Advisers, clients demanding ESG adherence, Alphinity says
Alphinity Investment Management has launched a differentiated version of its Sustainable Share Fund (SSF) as the boutique manager continues to see advisers demand investments with an environmental, sustainability and governance (ESG) focus on behalf of their clients.
The Alphinity SFF, which had an inception date of 1 September 2010 and was recently awarded the Money Management Fund Manager of the Year Award in the Responsible Investment Category, would use a strategy that aims to provide a diversified portfolio of Australian stocks that have strong ESG characteristics.
The fund, which would typically hold between 35-55 stocks and has a management fee of 0.95 per cent, aims to outperform the S&P/ASX 300 Accumulation Index (after fees) over rolling five-year periods.
It also would seek to address the 17 UN Sustainable Development Goals agenda, the manager said, while excluding those companies which generate more than 10 per cent of their revenues from producing or operating high-impact fuels such as uranium, thermal coal, coal seam gas, oil sands and arctic drilling.
The strategy also excluded companies involved in gold mining, animal mistreatment, old growth forest logging, predatory lending and hostile debt collection, and pornography, Alphinity said.
Bruce Smith, principal and portfolio manager of the Alphinity SFF, said there were now entire practices out there which are dedicated to providing clients with ESG-focused investments, which he found “quite encouraging”.
Fellow Alphinity SFF principal and portfolio manager Stephane Andre said an ESG assessment was expected by any investor nowadays.
“So, this fund goes beyond ESG … taking a stance on how we actually support companies doing the right things and focusing the investments towards them. So, that’s kind of where this fund something different than some of the other funds we have,” Andre said.
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