PROFIT FROM YOUR PRINCIPLES

Transcription

1 PROFIT FROM YOUR PRINCIPLES BETASHARES GLOBAL SUSTAINABILITY LEADERS ETF (ASX: ETHI) BETASHARES AUSTRALIAN SUSTAINABILITY LEADERS ETF (ASX: FAIR)

2 The transition away from polluting industries towards innovative, ethical and sustainable companies is well under way. And, as such, investors are becoming increasingly determined to invest in a way that aligns with their values. With sustainable investing, investors believe they can construct and diversify their portfolio in a way that contributes to improvements in environmental, social and corporate governance (ESG) activity without compromising on competitive investment returns.

3 Access a diversified portfolio of sustainable companies in one ASX trade With BetaShares range of Ethical ETFs, Australian investors can easily invest in a diversified portfolio of sustainable, ethical companies, in a single, cost-effective trade whether the focus is on obtaining Australian or global exposure. Two true-to-label socially responsible investment options from leading Australian ETF Manager, BetaShares: International Equities BetaShares Global Sustainability Leaders ETF (ASX Code: ETHI) Access to a diversified portfolio of 100 ethical and sustainable companies from around the globe Australian Equities BetaShares Australian Sustainability Leaders ETF (ASX Code: FAIR) Access to a diversified portfolio of ethical and sustainable Australian companies Key Facts BetaShares Global Sustainability Leaders ETF (ASX Code: ETHI) ASX Code ETHI ASX Code FAIR Exposure A diversified portfolio of 100 global (ex-australia) companies that are involved with ethical and sustainable business activities Management costs Examples of holdings How to invest BetaShares Australian Sustainability Leaders ETF (ASX Code: FAIR) Exposure 0.59% p.a Management costs First Solar Inc, Tesla Motors Inc, SunPower Buy or sell ETHI with your online brokerage account using the ticker code ETHI, or speak with a financial planner. Examples of holdings How to invest A diversified portfolio of Australian companies screened to preference those engaged in sustainable business activities 0.49% p.a ResMed, Bendigo Adelaide Bank, Mirvac Group. FAIR does not invest in any of the Big 4 Banks, or large Australian mining companies. Buy or sell FAIR with your online brokerage account using the ticker code FAIR, or speak with a financial planner. Traditionally, global ethical and ESG investment funds available to Australian investors have been largely focused on small and mid-cap stocks, often with significant overweights. Profit From Your Principles BetaShares 3

4 The screening process: What s in? What s out? ETHI and FAIR were the first ETFs in Australia to combine a positive climate leadership screen with a broad set of ESG criteria, offering investors a true to label, sustainable and socially responsible option. Both Funds meet some of the industry s most stringent environmental, social and governance (ESG) screens that are designed to exclude businesses engaged in activities deemed inconsistent with responsible investment considerations. BetaShares Global Sustainability Leaders ETF (ASX: ETHI) Large Cap universe Climate Leaders Socially & environmentally acceptable ETHI s qualified portfolio of 100 companies Companies are selected from developed markets and must meet market cap and liquidity requirements Companies either have a carbon impact at least 60% better than their industry s average or are engaged in activities that can help reduce carbon use by other industries No fossil fuel producers No companies significantly engaged in armaments, gambling, alcohol or junk foods No companies with human rights or supply chain issues Other exclusions 4 BetaShares Profit From Your Principles

5 Examples of negative ESG activity screened out: Fossil fuels, gambling, tobacco, armaments, uranium and nuclear energy, destruction of valuable environments, Animal cruelty, chemicals of concern, mandatory detention of asylum seekers, alcohol, junk foods, pornography, human rights and supply chain concerns. BetaShares Australian Sustainability Leaders ETF (ASX: FAIR) Starting universe of ASX listed securities Fossil fuel screen applied Socially & environmentally acceptable Listed on the Australian Securities Exchange Must meet minimum market cap and liquidity requirements Removes companies with direct or indirect involvement in the fossil fuels, and those with particularly high use of fossil fuels. Sustainability Leaders selected FAIR s portfolio of qualified Australian companies Broad exclusion screens to avoid companies engaged in activities deemed inconsistent with ESG investment objectives (e.g. gambling, tobacco and animal cruelty) Sustainability Leaders are then identified from the remaining universe based on their involvement in sustainable business activities (e.g. renewable energy, water efficiency etc) Companies identified as Sustainability Leaders are given preference in the Index Profit From Your Principles BetaShares 5

6 Sustainable investing is compatible with the objective of achieving competitive returns A concern about socially responsible investing is that there is a premium to be paid for being socially responsible that necessarily diminishes investment returns. The indices which both ETHI and FAIR aim to track have historically tended to show superior longer-term performance compared to the major equity benchmarks. For latest performance information visit betashares.com.au Benefits of ETHI and FAIR ETHI and FAIR aim to provide socially responsible investors important benefits: Responsible and ESG focused Obtain investment exposure in a way that gives effect to environmental, social and ethical considerations Diversification In one simple ASX trade, investors gain exposure to a diversified portfolio of Australian or global shares Transparency Investors can view ETHI & FAIR s portfolio holdings, performance information and net asset value daily on our website Low cost ETHI & FAIR both aim to track the performance of an index, so there are no active manager fees to worry about. ETHI s management costs are 0.59% p.a or just $59 for every $10,000 invested. FAIR s management costs are 0.49% p.a, or just $49 for every $10,000 invested No W-8 BEN forms and no US estate tax implications for investors Simplified tax administration, unlike cross-listed alternatives Liquidity Available to trade on the ASX like any share Applying ETHI and FAIR to an investment portfolio BetaShares socially responsible ETFs can be used as a component of a core equities allocation, providing transparency and diversification benefits in addition to being consistent with ethical and sustainable objectives. 6 BetaShares Profit From Your Principles

