1. Unveiling ESG in funds
Authorized and regulated by the Financial Conduct Authority

2. www.priuspartners.com – Private and confidential
2
 Help select Equity or Corporate Credit
managers with the right ESG DNA
 ESG reporting on a look through basis
for entire active and passive exposure
 ESG introspection of an investment process
 Independent assessment on ability to add
value through ESG integration to deepen
client relationship.
Asset Owners Asset Managers
A Fin-tech enhancing ESG analytics for fund analysis
We apply an impact finance - return focused - analysis to the liquid segment of the market.
WHO WE ARE

3. www.priuspartners.com – Private and confidential
3
SUSTAINABILITY LIES IN THE EYE OF THE BEHOLDER
 Responsible Investing solutions need not be restricted to those that have an explicit “ESG” label
 Scrutinizing managers past investment decisions offers investors valuable insights into which funds
can best reflect their own philosophy
Our technology offers a new
perspective on how any fund manager adds value
through ESG integration ….
….even if implicit.

4. www.priuspartners.com – Private and confidential
4
RETURNS, NOT COMPLIANCE, IS THE KEY TO ESG
Favouring better ESG rated companies may
have yielded some alpha in the past, when
mainstream investors ignored it, but is no
longer an alpha driver now.
No more low hanging fruit. Anticipation
skill now required also on the ESG front.
Buying companies that later improve, possibly as
engagement takes place, is also responsible, and
more surely financially rewarding.
We quantify managers’ ability to capitalise
effectively on correctly reading ESG dynamics.
Best in class = Compliance Best effort = Returns

5. www.priuspartners.com – Private and confidential
5
By treating ESG ratings as backward looking, fact based, lagging indicators, we ascertain the extent to which
manager were able to position their books profitably ahead of significant ESG changes
……the toolkit reveals it all in a few clicks
QUANTIFYING THE INVISIBLE

6. www.priuspartners.com – Private and confidential
6
Best in Class
portfolio ESG score
Ability to position the fund
ahead of positive ESG changes
Average ESG improvement by
companies within 18 months of
being selected by manager
Alpha premium due to a
manager’s ability to anticipate
material ESG changes
Ability to avoid losses due to
anticipating and avoiding a fall
in Environmental factors
Financial riskFinancial performance
RANKING FUNDS BEYOND JUST RISK AND RETURN

7. CASE STUDY: RECENT IMPLEMENTATION WITH EAPF
The Client:
The Environment Agency Pension Fund, a leading
UK public pension fund that is seen as a pioneer in
Responsible Investing, put out a tender in Q4 2014 to
allocate up to £250m to one or more global sustainable
equity manager(s).
www.priuspartners.com – Private and confidential
7
The Mandate:
Prius Partners was hired as a consultant to provide quantitative
insights on 12 shortlisted funds. We measured their reliance
on ESG factors and ability to generate alpha and avoid losses
linked to ESG changes. We drew the DNA of each manager’s
ESG investing style and compared their respective merits..
Methodology
We uploaded the quarter end portfolio for the last 5 years and using ESG granular rating data from a leading rating agency,
we tracked the evolution of past portfolios using our proprietary FLAME technology. We supported the manager selection
process by shedding lights on the ESG DNA of each manager and by ranking them according to a grid of criteria best
representing the investment philosophy and specific environmental concerns of the client.
Results:
 Identify of managers’ ESG implicit biases and rankings
 Assess robustness and repeatability of such biases
 Undertake an attribution linking E, S and G factors to risk and performance and rank by ability to avoid losses
 Peer group analysis and rankings tailored to EAPF’s focus on certain Environmental factors they wanted more
emphasised in their portfolio as well as a focus on loss avoidance.
 Tailored set of questions and stocks to support a more engaged interaction with the managers

8. FOUNDERS
Pierre Lenders,
Pierre co-founded Prius Partners in 2013, a financial technology platform designed to help fund investors quantify the risks and benefits
linked to sustainability issues.
Pierre previously worked 6 years in hedge fund selection, firstly heading external investments at Oddo, then as Co-CIO at La Fayette IM,
and more recently running HDF Finance, a Paris based alternative asset manager which became signatory of the UNPRI during his tenure.
Before that, Pierre spent 6 years in New York, heading up Murex North America, a leading software company offering trading and risk
management solutions to sales side and buy side firms.
In the previous half of his professional life, Pierre was at J.P. Morgan, in the capital markets division. He ran European fixed income
trading after introducing bond stripping in France in 1991. He joined the senior proprietary macro trading team after his nomination as
Managing Director in 1994 and also led a Paris Club securitization transaction in 1998. Pierre graduated from Paris based Ecole
Polytechnique in 1984 and ENSAE in 1986.
Joseph Naayem, CFA
Joseph co-founded Prius Partners in 2013, a financial technology platform designed to help fund investors quantify the risks and benefits
linked to sustainability issues.
Joseph had previously spent 10 years in manager selection as an analyst and portfolio manager. Firstly focused on Long/Short equity
strategies for Harcourt which was the first fund of fund to create an SRI product in the hedge fund space, before taking up roles as Head of
European research at La Fayette in London and as a Portfolio Manager at HDF Rothschild in Paris. Joseph also became a founding partner
of Alphamundi AG a Zurich based Impact Finance boutique where he remains on the Investment Committee. He started his career in Equity
Research in 1999 at Morgan Stanley and UBS after graduating from the London School of Economics. He is also a CFA Charterholder.
www.priuspartners.com – Private and confidential
8
Prius Partners is authorized and regulated by the Financial Conduct Authority.

9. CONTACTS
Prius Partners
Portland House, Office 210
Bressenden Place,
SW1E 5RS London, UK
T: +44 (0) 208 282 63 44
please address all inquiries to :
info@priuspartners.com
Strictly confidential.
This presentation has been prepared solely for informational purposes and is not intended as a full description of the terms and conditions of an investment in or cooperation with Prius Partners LLP.
These materials do not constitute an offer to invest in Prius Partners LLP. Any offering will be made only by means of a private offering memorandum and only where permitted by law. The information
contained in this presentation is believed to be reliable but Prius Partners LLP makes no representation or warranty as to its accuracy or completeness. The examples contained herein are broadly
representative of actual trades conducted by actual managers. Past performance is no guarantee of future results and no representation is made that results similar to those shown can be achieved.
Individual names, instruments, notional amounts and the corresponding ESG results in these examples are illustrative.
This presentation is provided to you on a confidential basis and is intended solely for the use of the person to whom it is provided. It may not be modified, reproduced or redistributed in whole or in part
without the prior written consent of Prius Partners LLP.
Prius Partners is authorized and regulated by the Financial Conduct Authority.
DISCLAIMER
www.priuspartners.com – Private and confidential
9