MA Sustainable Future Fund
Responsible Investing Approach
The Fund aims to support a more sustainable future planet and society by focusing investment in businesses where commercial success creates and multiplies a positive sustainability impact, as measured against one or more of the United Nations Sustainable Development Goals (UNSDGs). The sustainability objectives of the Fund are embedded across the lifecycle of each investment. These objectives are built on four pillars of sustainability:
• No Harm
• Positive Impact
• Drive organisational ESG awareness
• Facilitate organisational alignment with ESG principles.
The Fund also takes labour standards, environmental, social and ethical considerations into account when selecting, retaining or realising investments. The Manager believes that a holistic view of investments including consideration of factors such as environmental, social and governance (ESG) that promote sustainable business practices contribute to a well-rounded approach to investing with better long-term return outcomes for clients.
Documents
Exclusions
The sustainability framework of the MA Sustainable Future Fund (Fund) defines the sustainability objectives and processes of the Fund. A core pillar of the Fund's sustainability objective is to avoid harm. While the concept of harm must be assessed on a case-by-case basis, we recognize a formal framework provides the Sustainability Committee and investment team a clear set of activities which are deemed to cause harm, and therefore are excluded for investment by the Fund.
The Fund Exclusion List leverages existing guidance on exclusions provided by the United Nations (UN), International Finance Corporation (IFC) and MSCI Inc.
The UN Global Compact is a series of ten principles for corporate sustainability developed by the UN and derived from the Universal Declaration of Human Rights, the International Labour Organization's Declaration on Fundamental Principles and Rights at Work, the Rio Declaration on Environment and Development, and the United Nations Convention Against Corruption1.
The International Finance Corporation (IFC) does not finance projects with activities detailed in the IFC Exclusion List2. The IFC Exclusion List includes several additions when considering projects financed via financial intermediaries (excluding trade finance projects) or investing in microfinance projects (IFC Exclusion List Additions).
The European Union, as part of its Sustainable Financial Disclosure Regulation (EU SFDR) has introduced mandatory and additional reporting requirements on a set of prescribed Principal Adverse Impact (PAI) Indicators. The regulation aims to improve disclosure on responsible investing in the EU.
The Fund will not invest in companies that violate of the following principles:
Principle 1: Businesses should support and respect the protection of internationally proclaimed human rights.
Principle 2: make sure that they are not complicit in human rights abuses.
Principle 3: Businesses should uphold the freedom of association and the effective recognition of the right to collective bargaining.
Principle 4: the elimination of all forms of forced and compulsory labour.
Principle 5: the effective abolition of child labour.
Principle 6: the elimination of discrimination in respect of employment and occupation.
Principle 7: Businesses should support a precautionary approach to environmental challenges.
Principle 8: undertake initiatives to promote greater environmental responsibility.
Principle 9: encourage the development and diffusion of environmentally friendly technologies.
Principle 10: Businesses should work against corruption in all its forms, including extortion and bribery.
| Exclusions | Full/Partial Exclusion |
Description
|
|---|---|---|
 Tobacco
|
Full | No investment in tobacco production or trade |
 Alcohol
|
Partial | Production or trade in alcoholic beverages (excluding beer and wine). Consistent with the IFC Exclusion List, this does not apply to businesses who are not substantially involved in these activities. "Not substantially involved" means that the activity concerned is ancillary to a business's primary operations. |
 Weapons
|
Full | No investment in weapons and / or munitions production or trade |
 Fossil fuel exploration, mining and production
|
Full | The Fund will not invest in companies involved in the following activities: |
 Human rights abuses
|
Full | No investment in production or activities involving human rights abuses (past or present) |
 Labour rights violations
|
Full | No investment in production or activities involving harmful or exploitative forms of forced labour / harmful child labour. |
 Environmental damage
|
Full | No investment in: |
 Animal testing for non-medical purposes
|
Full | No investment in production or activities involving animal testing or unethical treatment of animals / livestock |
 Unethical treatment of livestock
|
Full | No investment in production or activities involving animal testing or unethical treatment of animals / livestock |
 Gambling
|
Full | No investment in gambling, casinos and equivalent enterprises. |
 Nuclear power (including uranium mining)
|
Partial | Production or trade in radioactive materials. This does not apply to the purchase of medical equipment, quality control (measurement) equipment and any equipment where IFC considers the radioactive source to be trivial and/or adequately shielded. |
Inclusions
UN Sustainable Development Goals
Conventions & Treaties
| Conventions & Treaties | Aligned |
Description
|
|---|---|---|
| UN Global Compact | Yes | Each investment of the Fund must support a sustainable future planet and society. The |
| Convention on Cluster Munitions | Yes | the fund will not invest in Production or trade in weapons and munitions. |
| UN Guiding Principles on Business & Human Rights | Yes | Each investment of the Fund must support a sustainable future planet and society. The |
| Principles for Responsible Investment | Yes | Each investment of the Fund must support a sustainable future planet and society. The |
| UN Sustainable Development Goals | Yes | Each investment of the Fund must support a sustainable future planet and society. The |
ESG Score
| ESG Score |
|
||
|---|---|---|---|
| Does the portfolio have an ESG score? | No | ||
| If so, who is responsible for calculating the score? | N/A | ||
| If a score is calculated, is this publicly available; i.e. displayed in monthly reports, on your website, etc.? | No | ||
| If the portfolio has an ESG score, how often is that score recalculated to account for changes to portfolio holdings? | |||
Impact Investing Score
| Impact Investing Score |
|
||
|---|---|---|---|
| Does the portfolio have an Impact Investment score? | No | ||
| If the portfolio has an Impact Investment score, how often is that score recalculated to account for changes to portfolio holdings? | N/A | ||
| Does the fund publish its holdings publicly? | No | ||
Policies, Certification & Marketing
| Policies, Certification & Marketing |
|
|||
|---|---|---|---|---|
| Responsible investing policy | View Responsible investing policy document | |||
| Modern slavery policy | View Modern slavery policy document | |||
| Is the fund RIAA certified? | No | |||
MA Sustainable Future Fund
Strategy Summary
The Fund invests in a diversified portfolio of secured loans to established growth-stage companies (Growth Credit) which support a more sustainable future planet and society.
In addition to fixed returns through interest-bearing loans, the Fund will seek equity-like upside participation through additional warrants and/or other conversion rights.
Ten per cent of Performance Fees earned by MA Financial will be donated via the MA Foundation to further support the United Nations Sustainable Development Goals (UNSDGs), specifically those targeting the alleviation of global poverty and hunger.
The Fund is underpinned by a 5% co-investment by MA Financial and its staff up to $5 million, aligning interests with investors.
Key Terms
| Status: | Open | Inception Date: | Sep 2023 |
| Strategy: | Credit | Style: | N/A |
| Geography: | Australia | Domicile: | Australia |
| Investors: | Wholesale | Min. Investment: | AU$100000 |
| Mgmt. Fee: | 1% | Perf. Fee: | 20% |