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Pella Global Generations Fund (Class B)

Responsible Investing Approach

The Investment Manager takes into account labour standards or environmental, social or ethical considerations in the selection, retention or realisation of investments. The Investment Manager's responsible investment guidelines govern their ESG processes and engagement actions. Pella incorporates six strategies to implement sustainability factors into all investment and stewardship decisions, including ESG Integration, Negative Screening, Norms-Based Screening, Sustainability-Themed, Stewardship, and Positive Impact.

Pella excludes several activities from its investment universe, including tobacco, casinos, animal cruelty, fossil fuel mining, and deforestation, among other activities. Investment Stewardship considerations and behaviours are incorporated by Pella into all the investments made by the funds it manages. It applies four primary tools to fulfil its Investment Stewardship responsibilities, including engagement, voting, advocacy, and transparency.

Documents

Exclusions

Pella applies Negative Screens at the start of the research process. It identifies these companies using its own fundamental analysis, supplemented with research from external research providers. Companies generating any revenue from activities related to animal cruelty, such as cosmetic testing, crowd entertainment, and intensive animal husbandry, correctional facilities, deforestation, GMO seeds manufacturing, pornography, uranium mining, and manufacturing of alcoholic beverages are excluded from Pella's investment universe. Pella excludes companies that generate revenue from thermal coal power generation, that have any direct exposure to fossil fuel exploration, and companies that generate more than 15% of their revenue from gas-fired generation.

It excludes enterprises that generate any revenue from direct exposure to slot machines, casino operations (online and/or physical), lotteries, sports/other betting, companies that generate any revenue from selling or distributing such weapons or weapon delivery systems, and all companies involved in the production of tobacco and companies with significant ownership (due to holding directly, more than 10% of shares) in such companies. Norms-based screens applied by Pella involve identifying and excluding companies that do not meet minimum standards of business practices based on international norms and conventions, primarily based on the UN Global Compact (UNGC).

Exclusions Full/Partial Exclusion
Description
TobaccoTobacco Full

Pella excludes all companies generate any revenue from the production of tobacco. 

Partial

Pella excludes companies directly holding more than 10% of shares in companies involved in the production of tobacco.

AlcoholAlcohol Full

Pella excludes companies that generate any revenue from manufacturing alcoholic beverages.

WeaponsWeapons Full

Pella excludes companies that generate any revenue from selling or distributing weapons or any sort, or weapon delivery systems. This exclusion is all encompassing and includes weapons and delivery systems that comply with weapon treaties.

Fossil fuel exploration, mining and productionFossil fuel exploration, mining and production Full

Pella excludes companies that generate any revenue from thermal coal power generation, and companies with any direct exposure to fossil fuel exploration. It also excludes electricity generators that exceed the gCO2/kWh carbon intensity threshold recommended in the Paris Agreement or do not disclose their emissions.

Partial

Pella excludes companies that generate more than 15% of their revenue from gas-fired power generation.

Human rights abusesHuman rights abuses Full

Pella conducts a Controversies and Norms Based Analysis that aims to identify companies that have breached the UN Global Compact and should be excluded from Pella's investment universe. Pella primarily complies with the UN Global Compact (UNGC) and, secondly, with the OECD Guidelines and considers the most severe breaches as Forced labour/slavery, Child labour, and Genocide or ethnocide.

Labour rights violationsLabour rights violations Full

Pella conducts a Controversies and Norms Based Analysis that aims to identify companies that have breached the UN Global Compact and should be excluded from Pella's investment universe. The UNGC's 10 principles cover four areas, one of which is Labour Rights.

Environmental damageEnvironmental damage Full

Pella excludes companies with direct exposure to deforestation by destroying old-growth forests, including paper and pulp companies that use old growth wood, transporters of such wood, and manufacturers that use old growth palm trees.

Animal testing for non-medical purposesAnimal testing for non-medical purposes Full

Pella excludes companies generating any revenue from activities related to animal cruelty, such as cosmetic testing.

Unethical treatment of livestockUnethical treatment of livestock Full

Pella excludes companies generating any revenue from activities related to animal cruelty, such as crowd entertainment and intensive animal husbandry.

Partial

Pella does not oppose humanely farming for human consumption (food or by-products) however, those animals should be treated with dignity and have a good quality of life.

GamblingGambling Full

Pella excludes enterprises that generate any revenue from direct exposure to slot machines, casino operations (online and/or physical), lotteries, sports and other betting.

Genetic engineering/GMOGenetic engineering/GMO Full

Pella excludes companies generating any revenue from GMO seeds manufacturing.

Nuclear power (including uranium mining)Nuclear power (including uranium mining) Full

Pella excludes companies involved in uranium mining.

Adult entertainment/pornographyAdult entertainment/pornography Full

Pella excludes enterprises that generate any revenue from pornography related activities.

