Sustainability Issues EMERGING MOMENTUM ESTABLISHED Sources: Fortis Investments
  19. 19. Fortis Investments | 19 Fortis Sustainability Radar How do sustainability issues develop? Fortis Sustainability Radar™ Growing Political/ Voluntary Media Codes Attention Strong Scientific Some Evidence Scientific Evidence Legislation Calls for in place tighter legislation Sustainability EMERGING MOMENTUM ESTABLISHED Issues Sources: Fortis Investments
  20. 20. Fortis Investments | 20 Fortis Sustainability Radar Company response Fortis Sustainability Radar™ PRODUCT Companies with products or STRATEGIC services that solve the problem BEST Companies who achieve PRACTICES competitive advantage through better practices WORST PRACTICES Companies with a defensive or minimalist approach Sources: Fortis Investments
  21. 21. Fortis Investments | 21 Fortis Sustainability Radar The Investment Opportunity Zone Fortis Sustainability Radar™ Business INVESTMENT Response OPPORTUNITY ZONE PRODUCT STRATEGIC Sustainable Winners PARAMETERS ARE PARAMETERS ARE BEST NOT CLEAR – VERY CLEAR – PRACTICES TOO EARLY TOO LATE WORST PRACTICES Unsustainable Losers Sustainability EMERGING MOMENTUM ESTABLISHED Issues Sources: Fortis Investments
  22. 22. Fortis Investments | 22 Asian Environmental Strategy Business Fortis Sustainability Radar™ Response Asian PRODUCT STRATEGIC Environmental Strategy BEST PRACTICES WORST PRACTICES Sustainability EMERGING MOMENTUM ESTABLISHED Issues Sources: Fortis Investments
  23. 23. Fortis Investments | 23 Fortis L Fund Green Tigers Investment Philosophy The Asian environmental space has so far remained under-researched and under-exploited from an investment point of view. We take advantage of this by a bottom-up stock picking approach designed to identify companies with the strategies, management and means to become the long-term sustainable winners. Our aim is to deliver superior long term equity returns by investing mainly in high growth, vibrant companies directly exposed to the demand for sustainable solutions in Asia Pacific Sources: Fortis Investments
  24. 24. Fortis Investments | 24 A wealth of opportunities Renewable Energy in China set to grow by 20% p.a. Renewable energy is expanding in China. China’s development plan for renewable energy Driven by energy security concerns, the climate change challenge, and providing access to energy in remote areas. Renewable energy sources (including hydropower) are set to account for 10% of total energy consumption by 2010 and further to 15% by 2020. Sources: Fortis Investments
  25. 25. Fortis Investments | 25 A wealth of opportunities Highest wind capacity additions in India Expected growth in different countries Sources: Goldman Sachs Research, Fortis Investments
  26. 26. Fortis Investments | 26 Clean Energy Focus Asia Policy Infrastructure for Renewable Energy Feed-in-tariff Tax reductions or Public loans / Renewable Energy Target credits financing Indonesia seeks to generate 5% of its energy from Indonesia renewable sources by 2020. Korea has a renewable target for electricity generation Korea of 5% by 2010. Malaysia seeks to generate 350 MW renewable energy Malaysia by 2010. Main potential is biomass based on palm oil. Main goal is to increase self-sufficiency to 60% and to Philippines double renewable energy capacity to around 5GW by 2013. Government focuses on waste to energy, biomass Singapore cogeneration, and solar power offering up to 50% public financing for innovative projects. Taiwan has a target of achieving 10% from renewable Taiwan energy by 2010. 5% of all new capacity must come from renewable Thailand sources. Main projects are using biomass, such as sugar cane and rice husks. Sources: Goldman Sachs Research, Fortis Investments
