Alphinity Sustainable Share Fund

A portfolio of leading Australian companies that align with the Sustainable Development Goals.
A committee of reputable external experts ensures the fund stays true to charter and drives active engagement with companies.
A proven investment team with strong track record applying a disciplined process.
Benchmark: S&P/ASX 300 Accumulation Index.

PDS Sustainable Fund Charter Fund Flyer

Alphinity Global Sustainable Equity Fund (Managed Fund) (ASX: XASG)

A portfolio of leading global companies that align with the Sustainable Development Goals.
A committee of reputable external experts ensures the fund stays true to charter and drives active engagement with companies.
A proven investment team with strong track record applying a disciplined process.
Benchmark: MSCI World Net Total Return Index (AUD).

PDS Global Sustainable Fund Charter Fund Flyer

Latest Insights

18 Apr 2024

2023 ESG and Sustainability Report

We are proud to present Alphinity’s third annual ESG and Sustainability Report. The report is full of case studies and examples that demonstrate our ongoing commitment to sustainability, investing responsibly and transparency. We hope it will provide some insight to you on our ESG and sustainability related priorities, processes, policies and outcomes.

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09 Mar 2024

The disproportionate impact of modern slavery on women and girls

Melissa Stewart joined Fidante’s ‘ESG in 10’ podcast to explore the disproportionate impact of modern slavery on women and girls and what investors can do about the issue.

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14 Dec 2023

Assessing Responsible AI through an ESG lens

Explore our brochure, co-created with CSIRO, to discover the latest findings and insights on integrating AI-related risks and opportunities into investment practices that are shaping Australia’s Responsible AI ecosystem.

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15 Nov 2023

PRI in Person: Four important takeaways

Moana Nottage shares insights from the PRI Conference and outlines four important takeaways from physical climate risk and nature, to intergenerational equity and human rights.

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14 Nov 2023

What is AMR and why is it important for Investors?

Moana Nottage joined Fidante’s ‘ESG in 10’ podcast to discuss her research into Antimicrobial Resistance (AMR) and the importance of integrating AMR as a factor into the investment and stewardship process.

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29 Sep 2023

Podcast: Perspectives on Net Zero and A.I

Jessica Cairns, joined Escala Partners “Perspectives on Zero Podcast” with Investment Analyst, Darragh Kennelly to discuss recent progress from Australian companies transitioning to net zero and A.I. considerations for responsible investing.

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15 Sep 2023

Reporting update – health and safety

This report outlines the issues surrounding Workforce Health and Safety (WHS) in ASX-listed companies, including the concerning rise in fatalities, the increasing emphasis on psychosocial safety, and vital recommendations for improving safety metrics and executive remuneration structures.

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The Sustainable Development Goals (SDGs)

The United Nations Sustainable Development Goals (SDGs) are a set of 17 goals that were adopted at a UN summit in September 2015 and officially came into force in January 2016. While the SDGs are not legally binding, governments are expected to establish national frameworks for the achievement of the 17 Goals. Over the next 15 years, with these new goals that universally apply to all, countries will mobilise efforts to end all forms of poverty, fight inequalities and tackle climate change, while ensuring that no one is left behind. Click here to find out more.

Where We Stand

Below we outline our views on several sectors typically avoided in ethical investing.

Fossil Fuels

Our sustainable funds strive to not invest in companies whose activities we consider to be incongruent with the achievement of the SDGs. Climate action (SDG13) is one of the SDGs and climate risk hampers the achievement of many of the other SDGs including SDG7 Affordable and Clean Energy, SDG11 Sustainable Cities and Communities, and SDG14 Life Below Water. Fossil fuels (coal, oil and gas) are by far the largest contributor to global climate change, accounting for the majority of global greenhouse gas emissions.

These funds therefore exclude fossil fuel producers, or utilities generating energy from fossil fuels with a 5% revenue threshold for the Global Sustainable Equity Fund, and a 10% revenue threshold for the Australian Sustainable Share Fund.

