Federation Alternative Investments

Product Name

Federation Alternative Investments

Issuer

Federation Asset Management Pty Ltd

Category

Investment

Type

Fund or Trust

Target

Retail, Wholesale, Institutional

Certified Since

2020

Asset Classes

Alternative assets

Markets

New Zealand, Australia

Investment Approaches

Positive Screening, Negative Screening

It Includes:

  • Riaa icons 14 Education
  • Riaa icons 12 Healthcare and medical products
  • Riaa icons 11 Impact investments
  • Riaa icons 10 Renewable energy and energy efficiency
  • Riaa icons 15 Social and sustainable infrastructure

It has some level of screening for:

  • Riaa icons 56 Animal cruelty
  • Riaa icons 33 Fossil fuels

It fully excludes:

  • Riaa icons 41 Alcohol
  • 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

Federation Alternative Investments is a private equity fund that invests in renewable energy assets, social, health and education real estate, and growing operating companies that meet a social and economic need. Federation’s investment strategy seeks to provide investors with an attractive financial return targeting 15% per annum over the life of the fund (after taking into account fees and costs, but before taxation), in addition to creating the greatest positive environmental and social impacts to society.


Description


Federation seeks to invest in areas that positively select for responsible investment and has made the following undertakings to focus on;
• Renewable energy generation activities, including wind, solar and other renewable technologies, grid-scale, embedded, behind-the meter; 
• Renewable energy storage activities, including chemical, hydrological, pneumatic and other emerging storage technologies including hydrogen;
• Sustainable infrastructure including but not limited to waste treatment, recycling, waste-to-energy, and waste management facilities, desalination, water and or sewerage treatment/networks, telecommunications infrastructure;
• Social infrastructure including but not limited to childcare, housing for the disabled, social and affordable housing, hospitals and healthcare facilities, aged care facilities, medical centres, schools and educational facilities, convention centres, sports stadiums, student accommodation and other educational/university facilities;
• Property investments generally where there is a significant impact investing or environmental component; and embedded networks and micro-grid infrastructure where there is, or will be, significant use of renewable energy and/or efficiency gains; and
• Operating businesses whose products and/or services provide a net societal benefit

Federation is committed to responsible investment and endeavours to utilise negative screens that aim to exclude investments in companies that are materially involved in the following;
• Fossil fuels, including any company that mines, burns or extracts fossil fuels or in companies that provide specific and significant services to fossil fuel industries; and
• Gambling, tobacco and alcohol, armaments and militarism, live animal export and old growth logging.

Federation's investment team consider ESG issues as critical to any investment made by Federation. This is implemented through positive screens, negative screens and an assessment of ESG factors at investment committee.

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