What can the Daintree Core Income PIE 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 | 15% | 0% | 100% |
| International Fixed Interest (including Australia) | 85% | 0% | 100% |
Mandate flexibility (sum of max − min across all ranges): 200%. Moderate range — some manager latitude within a broader mandate.
Explicit exclusions (12)
- The manufacture of cluster munitions
- The manufacture or testing of nuclear explosive devices
- The manufacture of anti-personnel mines
- The manufacture of tobacco products
- The processing of whale meat
- The manufacture of recreational cannabis
- The manufacture of alcohol
- Gaming or gambling related activities
- The production of pornographic material
- The exploration and production of any fossil fuels (coal, oil, gas, oil sands)
- Coal-fired power generation
- The exploration and production of uranium
Responsible-investment approach
Daintree uses non-financial ESG factors to screen potential securities via negative screening (exclusions) and a numerical Daintree Score (positive screen) weighting governance at 60% and environment/social at 20% each. Exclusions are coded into trade management software and monitored daily; securities failing engagement over approximately 3-6 months are divested. Where Daintree invests in assets it does not control (e.g. ETFs), inadvertent excluded exposures are capped at 2% of the Underlying Fund.
Derivatives policy
Derivatives may be used for investment and risk management purposes but cannot be used to gear the portfolio; all long derivative positions must be backed by cash or cash equivalents, short derivative positions must be fully backed by authorised investments, and counterparties for interest rate swaps and OTC options must be rated at least BBB- by a recognised rating agency.