Ethical Funds

Question 1

ETHI

Answer 1

Global Sustainability Leaders ETF

Question 2

FAIR

Answer 2

Australian Sustainability Leaders ETF

Question 3

ERTH

Answer 3

Climate Change Innovation ETF

Question 4

DBBF

Answer 4

Ethical Diversified Balanced ETF

Question 5

DGGF

Answer 5

Ethical Diversified Growth ETF

Question 6

DZZF

Answer 6

Ethical Diversified High Growth ETF

Question 7

GBND (curveball)

Answer 7

Sustainability Leaders Diversified Bond ETF (Currency Hedged)

Question 8

ETHI - Pitch

Answer 8

Ethically conscious investing is a growingly popular trend in investment portfolios.
ETHI provides exposure to (Up to 200) carefully screened portfolio of companies from a broad range of locations EX-AUSTRALIA.
- 0.59% p.a.
- Company classified as a ‘climate leader’
- True to Label (RIAA, RIC)
- Negative Screens (FF, Gambling etc.)
- Positive Screens (Top 1/3 in carbon efficiency/red.)
- 4% stock cap.

Question 9

FAIR - Pitch

Answer 9

Portfolio of (up to 110) AUS companies screened for significant FF exposure or engagement in activities inconsistent with responsible investment considerations. The companies are classified as “sustainability Leaders” based on their involvement in sustainable business activities.

Neg Screens - Gambling, Tobacco, Adult, Armaments…
Pos Screens - >20% revenue derived from renewables.
- Dark Green –> RIAA certified, approved by RIC.
- 4% Stock cap.
- 0.49% p.a.

Question 10

ERTH - Pitch

Answer 10

0.65% p.a. --> 100 leading global companies at the forefront of tackling climate and environmental challenges. These companies must derive >50% revenue from reduction/avoidance of CO2 emissions.
Selection based on 5 key categories:
- Renewable Energy
- Enabling Solutions
- Green Transport
- Water/Waste Solutions
- Sustainable Products

Neg. Screens –> FF, Alcohol/junk food, gambling etc.
Pos. Screens –> >50% revenue from “green revenue”

4% stock cap, 0.3% stock floor.

Question 11

ETHI - fees, index, dist., RB/RC, components

Answer 11

0.59% p.a.
NASDAQ Future Global Sustainability Leaders Index
Semi-Annual Distributions
Annually Rebalanced
<200 components.

Question 12

FAIR - Fees, Index, Dist., RB/RC, Components

Answer 12

0.49% p.a.
NASDAQ Future Australian Sustainability leaders GLR Index
Semi-Annual Distributions
Annually Rebalanced
<110 components

Question 13

ERTH - Fees, Index, Dist., RB/RC, Components

Answer 13

0.65% p.a.
Solactive Climate Change and Environmental Opportunities Index
Semi-Annual Distributions/Rebalancing
<100 components

Question 14

GBND - Fees, Index, Dist., RB/RC, Components

Answer 14

0.49% p.a.
Solactive Australian and Global Select Sustainability Leaders Bond TR Index - AUD Hedged.
Quarterly Distributions
Monthly Rebalancing
~460 components...

Question 15

GBND - Pitch

Answer 15

Portfolio of bonds issued by Governments, Corporations and Supranational bodies.

• All fixed-rate bonds
• Min. Investment Grade
• 50% AUD Bonds
• 50% International Bonds (EUR/USD)
  
  • -> 50% of total bonds must be GREEN BONDS

Neg. Screens - FF, Gambling, Armaments etc.
Pos. Screens - Green Bonds (As per the CBI)

• Sovereign/Aus State & Fed = 10% cap
• All other Issuers = 5% cap
• Overseen by RIC.

Question 16

DBBF - Summary

Answer 16

Ethical Diversified Balanced.
0.39% - quarterly distribution and annual rebalancing***

SAA 50/50 growth/defensive
ETHI - 30%
FAIR - 20%
GBND - 50%
- If weightings divert by >2%, trigger rebalancing.
Investment horizon of >5 years.
Medium risk tolerance (2-3y neg over 20 years).

Question 17

DGGF - Summary

Answer 17

Ethical Diversified Growth
0.39% - quarterly distribution and annual rebalancing***

SAA 70/30 growth/defensive.
ETHI - 28% (-2%)
FAIR - 42% (+22%)
GBND - 30% (-20%)
- If weightings divert by >2%, trigger rebalancing.
Investment horizon of >7 years.
Medium/high risk tolerance. (3-4y neg over 20 years).

Question 18

DZZF - Summary

Answer 18

Ethical Diversified High Growth
0.39% - quarterly distribution and annual rebalancing***

SAA 90/10 growth/defensive.
ETHI - 36% (+8%)
FAIR - 54% (+12%)
GBND - 10% (-20%)
- If weightings divert by >2%, trigger rebalancing.
Investment horizon of >7 years.
High risk tolerance (4-6y neg over 20 years).