Alphinity Sustainable Share Fund

Product Name

Alphinity Sustainable Share Fund

Issuer

Alphinity Investment Management

Category

Investment

Type

Fund or Trust

Target

Retail, Wholesale

Certified Since

2018

Asset Classes

Australian only equities

Markets

Australia

Investment Approaches

Positive Screening, Negative Screening

It Includes:

  • Riaa icons 11 Impact investments
  • Investment2 More sustainable companies

It has some level of screening for:

  • Riaa icons 41 Alcohol
  • Riaa icons 56 Animal cruelty
  • Riaa icons 36 Armaments
  • Riaa icons 42 Gambling
  • Riaa icons 52 Human rights abuses
  • Riaa icons 38 Labour rights violations
  • Riaa icons 34 Logging
  • Riaa icons 50 Nuclear power
  • Riaa icons 99 Pornography
  • Riaa icons 35 Tobacco

Overview

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 at least one of the UN Sustainable Development Goals (SDG).


Description


 Society faces significant challenges to achieve sustainable development. Alphinity aims, through this specialised fund, to play a role in helping to address these challenges. Alphinity is committed to supporting companies we believe contribute to long-term sustainability and avoiding those we believe do not. Alphinity believes engagement can encourage companies to improve practices and contribute to sustainable development. 
 
Alphinity seeks companies that, along with offering attractive financial returns, have strong ESG practices and have the capacity to contribute towards the advancement of the UN Sustainable Development Goals agenda, as that agenda evolves. 
 
Alphinity avoids companies that are involved in activities we consider harmful to society and/or display poor practices in their management of ESG issues. The Fund has a public Charter which sets out core beliefs  and a negative screen eliminates companies that generate more than 10% of revenues (cumulative) from activities considered incompatible with the Charter, including:
  • High impact fuels such as thermal coal, uranium, oil sands, Arctic drilling and coal seam gas fracking
  • Gold mining
  • Animal mistreatment
  • Addictions such as gambling, alcohol and tobacco
  • Armaments manufacturers
  • Old growth forest logging and users of non-RSPO palm oil
  • Predatory lending and hostile debt collection
  • Pornography
 An important feature of the Fund is the Sustainable Share Fund Compliance Committee. The Compliance Committee consists of two highly-qualified independent sustainability experts and the two co-Portfolio Managers of the Fund. The Committee has a number of roles including ensuring the Fund complies with the Charter, helping to identify areas of company engagement and reviewing the external service providers who provide ESG data.
  
Once the universe has been defined using the above steps, the Fund applies Alphinity's investment philosophy and process that seeks quality, undervalued companies in or about to enter an earnings upgrade cycle, using its process combining Fundamental and Quantitative research.
 
The result is a balanced portfolio of 35-55 companies with attractive investment fundamentals and prospects. Alphinity does not identify with any particular investment style as our approach has proven successful through a number of different market cycles, although the Alphinity process may have a slight bias towards growth.