Pengana International Fund - Ethical

Product Name

Pengana International Fund - Ethical

Issuer

Pengana Capital

Category

Investment

Type

Fund or Trust

Target

Retail, Wholesale

Certified Since

2006

Asset Classes

International equities

Markets

Australia, New Zealand

Investment Approaches

Negative Screening, ESG Integration

It Includes:

  • Riaa icons 12 Healthcare and medical products

It fully excludes:

  • Riaa icons 41 Alcohol
  • Riaa icons 36 Armaments
  • Riaa icons 33 Fossil fuels
  • Riaa icons 42 Gambling
  • Riaa icons 45 Genetic engineering
  • 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 Pengana International Fund - Ethical is principally invested in an ethically screened portfolio of listed (or soon to be listed) global equities. The objective of the Fund is to obtain returns greater than the MSCI All Country World Total Return Index (net, AUD) (‘Index’) and with lower volatility than the Index, over the medium to long term.


Description


The Pengana International Fund - Ethical is committed to responsible investing and seeks to avoid investing in businesses that are, in its opinion, currently involved in activities that are unnecessarily harmful to people, animals or the environment.  The Pengana International Fund - Ethical utilises a negative screening process which seeks to avoid investment in companies that derive operating revenues from direct and material business involvement in these sectors.

Before a company is added to the portfolio, the extent of an investee company’s business involvement in screened activities is assessed by reference to a Business Involvement report sourced from Sustainalytics, an independent provider of Environmental, Social and Governance (“ESG”) and corporate governance research and ratings. 

Generally we apply a materiality test and will not invest if a company derives 5% or more revenue from the production of excluded product or 15% or more aggregate revenue from the production, distribution and retail of an excluded product. 

Consideration of environmental, social and ethical issues raised by prospective and existing investments are investigated within the investment research process and discussed at the Investment Team meeting on an ad-hoc basis. The PCG Risk Officer has final veto power on whether a stock meets the screening criteria for inclusion in the portfolio.

Where it is decided to divest, the asset is disposed as soon as practicable, as determined on a case-by-case basis, whilst endeavouring to realise the best price it reasonably can, taking into account liquidity and other market forces. On occasion we may choose to engage with an investee company rather than divest as a better way to effect change.

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

Pengana International Equities Limited (ASX: PIA)

Pengana High Conviction Equities Fund

Pengana International Fund - Ethical Opportunity

Pengana WHEB Sustainable Impact Fund

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