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BetaShares Australian Sustainability Leaders ETF (FAIR)

About this Fund

Fund Detail

PDS https://informedinvestor.com.au/view/pds/100902-2023-03-17-02:19.pdf
FUND MANAGER BetaShares Capital
ASX Code FAIR*
APIR
ASSET CLASS EXCHANGE TRADED FUNDS
INVESTMENT STYLE The Fund invests in a portfolio of small company shares listed on the ASX.
INVESTMENT PROFILE The Fund aims to provide investors with capital growth and income and to outperform the Benchmark over the medium to long term (after fees and expenses).
CURRENCY MANAGEMENT Unhedged
INCEPTION DATE 27-11-2017
BENCHMARK Nasdaq Future Australian Sustainability Leaders Index
FUND SIZE Nasdaq Future Australian Sustainability Leaders Index
DISTRIBUTION FREQUENCY Half-yearly
NO. OF HOLDINGS 50-100
FEES 0.39% p.a.
STRUCTURE

Benefits

Benefits

Benefits of investing in the BetaShares Australian Sustainability Leaders ETF

  • Responsible Investing - obtain exposure to the Australian sharemarket in a way that gives effect to environmental, social and ethical considerations
  • Diversification - with a single trade, investors can get exposure to a diversified portfolio of sustainable, ethical Australian companies
  • Cost Effective - Fund tracks the performance of an index (no active manager' fees)
  • Transparent - portfolio holdings, value of the Fund's assets and net asset value per unit available daily on our website
  • Liquidity - available to trade on the ASX like any share

RISK LEVEL
INVESTOR SUITABILITY

Risks

Title
Detail

Key Features

About the Fund

  • Provides simple, cost-effective and transparent exposure to a portfolio of sustainable, ethical Australian companies.
  • The Fund owns stocks that have passed eligibility screens designed to exclude companies with direct or significant exposure to the fossil fuel industry or engaged in other activities deemed inconsistent with responsible investment considerations. The Fund's methodology also preferences companies classified as "Sustainability Leaders due to their involvement in sustainable business activities.
  • Eligibility exclusion screens are applied to remove companies with material exposure to: fossil fuel, gambling, tobacco, armaments, uranium/nuclear energy, destruction of valuable environments, animal cruelty, chemicals of concern, mandatory detention of asylum seekers, alcohol, junk foods, pornography, recent significant fines/convictions, human rights & supply chain concerns, lack of gender diversity at the board level
  • "Sustainability Leaders are selected based on a number of criteria including those companies with more than 20% revenue derived from a number of specified industries, including renewable energy; energy efficiency; water efficiency; recycling; waste remediation; healthy foods and nutrition products; sustainability certified products and services, amongst others

Investment objective

The Fund aims to track the performance of an index (before fees and expenses) that provides exposure to Australian companies that have been screened to preference companies engaged in sustainable business activities and to avoid companies engaged in activities deemed inconsistent with responsible investment considerations.

How to use this ETF in your portfolio

  1. The Fund can be used to implement a variety of investment strategies. For example:
  2. A core component of an Australian equities allocation providing transparency and diversification benefits in addition to being consistent with ethical and sustainability objectives
  3. Tactical exposure to Australian equities

Mandate

How we invest your money

In seeking to achieve the investment objective, the Responsible Entity will employ a passive management approach designed to track the performance of the Index, before fees and expenses.

The Fund will generally invest in the securities that comprise the Index in proportion to the weightings of the securities in the Index. This is known as a "full replication strategy. As far as practicable, the timing and nature of any changes to the composition of the Fund's investments will generally correspond with the timing and nature of changes to the Index.

In a variety of circumstances, however, the holdings of the Fund may not exactly replicate the Index. For example, it may not be possible or practical to do so in some circumstances, such as where investment restrictions apply which would prevent direct investment in a particular security. The Fund, from time to time, may not hold all of the securities comprising the Index and may hold securities in weightings which differ from the Index.

Investors will be able to regularly compare the performance of the Fund against the performance of the Index via the BetaShares website at www.betashares.com.au.

The Fund may hold exchange-traded derivatives contracts from time to time (e.g. futures contracts) and other investments that do not form part of the Index where this may help to achieve the Fund's investment objective. For example, exchange-traded derivatives may be used where direct investment in a particular security or securities is not possible or practical, or to obtain an investment exposure without physically buying or selling the underlying asset. Derivatives will only be used in limited circumstances and will not be used to leverage the Fund.

As at the date of the PDS, the Responsible Entity does not intend to engage in securities lending in connection with the Fund, although it may do so in the future provided that any such change is notified in advance to investors and potential investors via a supplementary or new PDS accessible through the ASX Market Announcements Platform.

For information on the Index and stock screening criteria, please see section 2 of the PDS.