If an individual company has a clear and credible commitment to divest from the use of fossil fuels within a reasonable timeframe we may consider including it in the investable universe. This divestment commitment would need to be supported by clear emissions reduction targets and commitments which are compatible with the Paris Agreement (i.e. net zero by 2050).

We will also not invest in high-impact fossil fuels such as Coal Seam Gas, Oil Sands and those drilling in Arctic regions, regardless of any emissions commitments they might make (the same revenue thresholds apply).

Any company with an indirect link to fossil fuel production, for example fossil fuel transport or engineering services, is considered closely by the respective Sustainability Compliance Committee before inclusion in the fund.

Addictions: Tobacco, Alcohol, Gambling

Our sustainable funds strive to not invest in companies whose activities are incongruent with the achievement of the SDGs. SDG3 (Good Health and Wellbeing) includes a range of targets covering issues related to illness or injuries linked to additions. For example, non-communicable diseases, mental health and wellbeing, substance abuse and access to healthcare. Addictions also hinder the achievement of other related SDGs including SDG1 (No Poverty), SDG4 (Quality Education) and SDG10 (Reduced Inequality).

We therefore do not invest in companies which generate material revenues from gambling, tobacco or alcohol production. There is a zero revenue tolerance for tobacco products. Gambling and alcohol production has a 5% revenue threshold for the Global Sustainable Equity Fund, and a 10% revenue threshold for the Australian Sustainable Share Fund.

Mining

We differentiate between raw materials based on whether or not they are part of the solution to create a more sustainable world, thereby aligning with the SDGs . If they are, we give particular consideration to the manner in which the raw material is extracted, i.e. the ESG aspects.

In light of this, we support the extraction of:

Iron Ore and Metallurgical Coal: These materials are used in steelmaking and support the development of more sustainable cities (SDG11), new industries and technology (SDG9), and construction of renewable energy projects such as wind farms (SDG7, SDG13). We are aware that technology might change this at some point.
Copper, Nickel, Aluminium and Lithium: A growing population requires affordable and reliable energy systems that are smarter and offer efficient power delivery. Transition metals such as these play a critical part in enabling renewable energy storage and the electrification of our economy. These raw materials are essential to support new industries and infrastructure (SDG9), sustainable cities but also enable climate action (SDG13).

We do not invest in companies that extract:

Gold when that is the primary purpose of the company. Gold is primarily used to make jewellery and to store wealth, neither of which support any of the SDGs, yet its extraction can cause significant damage to the environment and surrounding communities. For companies that produce other minerals in addition to Gold, there is a 5% revenue materiality threshold for pure Gold mining in their portfolios for the Global Sustainable Equity Fund and a 10% threshold for the Australian Sustainable Share Fund. We do not exclude companies which produce Gold as a by-product of their other mining activities.
Oil, Gas and Thermal Coal see Fossil Fuels section above.
Uranium and any other controversial fuels.

Animal Welfare

The production of animals for food supports the achievement of SDG2 (Zero Hunger), however presents with it significant risks and ethical concerns related to animal welfare and overall wellbeing.

Alphinity’s Sustainable funds seek to avoid investing in companies which generate revenues through factory farming, animals used in entertainment, live exports and animal testing for cosmetic products, as well as other activities which are associated with animal welfare concerns.

Agriculture: Whilst we accept that animals are a source of food for many, we are against factory farming in which animals are kept in confinement with limited ability to move freely. This exclusion applies to primary industries and direct animal producers. We are also opposed to the live export of animals.
Health Care: For healthcare, we tolerate testing only where necessary. That is, where the benefits to humans are significant and procedures meet internationally recognised standards. We also require that policies related to animal testing are in place.

