How we evaluate products
Responsible Investment strategies, processes, practices and disclosures are assessed against the eight criteria for product certification in the Responsible Investment Standard and accompanying Guidance and Assessment Notes.
What this symbol means
General certification: This Symbol signifies that a product or service offers an investment style that takes into account environmental, social, governance or ethical considerations, and that it adheres to the operational and disclosure practices required under the Responsible Investment Certification Program for the category of Product.
The content on this webpage is provided by Responsible Investment Association Australasia Ltd (ACN 641 046 666, AFSL 554110). For more information refer to our Financial Services Guide. Certain content provided may constitute a summary or extract from the offer document of a financial product. Any general advice has been provided without reference to your investment objectives, financial situation or needs. If the advice relates to the acquisition of a particular financial product for which an offer document (such as a product disclosure document) is available, you should obtain the offer document relating to the particular financial product and consider it before making any decision whether to acquire the product. Past performance does not necessarily indicate a financial products’ future performance. To obtain information tailored to your situation, contact a financial adviser.
Themes & Issues
Society
Education
Included
Green property
Included
Healthcare and medical products
Included
Impact investments
Included
Renewable energy and energy efficiency
Included
Social and sustainable infrastructure
Included
Sustainable land and agricultural management
Included
Sustainable transport
Included
Sustainable water
Included
High scoring ESG companies
Included
Employment and vocational training
Included
No specific themes
Included
More sustainable companies
Included
Nuclear power
Fully avoided
Tobacco
Fully avoided
Armaments
Mostly avoided
Fossil fuels
Mostly avoided
Gambling
Partially avoided
Genetic engineering
Partially avoided
Human rights abuses
Partially avoided
Labour rights violations
Partially avoided
Pornography
Partially avoided
Alcohol
Partially avoided
Environment
Education
Included
Green property
Included
Healthcare and medical products
Included
Impact investments
Included
Renewable energy and energy efficiency
Included
Social and sustainable infrastructure
Included
Sustainable land and agricultural management
Included
Sustainable transport
Included
Sustainable water
Included
High scoring ESG companies
Included
Employment and vocational training
Included
No specific themes
Included
More sustainable companies
Included
Nuclear power
Fully avoided
Tobacco
Fully avoided
Armaments
Mostly avoided
Fossil fuels
Mostly avoided
Gambling
Partially avoided
Genetic engineering
Partially avoided
Human rights abuses
Partially avoided
Labour rights violations
Partially avoided
Pornography
Partially avoided
Alcohol
Partially avoided
For RIAA’s definitions of the themes included and issues avoided, please view this guide . Product-specific exclusion criteria and practices may vary. You can find these by referring directly to the product provider.
Overview
The fund is a diversified portfolio with a slightly higher allocation to a mix of growth assets (e.g., shares and listed property) relative to a mix of income assets (e.g., cash and fixed income). The fund takes a sustainable investment approach and is managed to specific ‘sustainable investment’ criteria which prohibit investments in certain companies or activities, and encourage investment in companies with strong environmental, social and governance characteristics. This fund has additional exclusions appliedas described in our Sustainable Investment Policy and has been certified by the Responsible Investment Association of Australasia (RIAA).
Description
The Mercer Ethical Leaders Balanced Fund employs ESG integration, active ownership, and screening strategies in its sustainable investment approach.
1. ESG integration: the inclusion of ESG factors into the investment process for risk/return reasons. Mercer scores managers abilities to integrate ESG factors into their strategies using their ESG Rating criteria between an ESG1 (best) and ESG4 (worst). Investment managers or strategies with higher ESG Ratings are selected for this fund, typically ESG1 or ESG2.
2. Active ownership: Mercer’s Sustainable Investment Manager runs a dedicated direct company engagement program with the top twenty Australian holdings, over and above the engagement managers are doing with companies, and the engagement we undertake with our managers and through collaborative initiatives.
3. Excluded investments include the following themes:
• Nicotine alternatives and tobacco-based products
• Controversial weapons
• Russian securities
• Fossil Fuels
• Adult entertainment
• Alcohol
• Gambling
• Depleted uranium ammunition/armour
Specific thresholds and definitions apply. Please see https://www.multimanager.mercer.co.nz/funds/environmental-social-governance-policies.html for full details.
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Themes & Issues
13
themes included
2
issues fully avoided
2
issues mostly avoided
6
issues partially avoided
Product Targets
Wholesale
Retail
Certified Since
2007
Last date certified
October 13, 2023
Primary RI Strategy
Negative Screening
Secondary RI Strategy
Other (please detail)