What can the Evidential Sustainable Targeted Factor Fund actually invest in?
The fund's Statement of Investment Policy and Objectives (SIPO) defines the asset classes it can hold and the allowable target / min / max weights for each.
Strategic asset allocation ranges
| Asset class | Target | Min | Max |
|---|---|---|---|
| Cash and cash equivalents | 0% | 0% | 10% |
| International equities | 100% | 90% | 100% |
Mandate flexibility (sum of max − min across all ranges): 20%. Narrow range — index-tracking style with limited drift.
Explicit exclusions (12)
- Coal (ownership of thermal or metallurgical coal reserves or revenue from mining of thermal coal)
- Factory farming (commercial farming for food production, excluding organic, free range, fish or aquaculture)
- Palm oil (greater than 10% of revenue from production or distribution)
- Controversial weapons (cluster munitions, landmines, biological, chemical or depleted uranium weapons)
- Nuclear weapons components, systems and support services
- Tobacco (production of tobacco/nicotine products or greater than 10% revenue from distribution/retail)
- Child labour (involvement in severe child labour controversies)
- Alcohol (greater than 10% of revenue from production, distribution or retail)
- Gambling (greater than 10% of revenue from ownership or operation of gambling facilities)
- Adult entertainment (greater than 10% of revenue from production, distribution or retail of pornographic products)
- Personal firearms (production of civilian firearms/ammunition or greater than 20% revenue from retail)
- Private prisons (operation or management of for-profit correctional/detention facilities)
Responsible-investment approach
The Funds consider non-financial factors to target sustainability goals, including a portfolio carbon footprint reduction goal (at least 50% reduction in weighted average carbon intensity and at least 75% reduction in weighted average potential emissions from reserves relative to benchmark indices), and exclude companies involved in specified business practices such as coal, tobacco, controversial weapons, nuclear weapons, factory farming, palm oil, alcohol, gambling, adult entertainment, personal firearms, private prisons, and child labour, subject to defined revenue thresholds.
Derivatives policy
The Funds are permitted to invest in derivative instruments which may include futures, generally only used on a temporary basis for managing large cashflows. The Evidential Sustainable Global Bond Fund is limited to forward foreign exchange transactions and currency hedging instruments; the Evidential Sustainable Targeted Factor Fund may use financial derivative instruments including currency hedging instruments.