Infradebt Ethical Fund

Product Name

Infradebt Ethical Fund

Issuer

Infradebt

Category

Investment product

Type

Fund/Trust

Target

Wholesale

Certified Since

2017

Certification Symbol

Responsible Investment

Asset Classes

Fixed income

Markets

Australia

Investment Approaches

Sustainability themed, Negative Screening, In addition to the screens we take a deep value approach to investing. For every investment we undertake we build a full investment thesis including Sector Analysis, Detailed Financial Models (allows us to run individual and multi-event driven shock scenarios).

It Includes

  • Investment2 Social impact investments
  • Riaa icons 10 Renewable energy
  • Riaa icons 32 Green property
  • Riaa icons 13 Sustainable transport
  • Riaa icons 14 Education
  • Riaa icons 15 Social & community infrastructure
  • Riaa icons 31 Sustainable water

It Excludes

  • Riaa icons 33 Fossil fuels
  • Riaa icons 34 Logging
  • Riaa icons 35 Tobacco
  • Riaa icons 50 Nuclear energy (including uranium)
  • Riaa icons 52 Human rights abuses
  • Riaa icons 38 Labour rights violations
  • Riaa icons 56 Animal welfare
  • Riaa icons 36 Armaments
  • Riaa icons 41 Alcohol
  • Riaa icons 42 Gambling
  • Riaa icons 55 Pornography
  • Riaa icons 45 Genetic engineering

Overview

The Infradebt Ethical Fund provides loans to renewable energy and social infrastructure projects in Australia. By lending directly to projects, IEF provides higher returns as well as supporting projects that have positive social and environmental impacts in Australia.


Description


The IEF is a Fixed Income strategy.  The investment strategy of IEF is directed at twin objectves:
 1. positively screened fxed income investments. Investments in renewable energy and social infrastructure that investors can be proud of; and
 2. an attractive risk adjusted return pickup over traditional cash and fxed income investments.
 
Increasingly, members of superannuation funds want to know where their savings are invested, and preferably whether this investment is making a positive contribution. In addition, there is growing awareness of stranded asset risks –particularly in respect of projects/assets that are heavily dependent on fossil fuels.
 
 The IEF is focused on debt investments in:
 renewable energy;
 social infrastructure; and
 property where there is a substantial impact or environmental efficiency component.
 
By providing finance, IEF is driving positive changes to address the issues of sustainability and climate change, and building social capital within our community.  IEF will focus on asset based lending. That is, lending will be for specific projects and will, in general, be secured by mortgages over project assets. This drives both transparency (we know what the money will be used for) as well as downside protection as loans will benefit from the security over specific physical assets.
 
The strategy is expected to deliver an attractive risk adjusted return compared to conventional cash and fixed income strategies. In particular, the Fund is targeting a return over the medium term, before fees, of at least 2% above benchmark.   The benchmark is 50% Bloomberg Bank Bill Index and 50% Bloomberg Ausbond Composite Index and 50% Bloomberg Ausbond Composite Index