GRNV
VanEck MSCI Australian Sustainable Equity ETF
GRNV
VanEck MSCI Australian Sustainable Equity ETF
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NAV$26.90
as at 30-Nov-23 -
Total Net Assets$144.88M
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Dividend Frequency2 each year
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Management fee (p.a.)0.35%
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Number of securities81
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Inception Date27-Apr-16
Overview
Fund Description
GRNV gives investors access to a diversified portfolio of sustainable Australian companies selected on the basis of in-depth analysis by world leading research agency MSCI ESG Research. GRNV aims to provide investment returns, before fees and other costs, which track the performance of the Index.
Key benefits
Australian equity portfolio incorporating investor values and beliefs
True-to-label Australian sustainable equity ETF encompassing both values-based and environmental, social and governance (ESG) investing
A focus on ethical standards through positive and negative screens
Screening for fossil fuels, human rights controversies and socially responsible investments (SRI) combined with ESG leadership
State-of-the-art ESG leadership approach
Leveraging MSCI's leadership, resources and its ESG data metrics
Index Key points
Underlying index
MSCI Australia IMI Select SRI Screened Index
The Index comprises
The Index includes Australian listed securities that have high Environmental, Social and Governance (ESG) performance by applying the following negative and positive screens:
- Excluding companies with any tie to fossil fuels (thermal coal, oil and gas);
- Exclusion of companies whose business activities are not socially responsible (SRI), subject to satisfying various thresholds; and
- Inclusion of only high ESG performers in each sector.
The Index aims to achieve diversification by capping the maximum weight assigned to each security, thereby avoiding concentration risk.
Summary of Index methodology
The Index is constructed using the following steps
1. The eligible universe of securities is defined as the securities in the MSCI Australia Domestic IMI Index.
2. Securities are screened for exclusion based on the following business activities:
| Business activities | Exclusion |
|---|---|
| Adult entertainment | All companies:
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| Alcohol | All companies:
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| Animal welfare | All companies that:
|
| Civilian firearms | All companies:
|
| Conventional weapons | All companies deriving:
|
| Controversial weapons | All companies with any tie to Controversial Weapons (cluster munitions, landmines, depleted uranium weapons, biological/ chemical weapons, blinding lasers, nondetectable fragments and incendiary weapons), as defined by the methodology of the MSCI Global Ex-Controversial Weapons Indexes available at https://www.msci.com/index-methodology. |
| Fossil fuels | All companies with any tie to fossil fuels (thermal coal, oil and gas), in particular reserve ownership, related revenues and power generation. |
| Gambling | All companies deriving:
|
| Genetically modified organisms (GMO) | All companies deriving 5% or more revenue from activities like genetically modifying plants, such as seeds and crops, and other organisms intended for agricultural use or human consumption. |
| Nuclear power | All companies with any tie to the nuclear power industry. |
| Nuclear weapons | All companies that:
|
| Tobacco | All companies:
|
| Soft Drinks | All companies classified within the “Soft Drinks” sub-industry as per the Global Industry Classification Standard (GICS®) (the global industry classification standard jointly developed by MSCI Inc. and S&P Global). |
| Nutrition and health | All companies with a “Opportunities in Nutrition and Health score” greater than 2 (i.e. 3rd and 4th quartile). Companies that are classified within the “Household & Personal products” Industry group are exempted from exclusion due to this screening. |
3. Only companies with ESG controversy scores of green or yellow are included (based on MSCI’s scale of red, orange, yellow or green ESG controversy scores). Companies are required to have maintained the score for 4 quarterly rebalances before becoming eligible for inclusion.
4. Companies are excluded based on MSCI flags in respect of human rights controversies (red, orange or yellow Human Rights controversy flags)
5. Only companies with ESG rating ‘A’, ‘AA’ and ‘AAA’ are included (based on MSCI’s scale from ‘AAA’ to ‘CCC’). Companies are required to have maintained the rating for 6 quarterly rebalances before becoming eligible for inclusion.
6. Companies with free float adjusted market capitalisation less than or equal to USD 750m (new constituents) or less than or equal to USD 500m (existing constituents) are excluded.
7. The remaining companies are then weighted by their free float market capitalisation subject to a 5% individual weighting cap.
Index provider
MSCI Inc. MSCI is not a related entity of VanEck Investments Limited. GRNV is indexed to a MSCI index. GRNV is not sponsored, endorsed, or promoted by MSCI, and MSCI bears no liability with respect to GRNV or the MSCI Index. The PDS contains a more detailed description of the limited relationship MSCI has with VanEck and GRNV. For full details of the methodology, click here.
Performance
Holdings & allocations
Dividends
Election of Dividend Reinvestment Plan (DRP)
You can elect DRP by logging into Link’s Investor Centre (https://investorcentre.linkmarketservices.com.au/Login). Once you are logged in, please proceed to the “Payments and Tax” tab and select “Reinvestment Update”.