Ethical Partners Funds Management

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2020 Voting Record

June 30, 2020

At Ethical Partners we take our voting responsibilities seriously and assess each Resolution carefully. We voted in favour of 100% of human rights and climate-related Resolutions. Please see attached.

Matt Nacard

Chief Executive Officer

Investment Updates

Portfolio holdings and rationale

June 29, 2020

We take a look at the Ethical Partners Australian Share Fund's holdings, current engagement points, key investment risks and key relevant UN Sustainability Goals.

Matt Nacard

Chief Executive Officer

Investment Updates

May 2020 Investment Report

June 15, 2020

During May 2020 the Ethical Partners Australian Share Fund returned 5.47% versus the S&P/ASX 300 Accumulation Index of 4.58%, outperforming the market by 0.89% (after fees). The portfolio outperformed during the month despite being conservatively positioned and we continue to reduce exposure to cyclicals amidst the market rally. The current economic environment is distorted. The Government stimulus has been so effective that in Australia’s first recession in 29 years the Australian Financial Review reported in May, that more than half of all insolvency firms have, or are planning to register for JobKeeper given the lack of incoming work.

Nathan Parkin

Investment Director

Market Thoughts & Insights

Ethical Partners calls for change post recent Rio Tinto incident

June 12, 2020

It is sadly now well documented that on the 24th May 2020,Rio Tinto blasted rock caves known as the Juukan Gorge rock shelters in the Pilbara region of Western Australia to allow for the expansion and development of its Brockman 4 asset. We call on Rio Tinto and the mining sector for increased disclosure via the publishing (by every ASX listed company) of a register of sites and places of Aboriginal and Torres Strait Islander heritage that will be impacted by intended works and development. These will be in the form of Section 18 notices in Western Australia, Section 90 of the National Parks and Wildlife Act 1974 (NSW) and other relevant legislation for each State and Territory of Australia. We feel this may allow all stakeholders to be better educated on what current approvals exist and to assist in fostering a broader discussion on their applicability.

Andrew Wilson

Senior Analyst / Dealer

Investment Updates

April 2020 Investment Report

May 14, 2020

As FY19 fades further into the rear vision mirror there is no doubt investors will be nostalgic for peak cycle conditions including the company profitability, eps growth, dividends and the balance sheet positions that were appropriate last year. Growth was low, but not too low, and money (rates) was almost free. We believe the rally in Australian stocks (+22%) from the March lows partly reflects this nostalgia and the belief that this economy can get back to somewhere near where we were before the pandemic hit.

Nathan Parkin

Investment Director

Investment Updates

March 2020 Investment Report

April 17, 2020

During March 2020 the Ethical Partners Australian Share Fund returned -21.06% versus the S&P/ASX 300 Accumulation Index of -20.83%, underperforming the market by -0.23% (after fees) in one of the most volatile months in the last 30 years.

Nathan Parkin

Investment Director

Ethical Partners' engagement and advocacy through the COVID-19 Crisis

April 7, 2020

We hope you are staying well and adjusting as well as possible to the challenges of this COVID-19 crisis. We just wanted to let you know that, whilst the markets have been in turmoil, ESG remains as important a focus at Ethical Partners as always, and we strongly believe that there is a very important role for Responsible Investors to play in this crisis. The landscape of ESG is rapidly changing within this crisis, with new issues evolving, and old issues being amplified, and we are doing our best to learn how we can continue to advocate and engage on these issues in such a volatile and difficult market space.

Robyn Parkin

Sustainability Research & Advocacy

Investment Updates

February 2020 Investment Report

March 17, 2020

During February 2020 the Ethical Partners Australian Share Fund returned -6.89% versus the S&P/ASX 300 Accumulation Index of -7.76%, outperforming the market by 0.88% (after fees). Over the last quarter the Fund benefited from underweight positions in Property and Materials. Key detractors over the last quarter included an overweight position in both Financials and Consumer Discretionary an underweight position in Healthcare.