Armaments

We will not invest in companies that engage in the manufacture of controversial weapons such as cluster bombs, landmines, and chemical and biological weapons. The use of weapons does not align with SDG16, to promote justice and peace, and impede on others including SDG3 (Good Health and Wellbeing), SDG10 (Reduced Inequalities), SDG16 (Peace, Justice and Strong Institutions) and SDG17 (Partnerships for the Goals).

Predatory Lending

We are opposed to predatory lending especially as it tends to exploit the lowest income portion of society, the marginal and the vulnerable. We consider predatory lenders to be those who provide loans which charge usurious interest rates, or dollar-amount fees on small, short-term loans. However, we do not consider the vast majority of bank lending to be predatory.

Banking

Banking is an essential element of society. Banks provide many services, many of which facilitate positive activities like individuals buying a house, companies investing in projects, sole traders managing cash flows, and so on. Society would simply not grow and prosper without an effective banking sector. Banks and financial institutions are able to expand access to services that align with SDG1 (No Poverty) and SDG8 (Decent Work an Economic Growth) and underpin the financing of companies that support the climate transition (SDG7, SDG13) and other goals such as SDG9 (Industry, Innovation and Infrastructure).

We do, however, acknowledge that it is essential that financial services be provided in a responsible and ethical manner. The 2018 Royal Commission highlighted many dark spots in the banking industry. We are carefully monitoring how banks are responding to the issues raised and correcting their practices. We also take into account the extent to which a bank does, or does not, support activities excluded from the Fund Charter (for example, thermal coal financing).

Forest Products

Forests are nature’s carbon sinks and support significant amounts of biodiversity which underpins our critical ecosystem services. Harvesting of old growth forests negatively aligns with a number of SDGs, including SDG13 (Climate Action) and SDG15 (Life on Land), but does not support any of the other Goals. We therefore do not invest in companies which generate material revenues from old growth forest logging (i.e. more than 5% revenue for the Global Sustainable Equity Fund, and 10% revenue for the Australian Sustainable Share Fund).

We also do not invest in companies which generate material revenues from the production of non-RSPO palm oil (revenue thresholds are consistent with old growth forest logging).

Sustainable Share Fund Team

Stephane Andre

Portfolio Manager and Compliance Committee Member

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Bruce Smith

Portfolio Manager and Compliance Committee Member

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Jessica Cairns

ESG & Sustainability Manager

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Moana Nottage

ESG & Sustainability Analyst

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Elaine Prior

Compliance Committee Member

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Melissa Stewart

Compliance Committee Member

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Global Sustainable Equity Fund Team

Mary Manning

Portfolio Manager and Compliance Committee Member

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Jeff Thomson

Portfolio Manager and Compliance Committee Member

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Jessica Cairns

ESG & Sustainability Manager

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Moana Nottage

ESG & Sustainability Analyst

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Elaine Prior

Compliance Committee Member

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Melissa Stewart

Compliance Committee Member

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Compliance Committee

The Compliance Committee includes co-Portfolio Managers of the Fund and independent sustainability experts, Elaine Prior and Melissa Stewart.

The Committee’s role is to rigorously review the investable universe to ensure compliance with the Fund’s Charter; adjudicate on ‘grey areas’; refine the Charter and filters as the SDGs evolve; help identify areas of company engagement; and review the external service providers used

Performance

Alphinity Sustainable Share Fund –
Performance (after fees) as at 31 March 2024

	Quarter (%)	1 year (%)	3 years (% p.a.)	5 years (% p.a.)	7 years (% p.a.)	10 years (% p.a.)	Since inception (% p.a.)
Alphinity Sustainable Share Fund	6.2	14.7	8.2	9.8	10.3	9.3	9.9
S&P/ASX 300 Accumulation Index	5.4	14.4	9.5	9.2	8.6	8.3	8.8

Alphinity Global Sustainable Equity Fund (Managed Fund) –
Performance (after fees) as at 31 March 2024

	Quarter (%)	1 year (%)	3 years (% p.a.)	5 years (% p.a.)	7 years (% p.a.)	10 years (% p.a.)	Since inception (% p.a.)
Alphinity Global Sustainable Equity Fund (Managed Fund)	18.9	26.8	–	–	–	–	13.0
MSCI World Net Total Return Index (AUD)	13.9	28.4	–	–	–	–	13.5

Alphinity Sustainable Share Fund: the Funds changed investment manager and investment methodology on 12 July 2010, at which time Alphinity Investment Management commenced managing the Fund and started transitioning of the portfolios to a structure consistent with Alphinity’s investment philosophy. The transition was completed on 31 August 2010. Therefore, the inception date for the returns for the Funds is 1 September 2010.

