Alexander Funds | Sustainability & ESG

Our Approach

In addition to traditional financial metrics, there also exists a wide collection of environmental, social and corporate governance (ESG) considerations, many of which can have the potential to impact on financial returns and the performance of organisations. As a credit manager seeking to consistently generate strong risk-adjusted returns for our investors, Alexander Funds has a strong interest in identifying any opportunities or threats to asset and issuer performance as an integral element to our overall investment process.

Our objective under the Policy is to consider all relevant ESG risks on both individual security and portfolio construction decisions with the aim of providing investors with sustainable investment returns. We believe that specific assessment of relevant and material ESG factors at a security level and holistically at a portfolio level is a critical element to risk management that ultimately ensures investors funds are managed in a sustainable and responsible manner.

Our Process

Alexander Funds has adopted a combined ESG Integration and Exclusionary Screening approach to Responsible Investment. We achieve this through:

Our Investment Committee, which considers ESG risk at an individual security and portfolio level (ESG Integration); and

Identifying specific industries and activities that pose ESG risks that we does not believe can be justified or effectively mitigated - organisations materially involved in the production of these industries are automatically excluded from consideration.

Our ESG Committee also meet quarterly to raise and discuss any new industries or activities that could pose risk to our ESG stance.

Fundamental Issuer Research

We consider relevant ESG risks for individual securities and overall portfolio construction. In defining relevant ESG risks we consider the following:

Our Corporate Values: We consider our values of alignment, fewer, deeper relationships, diversity and collaboration and transparency in each investment decision.

Our UNPRI Obligations: As UNPRI Signatories, we ensure that any change in portfolio holdings still meets our obligations.

Investor ESG Priorities: We work with clients and industry leaders to identify their top ESG concerns and prioritise based on their requirements.

Other Initiatives

We are committed to our responsibility as UNPRI signatories and to the UNPRI's Six Principles. We support outright condemnation of modern slavery and ensure that all companies in which we invest adhere to the legal requirements associated with supporting human rights and avoiding modern slavery. We also support and endorse our Responsible Entity's Modern Slavery Statement.

We're continuously implementing new initiatives to address ESG at a corporate level, including:

Incorporating ESG into all third-party provider reviews and prioritising engagement with suppliers who address ESG considerations
Offsetting our carbon emissions through partnership with GreenFleet Australia
Adopting the Sustainability Acknowledgements and Green Lease Schedule of our primary business address
Using Muru Office Supplies as our primary stationery supplier

We advocate and encourage engagement with philanthropic and community-minded organisations through team volunteering events, staff volunteer days, and a dedicated corporate donation budget with recipients chosen by a different staff member each month.