Nathan Parkin

Investment Director

Investment Updates

January 2020 Investment report

February 27, 2020

In January 2020 Australian market increased 4.9%, in the second best market performance out of 48 developed and emerging equity markets around the world. This was largely due to large Australian growth and defensive stocks finding support in the face of new economic uncertainty.

Nathan Parkin

Investment Director

Investment Updates

December 2019 Investment Report

January 21, 2020

During December 2019 the Ethical Partners Australian Share Fund returned -1.90% versus the S&P/ASX 300 Accumulation Index of -2.03%, slightly outperforming the market by 0.12% (after fees).

Nathan Parkin

Investment Director

Market Thoughts & Insights

Ethical Partners Investment Climate Change Policy

January 7, 2020

At EPFM, we have undertaken several measures to ensure our investments are positioned for Climate Change. We consider Climate Change in all investments. ‍Engagement is undertaken by each analyst, supported by our Sustainability and Advocacy Manger, the Investment Director and the CEO.

Robyn Parkin

Sustainability Research & Advocacy

Investment Updates

November 2019 Investment Report

December 18, 2019

During November 2019 the Ethical Partners Australian Share Fund returned 3.65% versus the S&P/ASX 300 Accumulation Index of 3.18%, outperforming the market by 0.47%(after fees)

Nathan Parkin

Investment Director

Market Thoughts & Insights

Saving Water

December 11, 2019

Tuesday 10th December 2019 marks the date when Australia’s most populous city faces a further increase in Water Restrictions (Level 2), the harshest water use rules facing the population in over a decade. Sydney’s dam levels have dropped to 45% and the NSW Water Minister was quoted as saying this week the restrictions were brought forward “because the size and scale of the drop of water into Sydney was unlike anything we’ve ever seen before”. It is in this vein that we wanted to highlight GWA Group (GWA.ASX), being one company the Ethical Partners Investment team feels is well placed to help the consumer grapple with the decreasing supply of and the likely increasing cost of water.

Andrew Wilson

Senior Analyst / Dealer

Investment Updates

October 2019 Investment Report

November 7, 2019

During October 2019 the Ethical Partners Australian Share Fund returned -3.52% versus the S&P/ASX 300 Accumulation Index of -0.38%, underperforming the market by-3.14% (after fees).

Nathan Parkin

Investment Director

Market Thoughts & Insights

Our submission to the Inquiry into the Modern Slavery Act 2018

October 29, 2019

Ethical Partners welcomed the opportunity to make a submission to the Inquiry into the Modern Slavery Act 2018. We believe the NSW Modern Slavery Act is the strongest and most holistic in the world, and we urge the NSW Government to implement it as a matter of urgency. We applaud NSW for being a global leader in this space and believe it should retain this position. We understand we were one of the only financial services firms in NSW to make a submission (see attached for our full submission).

Robyn Parkin

Sustainability Research & Advocacy

Market Thoughts & Insights

Aged care and ethical investing

October 22, 2019

At Ethical Partners, it is our opinion that currently the ethical risks of investing in the listed aged care sector are too significant. Our position is based on the lack of achievement of minimum standards of care across the industry generally and the corresponding impact this has on human rights. We have not owned aged care stocks since the inception of the Ethical Partners Australian Share Fund due to both ethical and valuation-related risks. We would need to see considerable change in the business model, transparency and disclosure, staffing, training, monitoring and codes of conduct in order to consider investment in the future.

Robyn Parkin

Sustainability Research & Advocacy

Investment Updates

September 2019 Investment Report

October 14, 2019

Ethical Partners Australian Share Fund - As at 30 September, 2019. Unit price, Investor Class $1.0453, APIR code EPF9951AU. During September 2019 the Ethical Partners Australian Share Fund returned -2.73% versus the S&P/ASX 300 Accumulation Index of 1.91%, out performing the market by 0.82% (after fees). Over the last quarter the Fund benefitted from overweight positions in the Industrials and Consumer Discretionary sectors and an underweight position in Materials and Property also benefited relative performance. Key detractors for the last quarter included stocks in the Financials and Consumer Staples industry groups.

