Responsible Investing Approach

The Investment Manager recognises the importance of labour standards or environmental, social or ethical considerations in investments, and believes certain environmental, social and corporate governance ("ESG") issues may impact the sustainable value of businesses. ESG factors are taken into consideration as part of the Investment Manager's investment process. The Fund considers ESG factors as part of its process of selection, retention and realisation of investments to the extent such factors are determined by the Investment Manager to have a financial impact on the investments and may impact the risk adjusted returns.  Examples of ESG factors which the Investment Manager considers include (but not limited to):

1. environmental factors such as a company's waste management, site condition and contamination;
2. social factors such as a company's acts that directly affect people and communities which may include employment conditions, labour rights, health & safety, animal welfare;
3. governance factors such as management structures and behaviours, business practices.

Woodbridge employs a negative screen when conducting due diligence and will refrain from lending to assets that have any exposure through asset value or income to any of the following sectors or activities:

• Tobacco and Tobacco alternatives production
• Military
• Controversial Weapons
• Nuclear Weapons
• Fossil fuel exploration and extraction (e.g. gas and coal assets)
• Animal Cruelty

In addition, Woodbridge will refrain from  lending to assets  where more than 25% of the total asset value or income derived from the asset includes the following sectors:

• Tobacco retailing and sales
• Adult entertainment venues
• Gambling (e.g. licensed gaming venues, pubs and casinos)
• Fossil fuel retailing and sales (e.g. petrol stations)
• Deforestation and detrimental change in land use.

The negative screens apply to both the financed assets and the beneficial owners of the assets.

These ESG factors are also considered as part of the Fund's loan monitoring program. Where those factors may negatively impact the investment performance or company stability, the Investment Manager's team will generally discuss these matters with company management under its engagement program and/or review the decision to hold the specific investment. No specific methodology is used for such reviews nor are there pre-determined views about the extent to which such factors will be taken into account in a review.

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