The Fund is not designed for investors who are looking for funds that meet specific environmental, social and governance (ESG) goals. ESG Integration (as defined below) does not imply that the Fund is marketed or authorised as an ESG product in Australia.
The Responsible Entity does not itself take into account labour standards and environmental, social or governance considerations for the purposes of selecting, retaining or realising investments as the Responsible Entity has delegated investment decisions for the Fund to the Investment Manager. Whilst the factors such as labour standards and environmental, social or governance are not the sole basis on which the Investment Manager makes investment decisions, the Investment Manager does integrate labour, environmental, social and ethical considerations in the investment process, by applying a higher discount rate when valuing the company’s future cash flows if the Investment Manager identifies concerns with a company’s labour, environmental, social and ethical records and / or prospects, assessed in line with Loftus Peak’s Responsible Investment Policy (ESG Integration). This has the effect of lowering that company’s prospective valuation and results in either the company being excluded from investment or included at a lower weight than otherwise.
The Fund has an objective of entirely excluding investments in companies that manufacture tobacco or tobacco-related products and controversial weapons1 (as set out in Loftus Peak’s Responsible Investment Policy, and which includes nuclear weapons). In addition, the Investment Manager will avoid investing in sectors or companies whose activities may be considered harmful to the environment and / or society. This will include, but is not limited to, specific companies whose business activities generate more than 5% of revenue from adult entertainment, alcohol, animal cruelty, fossil fuels, gambling, logging old growth forests, nuclear power predatory lending, selling and/or supplying tobacco and the manufacture and/or supply of weapons.

The Orca Global Disruption Fund follows the same strategy as the Loftus Peak Global Disruption Active ETF, investing in some of the best and fastest-growing disruptive companies in the world. The portfolio comprises companies that we believe are driving change across all industries globally, constructed on the basis of strict criteria and included at carefully determined valuations.