Nathan Parkin

Investment Director

Market Thoughts & Insights

Woolworths: Taking better care of the fresh food people

October 14, 2019

Addendum: - On Wednesday 30th October, subsequent to Ethical Partners publishing this article on our view on Woolworth’s sustainability reporting, we became aware of the serious under-payments issue that Woolworths recently uncovered. Woolworths management team has initiated a full review of the factors that drove this issue as well as a company-wide review to ensure that this issue is not larger than the initial evidence suggests, guiding to a potential cost of $200-$300m allocated mostly to repaying previously under-paid wages. We expect further details at the February 2020 result release.

Andrew Wilson

Senior Analyst / Dealer

Investment Updates

August 2019 Investment Report

September 20, 2019

Ethical Partners Australian Share Fund - As at 31 August, 2019. Unit price, Investor Class $1.0175, APIR code EPF9951AU. During August 2019 the Ethical Partners Australian Share Fund returned -2.27% versus the S&P/ASX 300 Accumulation Index of -2.27%, performing in line with the market (after fees). Over the last quarter the Fund benefitted from overweight positions in the Industrials and Telecommunications sectors and an underweight position in Energy benefited relative performance. Key detractors for the last quarter included stocks in the Financial and Food and Beverage industry groups.

Nathan Parkin

Investment Director

Investment Updates

2019 Ethical Standards Report

August 6, 2019

The team at Ethical Partners has produced a major report to discuss overall Australian company ethical standards and reporting. The 26 page report gives good insight into company standards – particularly in the less researched small and mid-cap space. Our team has applied our investment process across more than 200 companies, which has involved assessing almost 3,000 individual data points and undertaking over 350 company meetings in the past year.

Robyn Parkin

Sustainability Research & Advocacy

Investment Updates

June 2019 Investment Report

July 22, 2019

Ethical Partners Australian Share Fund - As at 30 June, 2019. Unit price, Investor Class $1.0249, APIR code EPF9951AU. During June 2019 the Ethical Partners Australian Share Fund returned 0.73% versus the S&P/ASX 300 Accumulation Index of 3.64%, underperforming the market by -2.91% (after fees). During the month the Fund benefitted from overweight positions in NIB Holdings, Helloworld Travel, Sims Metal and Commonwealth Bank and underweight positions in Wesfarmers, South 32 (not held), Challenger (not held) and A2 Milk (not held) benefitted the relative performance of the Fund. Key detractors for the month included Link Group, Nick Scali, BHP Limited (not held) and Inghams.

Nathan Parkin

Investment Director

Market Thoughts & Insights

LME’s commitment to Responsible Sourcing shows the link between business risk and ethical considerations

July 2, 2019

We were very encouraged to see that the London Metals Exchange (LME) had recently committed to introducing responsible sourcing requirements for its brands. This is quite ground breaking for an Exchange and as such we caught up with the LME while in London recently to understand more about this new initiative.

Matt Nacard

Chief Executive Officer

Investment Updates

May 2019 Investment Report

June 20, 2019

Ethical Partners Australian Share Fund - As at 31 May, 2019. Unit price, Investor Class $1.0175, APIR code EPF9951AU. During May 2019 the Ethical Partners Australian Share Fund returned 1.45% versus the S&P/ASX 300 Accumulation Index of 1.75%, underperforming the market by -0.30% (after fees). During the month the Fund benefitted from overweight positions in NIB Holdings, CSR Limited and Medibank and holding no position in Macquarie Group benefitted the relative performance of the Fund. Key detractors for the month included Link Group, Graincorp and Clydesdale Bank.

Nathan Parkin

Investment Director

Market Thoughts & Insights

TRANSPARENCY, UNDERSTANDING, ENGAGEMENT, INFLUENCE

May 20, 2019

Ethical Partners investment approach incorporates a formal sustainability assessment on a company by company basis (we call it the EPORA – The Ethical Partners Operational Risk Assessment).

