The Australian Equities Socially Responsible Strategy is an actively managed strategy that delivers responsible investment through the adoption of an integration, engagement and negative screening strategy. The strategy’s negative screen precludes the portfolio from owning stocks where the company’s core business is pornography, gambling, armaments or tobacco. The strategy offers investors exposure to socially responsible, high quality, large and mid-cap Australian Listed equities. DNR Capital considers a company to be ‘socially responsible’ where it is not excluded by the negative screen and has an ESG score above the benchmark index average as determined by DNR Capital applying our own ESG ratings assessment.
How to invest
Investments in the Australian Equities Socially Responsible Strategy can be made via the Portfolio.
*Past performance is not an indicator of future performance. No allowance has been made for taxation and fees are not taken into account.
Investment strategy
In 2006, DNR Capital launched the Australian Equities Socially Responsible Portfolio. The Portfolio offers investors exposure to a concentrated portfolio of high quality, socially responsible stocks that offer attractive valuation. The Portfolio’s negative screen precludes it from owning stocks where the company’s core business is:
Pornography – production, distribution or sale of pornography.
Gambling – ownership or operation of a gambling related business or manufacture and supply of gambling equipment and systems.
Armaments – development or production of biological and chemical weapons, depleted uranium ammunition/armour, anti-personnel mines or cluster munitions/sub-munitions and their key components.
Tobacco – production of tobacco or manufacture of nicotine alternatives and tobacco-based products.
In determining if the business operation of a company in question is ‘core’ or ‘non-core’, DNR Capital considers factors such as the relevant business operation’s contribution to group revenue, inclusion in company strategy and intended allocation of capital. Where the gross revenue contribution of the relevant business operation is 10% or greater it is deemed “core”, and where it is less than 10% DNR Capital further considers inclusion in company strategy and intended allocation of capital to determine whether the business is “core”. Where the company intends to allocate 10% or more of its capital towards the relevant business operation, the business is deemed “core”.
This Portfolio delivers socially responsible investment through our quality investment philosophy.For a stock to be eligible for inclusion, it must meet our negative screening and quality criteria and offer attractive valuation. We define quality companies considering earnings strength, superior industry position, sound balance sheet, strong management and an ESG risk assessment.
The Portfolio is long-only, “style neutral” and invests over a period of three-to-five years.
DNR Capital’s Socially Responsible Portfolio has been certified by the Responsible Investment Association Australasia (RIAA) in accordance with the strict guidelines of its Responsible Investment Certification Program.
Jamie has over 30 years’ experience in the funds management industry and is one of the founding partners of DNR Capital. He is the Chief Investment Officer and has responsibility for portfolio management and investment strategy, financials (ex-property), building materials, Fund Managers and industrials sectors.
Prior to establishing DNR Capital, Jamie held senior roles in company research and analysis for two major stockbroking firms, as well as for Westpac, Mergers and Acquisitions (Australia and South Pacific). He commenced his career at PricewaterhouseCoopers (formerly Coopers & Lybrand), in the areas of audit and tax.
Jamie has a Bachelor of Business – Accounting (Distinction), a Bachelor of Economics and is a former Fellow of the Australian Institute of Chartered Accountants.
Scott has over 28 years experience in the funds management industry and is Portfolio Manager for the Australian Equities High Conviction Portfolio and Fund and the Socially Responsible Portfolio. Scott is also responsible for investment research of the resources, healthcare, gaming, developers and industrials sectors.
Prior to joining DNR Capital in 2002, Scott worked as an analyst with Deutsche Bank in the UK. Scott has also held roles in Australia as an analyst and trading representative for institutions including JP Morgan and Macquarie. Scott has a Bachelor of Commerce from The University of Queensland, a Graduate Diploma in Applied Finance and Investment, and is a CFA charter holder.
Ratings
"Robust and repeatable investment process, underpinned by performance-driven investment culture."
Rated Highly Recommended by Lonsec
“Zenith's conviction in the Portfolio is underpinned by the high calibre and stability of DNR's investment team.”
The Zenith Investment Partners (ABN 27 103 132 672, AFS Licence 226872) (“Zenith”) rating (assigned to the DNR Capital Australian Equities Socially Responsible Portfolio 06/2023) referred to in this website 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, including target markets of financial products, where applicable, 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 Fund Research Regulatory Guidelines.
This strategy delivers exposure to higher levels of tax effective income and capital growth by investing in a concentrated portfolio of large cap companies.
