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QuayStreet's socially responsible investment fund celebrates 10 years

23 July 2018

QuayStreet Asset Management Limited (QuayStreet) recently celebrated the 10th anniversary of its Balanced SRI Fund. The Fund was one of the first socially responsible KiwiSaver funds available for public investment when it was established in 2007. The Balanced SRI Fund now has more than $38 million invested, of the total $800 million of funds under management across all QuayStreet Funds.

QuayStreet has marked the anniversary by announcing some changes to the Fund, which will include renaming the Fund as the QuayStreet Socially Responsible Investment Fund in August, and launching a refreshed QuayStreet website.

Reduction in fees 

QuayStreet is pleased to announce the management fee for our Fund has been reduced from 1.25% to 1.00% per annum.

“It reflects our ambition to maximise the benefit for our investors while we continue to focus on providing a market leading socially responsible investment fund”, explains Stefan Stevanovic, Portfolio Manager at QuayStreet.

Expanding growth thresholds

QuayStreet is expanding the asset class ranges for the Fund in August, which will enable the investment team to incorporate more growth investments with the aim of generating higher returns over the long term. The broader, growth-orientated portfolio structure, tends to be more suitable, and have more appeal, to younger and long term investors.

“With this change, the Fund will aim to take advantage of increased exposure to growth assets when markets provide opportunities and preserve capital and reduce risk when the market outlook deteriorates”, says Stefan Stevanovic.

No change to socially responsible investment screening process

“Our stringent screening process incorporating both negative and positive screens, will remain exactly as before. We will continue to invest in companies that are operating sustainably, while avoiding those that have severe impact on the environment or on the society", explains Stefan.

 

Globally, socially responsible investment has been an area of focus for over a decade, since the United Nations-supported initiative Principles for Responsible Investment started in 2006. Today there is over US$81trillion invested in socially responsible assets globally*. In New Zealand, socially responsible investment continues to be niche. Only about 0.30% of total KiwiSaver balances are invested in socially responsible funds**, but this space is gaining momentum. 

“As more revelations of environmental and social impacts due to careless business practises become known, investors are shifting their investments to funds that align with their personal beliefs and values”, Stefan says.

“The challenge investors face is deciphering which fund is truly socially responsible as there is a broad range of criteria. QuayStreet’s socially responsible investment fund is true to its name, we hope the changes we are making will encourage broader investor participation”, he concludes.

*Source: UNPRI (www.unpri.org/pri/about-the-pri) - US$81.7tn of assets under management across more than 1900 UNPRI signatories as at April 2018.  
**
QuayStreet market analysis based on data as at 31 December 2017. Based on KiwiSaver funds that have explicit socially responsible investment objectives and process. 

More information

Find out more about the Balanced SRI Fund 
Latest Monthly Fund Fact Sheet
Socially Responsible Investment Policy 

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