Nathan Parkin

Investment Director

Investment Updates

April 2019 Investment Report

May 20, 2019

Ethical Partners Australian Share Fund - As at 1 May, 2019. Unit price, Investor Class $1.0144, APIR code EPF9951AU. During April 2019 the Ethical Partners Australian Share Fund returned 3.38% versus the S&P/ASX 300 Accumulation Index of 2.46%, an outperformance of 0.92% (after fees). Over the last quarter the Fund has returned 9.44% (after fees) versus the S&P/ASX 300 Accumulation Index of 9.41% performing broadly in line with a strongly rallying market. Since inception on 9 August 2018 the Fund has returned 1.29% versus the S&P/ASX 300 Accumulation Index of 4.51%, an underperformance of -3.22% (after fees).

Nathan Parkin

Investment Director

Market Thoughts & Insights

Market leading sector collaboration

April 16, 2019

The real estate sector is market leading when it comes to sustainability. All the major real estate players produce thorough and detailed sustainability reports. This compares to the Top 200 listed companies in Australia, of which just 57% produce an adequate sustainability report. Further significant steps for the sector to take are in the areas of human rights and supply chain. Ethical Partners is seeing significant progress at both an industry and individual company level. It is in the areas of human rights and supply chain where significant opportunities exist for the sector.

Matt Nacard

Chief Executive Officer

Investment Updates

March 2019 Investment Report

April 16, 2019

Ethical Partners Australian Share Fund - As at 31 March, 2019. Unit price, Investor Class $0.9702, APIR code EPF9951AU. During March 2019 the Ethical Partners Australian Share Fund returned -1.34% versus the S&P/ASX 300 Accumulation Index of 0.73%, an underperformance of -2.07% (after fees). Since inception on 9 August 2018 the Fund has returned -2.03% versus the S&P/ASX 300 Accumulation Index of 2.00%, an underperformance of -4.03% (after fees).

Nathan Parkin

Investment Director

Investment Updates

February 2019 Investment Report

March 19, 2019

Ethical Partners Australian Share Fund - As at 28 February, 2019. Unit price, Investor Class $0.9834, APIR code EPF9951AU. During February 2019 the Ethical Partners Australian Share Fund returned 7.30% versus the S&P/ASX 300 Accumulation Index of 6.01%, an outperformance of 1.29% (after fees). Since inception on 9 August 2018 the Fund has returned -0.69% versus the S&P/ASX 300 Accumulation Index of 1.26%, an underperformance of -1.95% (after fees)

Nathan Parkin

Investment Director

Investment Updates

January 2019 Investment Report

February 22, 2019

Ethical Partners Australian Share Fund - As at 31 Jan, 2019. Unit price, Investor Class $0.9165, APIR code EPF9951AU. During January the Ethical Partners Australian Share Fund returned 1.46% versus the S&P/ASX 300 Accumulation Index of 3.87%, an underperformance of -2.41% (after fees). Since inception on 9 August 2018 the Fund has returned -7.45% versus the S&P/ASX 300 Accumulation Index of -4.48%, an underperformance of -2.97% (after fees).

Nathan Parkin

Investment Director

Investment Updates

December 2018 Investment Report

January 18, 2019

Ethical Partners Australian Share Fund - As at 31 Dec, 2018. Unit price, Investor Class (cum) $0.9089, APIR code EPF9951AU. During December the Ethical Partners Australian Share Fund returned -2.47% versus the S&P/ASX 300 Accumulation Index of -0.23%, an underperformance of -2.24% (after fees). Since inception on 9 August 2018 the Fund has returned -8.78% versus the S&P/ASX 300 Accumulation Index of -8.04%, an underperformance of -0.74% (after fees).

Nathan Parkin

Investment Director

Investment Updates

November 2018 Investment Report

December 17, 2018

Ethical Partners Australian Share Fund - As at 30 Nov, 2018. Unit price, Investor Class $0.9319, APIR code EPF9951AU. During November the Ethical Partners Australian Share Fund returned -2.82% versus the S&P/ASX 300 Accumulation Index of -2.18%, an underperformance of -0.64% (after fees). Since inception on 9 August 2018 the Fund has returned -6.47% versus the S&P/ASX 300 Accumulation Index of -7.83%, an outperformance of 1.36% (after fees).

Nathan Parkin

Investment Director

Market Thoughts & Insights

Buy Now, but Who Pays Later?

