Investment strategy

Overview

The Australian Governance & Ethical Index Fund has been established with the core belief that companies who exhibit superior governance, social and environmental practices operate with a more sustainable and robust business model, delivering stronger financial performance and resultant shareholder value over the longer term.

The Investment Manager pursues a low-cost, index style of investing with a focus on ASX 100 listed securities that exhibit strong governance frameworks, are committed to overall corporate social responsibility and undertake sustainable operating practices including minimising environmental harm. The Fund expects to hold 75-85 securities, however it may hold more or less from time to time.

The Fund objective is to achieve long term capital appreciation, while reducing risk and preserving capital, through investments in securities within the ASX100 Index that exhibit relatively high levels of governance, social and environmental performance.

Investment highlights

  • Governance and ethical investment focus
    The Fund provides exposure to a portfolio of securities that exhibit superior governance, social and environmental practices.
  • Low cost investment vehicle
    Total expense ratio is 0.19% p.a. (inc GST net RITC) of the gross asset value of the Fund. The Investment Manager also does not charge a performance fee.
  • Diverse Australian equities exposure
    The Fund will allow investors to gain exposure to approximately 75-85 of the largest companies within the ASX 100 Index and provides significant diversification that should reduce investment performance volatility.
  • Experienced Investment Manager and Advisory Board
    The Advisory Board and Investment Manager have considerable experience and expertise in corporate governance structures and social and sustainable investments, in addition to listed equities experience.
  • Targeting consistent distributions
    The Responsible Entity will seek to provide a steady cash flow from the Fund, with a targeted cash distribution of 5% per annum based on the NAV at or around the beginning of the relevant distribution period, paid semi-annually
  • Convenient investment platform
    The Fund provides an opportunity to invest in a diverse range of Australian equities through an ASX listed investment vehicle.

Risks

Like all investments, an investment in the Australian Governance & Ethical Index Fund carries risk which may result in the loss of income or principle invested. In addition to the general risks of investing, specific risk associated with investing in the Fund include, but is not limited to, investment selection and strategy risk, ethical considerations risk and equity risk. For further information about the risks of investing in the Fund please refer to Section 3 of the PDS