UK GENDER PAY GAPREPORT 2018

BARING ASSET MANAGEMENT LIMITED

For investment professionals only 2

Sue MooreChief Administrative Officer & Head of Global Human Resources

Barings is committed to creating a business environment that identifies, retains and promotes diverse

talent within a supportive culture where men and women can work together to produce the best

outcomes.

The Gender Pay Gap statistics we are asked to provide reflect employee data for Baring Asset

Management Limited prior to a consolidation of employing entities in June 2018, (which related to a

merger of businesses some time earlier in 2016). Now that we have a single UK employing entity we

have decided also to provide gender pay gap figures for the merged firm. The pay gap statistics, together

with our analysis, are provided on the following pages. Both sets of data show marginal improvements in

our overall gender pay gap and the number of women at more senior levels.

As a global financial services firm, we know we are made stronger and more innovative by having a

balanced workforce made up of different individual perspectives and collaborative thinking.

At Barings, we believe establishing a pipeline of gender balanced talent will lead to more women in

leadership positions in the future. The earlier young women recognise the opportunity in financial

services, the earlier more will choose to pursue it as their chosen career path.

This is why we have focused our efforts on creating gender balance in our annual intern intake, and why,

from a philanthropic perspective, Barings partners with organisations that aim to keep young women

interested in financial services careers before they have to specialise in their studies.

We also recognise women working in financial services today need the support and mentorship

conducive to developing their careers. The launch of our own Barings Women’s Network at our global

head office in the US, has provided an inclusive forum with opportunities to engage and network with

colleagues of all genders, and we are pleased similar initiatives are being explored at our other offices

around the world.

By embracing diversity and working together, in line with our values, we know we can make a difference,

and cultivate a firm wide culture where everyone can thrive and achieve their goals regardless of their

background, age or gender.

Tom FinkeChairman & ChiefExecutive Officer

Gender Pay Gap Report

For investment professionals only 3

Barings (BAML in UK) Gender Pay Gap Statistics

EMPLOYEES IN PAY QUARTILES BY GENDER

Difference between the median hourly rates received by men and women, expressed as a percentage of the

41%59%

Lower

Female Male

UNDERSTANDING THE METHODOLOGY

The gender pay gap demonstrates the difference in the mean and median hourly pay of men and

women across the organization, regardless of the role or area of the business. It does not compare the

pay of men and women who are carrying out similar or equivalent work, which is referred to as “equal

pay”.

As is the case throughout the financial services sector, including the asset management industry, the

gender pay gap at Barings is largely a structural problem due to an underrepresentation of women at

senior levels within the organization. At Barings, our process for determining compensation is gender-

neutral, and we are confident that men and women carrying out equivalent work in equivalent roles are

rewarded in the same way.

Please note that there are two sets of data below. The first refers to Baring Asset Management Limited

before a consolidation with other employing entities in June 2018. Barings was the only firm, prior to

that merger, which fell within the scope of the UK gender pay reporting regulations.

The second set of data refers to the larger firm, Baring Investment Services Limited, which from 20

June 2018 has been the sole employing entity for Barings staff in the United Kingdom. Prior year data,

for 2017, is also provided for comparison.

STATISTICS

PRE MERGER POST MERGER

GENDER PAY GAP MEAN 22% (-1%) MEDIAN 25% (-4%) MEAN 25% (-4%) MEDIAN 25% (-9%)

GENDER BONUS GAP MEAN 54% (-2%) MEDIAN 56% (+4%) MEAN 60% (-4%) MEDIAN 58% (0%)

BONUS PAYMENTS BY GENDER

MALE 93% (+3.2%) FEMALE 89% (-1%)

MALE 94% (+1%)FEMALE 88% (-3%)

75%

25%

Lower Middle

70%

30%

Upper Middle

74%

26%

Upper

66%34%

PRE MERGER

POST MERGER68%

32%

75%

25%41%

59%

(change from 2017)

(+9%)

(0%)

(-7%) (+1%) (+6%)

(-2%) (+3%) (+5%)

For investment professionals only 4

What we are doing

ATTRACT• We partner with organisations that aim to educate girls on financial services careers before they are

choosing their career path, including Arrete, a programme working with school-age girls of African

Caribbean heritage.

• We’ve hosted breakfast workshops with female students from 11 universities and a host of

prestigious industry speakers to engage them on careers in asset management.

• We partner with the Investment Management Association and Investment 20/20 to bring in young

diverse talent from different backgrounds for a one year apprenticeship.

• Barings’ global internship program is a key source for identifying, attracting and developing diverse

future talent for the firm. Barings has a team dedicated to recruiting for internships. The diversity of

the group last year was 36.3% minorities and 42.4% females.

ENGAGE

• Barings recognises women in financial services sector need a supportive environment and

mentorship within their careers.

• Building on the success of our US Women’s Network, we are planning a series of inclusive events

where Barings women can engage and network with colleagues of all genders.

DEVELOP

• Annually, Barings sponsors the Simmons Leadership Conference, a world-class career

development and networking conference for Women.

• We are preparing a programme of unconscious bias training to all of our Associates, and annually

renew our commitment to our global statement of respect and anti-discrimination policy.

RETAIN

• Barings partners with a leading global compensation consulting firm, participating annually in

surveys focused on ensuring our compensation practices are competitive with our industry peers.

The human resources team regularly reviews this external market intelligence, comparing every

individual to the appropriate roles/positions for parity in terms of internal equity amongst teams,

similar roles and functions to ensure that all individuals are fairly paid in comparison to other

individuals for the same position.

• Our maternity leave policies are in the process of being enhanced to increase compensation during

the first months of maternity leave.