How we evaluate products
Responsible Investment strategies, processes, practices and disclosures are assessed against the eight criteria for product certification in the Responsible Investment Standard and accompanying Guidance and Assessment Notes.
What this symbol means
General certification: This Symbol signifies that a product or service offers an investment style that takes into account environmental, social, governance or ethical considerations, and that it adheres to the operational and disclosure practices required under the Responsible Investment Certification Program for the category of Product.
<span class="text-size-xxsmall">The content on this webpage is provided by Responsible Investment Association Australasia Ltd (ACN 641 046 666, AFSL 554110). For more information refer to our Financial Services Guide. Certain content provided may constitute a summary or extract from the offer document of a financial product. Any general advice has been provided without reference to your investment objectives, financial situation or needs. If the advice relates to the acquisition of a particular financial product for which an offer document (such as a product disclosure document) is available, you should obtain the offer document relating to the particular financial product and consider it before making any decision whether to acquire the product. Past performance does not necessarily indicate a financial products’ future performance. To obtain information tailored to your situation, contact a financial adviser.</span>
Themes & Issues
Society
Environment
<span class="text-size-xxsmall">For RIAA’s definitions of the themes included and issues avoided, please view this guide. Product-specific exclusion criteria and practices may vary. You can find these by referring directly to the product provider.</span>
Overview
The Fund is unregistered managed scheme. It does not have any disclosure documents. The Fund is available to internal EQT clients only and has the Term sheet and board minutes for internal use only.
ESG factors and broader responsible investing principles are taken into consideration as part of the investment process in line with our Responsible Investment Policy. The responsible investment principles applied to the Fund’s investment management process include:
ESG Integration: ESG risks and opportunities, are incorporated into the investment decision making process to the extent they are assessed as having an impact the profitability or long-term sustainable value of a business.
Sustainable Investing: The Fund invests in companies that make a positive impact on society through the advancement of one of more of the Sustainable Development Goals (SDGs).
Engagement: The investment management team aim to engage with all companies directly invested in with the objective of better understanding the business, industry and material ESG risks an opportunities facing the company.
Proxy Voting: We intend to exercise all proxy voting rights in a way that furthers the interest of investors and maximises shareholder returns.
Negative screening: The Fund excludes investment in companies that generate more than 10% of revenues from business activities involved in the provision of gaming products/services; manufacture of alcoholic beverages; manufacture of tobacco products*; manufacture of military armaments*; and provision of adult entertainment.
* Equity Trustees Asset Management will not actively invest in manufacturers of tobacco, tobacco-based products, nicotine alternatives, controversial weapons (as defined by MSCI) including clustermunitions, landmines, biological / chemical weapons, depleted uranium weapons, blinding laser weapons, incendiary weapons, and/or non-detectable fragments and nuclear weapons.
Description
The Equity Trustees’ Charitable Screened Equities Common Fund No. 102 (CF102) invests in a portfolio of approximately 20 to 40 stocks selected through EQT Asset Management's (EQTAM) Quality at Reasonable Price (“QARP”) investments process.
The QARP process looks to identify companies with attractive quality, attractive industry structure, strong balance sheets, robust return on equity, substantial cash flows and good management. Understandably, companies with these characteristics are strongly sought after and rarely cheap. We look to access these companies at reasonable prices using metrics such as price to earnings, dividend yield and discounted cash flow valuations.
The decisions relating to investments within the Fund will be undertaken to explicitly value and optimize after tax returns through decisions around franking credits, and as such, investors in this Fund are expected to be predominantly tax exempt investors or investors on low marginal tax rates.
EQTAM has an experienced investment team which undertakes fundamental company research to identify these opportunities aided by proven proprietary screening tools. Responsible investing principles are integrated into the process, targeting companies with sound Environmental, Social and Governance (“ESG”) practices and where possible a demonstrated positive impact on economic, environmental, and social outcomes through the advancement of one or more of the United Nations Sustainable Development Goals (SDGs). A negative screen is applied to the Fund, excluding investments in companies that generate more than 10% of revenues from business activities involved in the :
- provision of gaming products/services;
- manufacture of alcoholic beverages;
- manufacture of tobacco products;
- manufacture of military armaments; and
- provision of adult entertainment.