CARMIGNAC GESTION REPORT ON ANNUAL PROXY VOTING PROCESS 2017 Report issued on January 31, 2018 1
INTRODUCTION This report is issued once a year within the four months following the financial year-end closing. It provides quantitative and key information on how voting rights were exercised over the past year. It states the number of companies in which Carmignac Gestion exercised its voting rights compared with the total number of companies in which it held voting rights. It also describes, if relevant, cases in which Carmignac Gestion assessed it could not follow principles set out in the Carmignac Proxy Voting. Finally, it details, if relevant, potential conflicts of interest that Carmignac Gestion had to consider and manage, when exercising voting rights attached to shares held in portfolios, the company manages. This report may be consulted upon request at Carmignac Gestion registered office. SYNTHESIS OF PROXY VOTING POLICY PRINCIPLES From 2015, Carmignac took the decision to appoint an external service provider to support internal teams, in the voting process coordination. This appointed service provider is one of the world leaders on the market, ISS Governance. By appointing an external service provider, Carmignac expects to leverage on ISS Governance expertise regarding the analysis performed on submitted resolution during corporate meetings. Moreover, Carmignac is conscious of economic, social and environmental concerns that issuers will face in the future. This is the reason why Carmignac decided to leverage on the principles set in the «sustainability» policy defined by ISS Governance. Carmignac also exercises the voting rights attached to the securities held by the UCI it manages on behalf of unit holders and/or shareholders where there is a risk of companies changing their strategy, which may be evidenced by: - a risk of a change in the majority shareholder; - a risk of a merger / acquisition; - a risk of a change in the management team; - a risk of restructuring, etc. 2
It is also important to remind that one of Carmignac main objectives is to establish a sustainable relationship with company s government. As a consequence, Carmignac decides to focus on meetings, where the consolidated position of securities held by the UCI it manages on behalf of unit holders and/or shareholders can be assessed as significant. - Carmignac does not provide a systematic definition of significant position, since several factors may be taken into account, such as the total position held at group level or in a single portfolio. Nevertheless, as an example, the following criteria may be used: o The asset manager holds, via the portfolios it manages, a position which is above a certain threshold based on the capital of the issuer; o The position of a fund in a financial instrument is above a threshold vis-à-vis the global exposure of such fund. In addition, Carmignac decides to take part to the vote, when the management team are convinced by the issuer further perspectives and, by way of consequence, the issuer is included in the strategic plan implemented by management team. That s why Carmignac can also participate in the vote, even if the consolidated position held by companies is not assessed as significant. QUANTITIVE & KEY INFORMATION ON THE 2017 PROXY VOTING PROCESS In 2017, Carmignac Gestion effectively used its voting rights and participate in 140 meetings (please refer to the name of companies listed below) when Carmignac Gestion got the ability to participate in the vote of a total of 182 meetings (77%). Carmignac Gestion participated in meetings and exercised his voting rights in accordance with principles set in its current proxy voting policy. Moreover, it is important to specify that, in participating to vote in accordance with his proxy voting policy, Carmignac Gestion did not identify any potential conflicts of interest. 3
