Altius Sustainable Bond Fund

A diversified fixed interest fund designed to align with investors’ specific personal and social values without compromising returns over the long term.

Lonsec Innovation Award Winner 2016

Altius Sustainable Bond Fund

Lonsec does not issue, sell, guarantee or underwrite this financial product. Go to www.lonsec.com.au for details of its ratings criteria.

Lonsec 2016 Innovation Winner

About the fund

The Altius Sustainable Bond Fund is an Australian fixed interest fund that invests in companies which not only meet our investment return criteria, but also conduct their business and apply capital responsibly, giving full consideration to a range of environmental, social and governance (ESG) issues.

All well-balanced portfolios should have an allocation to bonds but investors looking for responsible investment choices in fixed income have few options available to them. As the market is increasingly considering ESG issues when investing in equities, we believe in applying a similar degree of scrutiny before buying bonds in corporations or governments engaging in unsustainable activities.

Australian Unity Funds Management Limited is the Responsible Entity for the Fund.

Fund information

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Fund performance

Fund Snapshot

APIR Code AUS0071AU
Minimum initial investment $5,000
Management fees 0.5681% p.a.
Estimated recoverable expenses 0.1045% of the net asset value of the Fund for each financial year ending 30 June
Performance fee Nil
Buy/Sell spread Nil

Performance

Total Return1 Benchmark* Active return
1 mth % -0.05 -0.39 0.34
3 mth % 0.73 0.69 0.03
6 mth % 1.59 1.50 0.09
1 yr % pa 1.30 0.90 0.40
Since Inception ‡ % pa 3.28 2.97 0.31

As at 30 June 2017

*Effective 1 July 2016, Benchmark is 50% Reserve Bank of Australia Cash Rate and 50% Bloomberg AusBond Composite 0+Yr Index and applied retrospectively for all periods.

1Total Return is calculated after fees and expenses and assumes the reinvestment of distributions. Past performance is not a reliable indicator of future performance.

‡ Inception date for performance calculation is 21 November 2014.

View Performance History

Unit Prices

Effective date 17 Aug 2017
Entry price $1.0118
Exit price $1.0118
View Unit Price History

Distributions

Frequency Quarterly
Period end 30 Jun 2017
Cents per unit 0.5974
Reinvestment price $1.0082
View Distribution History

Investment process

Altius employs an active and diversified strategy that aims to capture the upside of the bond market, while avoiding returns less than cash in a rising rate or deteriorating credit environment.

Crucial in today’s environment, the Fund has a flexible mandate that enables it to shift duration and sector exposures. The team invests with high conviction and is willing to take significant positions away from the benchmark.

Risk management is embedded in strategy formulation and is a central driver of our investment process.

Sustainable screening

A two-stage ethical overlay is employed to identify companies that are to be excluded from the Fund’s investable universe.

1. Negative screen - excludes issuers whose primary business activities involve:
  • Armaments
  • Uranium
  • Gambling
  • Tobacco production
  • Pornography
  • Alcohol production
  • Production or sale of thermal coal
Companies may also be excluded from the investment universe if, in the opinion of the Sustainability Advisory Committee, they are materially involved in certain practices, such as causing or perpetuating injustice and suffering, infringing human rights and supporting oppressive regimes.

2. Sustainability ranking - considers factors such as the environmental effects of the issuer, social consequences of their business and quality of Governance.

Full details of the Fund’s investment criteria are in the Product Disclosure Statement.

Sustainability advisory committee

The Altius Sustainability Advisory Committee is charged with using their combined knowledge of environmental, social and governance (ESG) issues, financial market expertise and insights to provide recommendations with respect to the investable universe of the Fund.

Meet the Team

How to invest

If you would like to invest in this Fund, please contact your Financial Adviser.

Alternatively you can invest in the Fund directly.  Please ensure that you have read and understood the Product Disclosure Document and Additional Information Document prior to completing the Application Form.

For more information, speak to your financial adviser or contact us.

Important information

This product is issued by Australian Unity Funds Management Limited ABN 60 071 497 115, AFS Licence No. 234454. The information contained above is not based on the objectives, financial situation or needs of any particular investor. In deciding whether to acquire, continue to hold or dispose of the product you should obtain the Product Disclosure Statement and consider whether the product is appropriate for you. The website was prepared in good faith and we accept no liability for any errors or omissions. Past performance is not a reliable indicator of future performance.

* The Lonsec Rating (assigned October 2016) presented in this document is published by Lonsec Research Pty Ltd ABN 11 151 658 561 AFSL 421 445. The Rating is limited to “General Advice” (as defined in the Corporations Act 2001 (Cth)) and based solely on consideration of the investment merits of the financial product(s). Past performance information is for illustrative purposes only and is not indicative of future performance. It is not a recommendation to purchase, sell or hold Australian Unity Funds Management Limited’s (Fund Manager) product(s), and you should seek independent financial advice before investing in this product(s). The Rating is subject to change without notice and Lonsec assumes no obligation to update the relevant document(s) following publication. Lonsec receives a fee from the Fund Manager for researching the product(s) using comprehensive and objective criteria. For further information regarding Lonsec’s Ratings methodology, please refer to our website at: http://www.beyond.lonsec.com.au/intelligence/lonsec-ratings

** The Zenith Investment Partners (“Zenith”) Australian Financial Services License No. 226872 rating (assigned June 2017) referred to in this document is limited to “General Advice” (s766B Corporations Act 2001) for Wholesale clients only. This advice has been prepared without taking into account the objectives, financial situation or needs of any individual and is subject to change at any time without prior notice. It is not a specific recommendation to purchase, sell or hold the relevant product(s). Investors should seek independent financial advice before making an investment decision and should consider the appropriateness of this advice in light of their own objectives, financial situation and needs. Investors should obtain a copy of, and consider the PDS or offer document before making any decision and refer to the full Zenith Product Assessment available on the Zenith website. Past performance is not an indication of future performance. Zenith usually charges the product issuer, fund manager or related party to conduct Product Assessments. Full details regarding Zenith’s methodology, ratings definitions and regulatory compliance are available on our Product Assessments and at http://www.zenithpartners.com.au/RegulatoryGuidelines

*** Altius Asset Management Pty Ltd ABN 62 148 000 355, AFS Licence No. 401820 has been certified by RIAA according to the strict operational and disclosure practices required under the Responsible Investment Certification Program. 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. See www.responsibleinvestment.org for details.

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