Members of the Mercer Super Trust KiwiSaver scheme can now choose to invest in the AMP Capital Responsible Investment Leaders Balanced Fund, with Mercer adding the RI investment option in response to growing demand.
Martin Lewington, Head of Mercer in New Zealand said Mercer made the move to add the RI option to its investment platform in response to feedback from its members.
“We conducted a survey of members late in 2008 which revealed that 81 per cent considered it important to have a responsible investment option.
“In New Zealand responsible investing has been on the radar for some time, but in the wake of the global financial crisis many are taking greater reassurance in the knowledge that the environmental, social and governance factors, which may impact positively upon long-term returns, have been considered,” he said.
Lewington said Mercer joins a pool of very few KiwiSaver schemes to offer a balanced investment option that also takes into account social and environmental investment factors.
“Mercer thought it important to offer members a balanced investment option, which has a medium risk profile, for their Responsible Investment option, given the large appetite for more conservative investment options in the current environment.”
Lewington said Mercer decided to partner with AMP Capital Investors to provide a Responsible Investment option in order to provide a cost-effective option for members, provided by a leader in Responsible Investment.
“Mercer and AMP Capital Investors are both leaders in the Responsible Investment field and working together is a natural fit. AMP Capital Investors has assembled a very experienced team of responsible investment practitioners to join their Responsible Investment committee, including a Mercer representative, to oversee the investments and we have confidence that they can deliver strong investment performance over the long term,” said Lewington.
“Members will also benefit from investment management fees which are comparably cheaper than what many of our competitors are offering for their Responsible Investment funds,” he said.
He added that Mercer was the first investment consultant to establish a specialist global Responsible Investment business unit and played a major role in developing the United Nation’s Principles for Responsible Investment.
Mercer also provides various investment managers, such as AMP Capital Investors, with research tools and advice to assess the environmental, governance and social factors within investment portfolios.
The AMP Capital Responsible Investment Leaders Balanced Fund will invest in funds or through investment managers who can demonstrate they have a system for taking Responsible Investment into account. It will also exclude investments in companies with significant involvement in the product or manufacture of activities with a high negative social impact.