PARVEST SMaRT FOOD. EXTRA-FINANCIAL REPORT June 30 th, 2017 FUND INVESTMENT STRATEGY. For Professional investors Marketing Communication

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1 For Professional investors Marketing Communication PARVEST SMaRT FOOD EXTRA-FINANCIAL REPORT June 30 th, 2017 EQUITIES FUND This fund is a mutual fund registered in Luxembourg. The ISIN of the fund is LU The investments in the funds 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, the funds described being at risk of capital loss. INVESTMENT STRATEGY Parvest SMaRT food (Sustainably Manufactured and Responsibly Transformed) invests in companies of the food value chain that contribute to solving environmental issues and promoting food of quality. The food value chain is composed of growers and inputs, technology and logistics, basic foods and ingredients, food safety, sustainable packaging, value added food, and distributors. More precisely, the fund invests in food related companies that address critical issues, such as the need to reduce pollution, tackle climate change or provide better quality food, while respecting stringent ethical rules. Specifically, it invests in companies involved in reducing food waste, recycling packages, reducing CO2 emissions, increasing food safety, favoring sustainable growing practices and promoting healthy and natural food. In addition, the fund abides by very strict ethical rules and respects the elementary principle of precaution, as follow: Exclusions based on activity WHAT : Full exclusion: - Producers and developers of GMOs - Food & Agri commodities traders - Producers of first generation biofuels - Producers of inorganic fertilisers - Producers of palm oil Limited at 5% of revenue: - Tobacco - Production of aspartame and artificial sweeteners - Production of Bisphenol A (BPA) - Production of artificial food colourings or dyes Exclusions of companies with poor processes HOW : Land management and local communities Bio-diversity and land use Labour management and health & safety Supply chain management (responsible sourcing) Animal welfare Product safety and marketing practices Chemical safety management Toxic emissions and waste Water management Carbon emissions Limited at 10% of revenue : - Alcoholic beverages Limited at 20% of revenue: - Highly processed and low nutrition foods ( junk food ) - Carbonated soft drinks and sodas

2 EXTRA-FINANCIAL REPORT- June 30th, WHAT DOES THIS EXTRA-FINANCIAL REPORT CONTAIN? In this extra-financial report we present a series of sample indicators to measure in concrete fashion how the fund implements its Social and Responsible Investment (SRI) strategy vs. its benchmark (2) : - The breakdown of companies by business sector. - The breakdown of companies by Environment; Social and Governance (ESG) rating. - The exclusion of securities considered non-compliant with BNP Paribas Investment Partners' SRI policy. - For the social rating, the social exposure of the portfolio to social controversies is compared to that of the benchmark. - For the governance rating, we compare the average of the governance ratings according to the internal methodology of the ESG Research team to that of its benchmark. - Exclusion of securities considered non-compliant with BNP Paribas Asset Management s SRI policy and the signature of the UN Global Compact by companies in our portfolio give us a Human Rights rating. - The exercise of voting rights puts a spotlight on support (or lack thereof) for draft resolutions presented at the annual general meetings of portfolio companies. - The breakdown of companies by environmental actions. These indicators are supplemented with a list of companies in the portfolio organized according to sector and country and, for the main lines, a description of their activities linked to the environment. SAMPLE INDICATORS 1 - PORTFOLIO BREAKDOWN BY SECTOR 8% 8% The fund is invested in the all food chain value, which cover several complementary areas (1). The main sub-sectors are distributors (18%), sustainable packaging (20%), value added foods (19%) and technology & logistics (14%). 20% 8% Growers & Inputs Food safety Distributors Value Added Foods (1) Sector breakdown calculated according to weighting of portfolio companies. 14% 19% 18% Technology & Logistics Sustainable Packaging Basic Foods & Ingredients Source: IMPAX Asset Management 2 - PORTFOLIO BREAKDOWN BY ESG RATING Companies receive an ESG (2) rating on a scale between 0 and 5 : Those between 0 and 2 are excluded Those between 2 and 2.5 (fair) can t exceed in weight their score Those between 2.75 and 3.25 (average), those between 3.5 and 3.75 (good) and those between 4 and 5 (excellent) are fully investable As often as possible, fund managers favor companies with superior ESG rating. (2) Environment, Social and Governance. Good 32% Excellent 11% Fair 3% Average 54% Source: IMPAX Asset Management