7 Exposure limit guidelines The following exposure limit guidelines are applied to the portfolios: Industry/Activity Exposure Limit Guidelines (% of total revenue) Explanatory notes Fossil Fuels direct 0% Companies which have fossil fuel reserves, fossil fuel infrastructure, or involved in the mining, extraction, burning of fossil fuels Fossil Fuel indirect 5% for products and services. (not applicable for finance) ETHI - Companies which provide products, services or finance which is specific to and significant for the fossil fuel industry, as well as companies with very high use of fossil fuels. FAIR - Companies which provide products, services or finance which is specific to and significant for the fossil fuel industry, as well as companies with very high use of fossil fuels *. * Except where more than 50% of company revenue is derived from renewable energy, resource efficiency, environmental solutions or energy efficiency products and services. Gambling Tobacco Uranium and Nuclear Energy Armaments and Militarism Destruction of Valuable Environments 0% for casinos and manufacture of gaming products 5% for distribution of gambling products 0% for production or manufacture 5% for sale of tobacco products 0% for uranium mining and nuclear energy 5% for products and services to nuclear energy 0% for manufacture of armaments and weapons 5% for specific and significant services to military and armaments manufacture 0% Companies which have direct negative impact on recognised World Heritage and High Conservation areas Animal Cruelty 0% Chemicals of Concern 0% Companies involved in live animal export, animal testing for cosmetic purposes, factory farming, or controversial animal products (ivory, foie gras etc) Companies which produce or use chemicals of concern recognised by UN Environmental Program, Gold and Silver miners. Mandatory Detention of Asylum Seekers 0% Companies which operate detention centres. Alcohol 20% Companies which produce or sell alcohol. Junk Foods 33% Companies which produce or sell junk foods. Pornography Human Rights 0% for production of pornography 5% for sale of pornography n/a Evidence of human rights violations including child labour, forced labour, sweatshops, bribery and corruption. Board Diversity (FAIR only) n/a No women on board of directors Payday Lending (FAIR only) 0% Learn more For more information on any of our Funds, please contact us for further information. Contact (within Australia) (outside Australia) info@betashares.com.au Profit From Your Principles BetaShares 7

8 Learn more about BetaShares BetaShares is a leading manager of ETFs and other Funds that are traded on the Australian Securities Exchange ( ASX ). Our aim is to provide intelligent investment solutions for Australian investors. Visit our website and explore our full range of Funds that can help you achieve your financial objectives Important: An investment in any BetaShares Exchange Traded Fund ( ETF ) is subject to investment risk including possible delays in repayment and loss of income and principal invested. Neither BetaShares Capital Ltd ( BetaShares ) nor BetaShares Holdings Pty Ltd guarantees the performance of any ETF or the repayment of capital or any particular rate of return. Past performance is not an indication of future performance. This information is prepared by BetaShares Capital Ltd (ACN AFS licence ) ( BetaShares ), the product issuer. It is general information only and does not take into account your objectives, financial situation or needs so it may not be appropriate for you. Before making an investment decision you should consider the product disclosure statement ( PDS ) and your circumstances and obtain financial advice. The PDS is available at or by calling (within Australia) or (outside Australia). Only investors who are authorised as trading participants under the Australian Securities Exchange (ASX) Operating Rules may invest through the PDS. Other investors may buy units in the ETF on the ASX through a stockbroker, financial adviser or online broker. This document does not constitute an offer of, or an invitation to purchase or subscribe for units or to adopt any particular investment strategy. This information was prepared in good faith and to the extent permitted by law BetaShares accepts no liability for any errors or omissions or loss from reliance on any of it. BetaShares and Back Your View are registered trademarks of BetaShares Holdings Pty Ltd. NASDAQ, OMX, NASDAQ OMX, Nasdaq Future Australian Sustainability Leaders Index and Nasdaq Future Global Sustainability Leaders Index, are registered trademarks of Nasdaq, Inc. (which with its affiliates is referred to as the Corporations ) and are licensed for use by BetaShares. The Funds have not been passed on by the Corporations as to their legality or suitability. The Funds are not issued, endorsed, sold, or promoted by the Corporations. THE CORPORATIONS MAKE NO WARRANTIES AND BEAR NO LIABILITY WITH RESPECT TO THE FUNDS. ETHI and FAIR have been certified by RIAA according to the strict operational and disclosure practices required under the Responsible Investment Certification Program. See for details. 1. The Responsible Investment Certification Program does not constitute financial product advice. Neither the Certification Symbol nor RIAA recommends to any person that any financial product is a suitable investment or that returns are guaranteed. Appropriate professional advice should be sought prior to making an investment decision. RIAA does not hold an Australian Financial Services Licence.