Sustainable Funds

We seek to invest in companies which have a net positive alignment to the United Nations Sustainable Development Goals, exceed Alphinity’s minimum ESG criteria, and offer attractive prospective returns.

We use the SDGs as a framework for assessing a company’s suitability for our domestic and global sustainable universes. The 17 SDGs have a universal application and aim to mobilise efforts to end all forms of poverty, improve health and education, reduce inequality, and spur innovation and economic growth, while managing climate change and working to preserve oceans and forests.

Alignment to the SDGs is measured using an in-house methodology which quantitatively aligns company revenues with relevant SDGs to arrive at a net score for each company. The net score includes the positive and negative alignment to the relevant SDGs for each segment of company revenues. A company must have a score above zero to be included in the fund.

Similarly, a company’s ESG criteria is assessed using an in-house methodology and process. Inputs for this process include third party ESG data provider research and ratings, company specific research, information gathered from company engagement, and other third-party reports. The outcome of this assessment is an overall ESG risk level. Any stock that is assessed at the highest risk level of ‘avoid’ has not met Alphinity’s minimum ESG criteria and consequently is not considered for inclusion into the Fund

Our Sustainable Compliance Committees include two external reputable independent experts and are responsible for overseeing the investible universe and ensuring that each Fund stays true to its charter. We apply the same disciplined investment philosophy of looking for earnings leadership in this focused sustainable investment universe.

These Funds exclude a range of activities which we view as incongruent with the SDGs. Excluded activities include fossil fuel production, alcohol production, and controversial weapon manufacture. A full list of exclusions and the relevant revenue thresholds can be viewed in the respective Fund Charters (see below). Further information on our position on a range of sectors can be viewed at the bottom of this webpage.

Details on our assessment methodology can be viewed in our Sustainable Investing Fact Sheet.

Learn more about Alphinity’s commitment to investing responsibly.

The Alphinity Global Sustainable Equity Fund (Managed Fund) (ASX: XASG) is now available on the ASX, discover more here.