3 Governance score out of 100 Weight in % Weight in % EXTRA-FINANCIAL REPORT- June 30th, SOCIAL: SOCIAL CONTROVERSIES EXPOSURE The portfolio is invested in securities whose issuers are less subject to social controversies. Indeed, the weight of companies facing at least one severe social controversy (3) represents 12.20% in the benchmark whereas there is none in the portfolio. (3) An issuer is considered to be facing severe social controversy once it faces a four or five level controversy in one of the categories according to our data provider Sustainalytics ,70 12,20 9, ,00 0,00 0,00 0 Jun-16 Dec-16 Jun-17 PARVEST SMART FOOD MSCI AC WORLD The average rate of coverage is 99.31% for the portfolio and 98.55% for the benchmark. Source: BNP Paribas Asset Management, Sustainalytics 4 HUMAN RIGHTS: COMPLIANCE WITH INTERNATIONAL STANDARDS AND CONVENTIONS The analysis of Parvest SMaRT Food in relation to its benchmark indicates that 42.55% of the portfolio weight is invested in companies that are signatories to the UN Global Compact, compared with 35.24% for its benchmark. In accordance with BNP Paribas Asset Management s SRI policy, the funds does not invest in companies with clear and repeated cases of violations of the UN Global Compact principles (4) and/or BNP Paribas Group policies on controversial products and sectors (5). (4) The UN Global Compact Principles ( promote 10 majors principles applicable to companies in the areas of respect for human rights, labour standards, environmental protection and business ethics. The internationally recognised principles are based on the following standards and conventions : - The Universal Declaration of Human Rights, PARVEST SMART FOOD MSCI AC WORLD - The Declaration of the International Labour Organisation on Fundamental Principles and Rights at Work, The average rate of coverage is 99.31% for the portfolio and 98.51% for the benchmark. - Rio Declaration on Environmental and Development, - United Nations Convention Against Corruption. Source: BNP Paribas Asset Management, Sustainalytics. (5) BNP Paribas Group sectoral policies seek to limit these investments in controversial sectors and currently pertain to the following sectors : - Palm oil and Wood pulp - Mining - Nuclear Power generation - Tar sands - Coal-fired power generation - Controversial weapons - Basic agricultural commodities - Asbestos 36,90 A specific policy concerning BNP Paribas Asset Management SRI investments excludes all companies that deal with weapons, tobacco, pornography or gambling ,91 42, ,01 34,58 35,24 30 Jun-16 Dec-16 Jun-17 5 GOVERNANCE: AVERAGE GOVERNANCE SCORE Good corporate governance creates the framework that ensures that the company is managed in the long-term interest of shareholders. The governance score takes into account several criteria that are very similar to most sectors. The portfolio most recent rate (6) of outperforms the benchmark rate of , ,40 71, ,90 63,22 63, Jun-16 Dec-16 Jun-17 (6)The governance score is attributed by our ESG analysts, taking into account several criteria, in particular the independence and diversity of the Board of Directors, respect for shareholders rights, remuneration and the quality of internal control. PARVEST SMART FOOD MSCI AC WORLD The average rate of coverage is 99.22% for the portfolio and for the benchmark. Source: BNP Paribas Asset Management

4 EXTRA-FINANCIAL REPORT- June 30th, EXERCISE OF VOTING RIGHTS During 2016, voting rights were exercised in 37 annual general meetings. These votes were exercised according to corporate governance principles defined in IMPAX Asset Management voting policy (7). Among the 537 draft resolutions presented at annual general meetings, we opposed or abstained to 28 resolutions, or 5% of the total votes exercised. These mainly concerned questions related to a lack of Board of Directors' independence and financial transactions contrary to minority shareholders' interests. 5% For Against/Abstention (7) The principles of good governance within the BNP Paribas Asset Management voting policy concern the defence of rights and long-term interests of shareholders, Board of Directors' composition and operation, executive pay and transparency in terms of financial and extra-financial communication. 95% Source: IMPAX Asset Management

