How we evaluate products
Responsible Investment strategies, processes, practices and disclosures are assessed against the eight criteria for product certification in the Responsible Investment Standard and accompanying Guidance and Assessment Notes.
What this symbol means
General certification: This Symbol signifies that a product or service offers an investment style that takes into account environmental, social, governance or ethical considerations, and that it adheres to the operational and disclosure practices required under the Responsible Investment Certification Program for the category of Product.
Sustainable Plus classification: This Symbol signifies that a product or service has been certified and classified to offer an investment style that takes into account environmental, social, governance or ethical considerations, with embedded, measurable and reported sustainability objectives aligned with portfolio holdings and stewardship practices, adhering to the operational and disclosure practices required under the Responsible Investment Certification Program for the category of Product.
The content on this webpage is provided by Responsible Investment Association Australasia Ltd (ACN 641 046 666, AFSL 554110). For more information refer to our Financial Services Guide. Certain content provided may constitute a summary or extract from the offer document of a financial product. Any general advice has been provided without reference to your investment objectives, financial situation or needs. If the advice relates to the acquisition of a particular financial product for which an offer document (such as a product disclosure document) is available, you should obtain the offer document relating to the particular financial product and consider it before making any decision whether to acquire the product. Past performance does not necessarily indicate a financial products’ future performance. To obtain information tailored to your situation, contact a financial adviser.
Themes & Issues
Society
Renewable energy and energy efficiency
Included
No specific themes
Included
More sustainable companies
Included
Armaments
Fully avoided
Tobacco
Fully avoided
Fossil fuels
Partially avoided
Nuclear power
Partially avoided
Environment
Renewable energy and energy efficiency
Included
No specific themes
Included
More sustainable companies
Included
Armaments
Fully avoided
Tobacco
Fully avoided
Fossil fuels
Partially avoided
Nuclear power
Partially avoided
For RIAA’s definitions of the themes included and issues avoided, please view this guide . Product-specific exclusion criteria and practices may vary. You can find these by referring directly to the product provider.
Overview
Description
TheRussell Investments Sustainable Global Shares Fund is an enhanced passive /smart beta fund that uses a systematic portfolio construction approach,starting with the MSCI ACWI Index (NR), and invests directly in global shares,in both developed and emerging markets.
The Fundutilises our proprietary decarbonisation strategy which aims to achieve thefollowing relative to its benchmark (MSCI ACWI Index (NR):
- a 50%reduction in carbon emissions;
- a 50%reduction in carbon reserves;
- atargeted reduction in coal exposure (through the exclusion of companies thatderive more than 20% of their revenue from coal-related activities (iecompanies with more than 10% of their revenue derived from mining thermal coalor more than 10% of their power generation from coal);
- anincreased exposure to renewable energy; and
- maintainor improve the portfolio's overall ESG score.
Additionally,the Fund strategy incorporates additional exclusion criteria in relation tocompanies involved with tobacco, nuclear weapons/cluster munitions/antipersonnel mines, and uranium.
The Fundapplies asset, sector, industry and country constraints and minimises activeshare in order to deliver low tracking error (targeted at 0.5% p.a.).
TheFund's investment approach is sustainability themed in that it providesinvestors with a sustainable investment solution that supports the managementof climate change risk and the transition to a low carbon economy. In achievingthis outcome, the Fund considers the value and measure of carbon, green energyand environmental, social and governance (ESG) characteristics. Additionally,the Fund applies specific exclusions criteria in relation to coal, tobacco,nuclear weapons, and uranium that aligns with current responsible investmentmarket trends.it should be noted that the Fund's sustainability approach isintended to evolve and adapt over time in order to reflect changing marketconditions, albeit within a risk-controlled framework.
The Fund uses a hybridapproach to its investment / portfolio construction process, preserving thestrengths of each of the following common approaches to portfoliodecarbonisation - divestment, sector neutral reallocation and optimisation. Ourapproach includes optimisation, negative screens, negative and positive tiltsand integrates ESG factors (ESG integration).
We, the Responsible Investment Association Australasia, don't earn any commission from providers or products you switch to.
Themes & Issues
3
themes included
2
issues fully avoided
0
issues mostly avoided
2
issues partially avoided
Product Targets
Wholesale
Retail
Institutional
Certified Since
2017
Last date certified
March 21, 2023
Primary RI Strategy
Sustainability Themed, ESG Integration
Secondary RI Strategy