  27. 27. Fortis Investments | 27 Clean Energy Focus Asia Forecasted solar and wind capacity additions Solar Energy - Wind Energy - Forecasted capacity additions until 2010 Forecasted capacity additions until 2010 Rooftop solar has potential as the island’s geography means Total wind potential estimated at just 448 MW. No clear Indonesia that grid connection is difficult. government guidance or targets available. 628 MW 2250 MW (by 2012) Korea Government has budgeted W1.9tn for R&D, subsidies, and Government has budgeted W1.6tn for R&D, subsidies, and feed-in tariffs until 2012. feed-in tariffs until 2012. Energy Commission state limited grid connection for solar, Energy Commission state that wind potential is not high due Malaysia but rooftop programs could be important. to low average wind speed. 392 MW But plans to become key manufacturer. Cypress Sunpower Philippines Department of Energy estimates a total 76,000 MW of opened a US$ 300 mn plant in 2004. potential wind energy. Has plans to install 50,000 m2 of solar thermal capacity by Singapore Wind is not considered a viable source of energy. 2012. Seeks to become a solar manufacturing hub. 2,049 MW 20 MW Taiwan Strong potential in Taiwan Strait: Taipower plans a further Actively promoting innovate solar PV systems. 546 offshore turbines between 2010 and 2020. 142 MW 52 MW Thailand Environmental groups believe Thailand has potential to Government does not consider wind as priority due to low provide 30% of energy needs from solar by 2020. wind speeds. Sources: Goldman Sachs Research, Fortis Investments
  28. 28. Fortis Investments | 28 A wealth of opportunities Rising demand for water infrastructure Rmb 1trillion to be spent between 2006-10 China ranks among the 13 lowest countries in the world on its per-capita water resources. Less than 50% of the Chinese population is connected to sewerage systems. The government has made the securing of drinking water resources a top priority. Sources: Fortis Investments, www.china.org.cn, Citi Group, Credit Suisse
  29. 29. Fortis Investments | 29 A wealth of opportunities High Growth in Water Investment in India % annual average growth in investment in water & wastewater between 2005 – 2015E. Growth in India will outpace growth in developed economies more than two-fold. Sources: Fortis Investments, Goldman Sachs
  30. 30. Fortis Investments | 30 A wealth of opportunities Growing demand for waste management solutions China has surpassed the US as the world’s largest waste generator driven by rapid urbanisation and rising GDP per capita. Annual Municipal Waste Generation has grown 8% pa per capita between 1980-2000 compared to 1% in the US. Over 90% of waste is still dumped or land filled. In its 11th five year plan the Chinese government states that it plans to invest Rmb 51.6 billion in sold waste treatment pants between 2006-2010. Incineration will play a key role in Chinese waste management strategy. . Sources: Fortis Investments
  31. 31. Fortis Investments | 31 A wealth of opportunities China unveils USD 586 billion stimulus package In November 2008, China called for “accelerating the transformation of our mode of economic development”. US$586bn fiscal stimulus package earmarked to boost the economy. Fully 25% of the total (US$146 billion) is allocated for environmental protection. Big winners will be water infrastructure, green energy infrastructure, railways,. Sources: Fortis Investments, FT
  32. 32. Fortis Investments | 32 Fortis L Fund Green Tigers Suzlon Energy Hyflux – Integrated business model – Leading player in both for total wind power desalination and water solutions treatment – Annual growth rate ~20% – Proprietary membrane – Strong market position in technology growth areas – Superior-quality portfolio – Built the world’s largest of water assets expected to wind park in Asia generate strong growth and steady cash flow Zhongde Waste Matsuda Sangyo – Well positioned in the – Global player in the field of market for Waste recovered materials incineration – Benefits from steady – Market seen at ~ 15% cagr growth on increase of Sources: Fortis Investments from now to 2030 waste recycling volume in – Proprietary technology, Asia high sustainable margins – Growing its overseas and high ROE compared to operations in Thailand and peers China
  33. 33. Fortis Investments | 33 Why Asia Environmental Focus Now The Asian region is facing growing environmental challenges as a result of population growth, rapid industrialisation, and natural environmental constraints. Governments across Asia have started to act realising that the growing environmental problem is beginning to undermine economic growth and social stability. The global climate change debate is adding additional international political pressure. These developments create a whole range of environmental investment opportunities. Investors face a need to take Asia’s diverse nature of environmental challenges and opportunities into account.
