Russell Investments Australian Responsible Investment ETF

Product Name

Russell Investments Australian Responsible Investment ETF

Issuer

Russell Investments

Category

Investment

Type

Exchange Traded Fund (ETF)

Target

Wholesale, Retail, Institutional

Certified Since

2015

Asset Classes

Australian only equities

Markets

New Zealand, Australia

Investment Approaches

Negative Screening, Positive Screening

It Includes:

  • Investment2 More sustainable companies

It has some level of screening for:

  • Riaa icons 41 Alcohol
  • Riaa icons 36 Armaments
  • Riaa icons 33 Fossil fuels
  • Riaa icons 42 Gambling
  • Riaa icons 52 Human rights abuses
  • Riaa icons 99 Pornography
  • Riaa icons 35 Tobacco

It fully excludes:

  • Riaa icons 41 Alcohol
  • Riaa icons 36 Armaments
  • Riaa icons 35 Tobacco

Overview

The Russell Australian Responsible Investment ETF (the 'Fund') seeks to track the Russell Australia ESG High Dividend Index ('the Index'), which is weighted towards companies that demonstrate positive environmental, social and governance (ESG) characteristics after negatively screening for companies that have significant involvement in a range of activities deemed inconsistent with widely recognised responsible investment considerations. The Fund invests in Australian shares and trusts listed on the Australian Securities Exchange (ASX), with the aim of providing investors with exposure to an ESG enhanced, responsible investment portfolio.


Description


RARI is designed to track the performance of the Russell Australia ESG High Dividend Index. The Index takes into account ESG considerations in its selection process and eligibility criteria (see the PDS for more details), which includes:

 » Negative or exclusionary screening: The Index seeks to exclude investments in companies that are inconsistent with widely recognised responsible investment considerations as represented in Australia.

» Positive screening: The Index is weighted towards companies that exhibit positive ESG characteristics.

RARI Highlights

» Designed to provide a simple, cost effective and transparent means of accessing an ESG enhanced portfolio.

» Companies are excluded from the Index universe based on specific criteria such as revenue generated from certain activities including the manufacturing and/or distribution of tobacco, alcohol, gambling, pornography and armaments. Companies which have fossil fuel reserves or are involved in the extraction or burning of fossil fuels are also excluded. In addition, companies which lag industry peers in approaching ESG risk may also be excluded. 

» Company ratings and active weights in the Index are determined by two key factors. Each company in the investment universe is assigned a score based on two criteria: (1) total ESG rating provided by Sustainalytics2 and (2) an income score (calculated per the existing Russell Australia High Dividend Index methodology).

» To meet the needs of Australian investors, the index also seeks to improve expected future income (including franking credits) after meeting its desired responsible investment objectives. 

» RARI is expected to invest in up to 100 listed companies providing a broadly representative portfolio of Australian listed companies. 

As a signatory of the United Nations’ Principles for Responsible Investment (UNPRI) since 2009, Russell Investments has voluntarily committed to the six principles. In addition, Russell Investments operates a comprehensive Proxy Voting Policy to ensure that we discharge the ownership responsibilities that clients have delegated to us in a way that is consistent, responsible and effective.  Please refer to https://russellinvestments.com/au/about-us/responsible-investing for more information on our firm wide integration of ESG and https://russellinvestments.com/au/solutions/funds-and-strategies/RARIETF for specifics to RARI.

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

Russell Investments Low Carbon Australian Shares Fund

Russell Investments Low Carbon Global Shares Fund

Russell Investments Low Carbon Global Shares Fund - Class AUDH

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