![]() The content is current as at date of publication. Some material is copyright and published under licence from ASX Operations Pty Ltd ACN 004 523 782. Past performance does not necessarily indicate a financial product’s future performance. You should consider the advice in light of these matters and if applicable the relevant Product Disclosure Statement before making any decision to invest. To obtain advice tailored to your situation, contact a financial advisor. For more information refer to our Financial Services Guide. Any general advice has been provided without reference to your investment objectives, financial situations or needs. To the extent any content is general advice, it has been prepared by Morningstar Australasia Pty Ltd (ABN 95 090 665 544, AFSL: 240892). Additionally, important disclosures regarding these research reports, methodologies and Morningstar can be found under the legal section on this site. ![]() Full research reports are available from Morningstar. Certain content provided may constitute a summary or extract of a full research report. Neither Morningstar, its affiliates, nor the content providers are responsible for any investment decisions, damages or losses resulting from, or related to, the content, data and analyses or their use. The content provided does not constitute investment advice, is provided solely for information purposes, is not an offer to buy or sell a security, and is not warranted to be correct, complete or accurate. Such controversies can also damage the reputation of both companies themselves and their shareholders.Information on this site is intended for Australian users only. The portfolio may be concentrated and considerably different than its benchmark, and provides better diversity across sectors, geographies and companies than domestic equities alone. Severe and high controversies can have significant financial repercussions, ranging from legal penalties to consumer boycotts. Orbis Global Equity Fund The Fund is actively managed with a contrarian long-term investment approach and aims for higher returns than global stockmarkets. Examples of types of controversies include bribery and corruption scandals, workplace discrimination and environmental incidents. Controversies are incidents that have a negative impact on stakeholders or the environment, which create some degree of financial risk for the company. The fund exhibits moderate exposure (8.88%) to companies with high or severe controversies. ![]() ![]() Such funds invest in companies that tend to operate in sectors less exposed to the transition (such as healthcare and IT) and/or companies in more carbon-intensive sectors (such as industrials and utilities) but that consider climate change in their business strategy and products, and therefore are positively aligned with the transition. Investors concerned about the transition risks may prefer to consider funds with negligible or low carbon risk. This is situated at the lower end of the medium carbon risk band, suggesting that its portfolio holdings are not among the worst-positioned to transition to a low-carbon economy, but they are not among the best-positioned either. Orbis Global Equity (Aust Registered) has a 12-month asset-weighted Carbon Risk Score of 11.6. Companies are considered involved in fossil fuels if they derive some revenue from thermal coal, oil, and gas. Currently, the fund has 16.6% involvement in fossil fuels, surpassing 6.6% for the average peer in its category. A fund with an ESG-focused mandate would have a higher probability to drive positive ESG outcomes. One potential issue for a sustainability-focused investor is that Orbis Global Equity (Aust Registered) doesn’t have an ESG-focused mandate. Unlike impact, which focuses on generating positive environmental and societal outcomes, ESG risk measures the degree to which investments could be affected by material ESG issues, including climate change, biodiversity, product safety, community relations, data privacy and security, bribery and corruption, and corporate governance. Funds with 4 or 5 globes tend to hold securities that are less exposed to ESG risk. The fund has the lowest Morningstar Sustainability Rating of 1 globe, indicating that the ESG risk of holdings in its portfolio is rather high compared to those of its peers in the Global Equity Large Cap category.
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