The Climate Advocacy Fund invests in Australia’s largest companies by economic footprint, which is measured by sales, cash flow, book value and dividends.
The fund’s composition is based on the RAFI Australian Share Index, which has been compiled by Colonial First State index fund subsidiary Realindex Investments, and the fund aims to outperform the ASX 200 Index.
“According to back-testing data, this [RAFI] index should perform about 2 to 3 per cent better than a conventional index,” Australian Ethical executive director James Thier said.
“On top of that, we will provide the climate advocacy resolution process.”
The resolution process is a form of shareholder activism and will put forward resolutions at shareholder meetings to improve how companies address issues such as carbon emissions and energy use.
