Ethica strategy profile

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Overall objective

Ethica’s objective is to provide a medium risk “balanced” portfolio of the main asset classes, while looking to maintain social, community and environmental standards. Ethica is designed for someone with at least 10 to 12 years to retirement and who wishes to invest with a socially responsible investment focus. We expect Ethica to earn a positive “real” investment return after tax and inflation, over a 5 to 7 year period. Negative investment returns may occur, over a 12 month period, once every 5 to 7 years on average.

If you choose to invest in Ethica, each $100 of your savings is invested in the different investment sectors around a benchmark that targets 60% shares/property and 40% cash/bonds as follows:

  Benchmark Range
Cash 5.0% 0-50%
Bonds 35.0% 0-60%
Property 10.0% 0-35%
Shares 50.0% 0-70%

 

Principles

In selecting managers and assets, Ethica adopts an exclusion approach. It will look to exclude investments where the activities of the organisations behind the investment:

  • have an overall negative impact on social and community outcomes
  • would be illegal in New Zealand
  • are inconsistent with the United Nations’ policies on health and safety, child rights or human rights
  • are expected to result in long-term, permanent, detrimental change to the environment.

In addition, Ethica will exclude investments in organisations that a significant number of informed New Zealanders would find objectionable. Such excluded investments form Ethica’s “Excluded Activity List”.

 

Ethics Committee

Ethica operates an Ethics Committee to monitor and review investments. As part of the Committee’s responsibilities, the portfolio of investments will be published each year. The Ethics Committee welcomes comments from members on the portfolio and will investigate and consult with members as appropriate, on whether specific investments should be added to the current Ethica Excluded Activity List.

 


Ethica is a registered superannuation scheme (AS/1702) that has a Socially Responsible Investment philosophy.

It adopts a “balanced” approach to its overall investment strategy.

It excludes investments in the sectors of:

  • gambling
  • tobacco
  • alcohol
  • armaments
  • pornography
  • fossil fuel extraction,

and also investments that breach Ethica’s principles.