  34. 34. Fortis Investments | 34 Thank you for your attention! Singapore, Kuala Lumpur Marcel.DEBRUIJCKERE@fortisinvestments.com +65 6593 5171 Peijun.Chen@fortisinvestments.com +65 6593 5173 Jakarta tino.moorrees@fortisinvestments.co.id +62 212521574 Frankfurt florian.sommer@fortisinvestments.com +49 69 70799841
  35. 35. Fortis Investments | 35 Appendix
  36. 36. Fortis Investments | 36 Fortis L Fund Green Tigers Bottom up investment process Step 1 Step 2 Step 3 Sustainability research and Fundamental analysis (DCF, Diversification across region, idea generation P/E) theme and technology Leverage of our on-the Environmental benefits Review of current holdings, ground Asian research analysis to identify the pure price targets capabilities plays Review of portfolio risk Risk Factors compositions Investable Universe Portfolio Construction FLF Green Tigers Have we identified Is the team convinced of the Have we delivered the most something the mainstream investment case? attractive risk/return profile? has not? Sources: Fortis Investments
  37. 37. Fortis Investments | 37 Fortis L Fund Green Tigers Dedicated team and local resources Global Environmental Portfolio Management Team Local Research Network Capabilities SRI Investment Center 6 dedicated analysts, diverse Stewart Armer Dr. Francois Perrin More than 100 background, 70 years of on-the-ground combined investment Back up investment professionals experience Portfolio Manager Portfolio Manager China, India, Japan SRI Committee and Australia 5 experts on environmental, regulatory and emerging market issues Unravelled resources and experience for managing the strategy Sources: Fortis Investments
  38. 38. Fortis Investments | 38 International SRI Advisory Committee Prof. Karl-Henrik Robert (Chairman) Founder of The Natural Step Leading Scientist on Sustainability System Theory High level sustainability High level sustainability Sweden experts with different areas of experts with different areas of Robert Rubinstein focus: science, policymaking, focus: science, policymaking, Founder and Managing Director, TBLI Group SRI Industry Expert; runs the leading SRI industry development, governance, development, governance, conference (TBLI) in Europe and Asia US global SRI industry, etc. global SRI industry, etc. Raymond Van Ermen Director of European Partners for the Environment, EU Environmental Policy Expert Provides strategic advice on Provides strategic advice on Belgium existing and emerging existing and emerging Dr. Maritta Koch-Weser sustainability themes. sustainability themes. CEO, Global Exchange for Social Investment Former Head of Social Policy of the World Bank. Germany Validates the robustness and Validates the robustness and Prof. Ethan Kapstein Professor of Sustainable Development, INSEAD integrity of the core SRI integrity of the core SRI Leading Sustainable Business Economist US process. process. Cyril Lin Managing Director of IFG Development Initiatives, Corporate Governance Expert for Asian countries China
  39. 39. Fortis Investments | 39 Fortis L Fund Green Tigers diversified stock bets Portfolio Details clear sector biases no „me too“ stocks Sources: Fortis Investments, 31/12/2008
  40. 40. Fortis Investments | 40 Fortis L Fund Green Tigers Performance Since Performance (%) Dec Last 3M inc.** FORTIS L FUND Green Tigers (I) -1,99 -25,47 -36,47 The successful implementation 75% MSCI AC Asia Pac ific ex Ja pan (NR) + 25 % MSCI Japan (N R) -3,04 -20,60 -29,58 of clean technologies in the Excess return 1,05 -4,87 -6,89 region coupled with the Since increased demand for solutions Risk indicators (annualised) by region’s economies, will inc.** Fund volatility (%) n.a. result in a major driver for Benchmark volatility (%) n.a. environmental infrastructure. Tracking error (%) n.a. Information ratio n.a. all fi gures g ros s of fees (in E UR) * ann ualised p erfo rman ce High levels of domestic savings ** incep tio n date : 0 1/08 /2 008 and current account balances = Past p erforman ce or ach ievemen ts are n ot in dic ative of current or fut ure perform ance. funding of infrastructure projects intact Credit crunch has limited impact as 75% of spending announced and sponsored by government and municipal sectors. Source: Fortis Investments, 31.12.2008 figures . Past performance or achievements are not indicative of current or future performance
  41. 41. Fortis Investments | 41 Fortis L Fund Green Tigers The right time to invest in the newcomers! Strong business case: Asian countries are responding to the need for immediate solutions to their significant environmental problems. Companies providing renewable energy technologies, energy efficiency improvements, water infrastructure and purification, sustainable forestry products, emissions control technologies will all be part of the answer. Strong investment case: Social and regulatory factors are falling into alignment, making now an ideal time to invest in Asia’s environmental well-being. Unique investment universe: Fortis Investments has identified a broad universe including compelling investment opportunities not covered by competitors Strong performance: Focused on generating solid investment returns through investing in companies that are reacting proactively to the pressing environmental challenges in Asia Pacific Proven investment process and dedicated investment centre based in Frankfurt leveraging Fortis Investments on-the ground Asian research capability Sources: Fortis Investments
  42. 42. Fortis Investments | 42 Fortis L Fund Green Tigers Fund Details Name: Fortis L Fund Green Tigers Reference Index : MSCI Asia Pacific (75%) / MSCI Japan (25%) – Net Return (EUR) Portfolio management: Stewart Armer ISIN: LU0374254513 (I-share) Nationality: Luxembourg Legal form: Compartment of the Fortis L Fund SICAV Type: UCITS III NAV Calculation Agent: FASTNET Luxembourg S.A. Management fee: 0.80% (I-share) Launch: 1 August 2008 Fund currency: EUR Risk Class (0 to 6): 3 Advised Horizon: 10 years Investor profile: aggressive The investments in this compartment are subject to market fluctuations and the risks inherent in investments in securities. The value of investments and the income they generate may go down as well as up, and it is possible that investors will not recover their initial outlay.
