The Fund aims to provide a return (before fees, costs and taxes) that exceeds the S&P/ASX 300 Accumulation Index over the medium to long term. The suggested investment time-frame is five years or more. This fund is an actively managed portfolio of Australian shares which seeks to ensure that funds are invested in an ethical or socially responsible manner.
The Pendal Wholesale Ethical Share Fund (Fund) is an actively managed portfolio of Australian shares which seeks to ensure that funds are invested in an ethical and socially responsible manner. The investment process combines the potential to achieve strong performance over the long term while also investing in companies whose practices and impacts are aligned with an investor’s own social, environmental and ethical preferences.
The Fund uses the same investment process as Pendal’s flagship Australian equities products with the addition of ethical and social responsibility screens. Fundamental research is at the heart of our process, given our expertise and experience in stock selection. The key features of this process are research, transparency and accountability.
1. The negative screening process portion of the screen effectively determines the investment universe of the Pendal Wholesale Ethical Share Fund.
Ethical (negative) screens: the Fund will not invest in companies which:
- produce alcohol or tobacco
- manufacture or provide gaming facilities
- directly mine uranium for the purpose of weapons manufacture
- manufacture weapons and armaments
- derive more than 10% of revenue from the manufacture or distribution of pornography.
In addition to the above ethical exclusions, the Fund also applies an exclusion screen based on companies who have been subject to environmental, workplace health and safety, anti-discrimination, equal opportunity, trade practices, or industrial relations prosecutions.
2. The Fund then applies a positive screen that identifies companies for active consideration, based on a company's activities and leadership. The activity screen assesses a company based on whether its products or services provide a direct benefit to social or environmental outcomes (such as environmental remediation or improved health & well-being). The leadership screen includes companies which rate above sector peers in terms of their policy, management and performance with regard to key environmental and social areas (such as business ethics and conduct or occupational health and safety).
Pendal’s 26 member Equity Strategies team is one of the largest in the industry. The portfolio manager for the Fund is Crispin Murray assisted by Rajinder Singh, who have a combined 43 years’ industry experience. Crispin is also Head of Equity Strategies.