Socially responsible investment

Your money in the Summer KiwiSaver scheme is “actively invested”, meaning we undertake deep and thorough research before making any investment decisions on your behalf.

While we consider socially responsible investing as a natural consequence of our investment philosophy and attitude to investing, we believe it is important to make clear our commitment, on your behalf, to socially responsible investing.

Responsible investment, including environmental, social and governance considerations, is taken into account in the investment policies and procedures of the Scheme as follows:

Before we make a direct investment for the Scheme, we assess whether, in our opinion, the relevant entity is directly engaged in any of the following activities:

  • the manufacture of cluster munitions
  • the manufacture or testing of nuclear explosive devices
  • the manufacture of anti-personnel mines
  • the manufacture of tobacco
  • the processing of whale meat

If our assessment is that the entity is directly engaged in any of those activities, then we don’t make the investment.

We will make our assessment based on the framework made available by the NZ Super Fund (see www.nzsuperfund.nz/how-we-invest/responsible-investment).  We will ensure that none of our direct investments are on the NZ Super Fund’s exclusion list because of engagement in any of those activities at the time of purchase.

If we make a direct investment and subsequently form the view that the relevant entity is directly engaged in any of the activities listed above, we will sell the investment in a reasonable timeframe.  We will check our direct investments against the most recently published NZ Super Fund exclusion list at least monthly.

Before the Scheme invests into an underlying managed investment scheme that we don’t manage, we will consider the responsible investment framework for that scheme.  We will seek to invest in underlying schemes with responsible investment frameworks comparable to ours, where we can do that without compromising our other investment objectives. At the end of each quarter, we will make available on this website a list of any of the underlying scheme’s direct investments (as are available to us) where we consider that the relevant entity is directly engaged in any of the activities above (based on the NZ Super Fund’s exclusion list at that time).

As at 30 September 2021 the Summer Kiwisaver Scheme had an investment in Smartshares Global Bond ETF (GBF).

At that date, the GBF had financial exposures to entities associated with with Altria Group Incorporated, Barrick Gold Corporation, BAT International Finance PLC, Freeport- McMoran Incorporated, Imperial Brands Finance PLC, Honeywell International Incorporated, Lockheed Martin Corporation, Olin Corporation, Northrop Grumman Systems Corporation and Reynolds American Incorporated, companies that appeared in the relevant sections of NZ Super Fund’s Responsible Investment exclusion list as at 30 September 2021*.

Summer fund Exposure to securities appearing in the relevant section of the NZ Super Fund’s Responsible Investment exclusion list (30 September 2021)*
Summer Global Fixed Interest 0.000244%
Summer Conservative Selection 0.000031%
Summer Balanced Selection 0.000018%
Summer Growth Selection 0.000006%

*calculated as the combined net exposure (basis market value) of each Summer fund to the securities of companies detailed in the relevant sections of the NZ Super Fund’s investment exclusion list as at 30 September 2021

The exposures were the unintended result of hedging transactions and not companies specifically targeted by PIMCO Australia PTY Ltd, the investment manager of the GBF.

Please refer to NZX Smartshares' Statement of Investment Policy and Objectives for further information on its approach to responsible investing.

If the Scheme invests into an underlying managed investment scheme that we manage, we will follow the process above for that scheme’s direct investments and investments into underlying managed investment schemes.