DNR Capital Australian Equities Socially Responsible Portfolio

Product Name

DNR Capital Australian Equities Socially Responsible Portfolio

Issuer

DNR Capital

Category

Investment

Type

SMA - via Platform only

Target

Retail, Wholesale, Institutional

Certified Since

2020

Asset Classes

Australian only equities

Markets

Australia

Investment Approaches

Negative Screening, ESG Integration

It Includes:

  • Investment2 More sustainable companies

It has some level of screening for:

  • Riaa icons 36 Armaments
  • Riaa icons 42 Gambling
  • Riaa icons 99 Pornography
  • Riaa icons 35 Tobacco

It fully excludes:

    Overview

    The Australian Equities Socially Responsible Portfolio is designed for investors who are seeking a competitive return but do not want investments judged to have involvement in gaming, pornography, armaments and tobacco. A positive environmental, social and governance (ESG) screen is also used to identify those companies with enhanced ESG policies.


    Description


    In constructing and managing portfolio, DNR Capital considers investment in companies that have been researched and assessed using the environmental, social and ethical (ESG) screening process described below. 
    Each company is screened and assessed against DNR Capital’s negative screens which include: 
    Pornography—production, distribution and sale of pornography as a core business. 
    Gaming—core business of owning or operating a gaming related business or manufacture and supply of gaming equipment and systems. 
    Armaments—supply and distribution of weapons components to Defence Forces or any other business/individual. 
    Tobacco—manufacture and distribution of tobacco related products. 
     
    In determining if the business operation in question is ‘core’ or ‘non-core’, DNR Capital assesses company management’s comments as to whether or not the business is part of their strategy and their intent to commit capital. If a company is captured by one of these negative screens, then shares in that company will not be included in the Model Portfolio. If a negative screen does not exclude a company, then the company will be scored and assessed relative to the S&P/ASX 200 having regard to DNR Capital’s positive ESG screens.

    The Australian Equities Socially Responsible Portfolio has an investment style best described as ‘style neutral’, focusing on ESG issues. The stock selection process has a strong bottom-up discipline and focuses on buying quality companies at reasonable prices. We define quality companies as being those companies with the following five attributes: earnings strength (particularly improving return) superior industry position a sound balance sheet strong management low ESG risk. 

    A positive ESG screen is also used to identify those companies with enhanced ESG policies.

    Other products certified by the Responsible Investment Association Australasia (RIAA)

    DNR Capital Australian Equities Socially Responsible SMA

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