Smarter Money Fund (SMAC)
Responsible Investing Approach
The Portfolio Manager considers that environmental, social and governance (ESG) factors are crucial inputs into its investment process. The Portfolio Manager is engaged with its target companies and relevant regulators and government stakeholders, dynamically evaluating the status of different ESG factors. ESG is therefore a core part of the Portfolio Manager's quantitative and qualitative due diligence and wider investment process. The types of ESG factors taken into account as part of its quantitative and qualitative investment process include:
- Environmental: weather-related risks, dependency on prices of assets that may be impacted by environmental considerations, pollution and environmental disruption, environment sustainability, and associated reputational and brand risks.
- Social: political stability in countries of operation, human rights record of company and countries of operation, diversity, commitment to maintaining internal and customer privacy, including cyber security, impact on local communities, health and safety, and associated reputational and brand risks.
- Governance: board composition, risk management track record, legal and compliance track record, history of prosecutions, management remuneration, distribution of equity, and associated reputational and brand risks.
The investment manager has an exclusion policy on long investments in issuers with material exposure to, and/or operations in, non-democratic states; that have been publicly identified as being plagued by systematic corruption; and with operations in controversial industries such as tobacco, controversial/nuclear weapons, fossil fuel exploration and extraction, gambling, and the adult industry.
The investment manager views stewardship as the use of influence by exercising rights and responsibilities of asset ownership, either through its voting practices or through direct engagement with issuers and other stakeholders. With respect to ESG-specific matters, the investment manager will vote proxies on a case-by-case basis, but will generally vote for any proposals that will reduce discrimination, improve protections for minorities and disadvantaged classes, and increase conservation of resources and wildlife.
Documents
Exclusions
The investment manager has an exclusion policy on long investments in issuers with material exposure to, and/or operations in, non-democratic states; that have been publicly identified as being plagued by systematic corruption; and with operations in controversial industries such as tobacco, controversial/nuclear weapons, fossil fuel exploration and extraction, gambling, and the adult industry.
| Exclusions | Full/Partial Exclusion |
Description
|
|---|---|---|
 Tobacco
|
Full | The investment manager has an exclusion policy on long investments in issuers with operations in the tobacco industry. |
 Weapons
|
Full | The investment manager has an exclusion policy on long investments in issuers with operations in the controversial/nuclear weapons industry. |
 Fossil fuel exploration, mining and production
|
Full | The investment manager has an exclusion policy on long investments in issuers with operations in the fossil fuel exploration and extraction industry. |
 Human rights abuses
|
Partial | The investment manager has an exclusion policy on long investments in issuers with material exposure to, and/or operations in, non-democratic states, and that have been publicly identified as being plagued by systematic corruption. |
 Gambling
|
Partial | The investment manager has an exclusion policy on long investments in issuers with operations in the gambling industry. |
 Adult entertainment/pornography
|
Full | The investment manager has an exclusion policy on long investments in issuers with operations in the adult industry. |
Inclusions
The investment manager is committed to analysing and integrating environmental, social and governance (ESG) factors in its investment process, with ESG factors providing crucial inputs. The investment manager's due diligence process involves performing qualitative and quantitative analysis of credits, and monitoring the ESG status of an issuer forms part of the manager's due diligence and portfolio management process.
The investment manager views stewardship as the use of influence by exercising rights and responsibilities of asset ownership, either through its voting practices or through direct engagement with issuers and other stakeholders. Stewardship aims to maximise the long-term value of assets on clients' behalf and to create change in line with the investment managers' ESG priorities. Active engagement with management teams, boards, ESG rating agencies, credit rating agencies peers, regulators, politicians and other stakeholders is crucial to the investment manager's investment process. The investment manager's belief is that, as an investor, it can encourage issuers to improve their behaviour around material ESG issues.
The investment manager recognises the importance of communicating and reporting its engagement activities and results to stakeholders. Where the investment manager has voting authority over securities held in client portfolios, the general policy is to vote proxy proposals, amendments, consents or resolutions relating to client securities, including interests in the Fund. With respect to ESG-specific matters, the investment manager will vote proxies on a case-by-case basis, but will generally vote for any proposals that will reduce discrimination, improve protections for minorities and disadvantaged classes, and increase conservation of resources and wildlife.
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UN Sustainable Development Goals
Conventions & Treaties
Coolabah Capital Investments is a signatory of the UN-endorsed Principles for Responsible Investment.
| Conventions & Treaties | Aligned |
Description
|
|---|---|---|
| Principles for Responsible Investment | Yes | Coolabah Capital Investments is a signatory of the UN-endorsed Principles for Responsible Investment. |
ESG Score
| ESG Score |
|
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|---|---|---|---|
| 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.? | Yes | ||
| 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? | No | ||
Policies, Certification & Marketing
| Policies, Certification & Marketing |
|
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|---|---|---|---|---|
| Responsible investing policy | View Responsible investing policy document | |||
| Is the fund RIAA certified? | Yes | |||
| Date certified | ||||
Smarter Money Fund (SMAC)
Strategy Summary
The Smarter Money Fund (SMF) actively invests in a portfolio of Australian cash securities and investment-grade bonds with a target dollar-weighted average credit rating in the "A" band. SMF does not invest in fixed-rate bonds (unless interest rate risk is hedged out), hybrids or equities. SMF is not permitted to use leverage. Applying a diverse array of quantitative asset pricing techniques, SMF's portfolio managers add-value through exploiting bond mispricings that seek to generate capital gains over and above the yield provided by the underlying fixed-income assets.Key Terms
| Status: | Open | Inception Date: | Feb 2012 |
| Strategy: | Fixed Income | Style: | N/A |
| Geography: | Australia | Domicile: | Australia |
| Investors: | Retail | Min. Investment: | AU$1000 |
| Mgmt. Fee: | 0.66% | Perf. Fee: | 20.5% |