The Fund adopts a responsible investment process that takes into account environmental, social and corporate governance (ESG) considerations by primarily investing with ESG conscious investment managers. The Fund is diversified ensuring risk is spread across multiple asset classes including Australian and international shares, property and infrastructure, fixed interest and cash.
Sandhurst targets a minimum level of 75% of the Fund will be allocated to investment managers who incorporate environmental, social and corporate governance considerations into their asset selection. ESG considerations are primarily applied to listed shares (both Australian and International) and fixed interest assets.
Investment managers may consider the following when selecting assets:
- Environmental – where strategies and actions look to address specific environmental issues, management of environmental impacts and integration of production processes with more durable, recyclable or renewable alternatives.
- Social and Ethical – the social impact of activities, including community involvement, engagement and indigenous relations, meeting basic fundamental human rights and labour standards.
- Governance – the evaluation of a governance structure, board independence and gender diversification, remuneration, bribery and corruption and shareholders rights.
As at September 2016, the Fund's chosen investment managers are:
Property and Infrastructure: BT Investment Management (Fund Services) Ltd
Cash: Sandhurst Trustees Limited; and Bendigo and Adelaide Bank Ltd
Sandhurst reviews the performance of each investment manager by employing a two-tiered approach consisting of:
- monitoring the investment performance and stability of the Fund by our experienced funds management team; and
- monitoring via a dedicated board appointed investment committee.
Sandhurst’s monitoring procedures may include, but are not limited to:
- regularly reviewing the investment performance of each investment manager;
- maintaining contact and ongoing liaison with key personnel within each investment manager’s business;
- reviewing any market research reports on the investment managers;
- addressing any concerns we may have with key personnel of each investment manager; and
- relying on the research obtained from an experienced external research provider who undertakes ongoing analysis into the performance of selected companies and the adherence to environmental, social, ethical and governance (ESG) considerations. This may also include labour standards.
Sandhurst has engaged the services of a reputable independent research provider who specialises in supplying ESG research, ratings and analytics to ensure that the respective investment managers are adhering to our ESG considerations.