The Fund's investment strategy is to construct a high quality portfolio with exposure to primarily large cap Asian Companies using the Manager's distinctive high growth, high conviction and benchmark-independent investment approach.These Asian Companies are assessed in detail through disciplined,‘ bottom up’ Fundamental analysis. A unique, proprietary and multi-step approach to ESG is embedded throughout the investment process.

Ellerston Asia Growth Fund (Hedge Fund) (ASX:EAFZ) is a responsible investment for a number of reasons: (1) The Fund applies negative sectors screens and screens out stocks where ESG outcomes across a range of criteria are sub-standard. A 5% revenue threshold is applied.  -  Significant harm sectors including controversial weapons production and tobacco manufacturing are screened; as are other sectors including nuclear energy, coal, palm oil production, gambling and pornography. A 0% revenue threshold is used for significant harm sectors and a 5% revenue threshold is used for the other negatively screened sectors. (2) Our ESG criteria are embedded in the investment process and form an integral part of how the portfolio is constructed and managed.  (3) Ellerston Asia uses independent third party sources (primarily Sustianalytics), to compare the overall ESG risk of our portfolio and the carbon risk of our portfolio versus the benchmark to ensure that our portfolio has superior ESG outcomes. We also do an annual ESG audit to determine where the ESG risks in the portfolio lie. If required, changes are made to the portfolio investments and/or their weights based on measurement outcomes. (4) Ellerston Asia votes on resolutions where we have voting rights and the team consistently engages with companies on voting, disclosure and ESG issues. We measure whether our ESG engagement results in change. (5) We aim to be leaders in Asian focused ESG and consistently engage with investors and other stakeholders on ESG and responsible investing issues.