Inclusions

Pella incorporates ESG considerations throughout its investment process. This is delivered using internal analysis, MSCI and Refinitiv ESG ratings, and assessing controversies. The common ESG issues Pella considers relate to the Environment, such as climate change, sustainability, biodiversity and water, pollution and waste. Social issues, such as human capital, product liability, human rights, community standards, and Governance related issues, such as management structure, compliance, board accountability, transparency, corruption, and tax strategy. 

Pella has identified six themes that generate positive outcomes for current or future generations at no cost to current or future generations. These themes relate to several SDG targets that are dynamic and could expand as new opportunities arise. Pella targets portfolio CO2 intensity to be at least 30% below the Benchmark with CO2 intensity measured using Scope 1 and Scope 2 carbon emissions relative to revenue as calculated by Refinitiv.

Investment Stewardship considerations and behaviours are incorporated by Pella into all the investments made by the funds it manages. It applies four primary tools to fulfil its Investment Stewardship responsibilities, including engagement, voting, advocacy, and transparency.

Renewable energy & energy efficiencyClimate action & towards net zeroSustainable water managementCircular economy, reuse & recyclingBiodiversity preservation & conservationDiversity & women's empowermentHealthcare & medical productsSocial & community infrastructureIncome & financial inclusion

UN Sustainable Development Goals

The fund is aligned with the following UN Sustainable Development Goals.

Goal 2: Zero HungerGoal 3: Good Health and Well-BeingGoal 4: Quality EducationGoal 5: Gender EqualityGoal 6: Clean Water and SanitationGoal 7: Affordable and Clean EnergyGoal 8: Decent Work and Economic GrowthGoal 9: Industry, Innovation and InfrastructureGoal 11: Sustainable Cities and CommunitiesGoal 13: Climate ActionGoal 15: Life on LandGoal 17: Partnerships for the Goals

Conventions & Treaties

Pella became a signatory to the UN Global Compact and Principles for Responsible Investment in 2022 aligning with their principles. Pella's weapons exclusion policy, encompassing weapons and delivery systems compliant with weapon treaties, adheres to both the Convention on Cluster Munitions and the Ottawa Convention on Land Mines. Additionally, it integrates the UN Guiding Principles on Business & Human Rights into their practices. Regarding climate action, Pella focuses on the major source of GHG, namely CO2, and the largest emitters of CO2. It also considers the OECD Guidelines for Multinational Enterprises. Lastly, Pella aims to maximise positive impacts by aligning corporate activities with their Positive Impact Themes, in line with the Sustainable Development Goals.

Conventions & Treaties Aligned
Description
UN Global Compact Yes

Pella became a signatory to the UN Global Compact (UNGC) in 2022.

Convention on Cluster Munitions Yes

Pella's weapons exclusion is all encompassing and includes weapons and delivery systems that that comply with weapon treaties.

UN Guiding Principles on Business & Human Rights Yes

Pella takes into consideration the UN Guiding Principles on Business & Human Rights. 

Principles for Responsible Investment Yes

Signatory since 2022

Paris Agreement (UN Framework Convention on Climate Change) Yes

Pella focuses on the major source of GHG, namely CO2, and the largest emitters of CO2. Using these data Pella focuses on the Paris Agreement's goal of carbon neutrality.

OECD Guidelines for Multinational Enterprises Yes

Pella considers the OECD Guidelines.

Ottawa Convention on Land Mines Yes

Pella's weapons exclusion is all encompassing and includes weapons and delivery systems that that comply with weapon treaties.

UN Sustainable Development Goals Yes

Pella seeks to maximise exposure to corporate activities that fall within Pella's Positive Impact Themes and which are linked to the UN Sustainable Development Goals.

Treaty on the Non-proliferation of Nuclear Weapons Yes

Pella's weapons exclusion is all encompassing and includes weapons and delivery systems that that comply with weapon treaties.

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? Partial

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
Modern slavery policy View Modern slavery policy document
Is the fund RIAA certified? Yes
Date certified
Responsible Investing Annual Report View Responsible Investing Annual Report document
Monthly Sustainability Report View Monthly Sustainability Report document
Fundmonitors.com

Pella Global Generations Fund (Class B)

Strategy Summary

The Pella Global Generations Fund is managed for AUD-returns. It is a portfolio of 30-50 highly cash flow generative businesses that are growing, attractively valued with fortress balance sheets and outstanding Environmental, Social and Governance ("ESG") credentials. The Fund invests principally in listed (or soon to be listed) global equities. The Fund aims to sustainably and consistently deliver greater AUD returns, lower volatility, and superior ESG to the MSCI All Country World Total Return Index (net, AUD).

Key Terms

Status: Open Inception Date: Jan 2022
Strategy: Equity Long Style: Blend
Geography: Global Domicile: Australia
Investors: Wholesale & Retail Min. Investment: AU$25000
Mgmt. Fee: 0.65% Perf. Fee: 15%

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A.C.N. 122 226 724
AFSL 324476
Email: [email protected]
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