To help investors build more climate-resilient portfolios, our team is designing the next generation of climate change solutions.
Climate change poses a significant systemic risk within investment portfolios. However, as the global economy is weaned off fossil fuels and the “green” economy expands, significant investment opportunities will likely surface. With the right approach, investors can capitalise on these opportunities as the world transitions to a low-carbon future.
The State Street Climate ESG International Equity Fund (the Fund) offers a diversified global equity exposure, built around a climate change theme. At the same time, the Fund seeks increased exposure to companies that score well on our Responsibility Factor (R-Factor™), and screens out companies with ESG risk and reputational issues.
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Revenues from low-carbon technology and the “green” economy. 1
Future GHG emissions from fossil fuel reserves. 1
Direct and indirect GHG emissions. 1
Adaptation Score on Climate change preparedness. 1
Revenues related to drilling, mining and other extractive activities 1
Designed for Australian investors, the Fund is characterised by the following:
Mitigation and Adaptation
Mitigation - aims to reduce exposure to the flow of heat-trapping greenhouse gases into the atmosphere and increase exposure to the “green” economy.
Adaptation - increases exposure to companies that are better prepared for the possible physical, economic and regulatory impacts of climate change, including GHG-reduction targets and transition plans.
Provides investors with a cost efficient way of gaining diversified exposure to international stock markets.
Excludes companies with material business activity involving tobacco, controversial (including nuclear) weapons, thermal coal, gambling, alcohol or adult entertainment; and companies that exhibit severe violations of the United Nations corporate sustainability principles or have extreme ESG controversies.
Seeks increased exposure to companies with strong ESG ratings using State Street’s ESG scoring methodology (R-Factor™).
Delivering a Risk-Adjusted Return
Seeks to achieve the most efficient trade-off between climate objectives, R-Factor™ improvement, tracking error and diversification, while achieving long-term returns broadly in line with the MSCI World ex-Australia Index.
The Fund is available directly or through a number of platforms. 2
Fund performance and holdings
Ready to invest in climate change?
With shifting consumer expectations and regulation, ESG and climate portfolios are shifting from being an outlier to the norm. But with so many shades of "green", the process of building ESG and Climate portfolios can be confronting.
We have created a practical framework to guide advisers in developing and implementing an ESG and climate investment philosophy and approach.
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1 The above targets are as of 30 September 2022 and are subject to change as both the science and the data behind climate investing evolves. Targets are relative to the MSCI World ex-Australia Index. There is no guarantee that this objective will be met.
2 Please check with the platform operator for minimum investment requirements and fees.
* Zenith: The Zenith Investment Partners (“Zenith”) Australian Financial Services License No. 226872 rating (SST0057AU: November 2022) 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
** The rating issued 11/2021 is published by Lonsec Research Pty Ltd ABN 11 151 658 561 AFSL 421 445 (Lonsec). Ratings are general advice only, and have been prepared without taking account of your objectives, financial situation or needs. Consider your personal circumstances, read the product disclosure statement and seek independent financial advice before investing. The rating is not a recommendation to purchase, sell or hold any product. Past performance information is not indicative of future performance. Ratings are subject to change without notice and Lonsec assumes no obligation to update. Lonsec uses objective criteria and receives a fee from the Fund Manager. Visit lonsec.com.au for ratings information and to access the full report. © 2023 Lonsec. All rights reserved.
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 TM) 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.
Diversification does not ensure a profit or guarantee against loss.
Exp. Date: 31/12/2023