We take a long-term approach to investing. We believe that this will produce better risk weighted returns for our investors than focusing on a short-term horizon.
Given we are investing for the long term, we want to invest in a way that is consistent with our values as a fund manager. We want to avoid (or positively engage with) companies that cause harm to individuals, society or indeed the planet.
Considering all operational risks over a long-term horizon means investors must include Environmental, Social and Governance (ESG) factors in their investment process. We believe that companies that score highly on ESG metrics will likely perform better than low scoring companies over long time periods. We’d like to reward companies that adopt and implement sound long term practices.
We also invest along four main themes - forestry, water, renewable energy, and sustainable data centres in order to promote development.
Our Rif and KiwiSaver funds are low-carbon funds, with a carbon intensity of around 80% less than benchmark.
In short, we believe investing in a socially responsible manner will lead to better investment outcomes for our investors and better outcomes for society generally.