Responsible Investment Policy

 

GARETH MORGAN KIWISAVER LIMITED RESPONSIBLE INVESTMENT POLICY

Gareth Morgan KiwiSaver Limited‘s policy in respect of Responsible Investment, including environmental, social and governance considerations, is as follows:


1. Investment Policy

Where we invest in companies directly, we incorporate environmental, social and governance (ESG) issues into our investment analysis and decision-making. Our process is detailed below.

Where we invest through a fund manager, we require them to disclose to us their commitment to ESG issues before we engage their services. However, we do not communicate our responsible investment statement to external fund managers and entities in which we may invest.  We do not audit or monitor external fund managers for compliance. However, integrity and accountability are key issues when considering the appointment of an external fund manager. If we found that an external fund manager was investing in contravention of policies they had informed us of, we would no longer use them.

We are not a signatory of the United Nations Environment Programme Finance Initiative (UNEP FI) and the UN Global Compact’s Principles for Responsible Investment. We do not employ a specialised responsible investment adviser.    


2. Investment Process

In taking ESG issues into account we engage in negative screening. We do not invest directly in companies whose primary business is the manufacture and sale of arms or tobacco, or the provision of gambling services.  If we find that we directly or indirectly invest in companies that manufacture and sell arms or tobacco, or companies that provide gambling services we apply a materiality test. If the non-acceptable investments represent more than 5% of the company’s or fund’s assets, then we would reconsider the ongoing investment.

We do not analyse an entity‘s ESG performance in the course of selecting investments; we do not discriminate in favour of investments in sustainable industries with ESG practices and policies; we do not actively invest in the most sustainable industries with ESG practices and policies; we do not engage with entities on ESG issues; and we do not as standard practice raise resolutions or vote on ESG issues.    

3. Investment Management Approach

We have developed our own responsible investment principles which govern both the type of investments we make on behalf of our members, and the way we approach the management of our members’ savings.

Transparency:
Transparency is fundamental to our business. Our members are fully informed about where their money is invested. A monthly report is available for each member disclosing what investments are in their account, in what quantities, and the month-end market value. Members can independently verify the market value of their account if they wish.

As a Scheme manager our over-riding commitment is to the financial security of our members’ savings.

Fees:
We charge a single fee to cover our costs for administering and managing your savings in the Gareth Morgan KiwiSaver Scheme, which is charged to member accounts monthly and members can clearly see this amount in their online reports.

The fee covers all regular ongoing costs incured in the management and administration of the Scheme including:

  • Trustee services
  • Administration services
  • Investments management services
  • Registry and custody costs
  • Marketing
  • Auditing
  • Legal
  • Printing and postage