LIST OF MEETINGS IN WHICH CARMIGNAC GESTION PARTICIPATED IN 2017 Tables below refer to the list of 140 meetings to which Carmignac Gestion participated in 2017 and to the detail of voted instructions: ISS Meeting ID Company Name Meeting Date Country Number of portfolios Total number of voted instruction 1104609 Visa Inc. 31-janv.-17 USA 5 60 1105357 Jeronimo Martins SGPS S.A 28-avr.-17 Portugal 3 21 1108444 ASML Holding NV 28-avr.-17 Netherlands 5 140 1110595 LafargeHolcim Ltd. 31-mai-17 Switzerland 5 135 1110634 Philippine National Bank 28-avr.-17 Philippines 1 21 1111447 Potash Corporation of Saskatchewan Inc. 31-mai-17 Canada 5 65 5 1113000 Reckitt Benckiser Group plc 31-mai-17 United Kingdom 5 110 1113139 Franco-Nevada Corporation 31-mai-17 Canada 5 55 1113258 Bharti Airtel Ltd. 31-mars-17 India 3 6 1114056 Goldcorp Inc. 28-avr.-17 Canada 5 55 1114436 Fomento Economico Mexicano S.A.B. de C.V. FEMSA 31-mars-17 Mexico 3 24 1114932 Tripod Technology Corporation 30-juin-17 Taiwan 1 5 1115108 AvivaSA Emeklilik ve Hayat A.S. 31-mars-17 Turkey 1 12 1115482 Organizacion Terpel S.A. 31-mars-17 Colombia 1 11 1115559 CEMEX S.A.B. de C.V. 31-mars-17 Mexico 8 48 1116012 Silver Wheaton Corp. 31-mai-17 Canada 5 55 5 1116380 Samsung Electronics Co. Ltd. 31-mars-17 South Korea 8 16 1116838 Samsung Biologics Co., Ltd. 31-mars-17 South Korea 3 9 1116935 Hermes International 30-juin-17 France 5 120 1117127 Unifin Financiera S.A.B. de C.V. SOFOM E.N.R. 31-mars-17 Mexico 1 13 1117453 Silicon Works Co. Ltd. 31-mars-17 South Korea 1 6 1118215 LINE Corporation 31-mars-17 Japan 3 33 1118524 Enka Insaat ve Sanayi A.S. 31-mars-17 Turkey 3 45 1118692 Noble Energy, Inc. 28-avr.-17 USA 5 75 1118758 Innocean Worldwide, Inc. 31-mars-17 South Korea 1 8 1118764 Transmissora Alianca De Energia Eletrica SA 31-mars-17 Brazil 3 9 1119207 Moscow Exchange MICEX-RTS PJSC 28-avr.-17 Russia 3 93 1119275 Newmont Mining Corporation 28-avr.-17 USA 5 70 1119677 Dassault Aviation 31-mai-17 France 5 80 1119976 Emaar Properties PJSC 28-avr.-17 UAE 3 36 1120121 Kangwon Land Inc. 31-mars-17 South Korea 3 24 1120417 Primax Electronics Ltd. 31-mai-17 Taiwan 1 5 1121121 CEMEX Holdings Philippines, Inc. 30-juin-17 Philippines 1 13 1121297 Emlak Konut Gayrimenkul Yatirim Ortakligi A.S. 28-avr.-17 Turkey 3 48 1121589 CCR S.A. 28-avr.-17 Brazil 5 125 1121590 CCR S.A. 28-avr.-17 Brazil 5 5 1121847 Chicony Electronics Co., Ltd. 30-juin-17 Taiwan 1 6 1122518 Infosys Ltd. 28-avr.-17 India 3 9 1122755 PT Astra International Tbk 28-avr.-17 Indonesia 3 12 1123516 LT Group, Inc. 30-juin-17 Philippines 1 17 1123699 FPC PAR Corretora de Seguros S.A. 28-avr.-17 Brazil 1 3 1124380 FPC PAR Corretora de Seguros S.A. 28-avr.-17 Brazil 1 2 1124731 EOG Resources, Inc. 28-avr.-17 USA 5 55 10 1124902 Anadarko Petroleum Corporation 31-mai-17 USA 5 75 5 1125504 TransCanada Corporation 31-mai-17 Canada 5 70 1125603 BB Seguridade Participacoes S.A. 28-avr.-17 Brazil 3 27 1125605 BB Seguridade Participacoes S.A. 28-avr.-17 Brazil 3 3 1125868 London Stock Exchange Group plc 28-avr.-17 United Kingdom 5 115 1127056 Grupo Supervielle S.A. 28-avr.-17 Argentina 1 15 1127755 Alupar Investimento SA 28-avr.-17 Brazil 1 1 4
