Pathfinder Global Responsibility Fund

Product Name

Pathfinder Global Responsibility Fund

Issuer

Pathfinder Asset Management

Category

Investment

Type

Fund or Trust

Target

Retail

Certified Since

2018

Certification Symbol

Responsible investment

Asset Classes

International equities

Markets

New Zealand

Investment Approaches

ESG Integration, Negative Screening, 1 - positive screening (selection of highest ESG scoring companies) 2 - norms based screening (NZ Super Fund exclusions) and 3 - Controversy Screening (exclusion of stocks with significant current ESG issues based on news flow, lawsuits etc)

It Includes:

  • Riaa icons 10 Renewable energy and climate change solutions
  • Riaa icons 30 Sustainable land and agricultural management
  • Riaa icons 13 Sustainable transport
  • Riaa icons 31 Sustainable water
  • Investment2 More sustainable companies
  • Default selected inclusion No specific inclusions

It has some level of screening for:

  • Riaa icons 36 Armaments
  • Riaa icons 33 Fossil fuels
  • Riaa icons 42 Gambling
  • Riaa icons 52 Human rights abuses
  • Riaa icons 38 Labour rights violations
  • Riaa icons 55 Pornography
  • Riaa icons 35 Tobacco
  • Default selected exclusion No specific exclusions

Overview

Objectives: (1) invest in global equities that satisfy Pathfinder’s socially responsible investment screening and (2) achieve a medium to long-term return higher than the Morningstar Developed Markets Index, 50% hedged to NZ dollars.


Description


Our Global Responsibility Fund is an ethical equity fund intended to be a core global equity exposure for responsible investors.  

The fund invests in our wholesale Responsible Investment Fund (RIF) which targets a portfolio of 250 direct stock holdings.  The ethical screening for stock selection has multiple layers:
1 - several exclusion screens are applied including the NZ Super Fund exclusions list and additional revenue exclusions for gambling, tobacco, thermal coal, pornography and controversial armaments
2 - stocks with high current operational "controversy" levels are excluded (i.e. significant current ESG issues based on news flow, lawsuits etc)
3 - portfolio selection optimises the highest portfolio ESG score that will satisfy the Pathfinder Investment Committee targets for geographic spread, industry allocations and other portfolio factors (dividend, volatility, growth, company size etc).  This means ESG is treated as an investible factor.    
4 - Stocks selected are equally weighted.

Our stock selection process uses research and ratings from 2 sources:
1 - Sustainalytics (we were their first client in NZ)
2 - our in-house research (we have a full-time specialist ESG analyst)

Currency exposure in the Global Responsibility Fund is partly hedged with a base target of 50%.

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

Pathfinder Global Water Fund

Find out more