Alphinity Socially Responsible Share Fund

The Alphinity Socially Responsible Share Fund holds a diversified portfolio of stocks listed on the Australian Securities Exchange which strongly adheres to a number of responsible investment principles and rules.

Our investment approach is based on strong fundamental research combined with targeted quantitative inputs aimed specifically at identifying mis-priced companies likely to deliver earnings in excess of that expected by the market, with a view to sustainability. The combined output of this fundamental and quantitative research is brought together in our Composite Research Model (CRM).

Labour standards and environmental, social and governance considerations are taken into account when making investment decisions. A holistic approach is applied which includes analysis of companies’ Environmental, Social and Governance (ESG) considerations within the framework of traditional investment and financial analysis.

Fund Facts

Investment objective To outperform the benchmark after costs and over rolling five year periods
Benchmark S&P/ASX 300 Accumulation Index
Stocks held in the portfolio 35-55
Minimum investment timeframe At least five years

The Alphinity Socially Responsible Share Fund is available on the ASX mFund platform.

What is Socially Responsible Investing?

Socially Responsible Investing generally aims to ensure that an individual’s investments are in line with their values by avoiding investing in companies that don’t align with those values, and seeking out companies making a positive difference.

Alphinity’s Socially Responsible Share Fund avoids investing in industries such as gambling, the production of alcohol, tobacco and armaments, and the logging of old growth forests. The Fund also aims to invest in companies that promote sustainable development with respect to the environment, issues of social responsibility and good corporate governance.

We select stocks for the Alphinity Socially Responsible Share Fund using a similar process to that for the Alphinity Australian Share Fund, screening out any companies operating in the industries noted above. We also seek alternative companies using a combination of our CRM and an assessment of each company’s sustainability using Environmental, Social and Governance criteria.

The Fund’s holdings are assessed on a monthly basis by external sustainability specialist CAER to ensure that it complies with the negative screen and exceeds the market median on sustainability. CAER also provides access to a comprehensive database of its research into matters of sustainability on every company in our investable universe. This database also enhances the wider investment research we perform.

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A Signatory of the United Nation's Backed Principles for Responsible Investment

Alphinity is a signatory of the United Nations-backed Principles for Responsible Investment. We have long adhered to these principles as sound practice when managing money and supporting it reflects our desire to promote them as a matter of good corporate governance. Find out more about the Principles for Responsible Investment by visiting: www.unpri.org
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