ISS Meeting ID Company Name Meeting Date Country Number of portfolios Total number of voted instruction 1127817 Alupar Investimento SA 28-avr.-17 Brazil 1 6 1127930 Oryx Petroleum Corporation Limited 30-juin-17 Canada 3 27 1127990 Grupo Financiero Banorte S.A.B. de C.V. 28-avr.-17 Mexico 3 129 1128500 Centro de Imagem Diagnosticos SA 28-avr.-17 Brazil 1 6 1129191 Zhengzhou Yutong Bus Co., Ltd. 28-avr.-17 China 3 72 1130228 Giant Manufacturing Co., Ltd. 30-juin-17 Taiwan 1 4 1131470 PT Prodia Widyahusada Tbk 31-mai-17 Indonesia 1 5 1131538 Intercontinental Exchange, Inc. 31-mai-17 USA 5 95 5 1132106 CF Industries Holdings, Inc. 31-mai-17 USA 5 65 1132304 GrubHub Inc. 31-mai-17 USA 3 15 1132539 Shire plc 28-avr.-17 Jersey 5 115 1133495 TF Administradora S. de R.L. de C.V. (TERRAFINA) 28-avr.-17 Mexico 1 4 1133497 TF Administradora S. de R.L. de C.V. (TERRAFINA) 31-mai-17 Mexico 1 6 1133607 Globaltrans Investment Plc 28-avr.-17 Cyprus 1 18 1134049 Transmissora Alianca De Energia Eletrica SA 28-avr.-17 Brazil 3 3 1134739 Concho Resources Inc. 31-mai-17 USA 5 30 1134907 Transmissora Alianca De Energia Eletrica SA 28-avr.-17 Brazil 3 27 1135472 FIBRA Macquarie Mexico 28-avr.-17 Mexico 3 21 1135528 FIBRA Macquarie Mexico 31-mai-17 Mexico 3 7 1135558 Pioneer Natural Resources Company 31-mai-17 USA 5 21 1135931 Halliburton Company 31-mai-17 USA 5 7 1136335 Grupo Mexico S.A.B. de C.V. 28-avr.-17 Mexico 3 21 1136641 Tencent Holdings Ltd. 31-mai-17 Cayman Islands 8 27 1137213 Comp. Brasileira de Distribuicao Grupo Pao de Acucar 28-avr.-17 Brazil 5 6 1137267 Southwest Airlines Co. 31-mai-17 USA 5 85 1139329 Facebook, Inc. 30-juin-17 USA 5 5 1140207 FPC PAR Corretora de Seguros S.A. 31-mai-17 Brazil 1 70 1140304 Unifin Financiera S.A.B. de C.V. SOFOM E.N.R. 31-mai-17 Mexico 1 12 1140379 Criteo S.A. 30-juin-17 France 3 16 9 1141801 Dali Foods Group Company Ltd 31-mai-17 Cayman Islands 3 5 1142303 United Continental Holdings, Inc. 31-mai-17 USA 5 1 1142312 Activision Blizzard, Inc. 30-juin-17 USA 5 2 1143029 Renault 30-juin-17 France 4 78 1143615 Tencent Holdings Ltd. 31-mai-17 Cayman Islands 8 39 1143907 China Communications Services Corp. Ltd. 30-juin-17 China 1 33 1143916 Yihai International Holding Ltd 31-mai-17 China 1 21 1144336 TripAdvisor, Inc. 30-juin-17 USA 5 60 1145426 Celgene Corporation 30-juin-17 USA 5 76 1145614 T-Mobile US, Inc. 30-juin-17 USA 5 8 1146046 MercadoLibre, Inc. 30-juin-17 USA 8 9 1146357 ServiceNow, Inc. 30-juin-17 USA 5 9 1146391 Delta Air Lines, Inc. 30-juin-17 USA 5 48 1146463 Mastercard Incorporated 30-juin-17 USA 5 45 1146614 American Airlines Group Inc. 30-juin-17 USA 5 85 1147203 Intercept Pharmaceuticals, Inc. 30-juin-17 USA 5 25 1147721 Talend 30-juin-17 France 3 70 1148762 Reckitt Benckiser Group plc 31-mai-17 United Kingdom 5 85 1149993 Wiz Solucoes e Corretagem de Seguros S.A. 31-mai-17 Brazil 1 85 1150165 Safaricom Limited 29-sept.-17 Kenya 1 2 1150347 Dr. Lal PathLabs Limited 31-juil.-17 India 1 55 1151208 Dai-Ichi Life Holdings Inc. 30-juin-17 Japan 5 57 1152457 Liberty LiLAC Group 30-juin-17 United Kingdom 1 5 1152769 Altice NV 30-juin-17 Netherlands 5 18 30 1152981 Tata Motors Ltd. 31-août-17 India 3 3 1153293 Grupo Financiero Banorte S.A.B. de C.V. 30-juin-17 Mexico 3 18 1153367 Nomura Holdings Inc. 30-juin-17 Japan 5 8 5 1154562 Cemex Latam Holdings SA 30-juin-17 Spain 1 60 1154804 HDFC Bank Limited 31-juil.-17 India 8 11 8 1155204 Mitsubishi UFJ Financial Group 30-juin-17 Japan 5 100 5 1156710 Sumitomo Mitsui Financial Group, Inc. 30-juin-17 Japan 5 24 5
