EQT Responsible Investment Global Share Fund - Class B

The Fund offers a diversified investment solution focused on international equities, aiming to achieve long-term capital growth. The Fund invests in a select group of actively managed global equity funds that prioritize responsible investment principles, such as environmental, social, and governance (ESG) factors.

By employing a multi-manager approach, the Fund seeks to benefit from the expertise of multiple investment managers and achieve diversification across various investment styles and geographic regions. The Fund is certified by the Responsible Investment Association Australasia (RIAA), further emphasizing its commitment to sustainable investing.

The Fund's investment strategy prioritizes long-term performance, with a focus on selecting managers who have a proven track record of delivering consistent returns over various market conditions. By investing in funds with a strong emphasis on responsible investing, the Fund aims to generate positive financial returns while contributing to a more sustainable future.

• Multi-manager approach offering greater diversification opportunities given broader global investment set. 
• The Fund is certified by the Responsible Investment Association Australasia (RIAA). 
• Exposure to international equities with the potential for long-term capital growth.
• Suitable for ethical investors given the additional selection criteria of investment managers with responsible investment practices. 
• Managers that have a demonstrated process in selecting sustainable companies that have a net positive contribution to one or more of the United Nations’ Sustainable Development Goals (SDGs) are viewed favourably in the manager selection process
• A style unaware portfolio that seeks to add value and generate consistent returns over all market cycles.
• A dedicated management investment committee that will oversee the Fund’s investment strategy.

Investment Objective 

The Fund aims to outperform the Benchmark over rolling 5-year periods, after taking into account fees and expenses.

The Fund gains exposure to a wide range of international share markets by investing into international equity managed funds that apply a responsible investing lens to their process. Equity Trustees, on behalf of the Fund, aims to invest in a small number of funds with a minimal holding in cash.

Equity Trustees source and actively select investment managers utilising a robust internal research and due diligence process. Our manager selection framework includes four key stages of assessment:

• Identify a pool of managers within the desired asset class.
• Screen the universe based on a range of quantitative factors.
• Assess managers on their responsible investment practices, including their approach to policy and governance, ESG integration, negative screening, sustainable investing, and stewardship. The result of this process forms the basis for shortlisting.
• Assessment of the short list of managers based on a range of qualitative
  factors.

The investment approach is typically style unaware as it seeks to add value by selecting investment managers based on the conviction that their investment methodology can generate consistent returns over all market cycles. Further consideration is also given to sector, regional and country diversification as well as the existing number of underlying funds and investment managers.

In selecting the underlying managed funds, Equity Trustees aims to ensure that the Fund’s exposure to different countries, investment styles and investment managers is appropriately diversified in order to reduce Volatility of investments returns.

• International equity managed funds 90-100%
• Cash 0-10%

The Fund may directly use options, futures and other Derivatives (consistent with the Corporations Act restrictions for common funds). Derivatives are not used speculatively and, when used, Equity Trustees ensures the Fund can pay all the obligations which might result from an exposure to Derivative investments. Derivatives may also be used by the underlying managed funds that the Fund invests in.

The underlying managed funds are managed by a variety of investment managers. Equity Trustees regularly reviews these investment managers and may change them (and the underlying funds) at any time without prior notice to investors. Equity Trustees regularly monitors and evaluates underlying investment managers using the following criteria:

• depth, quality, calibre and experience of the investment team;
• investment philosophy, style and process;
• performance track record;
• risk management;
• the extent to which the performance of a particular underlying investment manager 's strategy correlates with that of other underlying investment manager strategies; and
• the extent to which the manager has a consistent and transparent approach and framework for incorporating responsible investment practices through their investment process. Please see ‘Responsible Investment Considerations’ section for further details.

The current Manager line-up includes:

Vontobel Global Equity Fund, Alphinity Global Sustainable Equity Fund, Orbis Global Equity Fund and Cooper Investors Global Endowment Fund.  

Investment Process - Disciplined Approach to Identify Quality Managers