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
Green property
Included
Healthcare and medical products
Included
Social and sustainable infrastructure
Included
High scoring ESG companies
Included
More sustainable companies
Included
Armaments
Fully avoided
Tobacco
Fully avoided
Environment
Green property
Included
Healthcare and medical products
Included
Social and sustainable infrastructure
Included
High scoring ESG companies
Included
More sustainable companies
Included
Armaments
Fully avoided
Tobacco
Fully avoided
<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 investment process identifies mispriced securities through a high conviction and Environment, Social and Governance (‘ESG’) focused approach. The concentrated portfolio enables investment in the best positioned assets and sectors at any point in time.
Pengana believes each security has an underlying or intrinsic value and that securities become mispriced at times relative to their value and to each other. Such mispricing is due to irrational market behaviour driven by investor sentiment towards certain types of securities or sub sectors of the property market The Fund seeks to exploit such market inefficiencies by employing an active, value based investment style to capture the underlying cashflows generated from real estate assets and/or real estate businesses. As a result, we adopt a bottom up investment approach with thematic overlays to benefit from cyclical and structural changes whilst focusing on analysing the quality and potential cashflow for each security.
Pengana believes that responsible investing is important to generate long term sustainable returns. Incorporating ESG factors along-side financial measures provides a complete view of the risk/return characteristics of our property investments. ESG issues vary amongst asset type, life cycle phase, corporate structure and other company specific characteristics. Our approach is qualitative in that we engage with each company, through a proprietary questionnaire and follow up questioning, to understand the relevant issues. This information is used to rank each company with respect to E, S and G. The ranking scores are directly incorporated into the valuation ranking model with an overall weight of 30%.
Incorporating ESG factors does not significantly reduce the investable universe as most Australian
real estate companies rank well across the ESG matrix with high NABERS (National Australian Built
Environment Rating System) ratings and good corporate governance relative to global peers.
Labour standards are considered but not systematically taken into account in the selection, retention or realisation of investments.
Description
These issues are considered throughout the investment process as we identify, research and manage investment opportunities. They can be key elements when considering both investment return and risk mitigation. We consider ESG factors to the extent that they are relevant to a particular business and may have a material impact on its investment performance.
Our ESG research is conducted internally, allowing us to fully understand the issues as they relate to a particular company’s circumstances and to have meaningful debates with management about our concerns. Our findings are incorporated directly into our valuation model and can have a significant impact on a company’s rank relative to peers.
Details of the factors considered can be found in the Fund's ESG Policy.
We, the Responsible Investment Association Australasia, don't earn any commission from providers or products you switch to.
Themes & Issues
5
themes included
2
issues fully avoided
0
issues mostly avoided
0
issues partially avoided
Product Targets
Wholesale
Retail
Certified Since
Last date certified
July 13, 2023
Primary RI Strategy
ESG Integration
Secondary RI Strategy
Best in class screening