November 30, 2018

We are currently assessing the role of Buy Now Pay Later (BNPL) operators in the economy and how that may affect our portfolio (we don’t own any BNPL operators but own several retailers). The significant role they are now playing as a medium for which retailers are interacting with a growing consumer base cannot be ignored.

Andrew Wilson

Senior Analyst / Dealer

Investment Updates

October 2018 Investment Report

November 14, 2018

Ethical Partners Australian Share Fund Investor Class: Unit price 31 October $0.9589. During October the Ethical Partners Australian Share Fund returned -5.84% versus the S&P/ASX 300 Accumulation Index of -6.16%, an out performance of 0.32% (after fees). This was one of the worst monthly Australian equity market performances over the last twenty years with around two thirds of stocks in the ASX300, by number,under performing the benchmark.

Nathan Parkin

Investment Director

Investment Updates

September 2018 Investment Report

October 18, 2018

Ethical Partners Australian Share Fund Investor Class: Unit price 30 Sept $1.0184. During September the Ethical Partners Australian Share Fund returned -1.7% versus the S&P/ASX 300 Accumulation Index of -1.2%, an underperformance of -0.5% (after fees). Since inception on 9 August 2018 the Fund has returned 2.2%versus the S&P/ASX 300 Accumulation Index of 0.4%, an outperformance of 1.8%(after fees).

Nathan Parkin

Investment Director

Investment Updates

August 2018 Investment Report

September 21, 2018

Ethical Partners Australian Share Fund Investor Class: Unit price 31 August $1.0356. Welcome to the inaugural Ethical Partners investment report. The Ethical Partners Australian Share Fund opened in August after we had completed our due diligence on potential company holdings. We made the initial investment with our own capital. Since inception on 9 August 2018 the Fund has returned 3.9% versus the S&P/ASX 300 Accumulation Index of 1.6%, an outperformance of 2.3% (after fees). APIR Code EPF9951AU

Nathan Parkin

Investment Director

Market Thoughts & Insights

Signing up to the Accord

August 13, 2018

The $19bn garment industry in Bangladesh is unfortunately well known for the appalling conditions for its workers. The Rana Plaza Factory which collapsed in 2013, taking with it the lives of more than 1,100 garment workers was unfortunately only one of many disasters that have occurred.

Robyn Parkin

Sustainability Research & Advocacy

Market Thoughts & Insights

Macquarie’s commitment to clean energy

August 12, 2018

Over the year to 31 March 2018 Macquarie (ASX:MQG) invested in and arranged over A$9.5 billion in renewable energy, energy efficiency and clean technology, with over 12,546MW of diversified renewable energy assets in operation or under its management.

Matt Nacard

Chief Executive Officer

Market Thoughts & Insights

Vicinity Centres leads the way with solar power

August 10, 2018

Vicinity Centres (ASX:VCX) is in the process of becoming the largest investor in solar power of any shopping centre group in Australia.

Matt Nacard

Chief Executive Officer

Market Thoughts & Insights

Our Process: Why we won’t invest in the most corrupt countries

August 9, 2018

In the Ethical Partners Operational Risk Assessment which is used for the Ethical Partners Australian Share Fund, we exclude companies that have significant operations in countries that are in the bottom third of the Transparency International Corruption Perceptions Index (TICPI).

Nathan Parkin

Investment Director

Market Thoughts & Insights

Only four out of ten companies even mention supply chain or human rights in their reporting

August 8, 2018

Earlier this year Ethical Partners Investment Director Nathan Parkin spoke at the Elevate Modern Slavery Conference, which included industry, government, NGO and academic speakers and delegates. Nathan spoke on the importance of the investor voice in addressing the Modern Slavery Issue and about the research Ethical Partners has conducted into the supply chain and human rights disclosures of the top 220 companies listed on the ASX.

Robyn Parkin

Sustainability Research & Advocacy

Market Thoughts & Insights

Lend Lease continues focus on sustainability

August 7, 2018

Lend Lease (ASX:LLC) continues to be one of the more responsible and sustainable property developers and construction managers in Australia. It has set 20% reduction targets (by 2020 from a FY14 base line) for water, waste and energy reduction.