ISS Meeting ID Company Name Meeting Date Country Number of portfolios Total number of voted instruction 1157577 Grupo Supervielle S.A. 31-juil.-17 Argentina 1 12 1158227 Transmissora Alianca De Energia Eletrica SA 30-juin-17 Brazil 3 50 1158760 Infosys Ltd. 30-juin-17 India 3 8 1159783 IndusInd Bank Limited 31-juil.-17 India 5 96 5 1159789 Energisa S.A. 30-juin-17 Brazil 1 180 1159847 Industria de Diseno Textil (INDITEX) 31-juil.-17 Spain 5 95 1161078 Naspers Ltd 31-août-17 South Africa 3 6 1161318 Transmissora Alianca De Energia Eletrica SA 31-juil.-17 Brazil 3 6 1161683 Bharti Infratel Ltd. 31-juil.-17 India 3 15 1165053 Transmissora Alianca De Energia Eletrica SA 31-août-17 Brazil 3 35 1166828 BB Seguridade Participacoes S.A. 31-août-17 Brazil 3 4 1167810 United Spirits Limited 31-août-17 India 8 102 1168366 Moscow Exchange MICEX-RTS PJSC 29-sept.-17 Russia 3 3 1170406 Wiz Solucoes e Corretagem de Seguros S.A. 29-sept.-17 Brazil 1 21 1171214 East African Breweries Ltd 29-sept.-17 Kenya 1 3 1171456 PT Prodia Widyahusada Tbk 31-oct.-17 Indonesia 1 6 1172454 Intercorp Financial Services Inc 29-sept.-17 Panama 1 24 1176060 Zayo Group Holdings, Inc. 30-nov.-17 USA 5 72 1177496 Emaar Properties PJSC 31-oct.-17 UAE 3 6 1180726 Tata Motors Ltd. 30-nov.-17 India 3 12 1181243 Yihai International Holding Ltd 30-nov.-17 China 1 1 1181881 PT Astra International Tbk 30-nov.-17 Indonesia 3 2 1182345 ASOS Plc 30-nov.-17 United Kingdom 5 30 1184963 Kangwon Land Inc. 29-déc.-17 South Korea 3 9 1185751 Unifin Financiera S.A.B. de C.V. SOFOM E.N.R. 30-nov.-17 Mexico 1 15 1185980 Grupo Financiero Banorte S.A.B. de C.V. 29-déc.-17 Mexico 3 3 1185981 Grupo Financiero Banorte S.A.B. de C.V. 29-déc.-17 Mexico 3 3 1186485 China Communications Services Corp. Ltd. 29-déc.-17 China 1 3 1189918 London Stock Exchange Group plc 29-déc.-17 United Kingdom 5 21 5 1190640 Transmissora Alianca De Energia Eletrica SA 29-déc.-17 Brazil 3 21 6
DETAILS OF INTRUCTIONS DIFFERENT FROM ISS GUIDELINES Table below refers to the detail of Carmignac Gestion voting instructions that are ISS Guidelines. Those instructions are sorted by type of proposal. Company Name Criteo S.A. Altice NV Anadarko Petroleum Corporation Criteo S.A. EOG Resources, Inc. Potash Corporation of Saskatchewan Inc. Silver Wheaton Corp. EOG Resources, Inc. HDFC Bank Limited IndusInd Bank Limited Nomura Holdings Inc. Altice NV Mitsubishi UFJ Financial Group Intercontinental Exchange, Inc. London Stock Exchange Group plc Capitalization 6 Vote in accordance with management recommendation Compensation 1 5 Compensation level remains too high according to sector 3 Vote in accordance with management recommendation 5 Compensation level remains too high according to sector 5 Compensation level remains too high according to sector 5 Compensation level remains too high according to sector Director Related 5 The skills of the Director can be considered as questionnable 8 Vote in accordance with management recommendation Miscellaneous 1 SH - Director Related SH - Social / Environmental 97 7
DETAILS OF INTRUCTIONS IDENTIFIED AS «E&S» Table below refers to the detail of Carmignac Gestion voting instructions that have been identified as E&S (proposal that made in accordance with an environmental or social purpose). Those instructions are sorted by type of proposal. Company Name AvivaSA Emeklilik ve Hayat A.S. Enka Insaat ve Sanayi A.S. Emlak Konut Gayrimenkul Yatirim Ortakligi A.S London Stock Exchange Group plc Reckitt Benckiser Group plc Facebook, Inc. Mastercard Incorporated Newmont Mining Corporation Noble Energy, Inc. Pioneer Natural Resources Company Intercontinental Exchange, Inc. Facebook, Inc. Rationale Non-Routine Business 2 Vote in line with ISS guidelines 3 Vote in line with ISS guidelines 3 Vote in line with ISS guidelines SH - Social Proposal SH - Social / Environmental the 10 Vote in line with ISS guidelines 58 8