Our approach
We believe that we can foster positive outcomes for society and the environment by allocating capital to investments with more environmentally friendly practices and to those that minimise involvement in certain practices considered to be harmful.
Our approach to responsible investment is guided by our stewardship principles:
1. Driving change over time, not overnight.
Responsible investing is a journey which requires ongoing incremental improvement.
2. Focus on opportunities, not just exclusions.
Shareholders can influence companies through voting rights. We seek to use this influence to bring about change in the way that companies do business – there is an abundance of opportunities for improved ESG performance through changes in business practices. We integrate ESG within the investment process by considering the following factors:
Strategic: We target specific ESG themes (for example, renewable energy) to provide clarity of direction and put our words into action, ensuring we remain true to our commitment to growing your wealth with care.
Proactive: We refine the overarching strategic ESG themes at the investment level with the aim of improving the overall ESG characteristics of your investment funds.
Reactive: If a concern regarding a company arises in relation to its ESG characteristics, a review of the company is triggered. If no material improvement or clear pathway is apparent, the company may be divested, subject to balancing concentration risk against prudent industry diversification
We exclude or minimise
We all come from different walks of life and what investors consider important is dynamic as a result.
Our social considerations reflect the nature of our investment style and cover the issues considered to be most important to Kiwis, as well as New Zealand’s governing bodies.
We screen our investible universe for the following types of investments and either exclude or minimise exposure to them.
For Investment minimisations, exposure is calculated as a company's level of revenue generated from any individual practice, weighted by its allocation within a fund or portfolio. We aim to ensure that the total amount of exposure to any one practice does not rise above 1% for a given fund or portfolio.
Investment exclusions
Investment minimisations
Active ownership
We practice active ownership through proxy voting on our investee companies’ annual general meetings and shareholder proposals using our guiding Governance principles (see our Responsible Investment Brochure below for the details). You can find out more about our Proxy Voting history on our Voting Disclosure Page.
Our underlying investment managers also conduct engagement activities with investees regularly, you can find out about engagement by clicking the following links:
Dimensional: Investment Stewardship | Dimensional
Harbour: Harbour_Sustainability_Report_2023.pdf
Schroders: 2024 Active Ownership Report
Responsible Investment Association Australasia (RIAA) Certification
Expert investment advice on tap
You just can't beat talking to a real person. Come have a chat with our real investment advisers, at no additional charge. We have experts in providing advice situated throughout New Zealand, as well as a digital team available online.