Solutions Sustainable Investing
A purposeful investment in sustainability
We are committed to a more sustainable future, both as a business and within our investment selection process.
As part of our commitment to sustainability, we became a UN Principles for Responsible Investment (PRI) Signatory in 2022 and launched our sustainable future portfolios that have a strong focus on environmental and social sustainability.
What sets these portfolios apart is their dedication to making a meaningful impact. At least 20% of the revenue from these portfolios is directed toward Australian Charities aligned with the United Nations Sustainable Development Goals (UN SDGs).
Our Key Causes
As part of the positive screen in our portfolio construction process we have focused on five key areas derived from the UN SDGs that we feel demand the most attention for a more sustainable future.
Climate Action
Life on Earth
Sustainable Resource Use
Gender Equality
Health & Wellbeing
Negative Screens
We apply several negative screens to these portfolios to avoid exposure to the areas that we believe are the most harmful.
Tobacco
Screened out if a company generates significant revenue from tobacco related sales (generally no more than 1% of revenue).
Weapons
Screened out if a company generates significant revenue from weapons related sales (generally no more than 1% of revenue from arms sales).
Coal
Screened out if a company’s primary business model is thermal coal mining and the company generates at least 10% of revenue from coal mining.
Fossil Fuel
Screened out if a company is considered a fossil fuel company and generates at least 10% of revenue from these activities.
Alcohol
Screened out if a company generates at least 10% of revenue from the sale of alcohol.
Gambling
Screened out if a company generates at least 10% of revenue from gambling/related activities.
Pornography
Screened out if a company generates at least 10% of revenue from adult entertainment activities.
Discrimination
Screened out if a company has been involved in a “very severe” controversy related to customer or employee discrimination over the past 5 years.
Portfolio Impact
Our annual impact report for the financial year ending 30th June 23 details the overall impact of our sustainable future portfolios.
Our portfolio construction and sustainability risk analysis is conducted through a platform called Ethos ESG, which provides thorough, transparent and easy to understand ESG data analytics. We have a monthly monitoring and review process to ensure our sustainability benchmarks and constraints for these portfolios are not breached.
To date, we have not breached any of our benchmarks and we have made a clear positive impact compared to our multi-asset benchmarks in areas aligned with our core causes.
highlights
Sustainable Future Balanced
- Overall Impact: 91/100
- Multi-Asset Balanced Benchmark: 53.8/100
- Donated 100% of revenue to aligned ESG charities
- Peer ranked #1 of 19 for overall impact against other managed account providers on Ethos ESG
Source:
Ethos ESG based on a $10M investment in the portfolio
20,000
weapons destroyed
625
tonnes of plastic removed from the ocean
0.339
degrees cooler planet than benchmark
55
cars removed from the road
8,802,253
fewer miles driven
179,846
tonnes of waste avoided
360
months of rent paid
125,525
meals provided
107%
more clean energy than benchmark
highlights
Sustainable Future Growth
- Overall Impact: 92.3/100
- Multi-Asset Balanced Benchmark: 52.8/100
- Donated 100% of revenue to aligned ESG charities
- Peer ranked #2 of 19 for overall impact against other managed account providers on Ethos ESG
Source:
Ethos ESG based on a $10M investment in the portfolio
20,000
weapons destroyed
584
tonnes of plastic removed from the ocean
0.41
degrees cooler planet than benchmark
53
cars removed from the road
8,470,707
fewer miles driven
179,848
tonnes of waste avoided
312
months of rent paid
108,832
meals provided
106%
more clean energy than benchmark
Portfolio Snapshot
Our sustainable portfolios were launched in 2022.
Our mission was to design portfolios that were profit for purpose, with a strong sustainability focus that also employed our trademark risk management approach to portfolio construction.
This can be a challenging endeavour within this space and requires the balancing of risk and sustainability metrics. We have developed an in-house scoring methodology combining our internal process with Ethos ESG scoring to do this effectively.
Investment management fee on all portfolios: 0.359%*
*This doesn’t include the fees of any underlying investments, but includes platform RE fees.
Sustainable Future Balanced
Managed Account
Availability: HUB24
| Risk | Timeframe | Objective | Performance | Strategic Asset Allocation |
|---|---|---|---|---|
| Medium to high | 6 Years | RBA cash + 3% | HUB24 | Growth 65% Defensive 35% |
Sustainable Future Growth
Managed Account
Availability: HUB24
| Risk | Timeframe | Objective | Performance | Strategic Asset Allocation |
|---|---|---|---|---|
| Medium to high | 6 Years | RBA cash + 3% | HUB24 | Growth 85% Defensive 15% |
Donations
Our charity partners
We intend to donate all the profits from these portfolios to our aligned charity partners. We initially anticipate this to be 20% of revenue, but in the previous financial year we gave 100% of revenue to support the vital work our charity partners undertake.
“A key objective when designing these portfolios was to align with our core business values and actively support charities that address the causes we care about the most. Our intention is to donate all the profit from these portfolios to our aligned charities.
Engaging with these charities to better understand the impact they have made and how our contributions will further their important work was a real highlight for us.”
Sophie Temperton
General Manager
Our charity partners for this financial year
Works with communities to establish short term emergency accommodation and support.
Increases access to education, health care and income generation for families suffering after decades of civil war in Uganda.
Advocates to protect nature and stop climate damage.
Aims to protect the climate by restoring forests.
Helps Australians living with a personal health crisis to improve their financial wellbeing.
