New fund will accelerate our move to low carbon
In November, we will move half our global share portfolio into Russell Investments’ Sustainable Global Shares Fund. The fund excludes companies generating revenue from coal in addition to the exclusions that apply to our investments across the board. It has a 50% lower carbon footprint and 50% lower fossil fuel reserves than the benchmark.* The fund moves beyond carbon reduction too. It has an increased exposure to companies with a high responsible investment rating and to those participating in the transition to renewable energy. These benefits come with a slight reduction in expected returns. However, an associated reduction in fees is expected to partially offset this. The change will reduce the carbon footprint of the growth component of our main investment options by close to 20% – in other words, the carbon footprint of our investments in shares, property and infrastructure. This significant move indicates a direction of travel for UniSaver as a scheme committed to responsible investment and to playing our part in international efforts to combat climate change.
* MSCI ACWI Index Net.