Devon Sustainability Fund

Product Name

Devon Sustainability Fund

Issuer

Devon Funds Management

Category

Investment

Type

Fund or Trust

Target

Retail, Wholesale

Certified Since

2022

Asset Classes

New Zealand only equities

Markets

New Zealand

Investment Approaches

Negative Screening, ESG Integration

It Includes:

  • Riaa icons 11 Impact investments
  • Riaa icons 10 Renewable energy and energy efficiency
  • Investment2 More sustainable companies

It has some level of screening for:

  • Riaa icons 41 Alcohol
  • Riaa icons 33 Fossil fuels
  • Riaa icons 42 Gambling
  • Riaa icons 99 Pornography

It fully excludes:

  • Riaa icons 36 Armaments
  • Riaa icons 52 Human rights abuses
  • Riaa icons 35 Tobacco

Overview

The Fund will look to invest in those companies that score highly on overall environmental, social and corporate governance performance. The Fund also employs an ethical screen which will prohibit investment into certain companies and sectors. The Fund invests in a select portfolio of well researched New Zealand and Australian listed companies. The Fund is actively managed, which means the holdings and returns may differ considerably from its benchmark. While the Fund tends to be fully invested in shares, when there are few compelling investment opportunities the Fund may hold some cash or cash equivalent securities


Description


This Fund is a responsible Fund because it invests in companies score highly on overall environmental, social and corporate governance performance. The Fund also employs an ethical screen which will prohibit investment into certain companies and sectors. The list of exclusions are below; 
 
Companies where more than 10% of business comes from: 
-        Alcohol manufacturing; 
-        Gambling; 
-        Pornography; and or processing. 
-        Fossil fuel exploration, extraction, refining 
 
Full exclusion of companies deriving their business revenue from: 
-        Tobacco and manufacturing; 
-        Armaments; 
-        Whaling; and 
-        Any companies on human rights watch lists.
 
Further information and detail around thresholds for the Fund’s exclusions can be found in our Exclusions Policy on Page 10 of the RI Policy;

https://devonfunds.co.nz/sites/default/files/Devon%20Responsible%20Investment%20Policy.pdf

The investment objective of this Fund is that it aims to generate capital growth over the long term by actively managing your New Zealand and Australian equity investments. The Fund aims to achieve a 2% return in excess of the benchmark over a rolling three-year period. Through the above stated exclusions, as well as incorporating ESG factors, the Fund also aims to deliver 5% return above the MSCI ESG benchmark over a rolling three-year period. 

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