Overview
Investment Objective
The Fund seeks to capture the performance of Australia's
Sustainability Leaders. SAM believes that, over
time, these companies will outperform the broader
Australian equity market.
The Selection Process
Drawing on a
selection universe of Australia's 200 largest
listed companies, that meet liquidity requirements
and have a primary listing on the Australian Stock
Exchange, SAM analysts seek to identify the companies
that, in terms of their sustainability performance,
belong to the top third (approximately) in their
industry.
The portfolio construction and maintenance rules
are similar to those developed by SAM for the
DJSI World. A number of parameters were changed
in order to select the top third (approximately)
of the leading sustainability companies in each
industry. The assessment and rebalancing cycle
is in line with the DJSI World in order to best
use the information about the larger Australian
companies that overlap the two universes. An additional
rule was introduced to control the concentration
of the Fund's investment into very large capitalisation
stocks. The rules are modified from time to time
to refine the selection process.
The 2002 universe creation, portfolio construction
and sustainability selection process results in
a universe with 21 industry sectors, 200 potential
members and 68 sustainability leaders. The universe
and portfolio are highlighted in this table, disaggregated
by the 21 SAM Australia sustainability industry
sectors (portfolio members, i.e. sustainability
leaders, are in yellow).
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