Stewardship Activity Report: Q3 2017

Stewardship Highlights
This report provides a preview of the upcoming Australia proxy season, reviews the Shareholder Rights Directive in Europe, evaluates State Street Global Advisors' ("SSGA's") response to the UK Government's Corporate Governance Green paper, and highlights our gender diversity and sustainability efforts in the US.

Preview of the Australia Season
Based on early engagements with Australian companies, and conclusions from the 2016 proxy season, SSGA will be focusing on the following themes this proxy season:

Board Diversity Remains of Focus
Australia is one of the three focus markets that SSGA identified in connection with the Fearless Girl campaign launched in Q1 2017. We sent a letter to 38 companies in the ASX 300 that we identified as lacking a single woman on the board. Included within the letter were our expectations for diversity on boards and our preferred approach for active dialogue and engagement with companies as a driver for greater board diversity. However, we also clarified that in the event that ASX 300 companies failed to take action to increase the number of women on their boards, we would use our proxy voting power to effect change by voting against the Chair of the board's nominating and/or governance committee if necessary. Since adopting our new guidelines, we voted against directors for this reason at 5 Australian companies.

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Stewardship Contacts:

Rakhi Kumar
Managing Director,
Head of ESG Investments and Asset Stewardship
rakhi_kumar@ssga.com
+1 617 664 5556

Disclosure

Investing involves risk including the risk of loss of principal.

The whole or any part of this work may not be reproduced, copied or transmitted or any of its contents disclosed to third parties without SSGA’s express written consent.

The information provided does not constitute investment advice and it should not be relied on as such. It should not be considered a solicitation to buy or an offer to sell a security. It does not take into account any investor’s particular investment objectives, strategies, tax status or investment horizon. You should consult your tax and financial advisor.

All material has been obtained from sources believed to be reliable. There is no representation or warranty as to the accuracy of the information and State Street shall have no liability for decisions based on such information.

The views expressed in this material are the views of Rakhi Kumar through the period ended September 30, 2017 and are subject to change based on market and other  conditions and are subject to change based on market and other conditions. This  document contains certain statements that may be deemed forward-looking statements. Please note that any such statements are not guarantees of any future performance and actual results or developments may differ materially from those projected.

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ID11519-1978210.1.1.GBL.RTL 1217 Exp. Date: 12/31/2018