5 EXTRA-FINANCIAL REPORT- June 30th, COMPANIES ENVIRONMENTAL ACTIONS (Primary impact in dark green - secondary impact in light green) Sustainable packaging Using fewer and better inputs Improving food safety Promoting healthy and natural food Reducing food waste Reducing GHG emissions Aryzta Bemis Company Brambles Campbell Soup Canadian Pacific Railway Corbion Coway Dairy Crest Group Danone Darling Ingredients DS Smith Ecolab Eurofins GEA Group Genus GNC Holdings Huhtamaki Oyj Jeronimo Martins Kubota Lenzing Leroy Seafood Group Marks and Spencer Group Nestle Royal Ahold Royal DSM Sealed Air Smurfit Kappa Group Sonoco Products Sprouts Farmers Markets Tiger Brands TOMRA Systems Total Produce Trimble Navigation Unilever United Natural Foods WestRock Whole Foods Market The above mentioned securities are for illustrative purpose only and do not constitute any investment recommendation

6 EXTRA-FINANCIAL REPORT- June 30th, COMMENTS OF MAIN PORTFOLIO SECURITIES The table below notes the top 10 portfolio holdings and provides a brief commentary describing their environmental, social and governance performance. Issuer Country Sector Description of business activity Sealed Air Corporation Packaging & Food Safety Sealed Air Corp. engages in the provision of food safety and security. It provides system solutions that improve the management of contamination risk and facility hygiene during the food and beverage production process, extend product shelf life through packaging technologies. Darling Ingredients Inc. Growers & Inputs Darling Ingredients engages in the development and production of natural ingredients from edible and inedible bio-nutrients. Kubota Corporation Japan Machinery & Equipment Kubota engages in the manufacture and sale of agricultural and construction machinery equipment, as well as pipe-related products, environment-related products; and social infrastructure-related products such as industrial castings, spiral welded steel pipes and electronic weighing systems. WestRock Co. Packaging & Food Safety WestRock Co. engages in the provision of paper and packaging solutions in the field of corrugated markets. It operates through corrugated packaging, consumer packaging, as well as in developing and selling of real estate. Royal DSM NV Netherlands Diversified Food Royal DSM NV operates through human nutrition and animal nutrition health ; performance materials as synthetic fibers, engineering plastics, and resins used in coatings ; and innovation through emerging business areas. Royal Ahold Delhaize N.V. Netherlands Distribution & Commercial Services Royal Ahold Delhaize NV is a food retail company, which operates supermarkets and e-commerce, and a company at the forefront of sustainable retailing. Sprouts Farmers Markets, Inc. Distribution & Commercial Services Sprouts Farmers Markets engages in the operation of healthy grocery store that offers fresh, natural and organic food. Its products include fresh produce, bulk foods, vitamins and supplements, grocery, meat and seafood, deli, bakery, dairy, frozen foods, body care and natural household items. Smurfit Kappa Group Plc Ireland Packaging & Food Safety Smurfit Kappa operates as an integrated paper and paperboard manufacturer and converter. It also engages in the manufacturing, distribution and selling of containerboard, corrugated containers, and other paper-based packaging products, such as solid board, graphic board and bag-in-box. Aryzta AG Switzerland Packaged Food & Ingredients Aryzta AG engages in the production and distribution of baked goods. It offers market positions in the European specialty bakery market, involves in the specialty bakery market in the and Canada ; and has businesses in Australia, Asia, New Zealand, and South. Tiger Brands Limited South Africa Packaged Food & Ingredients Tiger Brands engages in the manufacture and market of food and consumer healthcare products. It operates through Grains, including milling, sorghum beverage and breakfast, rice and pasta; Consumer Brands, including home, personal care and baby products; Exports and International; and Nigeria. Source: BNP Paribas Asset Management (Data as of June 30th, 2017) The above mentioned securities are for illustrative purpose only and do not constitute any investment recommendation

