Magellan Core ESG Fund
Responsible Investing Approach
The Fund excludes companies whose activities, as assessed by Magellan, may have wide-ranging detrimental impacts on society. These exclusions encompass companies with material exposures to the production of tobacco products, gambling, as well as companies involved in the production of alcohol, adult entertainment and handguns. Materiality is normally assessed as greater than 5% or 10% of a company's revenues exposed to the exclusionary activity. Revenues are sourced from MSCI ESG Manager. Companies are reviewed for the materiality of their exposures to environmental, social and governance issues, with assessments incorporated into their perspectives on business risks. Magellan overlay their proprietary low carbon framework to deliver a portfolio with meaningfully lower carbon intensity than broader equity markets.
Documents
Exclusions
The Fund excludes companies whose activities, as assessed by Magellan, may have wide-ranging detrimental impacts on society. These exclusions encompass companies with material exposures to the production of tobacco products, gambling, as well as companies involved in the production of alcohol, adult entertainment and weapons. Materiality is normally assessed as greater than 5% or 10% of a company's revenues exposed to the exclusionary activity. Revenues are sourced from MSCI ESG Manager.
| Exclusions | Full/Partial Exclusion |
Description
|
|---|---|---|
 Tobacco
|
Full | The Fund excludes companies with any exposure to the production of tobacco products. |
| Partial | The Fund excludes companies with a material exposure greater than 5% of the company's revenue to the distribution of tobacco products. |
|
 Alcohol
|
Partial | The Fund excludes companies with a material exposure greater than 5% of the company's revenue to the production of alcohol, or a 10% exposure to the distribution of alcohol. |
 Weapons
|
Full | The Fund excludes companies with any exposure to the manufacturing of controversial armaments and weapons. |
| Partial | The Fund excludes companies with a material exposure greater than 5% of the company's revenue to the manufacturing of conventional weapons and civilian firearms, the distribution of civilian firearms, or services in direct support of conventional weapons. |
|
 Fossil fuel exploration, mining and production
|
Full | The Fund excludes companies with any exposure to the mining or extraction of fossil fuels such as thermal coal, gas and oil. |
| Partial | The Fund excludes companies with a material exposure greater than 5% of the company's revenue to energy generation from fossil fuels such as thermal coal, gas and oil. |
|
 Human rights abuses
|
Partial | |
 Labour rights violations
|
Partial | |
 Gambling
|
Partial | The Fund excludes companies with an aggregate exposure greater than 5% of the company's revenue from the direct operation or ownership of gambling facilities. |
 Adult entertainment/pornography
|
Partial | The fund excludes companies with a material exposure greater than 5% of the company's revenue from the production or distribution of pornography. |
Inclusions
Companies are reviewed for the materiality of their exposures to environmental, social and governance issues, with assessments incorporated into the Manager's perspectives on business risks. Magellan overlay their proprietary low carbon framework and aim to deliver a portfolio with meaningfully lower carbon intensity than broader equity markets.
            |
UN Sustainable Development Goals
Conventions & Treaties
In 2022, Magellan joined the Net Zero Asset Managers initiative, showcasing its commitment to net-zero emissions. Since 2012, Magellan has become a signatory to the Principles for Responsible Investing and, since 2017, has been acknowledged as a Responsible Investor by the Responsible Investment Association Australasia (RIAA). Additionally, it is a member of the Investor Group on Climate Change.
| Conventions & Treaties | Aligned |
Description
|
|---|---|---|
| Principles for Responsible Investment | Yes | Signatory since 2012 |
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 |
|
|||
|---|---|---|---|---|
| Responsible investing policy | View Responsible investing policy document | |||
| Proxy voting policy | View Proxy voting policy document | |||
| Modern slavery policy | View Modern slavery policy document | |||
| Is the fund RIAA certified? | Yes | |||
| Date certified | ||||
| Stewardship 2023 Report | View Stewardship 2023 Report document | |||
| Portfolio Holdings (Dec 2023) | View Portfolio Holdings (Dec 2023) document | |||
Magellan Core ESG Fund
Strategy Summary
The Fund's primary investment objective is to achieve risk-adjusted returns over the medium to long term through investment in a diversified portfolio of companies listed on stock exchanges around the world. This objective incorporates the consideration of ESG factors and the application of our low carbon framework. The Fund's portfolio will comprise 70-90 securities at any one time but will also have some exposure to cash. It is not the Magellan's intention to hedge the foreign currency exposure of the Fund arising from investments in overseas markets. The Fund can use foreign exchange contracts to facilitate settlement of stock purchases. The Fund may also use exchange traded derivatives, in a limited manner, for risk management purposes.
Key Terms
| Status: | Open | Inception Date: | Jan 2021 |
| Strategy: | Equity Long | Style: | Blend |
| Geography: | Global | Domicile: | Australia |
| Investors: | Retail | Min. Investment: | AU$10000 |
| Mgmt. Fee: | 0.51% | Perf. Fee: | 0% |
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