Responsible Investing Approach
The Fund aims to invest in companies that can contribute to achieving one or more of the 17 United Nations Sustainable Development Goals (SDGs). For a company to be part of the investable universe for this Fund, it must have a net positive alignment to the SDGs, not generate revenues from activities that are excluded from this Fund, as defined by the Alphinity Global Sustainable Equity Fund Charter, be approved by the Sustainable Compliance Committee and exceed the minimum ESG criteria, consistent with Alphinity's firm wide approach to ESG assessment. Alphinity believes that the integration of environmental, social and corporate governance considerations into investment management processes and ownership practices is essential, as these factors can have a significant impact on financial performance. The means of integrating ESG issues into the Alphinity investment process will vary depending on the company being assessed and the materiality of the ESG issue that's identified.
Documents
Exclusions
Alphinity seeks to avoid companies that are involved in activities that it considers incompatible with the objectives of the fund, as they may be harmful to society and/or inconsistent with the achievement of the UN Social Development Goals. Therefore the Fund does not invest in companies that derive any revenue from the production of tobacco, the manufacture of nicotine alternatives and tobacco based products, and controversial weapons production, including nuclear weapons. It does not support companies which generate more than 10% of their revenues (cumulative) from the production of alcohol, pornography, gambling, controversial fuels such as uranium, the extraction, production and electricity production from fossil fuels, old growth forest logging and non-RSPO palm oil or from gold mining, where Gold is the primary purpose of the mine. As well as factory farming, animals in entertainment, live exports and animal testing for cosmetic products, as well as other activities which are associated with animal welfare concerns. For healthcare, it tolerates testing only where necessary.
Exclusions | Full/Partial Exclusion |
Description
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Full | The Fund does not invest in companies that derive any revenue from the production of tobacco, manufacture of nicotine alternatives and tobacco based products. |
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Partial | The Fund does not invest in companies that generate more than 5% of their revenues (cumulative) from alcohol. |
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Full | The Fund does not invest in companies that derive any revenue from controversial weapons production, including nuclear weapons. |
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Partial | The Fund does not invest in companies that generate more than 5% of their revenues (cummulative) from the extraction, production and electricity production from fossil fuels. |
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Partial | The Fund does not invest in companies that generate more than 5% of their revenues (cumulative) from old growth forest logging and non-RSPO palm oil or from gold mining, where Gold is the primary purpose of the mine. |
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Partial | The Fund does not invest in companies that generate more than 5% of their revenues (cumulative) from animal testing for cosmetic products, as well as other activities which are associated with animal welfare concerns. For healthcare, it tolerates testing only where necessary. |
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Partial | The Fund does not invest in companies that generate more than 5% of their revenues (cumulative) from factory farming, animals in entertainment, live exports and animal testing for cosmetic products, as well as other activities which are associated with animal welfare concerns. |
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Partial | The Fund does invest in companies that generate more than 5% of their revenues (cumulative) from gambling. |
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Partial | The Fund does not invest in companies that generate more than 5% of their revenues (cumulative) from the production of controversial fuels such as Uranium. |
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Partial | The Fund does not invest in companies that generate more than 5% of their revenues (cumulative) from pornography. |
Inclusions
Alphinity seeks to invest in companies which can have a net positive alignment with one or more of the 17 United Nations Sustainable Development Goals (SDGs), and exceed Alphinity's minimum ESG criteria. A company's alignment with the SDGs is assessed using an in-house assessment methodology. This methodology aligns the positive and negative contributions that the company's products and services make towards the SDGs to arrive at a net score. Alphinity favours companies that are actively involved in initiatives aimed at making a positive impact across various sectors. These include enhancing food security, improving nutrition, and promoting sustainable agriculture to combat poverty; fostering healthier lives and well-being for individuals of all ages; ensuring inclusive and equitable quality education; championing gender equality and diversity; and supporting the development of sustainable cities and human settlements. Furthermore, Alphinity favours companies that contribute to sustained, inclusive, and sustainable economic growth, offering full and decent employment; building resilient infrastructure and promoting sustainable industrialisation; advocating for sustainable consumption and production patterns; combating climate change and its impacts; advancing affordable, reliable, and sustainable energy production; conserving biodiversity, forests, rivers, and oceans sustainably; and ensuring the sustainable management of water and sanitation.
