Australian Equities Socially Responsible Strategy

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, gaming, 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.

Benchmark: S&P/ASX 200 Total Return Index

3.24% p.a.* outperformance since inception

Large & Mid cap

Socially responsible focus

15-30 stocks

Inception date - June 2006

*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

The Australian Equities Socially Responsible Portfolio was launched in 2006, making it one of Australia’s first socially responsible investment strategies. 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
  • Gaming
  • Armaments including biological and chemical weapons, depleted uranium ammunition/armour, anti-personnel mines or cluster munitions/sub-munitions and their key components
  • Tobacco, 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 as those with earnings strength, superior industry position, sound balance sheet, strong management and 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.

Portfolio performance

Return on $100,000 invested at inception

Download Portfolio performance report
1mth3mth1yr3yr5yr7yr10yr15yrInception*
%%%% p.a.% p.a.% p.a.% p.a.% p.a.% p.a.
DNR Capital Australian Equities Socially Responsible Portfolio2.57%4.43%11.51%11.16%11.27%10.72%10.39%12.53%10.32%
S&P/ASX 200 Total Return Index3.27%5.33%14.45%9.62%9.15%8.59%8.27%9.95%7.08%
Excess return-0.70%-0.90%-2.94%1.54%2.12%2.13%2.12%2.58%3.24%

*inception date - June 2006

*Past performance is not an indication of future performance. No allowance has been made for taxation and fees are not taken into account.

Our Portfolio Managers

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Jamie Nicol
Jamie Nicol

Director & Chief Investment Officer

Scott Bender
Scott Bender

Portfolio Manager

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.”
Rated Recommended by Zenith

The rating issued 10/2023 DNR Capital Australian Equities Socially Responsible Portfolio 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.

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.

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