Taking SRI to the next level
BTIM is pleased to announce enhancements to our two diversified SRI (Socially Responsible Investing) funds: the BT Institutional Ethical Balanced Fund (now ‘BT Sustainable Balanced Fund’) and BT Wholesale Ethical Conservative Fund (now ‘BT Sustainable Conservative Fund’). Effective 26 September, a number of significant changes were made to the investment processes of these funds that will benefit investors. The changes include:
Sustainable assessment of investments: the investment guidelines of the Funds have been broadened to allow the assessment of companies on sustainable criteria for shares and Australian fixed interest. Previously, the Funds assessed companies on ethical criteria for their shares only. The new process allows the managers to invest in companies that are improving their performance and encourages a dialogue between company and shareholder about SRI issues;
- Extension of Australian fixed interest: a broader range of fixed interest assets such as Australian corporate bonds may now be included in the Funds, subject to an SRI review . Previously, the Funds were limited to investing in government and semi-government bonds only. The change now enables the manager to invest in any part of the capital structure of a business that meets the SRI criteria.
At BT Investment Management, we feel that the inclusive sustainable assessment of investments offers a much more in-depth and rigorous consideration of whether the companies we invest in act in the interests of our community and environment. We also expect that these changes will help us deliver superior risk-adjusted returns to our investors through broadening the investment universe.
Sustainable investing means seeking out companies, industries and governments which measure highly on environmental, social, and corporate governance credentials.
The addition of sustainably-screened Australian corporate bonds to the portfolios is an important new development in SRI application. BTIM believes it is more 'true to label' to apply sustainable assessments across a company's capital structure, that is, to both debt and equity issues. Furthermore, Australian corporate bonds may provide better performance outcomes for a diversified portfolio as these securities have a long term average spread to government bonds of close to 75 basis points.
For more information about the changes made to the funds, please visit www.btim.com.au/ImportantUpdates
This Review has been prepared by BT Investment Management (RE) Limited ABN 17 126 390 627, AFSL No: 316 455 (BTIM).
The information in this Review is for general information only and should not be considered as a comprehensive statement on any of the matters described and should not be relied upon as such. This information is given in good faith and has been derived from sources believed to be accurate at its issue date. No company in the Westpac Group nor any of their related entities, employees or directors gives any warranty of reliability or accuracy or accepts any responsibility arising in any other way including by reason of negligence for errors or omissions. This disclaimer is subject to any contrary requirement of the law.
BTIM is the responsible entity of the BT Sustainable Balanced Fund (Fund) and BT Sustainable Conservative Fund (Fund) (ARSN: 090 651 924) and is the issuer of interests in the Funds. A Product Disclosure Statement (PDS) is available for the BT Sustainable Conservative Fund and an Information Memorandum(IM) is available for the BT Sustainable Balanced Fund , and they can be obtained by calling 132 135 or visiting www.btim.com.au. You should obtain and consider the PDS and IM before deciding whether to acquire, continue to hold or dispose of interests in the Funds. An investment in the Funds is not an investment in, deposit with or any other liability of Westpac Banking Corporation ABN 33 007 457 141 (the Bank) or any other company in the Westpac Group. It is subject to investment risk, including possible delays in repayment of withdrawal proceeds and loss of income and principal invested. The Bank is not the issuer of the Funds. Neither the Bank nor any other company in the Westpac Group stands behind or otherwise guarantees the capital value or investment performance of the Funds.
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