Responsible investment, including environmental, social and governance considerations, is taken into account in the investment policies and procedures of the Investment Funds.
Before we make a direct investment for a Fund, we assess whether, in our opinion, the relevant entity is directly engaged in any of the following activities:
- the manufacture of cluster munitions
- the manufacture or testing of nuclear explosive devices
- the manufacture of anti-personnel mines
- the manufacture of tobacco products
- the processing of whale meat
If our assessment is that the entity is directly engaged in any of those activities, then we don’t make the investment.
We will make our assessment based on the framework made available by the NZ Super Fund (see www.nzsuperfund.co.nz/how-we-invest/responsible-investment). We will ensure that none of our direct investments are on the NZ Super Fund’s exclusion list because of engagement in any of those activities at the time of purchase.
If we make a direct investment and subsequently form the view that the relevant entity is directly engaged in any of the activities listed above, we will sell the investment in a reasonable timeframe. We will check our direct investments against the most recently published NZ Super Fund exclusion list at least monthly.
Before a Fund invests into an underlying managed investment scheme that we don’t manage, we will consider the responsible investment framework for that scheme. We will seek to invest in underlying schemes with responsible investment frameworks comparable to ours, where we can do that without compromising our other investment objectives. At the end of each quarter, we will make available on our website a list of any of the underlying scheme’s direct investments (as are available to us) where we consider that the relevant entity is directly engaged in any of the activities above (based on the NZ Super Fund’s exclusion list at that time).
As at 31 March 2020 the Forsyth Barr Investment Funds did not invest into any underlying managed investment schemes.