Intelligent Investor Ethical Share Fund (Managed Fund)

Product Name

Intelligent Investor Ethical Share Fund (Managed Fund)

Issuer

Intelligent Investor

Category

Investment

Type

Exchange Traded Fund - ETF (inc. ETP)

Target

Retail

Certified Since

2021

Asset Classes

Australian only equities

Markets

Australia

Investment Approaches

Negative Screening, ESG Integration

It Includes:

  • No inclusions5 No specific themes

It has some level of screening for:

  • Riaa icons 41 Alcohol
  • Riaa icons 56 Animal cruelty
  • Riaa icons 33 Fossil fuels
  • 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

It fully excludes:

  • Riaa icons 36 Armaments

Overview

The Intelligent Investor Australian Ethical Share Fund (ASX: INES) has implemented an investment style and process that systematically takes into account environmental, social, governance and ethical consideration, and its investment process reliability has been verified by an external party.


Description


This fund follows negative screening process using Refinitiv ESG scores methodology.

The Investment Manager uses screening criteria provided by a global data provider on the S&P/ASX 300 companies to remove companies based on the following list of widely-agreed unethical industries: 

• Environmental: Non-renewables, such as Nuclear, Uranium, Coal, Oil, and Energy. 
• Vice: Gambling, Alcohol, Tobacco, Pornography and Junk Food. 
• Armaments 
• Payday lenders 
The screening is based on ESG Scores which are designed to transparently and objectively measure a company’s relative ESG performance, commitment and effectiveness across 10 main themes found in company-reported data: 
• emissions 
• environmental product innovation 
• human rights 
• shareholders
• resource use 
• corporate social responsibility 
• governance 
• community 
• product responsibility 
• management

An overall ESG Combined Score is discounted for significant ESG controversies (Controversies Score) impacting the corporations. They are available in both percentages and letter grades (from D- to A+) and are benchmarked against the data providers business classifications for all Environmental and Social categories as well as the Controversies Score, and against Australian companies for all Governance categories. 
There are over 400 ESG measures for each company within the data provider’s ESG universe, with each measure going through a careful process to standardise the information and guarantee it is comparable across the entire range of companies. 
The database is updated on a continuous basis aligned with corporate reporting patterns, and data is refreshed every week, which includes the recalculation of the ESG Scores. Updates could include a brand-new company being added to the database, the latest fiscal year update or the inclusion of a new controversy event. In most cases, ESG reported data is updated once a year in line with companies’ own ESG disclosure.

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