DESJARDINS RI ACTIVE CANADIAN BOND - NET SPECIAL MEETING OF SHAREHOLDERS - BROADRIDGE FINANCIAL SOLUTIONS INC

Financial Performance:

• No specific financial metrics (revenue, earnings, profit margins, cash flow, debt, or deferred revenue) were disclosed, as this was a shareholder meeting regarding fund management objectives rather than a standard earnings report.
• The meeting confirmed a record date of August 31, 2026, for shareholder voting eligibility.
• Two specific funds failed to meet the initial quorum, requiring a delayed session, indicating low immediate voter participation for those specific entities.

Guidance and Future Outlook:

• The primary forward-looking action is the proposed modification of the "Fundamental Placement Objective" for all nine Desjardins ETFs to incorporate a simplified ESG approach.
• New portfolio strategy targets maintaining financed emissions at least 25% lower than the respective reference index to support environmental goals.
• The management anticipates a more stable and predictable management of ESG characteristics following the adoption of these pre-established standards.
• Final vote results will be confirmed and distributed via press release and posted on the CEDAR+ website after the assemblies conclude.

Business Segments and Product Lines:

• Seven Funds (Quorum Met): Resolutions were successfully put to a vote for:
  • IR Active Canadian Bonds (DRCU)
  • IR Canada Zero-Emission (DRMC)
  • IR US Zero-Emission (DRMU)
  • IR Developed Markets ex-US/Canada Zero-Emission (DRMD)
  • IR Emerging Markets Zero-Emission (DRME)
  • IR Canada Multi-Factor Zero-Emission (DRFC)
  • IR Emerging Markets Multi-Factor Zero-Emission (DRFF)
• Two Funds (Quorum Delayed): The following funds adjourned to 10:30 AM due to lack of initial quorum:
  • IR US Multi-Factor Zero-Emission (DRFU)
  • IR Developed Markets ex-US/Canada Multi-Factor Zero-Emission (DRFD)
• All nine funds were initially listed as candidates for the same ESG modification strategy.

Market and Competitive Landscape:

• No specific details regarding market share, competitor analysis, or broader market trends were discussed.
• The meeting highlighted a shift toward "Simplified ESG" frameworks as a strategic response to environmental targets, though no competitive benchmarking data was provided.
• The virtual format was utilized to maximize shareholder inclusivity and participation.

Risks and Challenges:

• Quorum Risk: The primary operational challenge faced was the failure to meet quorum for two of the nine funds during the initial session, necessitating an adjournment.
• Operational Constraint: If the resolutions are rejected, the funds will continue to operate under their current management strategies with no immediate changes.
• Voting Limitations: Only shareholders registered as of August 31, 2026, were eligible to vote, and questions were restricted strictly to the agenda.

Management Commentary and Tone:

• The tone was procedural, formal, and administrative, focusing on the execution of voting protocols rather than business performance.
• Management (led by Jean-François Girard, VP and Head of Development) expressed confidence that the proposed ESG modifications would benefit shareholders by clarifying and simplifying the fund's environmental objectives.
• The tone remained neutral and compliant, strictly adhering to the pre-determined agenda and prohibiting off-topic questions.
• Questions were limited; only one inquiry regarding the consequences of a rejected proposal was raised and answered (i.e., status quo maintenance).

Analyst Questions and Answers:

• Question: What is the concrete impact if the proposal fails to obtain the required majority?
• Answer: If rejected, the proposed modifications will be set aside, and the funds will continue to be managed exactly as they are currently managed without the new ESG simplification.
• No other substantive questions were raised by shareholders regarding strategy, financials, or market position.

Other Key Points:

• Meeting Format: Assemblies were held virtually in French, with English Q&A capability, recorded by Broadridge.
• Quorum Confirmation: Seven funds achieved quorum initially; two required adjournment to a second session later that day (10:30 AM).
• Voting Mechanism: Voting was conducted online via a web portal; proxies already cast prior to the meeting were counted, and new votes could be submitted during the session.
• Outcome: Preliminary reports indicated that all resolutions for the funds with quorum were approved by a majority of votes cast. Final validation is pending the definitive compilation reports from the scrutineer.
• Documentation: Information circulars (dated September 11, 2026) containing resolution texts (Annexes A-I) were referenced as the source material for the proposals.