Simon O’Connor
The Altius Sustainable Bond Fund has been accredited by the Responsible Investment Association Australasia (RIAA) and is one of the first bond funds to be certified under its responsible investment program.
RIAA is the peak industry body representing responsible and ethical investors across Australia and New Zealand. It has more than 160 members who collectively manage at least $1 trillion globally in assets under management.
Simon O’Connor, chief executive officer of RIAA, said, “RIAA’s Responsible Investment Certification Program is aimed at helping investors of all kinds navigate towards investment options and financial advice that better match their investment beliefs and personal values.
“The responsible investment sector constitutes a growing force in the finance and capital markets of Australasia. More than half of the major superannuation funds and nine of the top 10 fund managers have committed to a more responsible approach to undertaking investments.”
The Fund was launched in December 2014. It is a diversified Australian fixed interest fund focused on investing in companies which conduct their business and apply capital responsibly, giving full consideration to a range of environmental, social and governance (ESG) issues.
Bill Bovingdon, chief investment officer of Altius Asset Management, said, “In a well-diversified portfolio, investors should have an exposure to bonds, providing diversification benefits when equities are underperforming.
“Unfortunately, there are limited investment options available to investors looking for an ESG managed fixed interest investment. Often investors use bank-issued hybrids as their main solution. However, hybrids include equity-like risks so lack defensive characteristics and do not offer a high level of diversification.
“The Fund offers investors the opportunity to access a diversified Australian fixed interest portfolio that aligns with investors’ personal and social values without compromising investment returns over the long term.”
Companies are excluded from the Fund’s investment universe if their primary business activity involves armaments, uranium, gambling, tobacco production, pornography, alcohol production, or production or sale of thermal coal.
The remaining investment universe is given a sustainability ranking. A company may be excluded from the investment universe if it is materially involved in causing or perpetuating injustice and suffering; infringing human rights; supporting oppressive regimes; animal testing for cosmetic purposes; having unacceptable environmental management practices; or having unacceptable occupational health and safety practices.
The Fund aims to outperform the better of the Bloomberg AusBond Composite Index* (the benchmark) by one percent per annum and the RBA cash rate through a cycle (before fees).