For performance for previous periods please contact Fidante Partners Investor Services team on 13 51 53 (during Sydney business hours). Returns are calculated after fees have been deducted assuming reinvestment of distributions. No allowance is made for tax. Past performance is not a reliable indicator of future performance.

Alphinity Global Sustainable Equity Fund: the inception date for the Fund is 2 June 2021.

Fund Commentaries

Unit Prices

Cumulative Performance Charts

How to Invest

To find out more about the Alphinity Sustainable Share Fund or Alphinity Global Sustainable Equity Fund, contact your local Fidante Business Development Manager or call the Fidante Adviser Services Team on +612 8023 5428.

For step by step instructions on how to invest, visit the Invest Online page of our website:

Invest Online

Sustainable Share Fund PDS

Sustainable Share Fund TMD

Global Sustainable Equity Fund PDS

Global Sustainable Equity Fund TMD

Platforms

The Alphinity Sustainable Share Fund is also available on the ASX mFund platform.

Before making a decision about whether to make an investment or additional investment in one of our funds please read the Fund’s Target Market Determination (TMD), Product Disclosure Statement (PDS), Additional Information Booklet and Product Updates to ensure the key attributes of the Fund as described in the TMD and PDS aligns with your objectives, financial situation and needs.

Fund Characteristics

Fund	Alphinity Sustainable Share Fund	Alphinity Global Sustainable Equity Fund
Investment objective	To outperform the benchmark after costs over rolling five year periods	To outperform the benchmark after costs over rolling three year periods
Benchmark	S&P/ASX 300 Accumulation Index	MSCI World Net Total Return Index (AUD)
Stocks held in portfolio	35-55 stocks	25-40 stocks
Minimum investment timeframe	At least five years	At least five years
Minimum initial investment	$10,000 or $1,000 with Regular Savings Plan	$10,000 or $1,000 with Regular Savings Plan
Management fee	0.95% p.a.	0.75% p.a.
Performance fee	N/A	10% of the Fund’s return above the MSCI World Net Total Return Index (AUD)
Distribution frequency	Quarterly	Annually
APIR code	HOW0121AU	HOW1000AU
mFund ticker	ALH03	n/a

Investment Philosophy

Investment Process

Invest in a sustainable future

Invest Online ›

Alphinity Sustainable Share Fund

Alphinity is a signatory of:

Sustainable Funds

Alphinity Sustainable Share Fund

Alphinity Global Sustainable Equity Fund (Managed Fund) (ASX: XASG)

Latest Insights

2023 ESG and Sustainability Report

The disproportionate impact of modern slavery on women and girls

Assessing Responsible AI through an ESG lens

PRI in Person: Four important takeaways

What is AMR and why is it important for Investors?

Podcast: Perspectives on Net Zero and A.I

Reporting update – health and safety

The Sustainable Development Goals (SDGs)

Where We Stand

Fossil Fuels

Addictions: Tobacco, Alcohol, Gambling

Mining

Animal Welfare

Armaments

Predatory Lending

Banking

Forest Products

Stephane Andre

Bruce Smith

Jessica Cairns

Moana Nottage

Elaine Prior

Melissa Stewart

Mary Manning

Jeff Thomson

Jessica Cairns

Moana Nottage

Elaine Prior

Melissa Stewart

Compliance Committee

Performance

How to Invest

Fund Characteristics

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