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UN Sustainable Development Goals
Conventions & Treaties
Alphinity, a signatory to the United Nations-backed Principles for Responsible Investment (PRI) since 2011, is actively involved in various sustainability initiatives. As official supporters of the Task Force on Climate-Related Financial Disclosures (TCFD), members of the Responsible Investment Association of Australia (RIAA), and the Investor Group on Climate Change, Alphinity demonstrates its commitment to environmental, social, and governance (ESG) principles. Subscribing to external ESG research providers, the company closely monitors compliance with the UN Global Compact and controversies related to human rights violations. Alphinity champions the United Nations Guiding Principles on Business and Human Rights, expecting the same commitment from its investee companies. The firm encourages adherence to the TCFD recommendations, recognises the Intergovernmental Panel on Climate Change's findings, supports the United Nations Paris Agreement, and aims to invest in companies that align positively with the United Nations Sustainable Development Goals (SDGs), underscoring its dedication to sustainable investment.
Conventions & Treaties | Aligned |
Description
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UN Global Compact | Yes | Alphinity is subscribed to external ESG research providers and closely monitor any flags against for UN Global Compact Compliance or controversies related to human rights violations. |
UN Guiding Principles on Business & Human Rights | Yes | Alphinity strongly supports the United Nations Guiding Principles on Business and Human Rights and expect our investee companies to do the same. |
Principles for Responsible Investment | Yes | Alphinity has been a signatory to the Principles for Responsible for Investment since 2011. |
Task Force on Climate-related Financial Disclosures | Yes | Alphinity supports and encourages disclosures the recommendations of the Task Force on Climate-Related Financial Disclosures (TCFD). |
Paris Agreement (UN Framework Convention on Climate Change) | Yes | Alphinity acknowledges the findings of the Intergovernmental Panel on Climate Change and supports the United Nations Paris Agreement. |
UN Sustainable Development Goals | Yes | Alphinity aims to invest in companies that it believes have a net positive alignment with the United Nations Sustainable Development Goals (SDGs). |
ESG Score
ESG Score |
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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 |
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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 |
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Responsible investing policy | View Responsible investing policy document | |||
Stewardship policy | View Stewardship policy document | |||
Modern slavery policy | View Modern slavery policy document | |||
Is the fund RIAA certified? | Yes | |||
Date certified | ||||
Holdings (Dec 2023) | View Holdings (Dec 2023) document | |||
Sustainable Investing Fact Sheet | View Sustainable Investing Fact Sheet document | |||
Sustainable Share Fund Charter | View Sustainable Share Fund Charter document | |||
ESG and Sustainability Report 2023 | View ESG and Sustainability Report 2023 document |
Alphinity Global Sustainable Equity Fund
Strategy Summary
The Fund seeks to build a portfolio of high-quality companies, which can have a net positive alignment with one or more of the 17 United Nations'Sustainable Development Goals (SDGs), exceed Alphinity's minimum ESG criteria, and are also identified as undervalued and within an earnings upgrade cycle. Alphinity aims to meet the Fund's investment objectives in a risk-controlled manner with a portfolio that is diversified across different sectors and regions. It searches for businesses with expected positive earnings and price momentum, that are backed by real cash flows, and return on capital and are trading at an attractive valuation. Typically the portfolio will hold 25-40 stocks.
Key Terms
Status: | Open | Inception Date: | Jul 2021 |
Strategy: | Equity Long | Style: | Value |
Geography: | Global | Domicile: | Australia |
Investors: | Retail | Min. Investment: | AU$10000 |
Mgmt. Fee: | 0.75% | Perf. Fee: | 10% |
News and Insights
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