July

aiainvestment

Investment Communications – July 2020

As part of our commitment to streamline the communications on IGF updates,

I am excited to share with you the first quarterly investment communications

with the refreshed design.


1.

Approved

Amendments to IGF

Standards and FAQs

1

2

3

4

The Group IC has approved the amendments to following 4 IGF Standards

Disclosures of Interest (DOI) Reporting

Information Controls, Restricted Dealing, Wall-crossing, Deal Sounding and Market Misconduct

Investment Compliance – Monitoring and Assurance

Pricing

Please click on here to know the details of the approved amendments, which will take effect on

1 November 2020.

1

2

New FAQs on

Investment Authorized Persons and Investment Approval Authorities

Voice Recording

are also issued by the Referees to provide interpretations to the corresponding IGF Standards.

You may access to Corporate Policy Portal for the latest approved IGF Standards, FAQs and

AIA Investment Governance Framework Compendium and Playbook .


2.

Proposed

amendments to

IGF Standards and

IGF Requirements

regarding

derivatives

1

2

3

The Referees of the IGF Standards have

proposed amendments to the below

standards

Reference Index Selection and Approval

ESG

Derivative related IGF Standards

To facilitate your preparation, the Group L&G

team has uploaded the proposed amendment

IGF Standards on the SharePoint repository

Please send any comments using the attached

template to Michelle Tang and Rina Pang by 17

July 2020. Your comments and feedback are

very much appreciated.


3.

IGF+ : Consolidation

of IGF Standards

Since the launch of the IGF in 2016, valuable feedbacks are received from Group and Business Units stakeholders to improve

the efficiency in administering the IGF. IGF+ was launched in late 2019 with some improvements already implemented through

1H 2020. I am very excited to announce the upcoming consolidation of the IGF Standards, from 49 to 12 IGF Standards.

Summary of key changes:

The existing 49 IGF Standards, together

with 2 new topics, will be grouped into

12 IGF Standards, according to the

below mapping.

The 12 IGF Standards covers the

lifecycle of the Investment and also

specific areas that are fundamental to

the IGF. Subjects that are relevant and

related will be grouped under the same

Standard.

Existing requirements of the subjects

will mostly remain unchanged, except

for bringing additional clarity to

different type of users.


Implementation and

Timetable:

The drafting of 12 IGF Standards by Group Investment L&G

are now available for your review and comments, please

click here to review. Please send any comments using the

attached template to Michelle Tang and Rina Pang by 17

July 2020. Your comments and feedback are very much

appreciated.

The 12 IGF Standards will be tabled for Group IC approval in

mid-August 2020 and will be communicated with you in the

following quarterly communication.

In scope entities will have a 12-month transition period to

implement the changes to their policies and procedures (if

applicable). BUs can decide to implement through the

Addendums or have 12 standalone Investment Policies.

AMCs shall implement through standalone Investment

Policies.

Briefing Session of the new IGF+ Standards will be held on 7

July via Microsoft Teams. Invitation will be sent out shortly.


