International Equities Trust

Transcription

1 April 2015 International Equities Trust About International Equities Trust Themed around global smart energy, with a focus on energy efficiency. Only consists of companies that have passed Australian Ethical s positive and negative screens, based on the Ethical Charter Offers excellent diversification benefits as it invests in many stocks that other funds don t Portfolio managed by Nathan Lim who has 19 years of global markets experience Performance Returns % 1 month 3 months 1 year 2 years 3 years Since 31/1/10 International Equities Trust Benchmark~ Performance relative to benchmark Alternative benchmarks MSCI Global Climate^ MSCI World ~ Benchmark was changed from MSCI World to MSCI Global Climate from 1 Sep Composite benchmark is calculated by linking the two index series. ^ MSCI Global Climate Index history started from 31 Aug Investment Commentary For the month of April, the International Equities Trust was down 1.5% underperforming its benchmark the MSCI Global Climate Index (AUD) which was unchanged for the month. In local terms (which excludes the impact from currency changes), the Trust rose 0.3% and the MSCI Global Climate Index rose 1.6%. australianethical.com.au 1

2 Investment Commentary (continued) Clean Energy Fuel rose sharply as the market believes it will be a major beneficiary of the rising oil price. This will make its natural gas fuels more price competitive in the transport sector. East Japan Railway rose on strong financial results as its guidance incorporated higher than expected passenger growth. Atlantis Resources announced the takeover of Marine Current Turbines making it the de facto leader in the tidal turbine industry. On the other side of the ledger, Covanta reported reasonable results but soft electricity and metal prices have weighed against the stock. Munich RE followed its reinsurance peers lower on a general de-rating of the sector. Tokyo Gas fell after reporting financial guidance well below market expectations. Top Holdings BT Group plc 4.0% East Japan Railway Company 3.9% Munich Reinsurance Company 3.7% Swiss Re AG 3.3% DENSO CORPORATION 3.2% NGK Insulators, Ltd. 3.0% Osaka Gas Co., Ltd. 3.0% Covanta Holding Corporation 2.8% Shimano Inc. 2.4% Continental AG 2.3% Portfolio Reflections Utilities: Reports of my death have been greatly exaggerated (read more) Global Energy Policy Assessment China astounds again with wind, emissions reduction bridging the political divide in North America, EU carbon price going higher and Australia still lagging on emissions (read more) Global Macroeconomic Assessment Three alarming indicators in China (read more) australianethical.com.au 2

3 Our Ethical Approach Australian Ethical is a specialist ethical fund manager. By investing responsibly in wellmanaged ethical companies, we believe we can deliver both competitive financial performance to our clients and positive change to society and the environment. Significant Performers (For the month) Best Total Return Contribution Worst Total Return Contribution Clean Energy Fuels Corp. 79.2% 0.6% East Japan Railway 6.7% 0.2% Covanta Holding Corporation -12.4% -0.4% Munich Reinsurance -8.2% -0.3% Atlantis Resources 47.7% 0.2% Tokyo Gas Co % -0.3% The performances are ranked based on the effect within the Trust, rather than on the percentage movement within the price. Dividends paid are taken into account. Past performance is not an indicator of future performance. Asset Allocation Sector Allocation australianethical.com.au 3

4 Currency Exposure Smart Energy Sectors australianethical.com.au 4

5 Portfolio Manager Key information Responsible entity: Minimum initial investment: Distribution: APIR: Australian Ethical Investment Ltd $5,000 Six-monthly AUG0006U Nathan Lim ARSN: Contribution fee: Nathan has over 19 years of global markets experience in North America, the Middle East, Europe and Asia. Establishment fee: Withdrawal fee: Termination fee: Performance fee: Indirect cost ratio: 1.76% pa Buy sell spread: Platforms: Trust size: 0.15% on each side Netwealth $221.6 Million (gross) Objective: Structure: The Australian Ethical International Equities Trust aims to provide long-term growth through investment in overseas companies which meet the Australian Ethical Charter. The Australian Ethical International Equities Trust is an open ended public unit trust. A full explanation of all of the fees and costs that you may be charged for investing in the Trust is available in the Trust s Product Disclosure Statement available from our website. For more information Phone enquiries@ australianethical.com.au Web australianethical.com.au Why invest ethically? Aligning values with investments You probably already understand the importance of having a portfolio that matches your appetite for risk, but equally, if not more important, is holding a portfolio that reflects your values. For example, if you value the provision of fair working conditions (and no child labour) then it s important to invest in funds that negatively screen out stocks on this basis. Portfolio diversification Ethical funds in particular, often invest in stocks that are not covered by many fund managers and brokers. Good for the world Your investments can help build a new low-carbon economy, fund medical and technology breakthroughs, efficient transport and more. Units in the managed funds are offered and issued by Australian Ethical Investment Ltd ABN , AFSL Our P roduct Disclosure Statements (PDS) and Financial Services Guide are available from our website or by phone and should be considered before making an investment decision. This information has been prepared without taking account of your individual investment objectives, financial situation or needs. Before acting on it, you should consider obtaining financial advice that is tailored to suit your personal circumstances. Australian Ethical is a registered trademark of Australian Ethical Investment Ltd. australianethical.com.au 5