Common use of Security Selection Clause in Contracts

Security Selection. Every potential company is evaluated using a quality assessment supported by a team- based approach and peer review process. The quality assessment covers each of the following five key factors: 1) the durability of the business model, 2) the attractiveness of the industry, 3) the strength of financials, 4) the capability of management, and 5) the most financially material environmental, social and governance (“ESG”) factors impacting a company. Examples of ESG factors considered include, but are not limited to, carbon emissions, climate risks, labor management, employee safety and corporate governance. The specific factors considered may vary depending on the type of company being evaluated. When selecting portfolio securities to suggest to the sponsor, abrdn seeks to understand what is changing in companies, industries and markets but is not being priced into the market or is being mispriced. Through fundamental research, supported by a global research presence and proprietary tools, abrdn seeks to identify companies whose quality is not yet fully recognized by the market.

Security Selection. Every potential company is evaluated using a quality assessment supported by a team- based approach and peer review process. The quality assessment covers each of the following five key factors: 1) the durability of the business model, 2) the attractiveness of the industry, 3) the strength of financials, 4) the capability of management, and 5) the most financially material environmental, social and governance (“ESG”) factors impacting a company. Examples of ESG factors considered include, but are not limited to, carbon emissions, climate risks, labor management, employee safety and corporate governance. The specific factors considered may vary depending on the type of company being evaluated. When selecting portfolio securities to suggest to the sponsor, abrdn seeks to understand what is changing in companies, industries and markets but is not being priced into the market or is being mispriced. Through through fundamental research, supported by a global research presence and proprietary tools, abrdn seeks to identify companies whose quality is and future prospectus are not yet fully recognized by the market.