PSS investment manager to exclude tobacco investments

18/07/2017
Provided by PSS.
Member funds will no longer be invested in companies with links to manufacturing tobacco following a decision by Mercer’s New Zealand investment arm to exclude these investments from its portfolios. This affects investments through Mercer Investment Trusts New Zealand which manages PSS funds.

Updated Responsible Investment Policy
Provided by PSS investment manager, Mercer New Zealand

Mercer believes that a sustainable investment approach is more likely to create and preserve long term investment capital.

As part of this, we have updated our Responsible Investment Policy which covers sustainable investment, ethical investment and corporate governance.

Exclusions
We have worked extensively with our Responsible Investment Team, clients and Board to develop the ethical exclusion component of the policy.

Under the policy we will be excluding investments in companies that we believe will cause substantial and irreparable harm to society and the environment.

We consider a range of criteria, including an assessment that the risk/ return implications of excluding such companies is not expected to be significant.

In applying this policy, we will be removing companies manufacturing tobacco, in addition to the existing exclusions for controversial weapons. This will apply across all asset types, with the list of companies determined in conjunction with an external provider.

Implementation
Where we invest through a direct mandate with a manager, i.e. where we set the investment guidelines, we will be making changes to the guidelines to exclude the identified companies.

Where we invest through pooled vehicles, i.e. where we don’t set the investment guidelines, we are either working with the existing manager to secure the appropriate changes, or creating new arrangements where we can control the guidelines. This will likely result in some manager changes. We will keep you informed as the process unfolds.

We have begun the process of divesting excluded companies from our share and bond portfolios and this will continue over the coming months. Holdings in alternative assets are targeted for divestment by the end of the year.
 
For more information, read our Responsible Investment Policy.


This information has been prepared by PSS for general information only. The information does not take into account your personal objectives, financial situation or needs. Therefore, you should not act on this information if you have not considered the appropriateness of this information to your personal objectives, financial situation and needs. You should consult a financial adviser before making any investment decision.
 

This website is provided by Mercer (N.Z) Limited on behalf of the trustee of the Police Superannuation Scheme (PSS). The trustee pays a fee for the provision of this service, however this fee is not conditional on you using this service or acting on the information or advice provided through this service.

PSS Trustees Limited is the issuer of the Police Superannuation Scheme (PSS). A copy of the PSS product disclosure statement is available under Documents and forms and at companiesoffice.govt.nz/disclose.