Responsible investment, including environmental, social and governance considerations, is taken into account in the investment policies and procedures of the Investment Funds.
Before we make a direct investment for a Fund, we assess whether, in our opinion, the relevant entity is directly engaged in any of the following activities:
- the manufacture of cluster munitions
- the manufacture or testing of nuclear explosive devices
- the manufacture of anti-personnel mines
- the manufacture of tobacco products
- the processing of whale meat
If our assessment is that the entity is directly engaged in any of those activities, then we don’t make the investment.
We will make our assessment based on the framework made available by the NZ Super Fund (see www.nzsuperfund.nz/how-we-invest/responsible-investment). We will ensure that none of our direct investments are on the NZ Super Fund’s exclusion list because of engagement in any of those activities at the time of purchase.
If we make a direct investment and subsequently form the view that the relevant entity is directly engaged in any of the activities listed above, we will sell the investment in a reasonable timeframe. We will check our direct investments against the most recently published NZ Super Fund exclusion list at least monthly.
Before a Fund invests into an underlying managed investment scheme that we don’t manage, we will consider the responsible investment framework for that scheme. We will seek to invest in underlying schemes with responsible investment frameworks comparable to ours, where we can do that without compromising our other investment objectives. At the end of each quarter, we will make available on our website a list of any of the underlying scheme’s direct investments (as are available to us) where we consider that the relevant entity is directly engaged in any of the activities above (based on the NZ Super Fund’s exclusion list at that time).
As at 31 December 2020 the Forsyth Barr Balanced Fund and Forsyth Barr Growth Fund each had an investment in Smartshares Global Bond ETF (GBF).
At that date, the GBF had financial exposures to entities associated with Altria Group Incorporated, BAT International Finance PLC, Imperial Brands Finance PLC, Honeywell International Incorporated, Lockheed Martin Corporation, Northrop Grumman Systems Corporation and Reynolds American Incorporated, companies that appeared in the relevant sections of NZ Super Fund’s Responsible Investment exclusion list as at December 2020.
Forsyth Barr Investment Funds
Exposure to securities appearing in the relevant section of the NZ Super Fund’s Responsible Investment exclusion list (December 2020)*
Forsyth Barr Balanced Fund
Forsyth Barr Growth Fund
*calculated as the combined net exposure (basis market value) of each fund to the securities of companies detailed in the relevant sections of the NZ Super Fund’s investment exclusion list as at 31 December 2020.
The exposures were the unintended result of hedging transactions and not companies specifically targeted by PIMCO Australia PTY Ltd, the investment manager of the GBF.
Please refer to NZX Smartshares' Statement of Investment Policy and Objectives for further information on its approach to responsible investing.
Forsyth Barr Investment Management Ltd is a licenced manager of registered schemes and part of the Forsyth Barr group of companies. View the Product Disclosure Statement for Forsyth Barr Investment Funds, or for a printed copy, contact any of our offices or call your Forsyth Barr Investment Adviser on 0800 367 227.