Mercer Socially Responsible Australian Shares Fund

Product Name

Mercer Socially Responsible Australian Shares Fund

Issuer

Mercer Investments (Australia) Limited

Category

Investment

Type

Fund or Trust

Target

Retail, Wholesale, Institutional

Certified Since

2018

Asset Classes

Australian only equities

Markets

Australia

Investment Approaches

ESG Integration, Negative Screening

It Includes:

  • Riaa icons 14 Education
  • Riaa icons 32 Green property
  • Riaa icons 12 Healthcare and medical products
  • Riaa icons 10 Renewable energy and energy efficiency
  • Riaa icons 15 Social and sustainable infrastructure
  • Investment2 More sustainable companies

It has some level of screening for:

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

It fully excludes:

    Overview

    The Mercer Socially Responsible Australian Shares Fund provides exposure to Australian shares using a socially responsible and multi-manager approach. ESG considerations, including labour standards, climate change, principles of sustainable investment and good corporate governance are incorporated in the Fund’s investment decision making and ownership practices. The investment managers for this Fund must take into account the Fund’s total carbon intensity and Mercer’s commitment to sustainable investing and good corporate governance through ESG integration, proxy voting and engagement in their investment decision making process. Furthermore, the Fund will not invest in companies that meet certain exclusions criteria (more below).


    Description


    The Mercer Socially Responsible Australian Shares Fund employs ESG integration, active ownership, sustainability themes and screening strategies in its responsible investment approach. It includes all the foundations applied across all Mercer Funds, but is designed for those that want to invest according to an even wider set of ethical criteria and have a higher proportion of sustainability-themed assets.

    1. ESG integration, the Mercer Socially Responsible Australian Shares Fund only appoints managers that meet Mercer's ESG Ratings criteria of ESG1 or ESG2 (with ESG1 being the highest rating and ESG4 being the lowest). The Fund is also designed to achieve a carbon intensity that is 20% below the carbon intensity of the benchmark as measured annually.
    2. Active ownership, Mercer's Sustainable Investment Manager runs a dedicated direct company engagement program with the top twenty Australian holdings, over and above the engagement managers are doing with companies, and the engagement we undertake with our managers and through collaborative initiatives. 
    3. Sustainability-themed exposures are higher in this Fund than Mercer's equivalent Australian Shares Fund with managers like Alphinity that are incorporating the Sustainable Development Goals as a direct input to their portfolio construction process. 
    4. Excluded investments include the following: 
    • Tobacco - Companies involved in the manufacture and/or production of tobacco products (regardless of revenue), including subsidiaries and joint ventures, as well as any other company that derives 50% or more of revenue from other tobacco-related business activities such as packaging, distribution and retail of tobacco products.
    • Controversial weapons: Companies that manufacture whole weapons systems, or delivery platforms, or components that were developed or are significantly modified for exclusive use in cluster munitions, anti-personnel landmines, biological or chemical weapons, as well as companies involved in the production and retailing of automatic and semi-automatic civilian firearms. 
    • Plus companies with a material exposure* to:
      • Alcohol production
      • Carbon intensive fossil fuels (defined as thermal coal and tar sands)
      • Gambling
      • Pornography
    *Material exposure is defined as 5% of revenue or greater in the last financial year, with the exception of carbon intensive fossil fuels where material exposure is defined as 20% or more of a company's revenue in the last financial year. 

    Other products certified by the Responsible Investment Association Australasia (RIAA)

    Mercer Socially Responsible Global Shares Fund -Hedged Units

    Mercer Socially Responsible Global Shares Fund -Unhedged Units

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