We start with a universe of securities. Currently this is the ASX300 for Australian shares and the MSCI World ex Australia Index for international shares.
Next, we get data* on how companies align with the Ethical investment option, and overlay this on the universe of securities. Depending on the issue and the metric this could result in a company being labelled as positive, negative or neutral for a particular issue.
All the negative companies are ineligible for the Ethical portfolio. We’ll start building a portfolio from the positive-screened companies and use neutral-screened companies to balance other factors such as sector diversification, beta and average weighted market cap. The resulting portfolio will target 50% of the universe of securities and will aim to closely match the characteristics of the original universe.
For detailed information regarding these investment options, please read the Product Disclosure Statement and Reference Guide available on the website.
*You can read more about the details of this data and the metrics we use below in ‘Portfolio Screens’.