Alphinity Sustainable Share Fund

The Alphinity Sustainable Share Fund provides a diversified portfolio of Australian stocks listed on the ASX that have strong Environment, Social and Governance (ESG) characteristics and, where possible, contribute towards the advancement of the UN Sustainable Development Goals (SDG) agenda.

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 Sustainable Share Fund is available on the ASX mFund platform.

Alphinity's Approach to Sustainable Investing

Alphinity is committed to Responsible Investing. Sustainable Investing goes one step further. Society faces significant challenges to achieve sustainable development. Alphinity aims, through this specialised fund, to play a role in helping to address these challenges.

We are committed to supporting those companies we believe do good and avoiding those we believe don’t. We seek companies which, along with offering attractive financial returns, rank well on ESG metrics and/or have the capacity to make a positive impact on society in areas of economic, environmental and social development by contributing towards the advancement of the UN SDG agenda, as that agenda evolves.

We avoid companies that are involved in activities we consider harmful to society and are inconsistent with the achievement of the Goals, and/or display poor practices in their management of ESG issues.

Using Alphinity’s investment philosophy and process, we combine Fundamental and Quantitative research to assess stocks to ensure that they are quality, undervalued companies in or about to enter an earnings upgrade cycle.

The result is a balanced portfolio of 35-55 companies with attractive investment fundamentals and prospects. We do not identify with any particular investment ‘style’ as our approach has proven successful through a number of different market cycles, although our process will typically have a slight bias towards growth.

Sustainable Fund Charter

The Alphinity Sustainable Share Fund Charter outlines in detail the attributes we seek and avoid when looking for sustainable investment opportunities.

Click here to read the full Charter.

Compliance Committee

The Alphinity Sustainable Share Fund Compliance Committee includes co-Portfolio Managers, Stephane Andre and Bruce Smith, and two independent sustainability experts, Elaine Prior and Mark Lyster.

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

UN Sustainable Development Goals Agenda

The 17 SDGs of the 2030 Agenda for Sustainable Development were adopted by world leaders 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 fifteen 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.

Visit http://www.un.org/sustainabledevelopment/ to find out more about the Sustainable Development Goals.

Our Approach to Extractive Industries and Fossil Fuels

When filtering out unacceptable activities we considered excluding companies involved in extractive industries altogether, including those producing Fossil Fuels, but decided against it. We explain our reasoning and conclusions in the document below.

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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Rating disclaimer

Alphinity is a member of the Responsible Investment Association Australasia.  From inception to 29 March 2018, the Fund was named Alphinity Socially Responsible Share Fund. Award disclaimer.  

The Certification Symbol signifies that a product or service offers an investment style that takes into account environmental, social, governance or ethical considerations. The Symbol also signifies that Alphinity Sustainable Share Fund adheres to the strict operational and disclosure practices required under the Responsible Investment Certification Program for the category of Product Provider. The Certification Symbol is a Registered Trade Mark of the Responsible Investment Association Australasia (RIAA). Detailed information about RIAA, the Symbol and Alphinity Sustainable Share Fund’s methodology, performance and stock holdings can be found at www.responsiblereturns.com.au, together with details about other responsible investment products certified by RIAA.1
1. The Responsible Investment Certification Program does not constitute financial product advice. Neither the Certification Symbol nor RIAA recommends to any person that any financial product is a suitable investment or that returns are guaranteed. Appropriate professional advice should be sought prior to making an investment decision. RIAA does not hold an Australian Financial Services Licence.