Our approach to responsible investing
Limiting your exposure to harmful industries
We restrict investment in companies whose principal business activities involve fossil fuels, weapons, or tobacco.
Integrated ESG
Environmental, social, and governance factors are incorporated in our investment decisions. All eligible funds are certified by the Responsible Investment Association Australasia (RIAA), reinforcing our commitment to responsible investing.
Active ownership
We appoint an agent to actively engage with companies and arrange for an external provider to conduct proxy voting at shareholder meetings seeking to influence change.
What Responsible Investing Means at MAS
- Integrated ESG
- Active ownership
Integrated ESG
Our specialist investment managers incorporate many factors into their decision-making process. This includes environmental, social, governance (ESG) factors.
MAS is a signatory to the UN Principles of Responsible Investment (UNPRI) and all MAS Scheme eligible funds* are certified by the Responsible Investment Association of Australasia (RIAA).
*The Responsible Investment Association of Australasia does not currently assess cash funds as part of their Certification Programme.
Funds in the MAS KiwiSaver Scheme and MAS Investment Funds are recognised as “Mindful” by Mindful Money.
Active ownership
As a shareholder of publicly listed companies, MAS has the right to vote on behalf of investors at shareholder meetings and regards this as a part of its fiduciary responsibility. MAS has appointed an external proxy voting agent to execute voting in accordance with specified proxy voting guidelines. MAS has selected the agent’s Socially Responsible investment proxy voting guidelines, which includes (but is not limited to) environmental and climate action, and human rights & diversity. View the Proxy Voting Record below.
Engaging with companies to promote our ESG beliefs is a part of our responsible investment approach. Engagement activities are conducted on our behalf by an external agent. MAS has selected the agent’s framework advocating for human rights, labour rights, anti-corruption, and the environment. The external agent collaborates with other investment managers across the industry, including through aggregating company engagement. This approach leverages the collective shareholder influence of numerous investors, seeking to achieve a greater impact than we could on our own. View the Engagement Report Summary below.
What Responsible Investing Means at MAS
Integrated ESG
Our specialist investment managers incorporate many factors into their decision-making process. This includes environmental, social, governance (ESG) factors.
MAS is a signatory to the UN Principles of Responsible Investment (UNPRI) and all MAS Scheme eligible funds* are certified by the Responsible Investment Association of Australasia (RIAA).
*The Responsible Investment Association of Australasia does not currently assess cash funds as part of their Certification Programme.
Funds in the MAS KiwiSaver Scheme and MAS Investment Funds are recognised as “Mindful” by Mindful Money.
Active ownership
As a shareholder of publicly listed companies, MAS has the right to vote on behalf of investors at shareholder meetings and regards this as a part of its fiduciary responsibility. MAS has appointed an external proxy voting agent to execute voting in accordance with specified proxy voting guidelines. MAS has selected the agent’s Socially Responsible investment proxy voting guidelines, which includes (but is not limited to) environmental and climate action, and human rights & diversity. View the Proxy Voting Record below.
Engaging with companies to promote our ESG beliefs is a part of our responsible investment approach. Engagement activities are conducted on our behalf by an external agent. MAS has selected the agent’s framework advocating for human rights, labour rights, anti-corruption, and the environment. The external agent collaborates with other investment managers across the industry, including through aggregating company engagement. This approach leverages the collective shareholder influence of numerous investors, seeking to achieve a greater impact than we could on our own. View the Engagement Report Summary below.
Our exclusions
We currently exclude companies involved in the following activities:
| Sector | Companies involved in | Threshold for exclusion (principal business activities) |
| Fossil fuels |
Oil, gas, and coal Companies that generate 10% or more of their revenues from:
|
10% or more of revenues |
| Weapons |
Controversial weapons Companies that generate any revenue from or have involvement in the manufacture of controversial weapons, including those prohibited under New Zealand legislation such as cluster munitions, chemical weapons, anti-personnel mines, or nuclear explosion devices. |
0% or more of revenues |
| Weapons |
Civilian firearms Companies that generate 10% or more of their revenue from production, wholesale or retail sale of firearms or small arms ammunition intended for civilian use. |
10% or more of revenues |
| Weapons |
Military contracting Companies that generate 10% or more of their revenue from the manufacture of military weapons, systems, and components, and provide support services to those weapons, systems, and components. |
10% or more of revenues |
| Tobacco |
Production or manufacture Companies that generate any revenue from the production or manufacture of tobacco, tobacco-based products, or are involved in the exclusive production of alternative smoking products. |
0% or more of revenues |
| Tobacco |
Retail sale, distribution, license, or supply of essential products Companies that generate 10% or more of their revenue from the:
|
10% or more of revenues |
| Controversies |
MSCI Controvery scores Companies involved in 'very severe' controversies that score 0 ('red flag') on MSCI's ESG Controversy criteria are excluded from all portfolios. |
All companies that are non-compliant |
Exceptions
Investments in metallurgical coal and derivatives used during any investment manager or investment strategy transition are approved exceptions to the exclusion criteria listed above.
The MAS Responsible Investment Policy does not apply to private equity investments. For more information regarding our responsible investment approach and our process for divesting securities, please refer to the Responsible Investment Policy.
Independently certified and recognised
Katherine Reinhold, Lawyer
The RI Certification Symbol is issued by Responsible Investment Association Australasia (RIAA) ACN (641 046 666), AFSL (554110) and signifies that a product or service offers an investment style that take into account environmental, social, governance or ethical considerations. The Symbol also signifies that the MAS KiwiSaver Schemes, MAS Retirement Savings Scheme and MAS Investment Funds adhere to the operational and disclosure practices required under the Responsible Investment Certification Program for the category of Product. The MAS KiwiSaver Scheme, MAS Retirement Savings Scheme and MAS Investment Funds is assessed against RIAA’s Responsible Investment Standard. The Certification Symbol is a Trademark of RIAA. For detailed information about RIAA, the Symbol and MAS KiwiSaver Schemes, MAS Retirement Savings Scheme and MAS Investment Funds methodology, performance, stock holdings, remuneration and details about other responsible investment products certified by RIAA, refer to www.responsiblereturns.com.au and our Financial Services Guide.1
1. The Responsible Investment Certification Program provides general advice only and do not take into account any person’s objectives, financial situation, or needs. Neither the Certification Symbol nor RIAA recommends to any person that any financial product is a suitable investment or that returns are guaranteed. Because of this, you should consider your own objectives, financial situation and if the advice relates to the acquisition, or possible acquisition, of a particular financial product. Certifications are current for 24 months and subject to change at any time.
The RIAA does not currently assess cash funds as part of their Certification Programme.
Medical Funds Management Limited is the issuer and manager of the MAS KiwiSaver Scheme, MAS Retirement Savings Scheme, and MAS Investment Funds. The Product Disclosure Statement are available as MAS KiwiSaver Scheme PDS, MAS Retirement Savings Scheme PDS, MAS Investment Funds PDS.
If you would like to talk to a MAS Adviser, phone 0800 800 627 or email info@mas.co.nz