Aoris International Fund

Responsible Investing Approach

Aoris considers a company's management of its environmental and labour resources, as well as its social and ethical behaviour (ESG), to be important factors in our assessment of its quality, and in turn its suitability for investment. Aoris does aim to screen out companies engaging in certain activities, such as those it considers to be in structurally declining industries like fossil fuels and tobacco and those whose negative impact on society puts them at risk of adverse regulatory findings such as gambling and social media. Aoris also excludes companies based on their behaviour, such as poor labour and environmental practices.

Aoris positively seeks companies they believe exhibit ethical and sustainable behaviour. ESG aspects are ordinarily considered throughout the investment process as part of the fundamental research, investment selection and portfolio construction stages of the process. There is a risk that the companies in the portfolio may not necessarily meet all of the ESG requirements at all times. To help mitigate this risk, Aoris conducts an annual ESG process for all portfolio stocks and portfolio candidates. Where Aoris believes the company has demonstrated a wilful disregard for general ESG principles, it may choose to avoid or divest on a case by case basis. Where Aoris chooses to divest due to ESG principles, it may do so within a timeframe it considers reasonable in all the circumstances.

Documents

Exclusions

Aoris aims to screen out companies engaging in certain activities, such as those it considers to be in structurally declining industries like fossil fuels and tobacco and those whose negative impact on society puts them at risk of adverse regulatory findings such as gambling and social media. Aoris also excludes companies based on their behaviour, such as poor labour and environmental practices. When specifying businesses to exclude based on the nature of their activity, the Fund Manager distinguishes between direct exposure and indirect exposure. Direct exposure involves manufacturing, producing or selling the excluded activity, whereas indirect exposure, involves supplying services or inputs to the relevant industry.

Exclusions	Full/Partial Exclusion	Description
Tobacco	Full	The Fund does not invest in companies that derive any revenue from the manufacture of tobacco products.
Tobacco	Partial	The Fund does not invest in companies that derive more than 20% of their revenues from the sale of tobacco products (e.g. supermarkets), or that supply services/materials such as tobacco packaging.
Weapons	Full	The Fund does not invest in companies that derive any revenues from the manufacture or sale of weapons.
Weapons	Partial	The Fund does not invest in companies that derive more than 20% of their revenues from supplying services or non-weapon equipment to the defence industry.
Fossil fuel exploration, mining and production	Full	The Fund does not invest in companies that derive any revenue from the generation of electricity through the consumption of fossil fuels.
Labour rights violations	Partial	The Fund might avoid investing in companies that use outsourced manufacturing, including those in the electronics and apparel industries. The Fund manager might consider if third-party factories are subject to independent audits of working conditions and, if so, the opinion of those audits. It also looks at workplace accident rates and employee reviews for evidence of discrimination.
Environmental damage	Full	The Fund does not invest in companies that derive any revenue from the extraction of natural resources, logging or deforestation.
Environmental damage	Partial	The Fund does not invest in companies that derive more than 20% of their revenues from supplying services or equipment to mining companies, nor does it invest in companies that supply services or equipment to aid logging, or produce products made as a result, of logging, e.g. paper, palm oil. The Fund Manager may also consider carbon intensity and the general efficiency with which natural resources are used in the production and distribution process.
Animal testing for non-medical purposes	Partial	The Fund might avoid investing in pharmaceutical and beauty product companies. The manager might assess whether animal testing is legally required and, if so, whether it is conducted humanely and according to strict regulations.
Companies that engage in tax avoidance strategies	Partial	The Fund might avoid investing in pharmaceutical, IT software companies and social media companies might be minimising their tax share. The Fund manager might consider the domicile of the parent company and key subsidiaries and look for unusual tax structures and the effective cash tax rate.
Gambling	Full	The Fund does not invest in companies that derive any revenue from the manufacture of gambling equipment or the operation of casinos or lotteries.
Gambling	Partial	The Fund does not invest in companies that derive more than 20% of their revenues from supplying services or non-gaming equipment to the gambling industry.

Inclusions

Aoris engages with all the companies in which it is invested on ESG topics at least once a year. It focuses on the issues that it considers material and where it sees the greatest opportunity or need for improvement. Aoris keeps a record of our engagement activity, which it makes publicly available. These engagements permit Aoris, along with its voting, to have a small influence on decisions the company makes.

As a shareholder of public companies, Aoris exercise its right to vote on proposals brought before it at annual and special meetings, it aims to participate in the corporate governance process and as an active participant, it votes only FOR or AGAINST rather than abstaining on any matters. Voting is done in accordance with its Proxy Voting Policy. It uses Institutional Shareholder Services (ISS) for basic research on proxy matters but makes its voting decisions independently. In the scenario where it is against a particular proposal that is deemed material in nature, it may sell the position in full. A complete record of how we voted this calendar year is available on request. Voting regarding environmental, social and governance related topics may include environmental sustainability reporting, establishing goals or targets for emissions reduction, political contributions and trade association spending/lobbying expenditures and initiatives, diversity, and labour and human rights standards.

UN Sustainable Development Goals

Conventions & Treaties

Aoris Investment Management is a signatory to the UN Principles for Responsible Investment. The Aoris International Fund has been certified as a Responsible Investment product by the Responsible Investment Association Australasia.

Conventions & Treaties	Aligned	Description
Principles for Responsible Investment	Yes	Aoris Investment Management is a signatory to the UN Principles for Responsible Investment.

ESG Score

ESG Score
Does the portfolio have an ESG score?	Not disclosed
If so, who is responsible for calculating the 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 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
Proxy voting policy	View Proxy voting policy document
Modern slavery policy	View Modern slavery policy document
Is the fund RIAA certified?	Yes
Date certified
ESG Investing Principles	View ESG Investing Principles document

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