  43. 43. Fortis Investments | 43 Why an Environmental Focus Now? Current valuations… and momentum! Our alpha pool in clean energy, water and waste All thematic strategies have All thematic strategies have substantially outperformed the substantially outperformed the 1200 MSCI World over the past 5 years MSCI World over the past 5 years 1100 Clean & Efficient Energy Index (EUR) Clean Water & Pollution Control Index (EUR) Post 2008, valuation ratios at Post 2008, valuation ratios at 1000 historic lows historic lows Resources & Waste Management Index (EUR) – despite long term growth – despite long term growth 900 MSCI World ND (EUR) prospects prospects Solar 800 Wind Operators – – despite balance sheets quality despite balance sheets quality and low impairment risk and low impairment risk 700 Catalysts for a repricing Catalysts for a repricing 600 – Policy makers clearly moving – Policy makers clearly moving 500 towards fiscal policies designed towards fiscal policies designed to boost economies, favouring to boost economies, favouring 400 those sectors those sectors 300 – – Companies are likely to deliver Companies are likely to deliver growth ahead of expectations growth ahead of expectations 200 – – Strongest players will gain Strongest players will gain 100 market share market share 648 stocks to choose from! 648 stocks to choose from! 0 1-Jan-04 1-Jan-05 1-Jan-06 1-Jan-07 1-Jan-08 Source: Fortis Investments, Bloomberg Period: 01/01/04 – 31/12/08
  44. 44. Fortis Investments | 44 Improving our ESG Performance Fortis Investments Fortis Investments is committed to improve its own ESG performance. In 2007 the company focussed specifically on the environment. A dedicated Greening Committee was set up. The Greening Committee agreed 8 environmental headline objectives 1. Minimise business travel 2. Minimise commuting impact 3. Eco-efficient energy management 4. Reduce paper consumption and waste recycling 5. Greening procurement and facility management 6. Embed ‘Greening philosophy’ in company culture 7. Healthy spirit in a health body Each objective is backed up with specific KPIs.
  45. 45. Fortis Investments | 45 Improving our ESG Performance Fortis Group Fortis Group is committed to ongoing improvement of its ESG performance under the Corporate Social Responsibility (CSR) umbrella. The CSR team is made up of 12 people and reports directly to the company board. Fortis Group has agreed the following three year objectives (2007-09): 1. Building on overall strategic themes (sustainable supply chains, climate change, social exclusion) 2. Embedding CSR in all parts of the organisation 3. Implementation of Carbon Neutrality Programme 4. Development and roll out sector policies 5. Development of products and services 6. Development of a Fortis Human Rights Statement 7. Further expansion of Foundation 8. Strengthen stakeholder dialogue and communication 9. Actively particpate in international debabe on CSR Further information about these objectives and achieved 2006 milestones can be viewed at www.fortis.com/sustainability
  46. 46. Fortis Investments | 46 Further Information PRI Co-ordinator Florian Sommer Head of Sustainability Research SRI Investment Centre Fortis Investments, Germany 0049 69 70799841 florian.sommer@fortisinvestments.com www.sri.fortis.com
  47. 47. Fortis Investments | 47 This document has been prepared solely for informational purposes and does not constitute 1) an offer to buy or sell or a solicitation of an offer to buy or sell any security or financial instrument mentioned in this document or 2) any investment advice. Any decision to invest in the securities described herein should be made after reviewing the most recent version of the prospectus, which can be obtained free of charge from Fortis Investments*. Moreover, prospective investors should conduct such investigations as the investor deems necessary and should seek their own legal, accounting and tax advice in order to make an independent determination of the suitability and consequences of an investment in the securities. The opinions contained herein are subject to change without notice. Investors should ensure themselves that they read the last available version of this document. Past performance or achievements are not indicative of current or future performance. The performance data do not take account of the commissions and costs incurred on the issue and redemption of units. For more information, please contact fortisfunds@fortisinvestments.com Fortis Investments is the trade name for all entities within the group of Fortis Investment Management. This document has been issued by Fortis Investment Management Belgium N.V./S.A. (address : Avenue de l’Astronomie 14, 1210 Brussels, Belgium, RPM/RPR 0882 221 433). www.sri.fortis.com

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