Our Climate ESG International Equity Strategy (the Strategy) seeks to align with the goals of the Paris Agreement, allowing investors to mitigate current and future carbon emissions, and reallocate capital towards companies generating higher green revenues and adapting to climate-related risks.
The Strategy seeks to achieve the most efficient trade-off between climate targets, R-Factor™ improvement, tracking error and diversification, while achieving long-term returns broadly in line with the MSCI World ex-Australia Index.
Designed for Australian investors, the Strategy is characterised by the following:
Mitigation and Adaptation
Aligns with the Paris Agreement
Meets Client Objectives Flexibly
1. The above targets are as of 1 June 2020 and are subject to change as both the science and the data behind climate investing evolves. Targets are estimates based on certain assumptions and analysis made by State Street Global Advisors relative to the MSCI World ex-Australia Index. There is no guarantee that the estimates will be achieved.
2. IPCC (Intergovernmental Panel on Climate Change). 2014. “IPCC Fifth Assessment Report: Climate Change 2014.” https://www.ipcc.ch/report/ar5/.
Investing involves risk including the risk of loss of principal. Equity securities may fluctuate in value in response to the activities of individual companies and general market and economic conditions. Investing in foreign domiciled securities may involve risk of capital loss from unfavourable fluctuation in currency values, withholding taxes, from differences in generally accepted accounting principles or from economic or political instability in other nations.
The returns on a portfolio of securities which exclude companies that do not meet the portfolio's specified ESG criteria may trail the returns on a portfolio of securities which include such companies. A portfolio's ESG criteria may result in the portfolio investing in industry sectors or securities which underperform the market as a whole.
Responsible-Factor (R-Factor) scoring is designed by State Street to reflect certain ESG characteristics and does not represent investment performance. Results generated out of the scoring model is based on sustainability and corporate governance dimensions of a scored entity.
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Exp. Date: 31/10/2022