Matt Nacard

Chief Executive Officer

Market Thoughts & Insights

Modern Slavery Bill passed in NSW; introduced into Federal Parliament

August 6, 2018

On 21st June this year, Ethical Partners was present in the Upper House of the NSW Parliament to watch the passage of the Modern Slavery Bill, Australia’s first legislation on Modern Slavery.

Robyn Parkin

Sustainability Research & Advocacy

Market Thoughts & Insights

Sustainable employment and training in Cambodia

August 5, 2018

Ethical Partners had the immense pleasure of meeting with James Bartle, the CEO and founder of Outland Denim earlier this year. Outland Denim is a amazing company that not only makes premium jeans but also provides sustainable employment and training opportunities to women in Cambodia, pays a living wage, and is committed to sourcing the most ethically and environmentally sound raw materials from the pocket linings to the zippers, dyes, leather patches and recycled packaging.

Robyn Parkin

Sustainability Research & Advocacy

Market Thoughts & Insights

LME’s commitment to Responsible Sourcing shows the link between business risk and ethical considerations

July 2, 2019

Market Thoughts & Insights

TRANSPARENCY, UNDERSTANDING, ENGAGEMENT, INFLUENCE

May 20, 2019

Ethical Partners investment approach incorporates a formal sustainability assessment on a company by company basis (we call it the EPORA – The Ethical Partners Operational Risk Assessment).

Market Thoughts & Insights

Market leading sector collaboration

April 16, 2019

Market Thoughts & Insights

Buy Now, but Who Pays Later?

November 30, 2018

Market Thoughts & Insights

Signing up to the Accord

August 13, 2018

Market Thoughts & Insights

Macquarie’s commitment to clean energy

August 12, 2018

Market Thoughts & Insights

Vicinity Centres leads the way with solar power

August 10, 2018

Vicinity Centres (ASX:VCX) is in the process of becoming the largest investor in solar power of any shopping centre group in Australia.

Market Thoughts & Insights

Our Process: Why we won’t invest in the most corrupt countries

August 9, 2018

Market Thoughts & Insights

Only four out of ten companies even mention supply chain or human rights in their reporting

August 8, 2018

Market Thoughts & Insights

Lend Lease continues focus on sustainability

August 7, 2018

Market Thoughts & Insights

Modern Slavery Bill passed in NSW; introduced into Federal Parliament

August 6, 2018

On 21st June this year, Ethical Partners was present in the Upper House of the NSW Parliament to watch the passage of the Modern Slavery Bill, Australia’s first legislation on Modern Slavery.

Market Thoughts & Insights

Sustainable employment and training in Cambodia

August 5, 2018

Investment Updates

2020 Voting Record

June 30, 2020

Investment Updates

Portfolio holdings and rationale

June 29, 2020

We take a look at the Ethical Partners Australian Share Fund's holdings, current engagement points, key investment risks and key relevant UN Sustainability Goals.

Investment Updates

May 2020 Investment Report

June 15, 2020

Investment Updates

April 2020 Investment Report

May 14, 2020

Investment Updates

March 2020 Investment Report

April 17, 2020

Investment Updates

February 2020 Investment Report

March 17, 2020

Investment Updates

January 2020 Investment report

February 27, 2020

Investment Updates

December 2019 Investment Report

January 21, 2020

During December 2019 the Ethical Partners Australian Share Fund returned -1.90% versus the S&P/ASX 300 Accumulation Index of -2.03%, slightly outperforming the market by 0.12% (after fees).

Investment Updates

November 2019 Investment Report

December 18, 2019

During November 2019 the Ethical Partners Australian Share Fund returned 3.65% versus the S&P/ASX 300 Accumulation Index of 3.18%, outperforming the market by 0.47%(after fees)

Investment Updates

October 2019 Investment Report

November 7, 2019

During October 2019 the Ethical Partners Australian Share Fund returned -3.52% versus the S&P/ASX 300 Accumulation Index of -0.38%, underperforming the market by-3.14% (after fees).

Investment Updates