The Mercer Kiwisaver scheme is a managed investment scheme which offers five multi-sector, diversified Funds which invest in a broad range of asset classes and two single sector Funds which invest in one asset class.
The funds are designed around Mercer’s investment beliefs.
Mercer KiwiSaver funds are designed to offer all investors with highly diversified options that vary in growth-defensive asset ratios, thereby enabling varying levels of risk appetites and investment objectives. The KiwiSaver options are as follows: Cash, Conservative, Moderate, Balanced, Growth, High Growth, Shares. Investors are able to choose any mix of these funds to tailor their portfolio to achieve the desired level of diversification and risk. Investment objectives for specific funds are listed in the SIPO.
We believe the funds are amongst the most diversified in New Zealand, enabling our investors to benefit from a broad range of asset classes which align with our Responsible Investment (RI) Policy.
Mercer employs a multi-manager investment approach in which it selects and monitors individual investment managers for the Mercer Investment Trust New Zealand (MITNZ) portfolios. As a manager-of-managers, Mercer selects specialist investment managers for each sector, thereby delegating the selection of securities to those managers. We have more than 170 staff spread around the globe involved in research which allows us to track over 5,400 managers and more than 26,000 investment strategies. Mercer utilises the ongoing research of the Mercer research teams to appoint, monitor, and reassess managers.
- ESG factors can have a material impact on long-term risk and return outcomes and should be integrated into the investment process.
- Taking a broader and longer-term perspective on risk, including identifying sustainability themes and trends, is likely to lead to improved risk management and new investment opportunities.
- Climate change poses a systemic risk, and investors should consider both the potential financial impacts of the associated transition to a low-carbon economy and the physical impacts of different climate outcomes.
- Active ownership helps the realization of long-term shareholder value by providing investors with an opportunity to enhance the value of companies and markets.
Responsible Investment Policy
Mercer New Zealand’s Responsible Investment Policy is guided by:
- Our company purpose, mission, and investment beliefs
- Our clients and customer perspectives
- Our fiduciary responsibilities
- Compliance with the laws of New Zealand
Mercer is part of the Marsh & McLennan Companies (MMC), whose purpose is at the core of what we do. As a collective group, MMC’s motivation is to create a positive impact on the businesses, people and societies we serve.
At Mercer, our mission is to make a difference in people’s lives. We strive to “Make Tomorrow, Today” by helping our clients and customers advance their health, wealth and careers.
In addition, we believe a sustainable investment approach is more likely to create and preserve long term investment capital (described in more detail above.).
The three components of the policy are:
- Sustainable Investment
- Ethical Exclusions
- Corporate Governance and Proxy Voting
As stated above, we believe environmental, social and governance (ESG) factors can have a material impact on long term risk and return outcomes and should be integrated into the investment process. For this reason:
- the investment managers appointed are encouraged to consider ESG factors in assessing investment risk and opportunities, as relevant to the type of investment.
- the principals of active ownership and investment stewardship are incorporated throughout our investment decision making and ownership practices, as documented in the Mercer Responsible Investment Policy.
Scope and Criteria
Consistent with our purpose, mission and investment beliefs, Mercer may exclude investments in companies that do substantial and irreparable harm to society or the environment provided the risk/ return implications of excluding such companies is not expected to lead to significant financial detriment for clients and can be effectively managed.
In determining whether to exclude any investment on this basis, Mercer will consider:
- Whether excluding the investment supports our purpose to create a positive impact on the businesses, people and societies we serve and our mission to help our clients and customers advance their health, wealth and careers
- Whether New Zealand legislation, regulation or government commitments prohibit the product or activity or aim to severely curtail or make obsolete such products or activities in the foreseeable future.
- Our clients and customers’ perspectives
- The impact of exclusion or ongoing investment on the reputation of Mercer and our existing and potential clients
- The efficacy of other responsible investment approaches in addressing the issue of concern such as engagement with companies.
Mercer relies on a third party provider of ESG Research in determining the individual companies to be excluded based on the decisions made under the above criteria.
Mercer will apply this framework to its direct investments. To the extent it is feasible, commercially prudent, and cost effective for clients, Mercer will use best endeavours to apply this framework to any indirect investments in collective investment vehicles (including exchange traded funds).
As at the date of this application, Mercer (N.Z.) Ltd has determined that the following products should be excluded on this basis
- Companies manufacturing cluster munitions, landmines, chemical or biological weapons, or nuclear weapons.
- Companies manufacturing tobacco products.
- Mercer may consider additional products or services for exclusion in future.