Mercer Socially Responsible Global Shares Fund -Hedged Units

Product Name

Mercer Socially Responsible Global Shares Fund -Hedged Units

Issuer

Mercer Investments (Australia) Limited

Category

Investment product

Type

Fund/Trust

Target

Retail, Wholesale

Certified Since

2018

Certification Symbol

SRI

Asset Classes

Equities - International markets

Markets

Australia

Investment Approaches

Negative Screening, ESG Integration, Sustainability Themed - The Sustainability themed allocation focuses on investing in companies that are positively contributing to delivering in global sustainability goals. Corporate Engagement Approach: Our managers have discussions with a company, usually at Board or senior management level, with the objective of changing the behaviour of that company around important ESG issues. For more information see Mercer's Sustainable Investment Policy. http://https://www.multimanager.mercer.com.au/content/dam/mercer/attachments/asia-pacific/australia/investment/multi-manager/2018/mial-sustainable-investment-policy.pdf

It Includes

  • Riaa icons 11 More sustainable companies
  • Investment2 Social impact investments
  • Riaa icons 10 Renewable energy
  • Riaa icons 32 Green property
  • Riaa icons 12 Healthcare & medical products
  • Riaa icons 13 Sustainable transport
  • Riaa icons 14 Education
  • Riaa icons 15 Social & community infrastructure
  • Riaa icons 31 Sustainable water

It Excludes

  • Riaa icons 35 Tobacco
  • Riaa icons 36 Armaments
  • Riaa icons 41 Alcohol
  • Riaa icons 42 Gambling
  • Riaa icons 55 Pornography

Overview

The Mercer Socially Responsible Global Shares Fund – Hedged Units invests in global shares using a socially responsible and multi-manager approach. The Fund aims to outperform the benchmark (MSCI World (NDR) Index in A$) by 1.5% gross of fees on a rolling five year basis. The Fund also aims to invest thematically in companies providing solutions to sustainable development challenges.


Description


The Mercer Socially Responsible Global Shares Fund – Hedged Class (Fund) is an Australian domiciled global multi-manager fund that currently invests 100% into the Mercer Dublin Sustainable Global Equity Fund (SGE Fund).  The Dublin Fund in turn invests into four investment mandates.  The Dublin Fund uses the same robust investment process (described below) to select the funds and investment managers for this Fund as the range of Mercer Multi-Manager Funds, with the addition of ethical and social responsibility screens.  The exclusion criteria applied to the Fund are as follows. 

The Fund will not invest in companies:

  • involved in the production (manufacture), sale or distribution of controversial weapons including cluster munitions, landmines, biological, chemical or nuclear weapons. 

  • with material exposure (as defined as 10% of revenue or greater in the last full financial year) to tobacco production, alcohol production, gambling or gaming services and adult entertainment.

  •  with material involvement (as defined as 20% of revenue or greater) in thermal coal and tar / oil sands. 
Mercer tests the portfolio against the exclusion criteria using ESG data provided by MSCI ESG Research.

Mercer Investment Process 

Mercer’s multi-manager team leverages the global Mercer research network to establish optimal combinations of specialist managers for each Fund. Mercer’s investment manager research focuses on each manager’s strength in idea generation, portfolio construction, implementation and business management.  Mercer’s global manager research team also evaluates more than 5,000 investment manager strategies on their integration of ESG factors, and active ownership (voting and engagement) to determine an appropriate ESG rating.  This rating sits alongside the traditional investment ratings such as alpha ratings and is considered alongside all relevant factors. 

Prior to the appointment of an investment manager a detailed Operational Risk Assessment Report is prepared, which considers the risks associated with the investment mandate type, firm size, and significant third party or outsourced relationships, along with the mitigating or compensating controls that a firm may have to manage potential issues. 

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Mercer Socially Responsible Australian Shares Investment Option (Mercer Super Trust)

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