Sustainable Australian Equity

This strategy aims to deliver attractive long-term returns by actively investing in a diversified portfolio of listed Australian companies that demonstrate a commitment to upholding environmental, social and governance (ESG) values and practices.

INVESTMENT UNIVERSE

1000+ Australian stocks (includes ex-index stocks to maximise the opportunity set)

RETURN FORECAST

Daily analysis at stock-specific, peer group, and macro level results in objective risk and return forecast

PORTFOLIO CONSTRUCTION & TRADING

Forecasts enter proprietary portfolio optimisation system, weighing expected return against risk, liquidity and T-costs

Investment philosophy

Financial assets are often mispriced due to behavioural errors, such as incorrectly processing information or acting on incomplete information.

Top-performing companies display many qualities. Their success is multi-faceted and cannot be attributed to any single factor.

Market inefficiencies and attractive opportunities are best captured using systematic processes.

Curated application of artificial intelligence (AI) and machine learning (ML) technology can help extract pertinent information from large, complex datasets.

Investment processes must be dynamic and adapt to changes in investor behaviour and the investment environment.

CCAT’s edge comes from embracing innovative ideas and continuously investing in people, technology, and data.

Why systematic for sustainable?

  • Systematic strategies cover a broader and deeper investment universe, therefore, portfolios can be customised to exclude certain companies, with minimal impact on a portfolio’s risk and return profile.
  • Top performing companies display many qualities. Their success is multi-faceted and cannot be attributed to any single factor. CCAT’s systematic process incorporates over 70 predictive factors including a range of ESG signals.
  • Using technology, including AI and machine learning, financial data can be collected, analysed and monitored with greater efficiency across a broader investment universe. A disciplined, systematic approach also avoids behavioural and qualitative bias.
  • This strategy gives socially conscious, long-term investors unique exposure to Australian equities by integrating a range of sustainability characteristics into the portfolio's construction.
 Carbon Reduction  Tracking Error  Max Active Position  Number of Holdings
 20% BM  1.5-2.5%  1.25%  100-140

 

In addition to the ESG factors embedded throughout our alpha forecasting, some additional screens are implemented. These include reducing the carbon intensity of the portfolio by 20% relative to S&P/ASX 300 Index and other selective exclusions:

Carbon-Related Selective Non-Ethical Industries Munitions 

Greater than 5% of revenue* derived from production of:

  • Thermal coal

  • Tar sands oil

More than 5% of revenue derived from production of goods & services; greater than 50% for associated business activities:

  • Adult entertainment

  • Alcohol

  • Gambling

  • Producers/manufacturers of tobacco and tobacco alts*
  • Cluster munitions
  • Landmines
  • Chemical weapons
  • Controversial weapons (incl. nuclear)

*As defined by 3rd-party providers

As of March 2024
  Composite (Gross)  Composite (Net) S&P/Asx 300 Value-Added (Gross) vs. Benchmark 
One Month Return 3.8 3.8 3.3 0.5
Three Month Return 6.4 6.3 5.4 1.0
Year-to-Date Return 6.4 6.3 5.4 1.0
One Year Annualized Return 16.7 16.2 14.4 2.3
Three Year Annualized Return 10.9 10.4 9.4 1.5
Five Year Annualized Return 10.5 10.1 9.2 1.3
Since Inception Annualized Return 10.5 10.1 9.4 1.1
*Revenue is calculated by a third party ESG research provider.
**Returns that include the most recent month are preliminary. The CCAT Sustainable Australian Equity strategy has been certified by RIAA according to the strict operational and disclosure practices required under the Responsible Investment Certification Program. See www.responsiblereturns.com.au for details. The Responsible Investment Certification Program does not constitute financial product adv ice. Neither the Certification Symbol nor RIAA recommends to any person that any financial product is a suitable investment or that returns are guaranteed. Appropriate professional advice should be sought prior to making an investment decision. RIAA does not hold an Australian Financial Services Licence. CCAT Partnership Capital INC claims compliance with the Global Investment Performance Standards (GIPS®). GIPS® is a registered trademark of CFA Institute. CFA Institute does not endorse or promote this organization, nor does it w arrant the accuracy or quality of the content contained herein. Reference to the benchmark is for comparative purposes only and is not intended to indicate that the composite w ill contain the same investments as the benchmark. Investors have the opportunity for losses as well as profits. Past performance is no guarantee of future results. Past performance may differ significantly from future performance due to market volatility. The complete performance disclosure can be found in the composite performance disclosure page attached. Index Source: Copyright © 2024, Standard & Poor’s Financial Services LLC. All rights reserved.

Top Ten Holdings

As of March 2024

BHP GROUP LTD 9.4%
COMMONWEALTH BANK OF AUSTRALIA 7.2%
WESTPAC BANKING CORP 4.7%
AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED  4.7%
CSL LTD 4.6%
NATIONAL AUSTRALIA BANK LTD  3.3%
WESFARMERS LTD 3.1%
QBE INSURANCE GROUP LTD 
 2.1%
COCHLEAR LTD 2.0% 
BRAMBLES LTD  2.0%
NUMBEROF SECURITIES 138
% OF PORTFOLIO FOR TOP 20 CURRENT HOLDINGS 59.6%
% OF NON-BENCHMARK PORTFOLIO HOLDINGS 1.1%

Current Positioning - Sector

 

Carbon Exposures

Scope 1: Direct emissions through the consumption of fossil fuels, includes industrial use, power generation andaircraft
Scope 2: Indirect emissions through consumption of purchasedelectricity
Carbon Intensity: (Scope 1 + Scope 2/Sales)
Index Source: Copyright © 2024, Standard & Poor’s Financial Services LLC. All rights reserved.

CCAT Asset Management (Australia) Limited (“CCAT Australia”) ABN 41 114 200 127 is the holder of Australian financial services license ("AFSL") number 291872. It is also registered as an investment adviser with the U.S. Securities and Exchange Commission ("SEC"). Under the terms of its AFSL, CCAT Australia is limited to providing the financial services under its license to wholesale clients only.
CCAT Australia is a wholly owned subsidiary of CCAT Partnership Capital INC (“CCAT”), a U.S. registered investment adviser regulated by the U.S. SEC. CCAT is exempt from the requirement to hold an AFSL under the Corporations Act 2001 (Cth) ("Corporations Act"). CCAT is regulated by the SEC under United States of America laws, which differ from Australian laws. This website is intended only to provide a summary of the subject matter covered. It does not purport to be comprehensive or to provide legal, taxation or other advice on the subject matter. No reader should act on the basis of any matter contained in this website without first obtaining specific professional advice.
The information on this web page is provided to you because CCAT Australia reasonably believes that you are a "wholesale client" within the meaning of that term under the Corporations Act and not any other class of persons. This information is not an advertisement and is not intended to induce retail clients to invest in any product. Retail clients who are interested in products referenced on this website should contact their financial adviser.
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