The Standard Consolidation

2. Asset

Architecture

3. Real Estate

4. Oversight

5. Regulatory

1. Foundational

Analytics &

Structuring

6. Pre-Trade

12. Continuous

Improvement

7. Decision

Making

11. Reporting &

Performance

10. Post-Trade

Monitoring

9. Execution,

Settlement &

Reconciliation

8. Pre-Trade

Controls

The 12 IGF

Standards


Proposed

Consolidation

of Subjects

into 12

Standards

1.1 Business Unit Investment Committee Responsibilities

1.2 AMC/CIS Board Responsibilities

1.3 Business Unit and AMC Policies and Procedures

1.4 AMC/CIS Policies and Procedures

1.5 IGF Certification Requirements

1.6 Segregation of Duties

1.7 Double Hatting

1.8 Investment Authorized Persons and Investment Approval Authorities

1.9 Information Controls

1.10 Personal Dealing

1.11 Investment Training

1.12 Investment Resource Review

1.13 Counterparty Documentation

1.14 Investment Recordkeeping

1.15 Investment Repository

1.16 Business Continuity Plan Requirements

2. Asset

Architecture

2. Asset

Architecture

1. Foundational

1. Foundational

2.1 AIA Investment Glossary

2.2 AIA Asset Hierarchy

2.3 Mandates

2.4 Mandate and Composite Controls

2.5 Reference Index Selection and Approval

2.6 New Asset Classes & Instruments

3.1 Construction Management

3.2 Real Estate Asset Management

3. Real 3. Real Estate Estate

4. Oversight 4. Oversight

The Proposal

4.1 Ongoing Investment Review

4.2 Investment Outsourcing

4.3 Investment Governance and Controls Plans

4.4 Investment Project Management

4.5 Voice Recording

5.1 Licensing

5.2 Regulatory Reporting

5.3 Regulatory Communication

6.1 Credit Rating Framework Implementation

6.2 Research Process (Fixed Income and Listed Equites)

5. Regulatory

5. Regulatory

6. Pre-Trade

6. Analytics Pre-Trade &

Structuring Analytics &

Structur


12. Continuous

Improvement

12. Continuous

Improvement

11. Reporting &

Performance

11. Reporting &

Performance

10. 10. Post-Trade Post-Trade

Monitoring Monitoring

12.1 Error Handling and Reporting

12.2 Breach Handling and Reporting

12.3 Investment Operational Risk and Control Assessment

12.4 Quality Assurance

12.5 Disciplinary Requirements

12.6 Complaints Handling

11.1 Performance Measurement

11.2 Pricing

11.3 Disclosures of Interest Reporting

11.4 Investment Committee Reporting

11.5 AMC / CIS Board Reporting

10.1 Post-trade Set-Up, Maintenance, and Monitoring

10.2 Investment Compliance - Monitoring and Assurance

9. 9. Execution, Execution,

Settlement Settlement & &

Reconciliation

Reconciliation

8. Pre-Trade

7. Decision

7. Decision Making

aking

8. Pre-Trade

9.1 Order Management & Execution

9.2 Commission Sharing Agreement

9.3 Settlement

9.4 Custody of Assets

Controls

Controls

8.1 Pre-trade Control Set-Up and Maintenance

8.2 Group-wide Investment Limits

8.3 First Line Credit Limit Allocation

8.4 Cross Trades

8.5 FATCA

8.6 Trading in AIA Securities

7.1 Investment Process

7.2 Tactical Asset Allocation Decisions

7.3 Derivative Advisory

7.4 Environmental, Social and Governance

7.5 Restricted Dealing, Wall-crossing and Deal Sounding

7.6 Market Misconduct

7.7 Proxy Voting

The Proposal


5.

Investment

Operating Model

& Annual Training

As the investment operating model continues to evolve we

have reviewed and updated the Investment Operating

Model site to ensure the know-how are captured and

up-to-date.

This ties in well with the annual training requirements

under the IGF and Group L&G will be reaching out to BU

CIOs and AMC CEOs to conduct the Train-The-Trainers

sessions shortly. After that the trainers will provide the

training to the first line colleagues, follow up with the

updated Investment Operating Model quiz in Workday.


6.

Adherence

Review

As we are approaching the second half of the year, Group Investment L&G would like to remind you it is

important to adhere to AIA Investment Standards at all times. Take prompt action to apply for exception if there is

any foreseeable difficulties in adopting new or amendments to AIA Investment Standards before the respective

Standard Effective Date.

In addition, Group Investment L&G will soon be performing the annual Adherence Review to the IGF for each of

the in-scope entities, covering IGF Standards that are in effect as of 30 September 2020. The Corporate Policy

Governance (CPG) Standard allows AIA Business Units, AMCs and Group Investment to utilise the Basic Adoption

or the Modified Adoption methods, by using an Addendum to implement IGF Standards. Details can also be

found in the briefing session of the Investment Governance Framework (IGF) and Corporate Policy Governance

(CPG) Integration in this communication.

Folder “14. GIPS related Documents” has been newly created on the respective in-scope entities’ folder on

SharePoint to facilitate information segregation. You are also reminded to always follow the timeframe to upload

documents to the respective folders in the Group Investment SharePoint according to the Investment Repository

Standards.

Thank you.

Dr. Mark Konyn

Group Chief Investment Officer

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