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FUND UPDATE: Benigo Bank gets the axe

 


As part of the monthly re-balance of the VanEck Vectors MSCI Australian Sustainable Equity ETF (ASX: GRNV), Bendigo and Adelaide Bank Limited (BEN) has been removed from the fund.

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As part of the monthly re-balance of the VanEck Vectors MSCI Australian Sustainable Equity ETF (ASX: GRNV), Bendigo and Adelaide Bank Limited (BEN) has been removed from the fund.

GRNV tracks the MSCI Australia IMI Select SRI Screened Index. According to MSCI ESG Research, BEN no longer meets the minimum requirements for the controversy screen. BEN received an orange flag for the Social controversy screen related to Customer Relations.  

In September 2019, the Australian Securities and Investments Commission (ASIC) sued BEN over alleged unreasonable loan terms to small businesses. ASIC cited that small businesses commonly get offered contracts on a "take it or leave it" basis for financial products and services and have limited or no opportunity for the businesses to negotiate the terms while the lenders have wide discretion to change terms without business owner consent to an extent where the loan can be flagged in default even if the business owner met all payment obligations. According to ASIC, BEN had 15,529 non-compliant loans.

Source: MSCI

Read more about how GRNV selects companies.



IMPORTANT NOTICE: This information is issued by VanEck Investments Limited ABN 22 146 596 116 AFSL 416755 (‘VanEck’) is the issuer of the VanEck Vectors MSCI Australian Sustainable Equity ETF (‘Fund’). This information contains general advice only about financial product and is not personal advice. It is not a recommendation to buy, hold, or sell units in the Fund or any individual security. It does not take into account any person’s individual objectives, financial situation or needs. Before making an investment decision in relation to the Fund, you should read the applicable PDS available at www.vaneck.com.au or by calling 1300 68 38 37 and with the assistance of a financial adviser consider if it is appropriate for your circumstances. The Fund is subject to investment risk, including possible loss of capital invested. Past performance is not a reliable indicator of future performance. No member of the VanEck group of companies gives any guarantee or assurance as to the repayment of capital, the payment of income, the performance, or any particular rate of return from the Fund.

Published: 09 December 2019