7 EXTRA-FINANCIAL REPORT- June 30th, STANDARD PRODUCTS BNP PARIBAS ASSET MANAGEMENT France, the investment management company, is a simplified joint stock company with its registered office at 1 boulevard Haussmann Paris, France, RCS Paris , registered with the Autorité des marchés financiers under number GP This material is issued and has been prepared by the investment management company. This material is produced for information purposes only and does not constitute: 1. An offer to buy nor a solicitation to sell, nor shall it form the basis of or be relied upon in connection with any contract or commitment whatsoever or 2. Investment advice. This material makes reference to certain financial instruments authorised and regulated in their jurisdiction(s) of incorporation. No action has been taken which would permit the public offering of the financial instrument(s) in any other jurisdiction, except as indicated in the most recent prospectus and the Key Investor Information Document (KIID) of the relevant financial instrument(s) where such action would be required, in particular, in the United States, to US persons (as such term is defined in Regulation S of the United States Securities Act of 1933). Prior to any subscription in a country in which such financial instrument(s) is/are registered, investors should verify any legal constraints or restrictions there may be in connection with the subscription, purchase, possession or sale of the financial instrument(s). Investors considering subscribing to the financial instrument(s) should read carefully the most recent prospectus and Key Investor Information Document (KIID) and consult the financial instrument(s ) most recent financial reports. These documents are available on the website. Opinions included in this material constitute the judgement of the investment management company at the time specified and may be subject to change without notice. The investment management company is not obliged to update or alter the information or opinions contained within this material. Investors should consult their own legal and tax advisors in respect of legal, accounting, domicile and tax advice prior to investing in the financial instrument(s) in order to make an independent determination of the suitability and consequences of an investment therein, if permitted. Please note that different types of investments, if contained within this material, involve varying degrees of risk and there can be no assurance that any specific investment may either be suitable, appropriate or profitable for an investor s investment portfolio. Given the economic and market risks, there can be no assurance that the financial instrument(s) will achieve its/their investment objectives. Returns may be affected by, amongst other things, investment strategies or objectives of the financial instrument(s) and material market and economic conditions, including interest rates, market terms and general market conditions. The different strategies applied to financial instruments may have a significant effect on the results presented in this material. Past performance is not a guide to future performance and the value of the investments in financial instrument(s) may go down as well as up. Investors may not get back the amount they originally invested. The performance data, as applicable, reflected in this material, do not take into account the commissions, costs incurred on the issue and redemption and taxes. All information referred to in the present document is available on MSCI ESG Research Inc All rights reserved. Although BNPP AM s information providers (the ESG parties ) obtain information from sources that they consider reliable, none of the ESG parties warrants or guarantees the originality, accuracy and/or the completeness of any data included herein. None of the ESG parties makes any express or implied warranties of any kind, and the ESG parties hereby expressly disclaim all warranties of merchantability and fitness for a particular purpose. None of the ESG parties shall have any liability for any errors, omissions or interruptions of or in connection with any data included herein. In no event shall any of the ESG parties have any liability for any direct, indirect, special, punitive, consequential or any other damages (including lost profits) even if notified of the possibility of such damages. Trucost Some of the data used to compile this report belong to Trucost. Whilst every care has been taken by Trucost in providing high quality data, Trucost accepts no liability whatsoever for any loss (including without limitation direct or indirect loss and any loss of profit, data, or economic loss) occasioned to any person nor for any damage, cost, claim or expense arising from any reliance on the Trucost data in this report (save only to the extent that the same may not be in law excluded). Trucost is the trading name of Trucost plc a public limited company registered in England company number whose registered office is at 22 Chancery Lane, London WC2A 1LS, United Kingdom.