SALT SUSTAINABLE GLOBAL SHARES FUND
Strong on Engagement,
Light on Carbon,
Built on Quality
Salt Funds has appointed Morgan Stanley Investment Management to manage the portfolio.
The Fund’s investment objective is to outperform the MSCI World (Net) Index in New Zealand dollars on a rolling three-year basis.
The Fund is a concentrated global equity strategy that typically invests in 25-50 high-quality companies trading at reasonable valuations, that can sustain their high returns on operating capital over the long term. The Fund’s intention is to have a lower carbon impact and perform better on ESG factors, relative to broad equity indices such as the MSCI World Index.
Benchmark - MSCI World (Net) Index
Recommended investment time frame - 5 years
Inception date - 12 July 2021
Fund Size - $33.2 million
Strong on Engagement (2)
We engage directly-and-often with the management of companies we own. This gives us significant influence in key issues, including ESG-orientated ones.
Light on Carbon (3 & 4)
The Sustainable Global Shares Fund is a reduced carbon intensity portfolio, with less than 10% of the carbon footprint of an average company in the MSCI World Index.
Built on Quality (3 & 5)
The team seeks sustainably high return business that can compound over long periods. This has historically resulted in a portfolio that had higher returns on operating capital and greater margin stability than its ESG peers.
Source: Factset, MSCI ESG, Morgan Stanley Investment Management
1.As at September 30, 2020. The typical range is 25-50 stocks.
2.All interactions between International Equity team portfolio managers and company management or non-executive board members from January 1, 2020 to June 30, 2020 where material E, S, or G factors discussed. Updated semi annually.
3.Data as of September 30, 2020 for the Morgan Stanley Sustainable Global Shares Fund representative account. Updated quarterly.
4.MSCI ESG Research defines a portfolio’s carbon footprint as the carbon emissions (Scope 1 and 2) of a portfolio per million dollars invested. They sum up all the emissions in a portfolio based on the investor’s ownership share, using reported or estimated emissions data.
5.ROOCE (Return on Operating Capital Employed) = Ebita (Earnings Before Interest, Taxes and Amortization) / PPE (Property, Plant, Equipment) + Trade working capital (excludes goodwill) last twelve months (LTM), Ex-Financials. EBIT Margin Stability is (1-(std deviation)/mean))10 year average. Data as of September 30, 2020. Updated quarterly.
6.Primarily metals and mining.