Exclusions – how do they work?
Currently we’re using other fund managers to manage our Positive Impact Fund's investments. This is the best approach while the fund is still small in size. These fund managers have exclusion policies which state they will not invest in companies with ‘significant business activities’ in fossil fuels, alcohol, tobacco, gambling, controversial weapons and adult entertainment.
It's important to note that these definitions are often narrower than the common understanding of these terms. For example, the fund does include some companies with activities in the fossil fuel sector, because they are permitted under the definitions being used. However, the growth asset portion of the fund is currently 64% lower carbon intensity compared to the wider market.
As the fund grows, it's our aim to become more involved in its management, giving us further options around the structure of the fund and more control over what’s excluded.
We know some customers feel strongly about the sectors they invest in, so we recommend reading the detail to get a full picture of what types of companies could be included in the fund. To find out more about the exclusion policies, read the Positive Impact Fund Schedule in the ASB KiwiSaver Scheme Statement of Investment Policy and Objectives.