Booster Investment Scheme – Socially Responsible Moderate Fund

Product Name

Booster Investment Scheme – Socially Responsible Moderate Fund

Issuer

Booster Investment Management

Category

Investment

Type

Fund or Trust

Target

Retail

Certified Since

2015

Asset Classes

Diversified / Multi-asset

Markets

New Zealand

Investment Approaches

Negative Screening

It Includes:

  • No inclusions5 No specific themes

It has some level of screening for:

  • Riaa icons 41 Alcohol
  • Riaa icons 33 Fossil fuels
  • Riaa icons 42 Gambling
  • Riaa icons 45 Genetic engineering
  • Riaa icons 50 Nuclear power
  • Riaa icons 99 Pornography
  • Riaa icons 35 Tobacco

It fully excludes:

  • Riaa icons 41 Alcohol
  • Riaa icons 36 Armaments
  • Riaa icons 33 Fossil fuels
  • Riaa icons 42 Gambling
  • Riaa icons 50 Nuclear power
  • Riaa icons 99 Pornography
  • Riaa icons 35 Tobacco

Overview

The fund’s objective is to provide relatively consistent returns, with some capital gains over the long-term. • It aims to achieve returns (after fees but before tax) of at least 1.75% per year above inflation over any four year period. • Generally, there will be some movements up and down in the value of the fund. • The fund invests mainly in income assets and includes some growth assets. It currently excludes investments in directly held companies and managed fund investments where the underlying activities are principally involved in the tobacco, alcohol, gambling, armaments, nuclear power, adult entertainment, GMO and fossil fuel industries.* • The criteria for screening out these investments may be modified over time to reflect developments in the socially responsible investment arena *Further detail on excluded investments can be accessed by following the link in the “Socially responsible investing” section of our Approach to Responsible Investing policy, at www.booster.co.nz/responsible-investing-policy.


Description


Booster's investment methodology follows a strong belief that added value will mainly be derived by making appropriate top-down based economic, industry sector and sub-asset class assessments. 
  
 Within the SRI portfolios, Booster builds on this top down process by utilising a negative screening process which avoids certain industries that overall are assessed as having a negative impact on society, while focusing on selecting investments that offer exposure to the key economic and sector themes identified through our top down research. The assessment of investments for compliance with this methodology and criteria is tightly integrated with broader portfolio monitoring. 
  
 The results of this are required to be provided to the Senior Manager Research in respect of any new company’s addition. Where there is any potential ambiguity regarding the compliance of a new investment with the Booster SRI policy, its inclusion is required to be formally approved by the Booster Investment Committee.  Corporate actions and changes in key business direction are monitored for existing portfolio holdings, to identify any changes that might impact a company’s compliance with the SRI criteria. As part of this process, each company is required to be reviewed at least annually. Any investments that are assessed to no longer comply with the SRI policy are required to be sold within a reasonable period.
  
 With respect to fossil fuel exclusions, managed fund investments are researched relative to this criteria; however, in some cases they may include a small allocation to fossil fuels which is subject to ongoing monitoring of suitable alternatives.



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