Glossary of terms

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Best of sector
This is an investment approach that considers companies in all industry sectors but prefers those with superior performance. Companies are ranked against similar criteria such as environmental and social management. This approach allows Westpac Investment Management and Monash to engage with companies in all industry sectors whilst reducing volatility by spreading risk across all industry sectors.

Eco ratings
Monash Sustainability Enterprises rates over 160 companies from the ASX/S&P 200 Index on their environmental performance – their 'eco rating'. For portfolio construction purposes, each company is assigned one of five eco ratings based on strategy analysis, management analysis, operation and product analysis, and stakeholder management.

Economic ratings
Westpac Investment Management rates all companies in the ASX/S&P 200 Index on their economic performance. Each company is assigned one of five economic ratings based on qualitative factors (such as quality of management) and quantitative factors (including earnings, forecasts and return on equity). These are combined with social and eco ratings to determine a company's overall sustainability rating.

Eco tilt
The eco tilt measures the extent environmental factors (ie Monash's eco ratings) have impacted portfolio construction. The lower the score, the greater the influence of Monash's eco ratings. That is, a score of 1 signifies a maximum eco tilt, while a score of 5 reflects a zero eco tilt.

Social ratings
Monash Sustainability Enterprises rates over 160 companies from the ASX/S&P 200 Index on their social performance. This social rating is combined with Monash's eco rating and Westpac Investment Management's financial analysis to determine a company's sustainability rating. For portfolio construction purposes, each company is assigned one of five social ratings based on workplace management, human rights, business ethics and community development.

Sustainability ratings
A company's sustainability practice refers to maintaining long-term growth without causing environmental or social damage. When it comes to investing, sustainability refers to analysing a company's economic, social and environmental performance as part of its overall rating. This is also known as the triple bottom line.

Sustainability tilt
The sustainability tilt measures the extent to sustainability factors (ie Monash's eco and social ratings plus Westpac Investment Management's (economic ratings) have impacted portfolio construction. The lower the score, the greater the influence of the sustainability ratings. That is, a score of 1 signifies a maximum sustainability tilt, while a score of 5 reflects a zero tilt.

Triple bottom line
The triple bottom line is a holistic approach to company performance and takes into account a company's environmental, social and financial results. A number of studies show that there is a strong link between a company's economic performance (and therefore share price) and environmental and social performance.

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General advice on this website has been prepared without taking into account your objectives, financial situation or needs. Before acting on the advice, consider its appropriateness. Consider our disclosure documents, which include Product Disclosure Statements (PDS) for some products. The PDS is relevant when deciding whether to acquire or hold a product. View our Australian Prudential Regulation Authority Registrable Superannuation Entity (RSE) Licence & Registration numbers.

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Important Information

Past performance is not a reliable indicator of future performance.

Investments in the Funds are not investments, deposits or other liabilities of, and are not guaranteed by Westpac Banking Corporation or other members of the Westpac Group. Investments are subject to investment and other risks, including possible delays in payment of withdrawal proceeds in some circumstances, and loss of income and principal invested. Neither WBC nor any other member of the Westpac Group guarantees the capital value or performance of these investments or the assets of the Funds.