To be eligible forinclusion in the Fund, companies must have activities and operations compatiblewith the Fund’s Charter. This includes being assessed to have a net positivealignment to the SDGs, exceed Alphinity's minimum ESG criteria, and not generatemore than 10% of revenues gross (cumulative) from excluded activities. A fulllist of excluded activities can be viewed in the Fund Charter. The SustainableShare Fund Compliance Committee is responsible for overseeing the Fund'sinvestable universe and approves any company for inclusion in the universe.

Society faces significant challenges to achieve sustainable development. Alphinity aims, through this Fund, to play a role in helping to address these challenges. Alphinity is committed to supporting companies we consider contribute to long-term sustainability and avoiding those that do not. Alphinity believes engagement can encourage companies to improve practices and contribute to sustainable development. Alphinity seeks companies that, along with offering attractive financial returns, have strong ESG practices and have the capacity to contribute towards the advancement of the UN Sustainable Development Goals agenda, as that agenda evolves. 

Alphinity avoids companies that are involved in activities we consider harmful to society and/or display poor practices in their management of ESG issues. The Fund has a public Charter which sets out core beliefs  and a negative screen eliminates companies that generate more than 10% of revenues (cumulative) from activities considered incompatible with the Charter, including:

• Fossil fuels and uranium
• Gold mining
• Animal mistreatment
• Addictions such as gambling, alcohol and tobacco
• Armaments manufacturers
• Old growth forest logging and users of non-RSPO palm oil
• Predatory lending and hostile debt collection
• Pornography

We have zero tolerance for companies producing tobacco products and controversial weapons.An important feature of the Fund is the Sustainable Share Fund Compliance Committee. The Compliance Committee consists of two highly-qualified independent sustainability experts and the two co-Portfolio Managers of the Fund. The Committee has a number of roles including ensuring the Fund complies with the Charter, helping to identify areas of company engagement and reviewing the external service providers who provide ESG data.  

Once the universe has been defined using the above steps, the Fund applies Alphinity's investment philosophy and process that seeks quality, undervalued companies in or about to enter an earnings upgrade cycle, using its process combining Fundamental and Quantitative research.

The result is a balanced portfolio of 35-55 companies with attractive investment fundamentals and prospects. Alphinity does not identify with any particular investment style as our approach has proven successful through a number of different market cycles, although the Alphinity process may have a slight bias towards growth.