Pengana Axiom International Ethical Fund (Hedged)
Responsible Investing Approach
Pengana is committed to responsible investing for the Fund 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 Fund 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. Consideration of ESG issues raised by prospective and existing investments are investigated within the investment research process and integrated into the assessment of the investment's return potential and risk.
Documents
Exclusions
The Fund avoids investing in tobacco producers, nicotine alternative manufacturers, tobacco-based product manufacturers, and companies involved in controversial or nuclear weapons development. Pengana uses a negative screening process to avoid investment in companies with significant revenues from activities deemed harmful to people, animals, or the environment, including alcohol, tobacco, gambling, human rights abuses, palm oil production, adult content, mining, weapons, nuclear power, non-medical and non-regulatory animal testing, fossil fuels, securities from issuers on UN sanctions lists, and genetically modified organisms in agriculture.
| Exclusions | Full/Partial Exclusion |
Description
|
|---|---|---|
 Tobacco
|
Full | The Fund will not invest in companies that derive any revenue from tobacco growing, production or licensing of tobacco products, nicotine alternatives and tobacco-based products. |
| Partial | The Fund will not invest in companies that generate more than 15% of their revenues (aggregate) from the distribution and retail of tobacco products, nicotine alternatives and tobacco-based products. |
|
 Alcohol
|
Partial | The Fund will not invest in companies that generate more than 5% of their revenues from the production of alcohol, or companies that generate more than 15% of their aggregate revenues from the production, distribution and retail of alcohol. |
 Weapons
|
Full | The Fund will not invest in companies that derive any revenue from the manufacture, development, or production of controversial weapons or nuclear weapons. |
| Partial | The Fund will not invest in companies that generate more than 15% of their revenues (aggregate) from the production, distribution and retail of firearms and ammunition. |
|
 Fossil fuel exploration, mining and production
|
Full | The Fund will not invest in companies that derive any revenue from companies classified as "Oil, Gas and Consumable Fuels" according to the global industry classification standards. |
| Partial | The Fund will not invest in companies that generate more than 15% of their revenues (aggregate) from Thermal Coal, Conventional Oil and Gas Febelfin, or Unconventional Oil and Gas. |
|
 Human rights abuses
|
Full | Pengana will not invest in companies with systemic and unaddressed human rights issues. |
 Environmental damage
|
Full | The Fund will not invest in companies that derive any revenue from companies classified as "Metals and Mining" according to the global industry classification standards, nor will it invest in companies involved in palm oil production or that are involved in systematic logging related controversies. |
 Animal testing for non-medical purposes
|
Full | The Fund will not invest in companies that are involved in animal testing for cosmetics and screens out companies involved in non-medical testing. |
 Gambling
|
Partial | The Fund will not invest in companies that generate more than 5% of their revenues from ownership of the operation of gambling-related business activities, or companies that generate more than 15% of their aggregate revenues from gambling-related business activities. |
 Genetic engineering/GMO
|
Partial | The Fund will not invest in companies that generate more than 5% of their revenues from the development or growth of Genetic Engineering - agriculture, or companies that generate more than 15% of their aggregate revenues from the consumption, use or retail of Genetic Engineering - agriculture. |
 Nuclear power (including uranium mining)
|
Partial | The Fund will not invest in companies that generate more than 5% of their revenues from companies classified as "Nuclear Power Suppliers", or companies that generate more than 15% of their aggregate revenues from nuclear power related activities. |
 Adult entertainment/pornography
|
Partial | The Fund will not invest in companies that generate more than 5% of their revenues from the production of adult content, or companies that generate more than 15% of their aggregate revenues from the production, distribution and retail of adult content. |
Inclusions
Axiom seeks to invest in companies that integrate environmental, social and governance ("ESG") factors into their management practices and strategies. Environmentally, it assesses pollution management, energy efficiency, and renewable energy usage, also considering water, waste, and hazardous material management. Socially, it evaluates human capital, customer welfare, data security, transparency, marketing, and regulatory compliance. Governance considerations encompass management capability, incentive structures, board composition, ethics, and supply chain management. This approach ensures investments align with sustainable practices, ethical conduct, and effective governance, promoting long-term value and societal benefit.
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UN Sustainable Development Goals
Conventions & Treaties
Pengana and Axiom are both signatories to the United Nations-backed Principles for Responsible Investment (PRI), an initiative to encourage investment institutions to incorporate environmental, social, and governance (ESG) factors into their decision-making and reporting processes. Additionally, Axiom supports the Task Force on Climate-related Financial Disclosure (TCFD) and the Paris Agreement.
| Conventions & Treaties | Aligned |
Description
|
|---|---|---|
| Principles for Responsible Investment | Yes | Signatory |
| Task Force on Climate-related Financial Disclosures | Yes | Axiom is a supporter of the Task Force on Climate-related Financial Disclosure (TCFD). |
| Paris Agreement (UN Framework Convention on Climate Change) | Yes | Axiom is a supporter of the Paris Agreement. |
ESG Score
| ESG Score |
|
||
|---|---|---|---|
| Does the portfolio have an ESG score? | Yes | ||
| If so, who is responsible for calculating the score? | MSCI | ||
| If a score is calculated, is this publicly available; i.e. displayed in monthly reports, on your website, etc.? | Not disclosed | ||
| If the portfolio has an ESG score, how often is that score recalculated to account for changes to portfolio holdings? | Not disclosed | ||
Impact Investing Score
| Impact Investing Score |
|
||
|---|---|---|---|
| Does the portfolio have an Impact Investment score? | Not disclosed | ||
| If a score is calculated, is this publicly available; i.e. displayed in monthly reports, on your website, etc.? | Not disclosed | ||
| If the portfolio has an Impact Investment score, how often is that score recalculated to account for changes to portfolio holdings? | Not disclosed | ||
| Does the fund publish its holdings publicly? | Yes | ||
Policies, Certification & Marketing
| Policies, Certification & Marketing |
|
|||
|---|---|---|---|---|
| Responsible investing policy | View Responsible investing policy document | |||
| Proxy voting policy | View Proxy voting policy document | |||
| Stewardship policy | View Stewardship policy document | |||
| Is the fund RIAA certified? | Yes | |||
| Date certified | ||||
| Negative Screening Statement | View Negative Screening Statement document | |||
| ESG Policy | View ESG Policy document | |||
| Stewardship Report 2022 | View Stewardship Report 2022 document | |||
Pengana Axiom International Ethical Fund (Hedged)
Strategy Summary
The Pengana Axiom International Ethical Fund invests in companies that are dynamically growing and changing for the better, more rapidly than generally expected and where the positive changes are not yet reflected in expectations or valuation. The investment manager is Axiom Investors, a Connecticut-based global equity fund manager formed in 1998 with over US$19billion in AUM. The manager will substantially hedge the capital component of the foreign currency exposure of the Fund arising from investment in overseas markets back to Australian dollars.Key Terms
| Status: | Open | Inception Date: | Feb 2018 |
| Strategy: | Equity Long | Style: | Growth |
| Geography: | Global | Domicile: | Australia |
| Investors: | Wholesale | Min. Investment: | AU$10000 |
| Mgmt. Fee: | 1.35% | Perf. Fee: | 0% |
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