Overview
Our investment managers screen potential investments from an ethical perspective to ensure they meet the following criteria as an important part of our due diligence process. We will not invest in companies whose principal business activity is the manufacture and sale of armaments or tobacco, or the exploration, extraction, refining or processing of fossil fuels. In addition, the funds will not invest in any utility that primarily burns fossil fuels.
Description
The Medical Assurance Society Retirement Savings Plan’s investment policies reflect our commitment to a sustainable and healthy future for New Zealand, our planet, and its people.
MAS is a membership-based society for professional people. Traditionally we’ve drawn on the health professions and their families for the majority of membership. Our focus on health and sustainability reflects the desire of our Members to make a better, positive contribution to the environment and human health.
This is codified in our Responsible Investment Belief:
We invest in a way that represents what matters in our Members’ worlds – a sustainable and healthy future.
MAS provides the same approach to all investments. This not only includes the different multi-asset options available within its retail product ranges (e.g. Conservative; Balanced; Growth Portfolios) but also Parent Company reserves (e.g. general insurance; life and disability; and other reserves).
Responsible Investment Statement:
Our investment managers screen potential investments from an ethical perspective to ensure they meet the following criteria as an important part of our due diligence process. We will not invest in companies whose principal business activity is the manufacture and sale of armaments or tobacco, or the exploration, extraction, refining or processing of fossil fuels. In addition, the funds will not invest in any utility that primarily burns fossil fuels.
Approach:
We use Sustainalytics to screen potential investments based on defined screening criteria. Sustainalytics is a global ESG specialist. They employ ~300 professionals and have received industry recognition for the quality of their output.
Screens cover level of involvement, category of involvement, and standard analysis to ensure holdings are compliant. This is measured on revenue. If 10% and above company revenue is received from a restricted criteria a security will appear on an Exclusion List. All Controversial Weapons covered under New Zealand legislation are excluded.
Screens are refreshed quarterly.
We expect most, if not all, securities to be covered under this methodology. Any securities not covered by the exclusion list must meet either:
- JBWere investment committee approval
- Escalation to Sustainalytics for independent analysis
Each security that is not covered by Sustainalytics must be screened individually by the JBWere Portfolio Implementation Team to confirm compliance with MAS SRI policy. In matters of doubt the Portfolio Implementation Team will escalate the analysis to Sustainalytics.
Any underlying investment (e.g. Exchange Traded Funds) can only be considered approved from an ethical perspective if:
- none of its holdings are included in the Exclusion List, and
- any of the securities that are not covered by Sustainalytics are approved as being compliant by the JBWere Investment Committee
Select third party managers will run their own exclusion process. However these processes are similar to the MAS mandate. In addition, MAS are able to make their screens available to third party managers for testing of screens.
No specific themes
Armaments
Fossil fuels
Tobacco