Alphinity Sustainable Share Fund

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About this Fund

Fund Detail

PDS https://informedinvestor.com.au/view/pds/100281-2023-04-10-02:18.pdf
FUND MANAGER Alphinity Investment Management
ASX Code
INVESTMENT STYLE The Fund provides a diversified portfolio of Australian stocks listed on the ASX that have strong ESG characteristics and, where possible, contribute towards the advancement of the UN Sustainable Development Goals (SDG) agenda.
INVESTMENT PROFILE The Fund aims to outperform the benchmark after costs and over rolling five year periods.
BENCHMARK S&P/ASX 300 Accumulation Index
FUND SIZE S&P/ASX 300 Accumulation Index
FEES 0.95% p.a. of the net asset value of the Fund



Benefits of investing in the Alphinity Sustainable Share Fund

  • Sustainable investing: a portfolio of Australian stocks that promote sustainable development and social responsibility.
  • Active management: investments are actively managed to focus on generating capital growth.
  • Experienced investment team: access to investment professionals who specialise in Australian equities.
  • Robust investment process: application of Alphinity's comprehensive investment approach that has proven successful across different market cycles.
  • Returns: aims to provide consistent risk-adjusted returns across different market cycles.
  • Capital growth: potential for capital growth through the Fund's exposure to Australian investments.

Risk level

High-Very High (SRM 6)

Investor suitability

The Fund is intended to be suitable for investors looking to invest in companies that promote sustainable development and social responsibility at the same time as offering attractive prospective returns. Investors should have an investment horizon of at least five years and be comfortable with high levels of volatility, including the possibility of periods of negative returns.




Key Features

About the Fund

The Fund is managed by Alphinity and seeks to invest in sustainable companies that have the capacity to make a positive impact on society in areas of economic, environmental and social development. Specifically, the Fund will target companies which contribute toward the advancement of the UN Sustainable Development Goals (SDG) agenda, have strong ESG characteristics and display appealing investment characteristics.

The Fund aims to be invested across different industries and sectors in order to meet the fund's investment objectives in a risk-controlled manner. The Fund will utilise Alphinity's unique process of seeking sustainable, undervalued companies in or about to enter an earnings upgrade cycle.

Investment approach

Alphinity is an active, core Australian equities manager that believes a company's earnings ultimately will drive its share price over time. Alphinity believe the market is typically inefficient at accurately pricing future consequences of new information that will affect company earnings, therefore clearly identifiable characteristics exist for companies whose earnings ability is likely to be under (or over) estimated by the market, allowing an investor to exploit this inefficiency to create outperformance.

Alphinity's investment approach is based on a combination of strong fundamental bottom-up research and targeted quantitative inputs aimed specifically at identifying mispriced companies likely to deliver earnings in excess of those expected by the market. The combined output of this fundamental and quantitative research is brought together in Alphinity's proprietary Composite Research Model (CRM).

The CRM is used throughout the investment process and enables the investment team to objectively compare companies across, as well as within, sectors in addition to identifying research priorities, providing both buy' and sell' signals and helping to construct portfolios that aim to offer a high level of return for a given level of risk.


How we invest your money

Investment universe and portfolio construction

The investment universe is comprised of stocks listed on the S&P/ASX 300. To be eligible for inclusion in the Fund, companies must pass a set of criteria which include generating a high proportion of revenue in activities compatible with the Fund's Sustainable Charter*, along with being within the highest ranking (top 60%) ESG and lowest controversy companies as defined by the third party ESG provider(s) and the ESG compliance committee with independent sustainability experts.

The Fund can invest in listed equity securities or hybrid equity securities such as convertible notes, redeemable preference shares, partly paid shares and unlisted securities provided these are expected to list within 6 months of purchase. It can also enter into underwriting agreements relating to shares able to be held by the Fund provided there are sufficient liquid assets in the Fund to cover such obligations. Alphinity does not intend to gear the Fund through the use of derivatives.

The Fund aims to be fully invested, with a final portfolio, made up of between 35 and 55 companies, selected based on their sustainability, CRM score and the fundamental analysis by the investment team. A committee with independent sustainability experts support this process. Portfolio construction Guidelines limit the Fund's exposure to any one company or sector.

*The Fund's Sustainable Charter is available at www.fidante.com.au/ASSF_Sustainable_Charter.

Strategic asset allocation ranges**

(Asset class: Min - Max)

  • Securities: 90% - 100%
  • Cash: 0% - 10%

**These are asset allocation ranges for the Fund. If market movements, investments into or withdrawals from the Fund, or changes in the nature of an investment, cause the Fund to move outside these ranges, or a limit set out in this PDS, this will be addressed by us or Alphinity as soon as reasonably practicable.