Responsible Investing Optimisation

Understanding In Three Easy Steps

ONE

References to Responsible Investing (“RI”), have until now remained highly subjective, unenforceable and nebulous – they have also been non-binding and have no moral or legal defining criteria or groundings.

RI has been viewed as the practice of investing that intends to have positive Environment, Social or Governance (“ESG”) impact, even though investors should keep in mind that they remain investments, which are exposed to all the stereotypical opportunities and risks that confront any other investment categorisation.

This vague and unbinding practice is commonly referred to as a “Responsible Investing Policy” by fund and wealth managers, despite the fact a ‘policy’ is only a set of ideas or intentions.

TWO

Recognising this, Australian Standfirst redesigns Responsible Investing by deploying an Optimisation protocol across three very different but important stages:

1. Framework Optimisation
2. Core Optimisation
3. Tail Optimisation

THREE

Once deployed, the RI Optimisation protocol retains a practical approach to RI, whilst accepting that elevated ESG ideals today are no longer niceties but are imperatives for all of us from now on.

Australian Standfirst is the first active fund manager to integrate ESG into our benchmark, which will publicly hold us to account and elevate ESG as an enforceable performance requirement:
Announcing the S&P Global LargeMidCap Ex-Australia and New Zealand ESG and Green Bond TR 70/30 Monthly Blend Index.

The S&P Blend Index utilises an ESG scoring methodology, overseen by S&P DJI’s governance group and calculated by SAM, a unit of RobecoSAM, recognised since 1995, as the preeminent global investment specialist focused exclusively on Sustainable Investing.

Furthermore, RI is optimised throughout our global macroeconomic top-to-bottom process and places RI equally alongside thoughtful due diligence, risk-first deep research and tactically proactive prescient investing.

It should be noted that smarter investing embraces sustainability and wherever one stands on global warming or climate change, everyone can agree that outmoded practices can be improved and that a shift towards better efficiencies, smarter sciences and more innovative norms are now the better way forward.

Download Australian Standfirst’s Responsible Investing Optimisation PDF to find out more

The following is included at the request of Standard & Poor’s.

The “S&P Global LargeMidCap Ex-Australia and New Zealand ESG TR and S&P Green Bond AUD TR 70/30 Monthly Blend Index” is a product of S&P Dow Jones Indices LLC or its affiliates (“SPDJI”) and RobecoSAM AG, and has been licensed for use by Australian Standfirst Funds Management Ltd (AFSL 510315). Standard & Poor’s® and S&P® are registered trademarks of Standard & Poor’s Financial Services LLC (“S&P”); Dow Jones® is a registered trademark of Dow Jones Trademark Holdings LLC (“Dow Jones”); “RobecoSAM” are trademarks of the RobecoSAM AG and these trademarks have been licensed for use by SPDJI and sublicensed for certain purposes by Australian Standfirst Funds Management Ltd (AFSL 510315). It is not possible to invest directly in an index. Australian Standfirst Global Core Fund is not sponsored, endorsed, sold or promoted by SPDJI, Dow Jones, S&P, any of their respective affiliates (collectively, “S&P Dow Jones Indices”) or RobecoSAM AG. Neither S&P Dow Jones Indices nor RobecoSAM AG make any representation or warranty, express or implied, to the owners of the Australian Standfirst Global Core Fund or any member of the public regarding the advisability of investing in securities generally or in Australian Standfirst Global Core Fund particularly or the ability of the S&P Global LargeMidCap Ex-Australia and New Zealand ESG TR and S&P Green Bond AUD TR 70/30 Monthly Blend Index to track general market performance. Past performance of an index is not an indication or guarantee of future results. S&P Dow Jones Indices’ and RobecoSAM AG only relationship to Australian Standfirst Funds Management Ltd (AFSL 510315) with respect to the S&P Global LargeMidCap Ex-Australia and New Zealand ESG TR and S&P Green Bond AUD TR 70/30 Monthly Blend Index is the licensing of the Index and certain trademarks, service marks and/or trade names of S&P Dow Jones Indices and/or its licensors. The S&P Global LargeMidCap Ex-Australia and New Zealand ESG TR and S&P Green Bond AUD TR 70/30 Monthly Blend Index is determined, composed and calculated by S&P Dow Jones Indices or RobecoSAM AG without regard to Australian Standfirst Funds Management Ltd (AFSL 510315 or the Australian Standfirst Global Core Fund. S&P Dow Jones Indices and RobecoSAM AG have no obligation to take the needs of Australian Standfirst Funds Management Ltd (AFSL 510315) or the owners of Australian Standfirst Global Core Fund into consideration in determining, composing or calculating the S&P Global LargeMidCap Ex-Australia and New Zealand ESG TR and S&P Green Bond AUD TR 70/30 Monthly Blend Index. Neither S&P Dow Jones Indices nor RobecoSAM AG are responsible for and have not participated in the determination of the prices, and amount of Australian Standfirst Global Core Fund or the timing of the issuance or sale of Australian Standfirst Global Core Fund or in the determination or calculation of the equation by which Australian Standfirst Global Core Fund is to be converted into cash, surrendered or redeemed, as the case may be. S&P Dow Jones Indices and RobecoSAM AG have no obligation or liability in connection with the administration, marketing or trading of Australian Standfirst Global Core Fund. There is no assurance that investment products based on the S&P Global LargeMidCap Ex-Australia and New Zealand ESG TR and S&P Green Bond AUD TR 70/30 Monthly Blend Index will accurately track index performance or provide positive investment returns. S&P Dow Jones Indices LLC is not an investment or tax advisor. A tax advisor should be consulted to evaluate the impact of any tax-exempt securities on portfolios and the tax consequences of making any particular investment decision. Inclusion of a security within an index is not a recommendation by S&P Dow Jones Indices to buy, sell, or hold such security, nor is it considered to be investment advice.

Neither S&P Dow Jones indices nor third party licensor guarantees the adequacy, accuracy, timeliness and/or the completeness of the S&P Global LargeMidCap Ex-Australia and New Zealand ESG TR and S&P Green Bond AUD TR 70/30 Monthly Blend Index or any data related thereto or any communication, including but not limited to, oral or written communication (including electronic communications) with respect thereto. S&P Dow Jones Indices and RobecoSAM AG shall not be subject to any damages or liability for any errors, omissions, or delays therein. S&P Dow Jones Indices and RobecoSAM AG makes no express or implied warranties, and expressly disclaims all warranties, of merchantability or fitness for a particular purpose or use or as to results to be obtained by Australian Standfirst Funds Management Ltd (AFSL 510315), owners of the Australian Standfirst Global Core Fund, or any other person or entity from the use of the S&P Global LargeMidCap Ex-Australia and New Zealand ESG TR and S&P Green Bond AUD TR 70/30 Monthly Blend Index or with respect to any data related thereto. Without limiting any of the foregoing, in no event whatsoever shall S&P Dow Jones Indices or RobecoSAM AG be liable for any indirect, special, incidental, punitive, or consequential damages including but not limited to, loss of profits, trading losses, lost time or goodwill, even if they have been advised of the possiblity of such damages, whether in contract, tort, strict liability, or otherwise. There are no third party beneficiaries of any agreements or arrangements between S&P Dow Jones Indices and Australian Standfirst Funds Management Ltd (AFSL 510315), other than the licensors of S&P Dow Jones Indices.