Sustainable Investing

At Milford, we are committed to creating a more sustainable future by driving companies we invest in to improve the sustainability of their practices.

We have always considered ESG

We have always considered Environmental, Social, and Governance (ESG) credentials in our search for the best investments.

We play our part through engaging

We believe we can make the biggest impact by engaging with the companies we invest in to drive them to improve the sustainability of their practices.

If they won't engage, we won't invest

We do not invest in companies that ignore sustainability risks and are not working towards a more sustainable future.

Milford’s approach to sustainable investing explained

Sustainable investing is

part of our heritage

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As active managers, we have always undertaken detailed analysis to find the best companies, including their environmental, social and governance performance. This work is at the core of our investment decision-making process and we analyse the ESG credentials of every company we invest in.

As a result of this analysis, we can actively engage with each company to do better, improve their environmental and social impact and increase transparency.

We believe we can make a greater impact through engagement. While excluding certain investments avoids harm, it can ignore the complexity of ESG issues and miss some of the greatest opportunities to progress.

Sustainability is a team sport; we will not reach our sustainability goals unless all companies transition to a more sustainable future. Information detailing our recent engagement activity and outcomes is summarised in Milford Asset Management: Engagement Activity and Outcomes.

How do we engage with companies?

We have three layers of engagement with the companies we invest in:

Proactive

As part of our ongoing communication with company management teams and Boards, providing regular feedback on their approach, actions and reporting.

Reactive

Via letters and meetings with Boards and management in response to particular events, for example major breaches of environmental or social requirements.

Governance

Through proxy voting; where we will vote against directors to highlight our concerns. We share our concerns with the Board and management.

Rolling 12 month count of
Milford sustainability engagements

More details about Milford’s proxy voting activity are available here. Note that holdings voted in person at AGMs are currently disclosed as “unvoted”. Please contact us if you require further information.

Active engagements for the 12 months to the end of April 2023

Proxy votes cast

Recent Updates

RIAA Certified

The Milford Kiwisaver Active Growth Fund has been certified by the Responsible Investment Association of Australasia (RIAA). To achieve certification, RIAA has verified our ESG processes, systems and performance and we have achieved the strict operational and disclosure practices required. We have undertaken this process to demonstrate our commitment to sustainable investment as we strive to play our part in the transition to a more sustainable future. For more information, please see www.responsibleinvestment.org

Milford joins as a participant of Climate Action 100+

Milford is proud to become a participant of Climate Action 100+, an investor-led initiative to ensure the world’s largest corporate greenhouse gas emitters take necessary action on climate change. Climate Action 100+ is made up of 700 global investors who are responsible for more than $68 trillion in assets under management across 33 markets. These large investors are ensuring the businesses they invest into cut emissions to help achieve the goals of the Paris Agreement and accelerate the transition to net-zero emissions by 2050 or sooner.

At Milford, we believe we are best able to contribute to the solution through engaging with the companies we own to improve their sustainability actions, targets and disclosure. We are excited to do this alongside likeminded global investors to help accelerate the transition to a more sustainable future.

The New Zealand Stewardship Code

Milford has become a Founding Signatory to the New Zealand Stewardship Code. The Code is an industry-led framework developed to define and promote sustainable investment management practices and our participation signifies our commitment to the code’s nine principles to achieve its three interconnected goals of effective stewardship: to create and preserve long-term value for current and future generations; to ensure the efficient management of capital whilst considering the best interests of clients and beneficiaries, and to contribute towards achieving sustainable outcomes for our environment, society, and economy.

Milford confirmed as leader by RIAA

The Responsible Investment Association Australasia (RIAA) has announced Australasia’s Responsible Investment Leaders for in its annual Responsible Investment Benchmark Report 2022 Aotearoa New Zealand. These are investment managers who demonstrate leading practice in their commitment to responsible investment, and their supporting integration and activity. Milford is very proud to announce that we have been confirmed a Responsible Investment Leader. The report noted that Responsible Investment Leaders explicitly and systematically consider ESG factors in the allocation of capital, and are decidedly transparent, reporting publicly not just on their activities to improve environmental and social sustainability, but also the outcomes they achieve.

Stock Story: Shell

Frances Sweetman, Milford Portfolio Manager and Head of Sustainable Investment, outlines why we view Shell as a company worth engaging with.

What are you wearing? Undressing Modern Slavery risk in supply chains

Grace O'Hanlon, Sustainable Investment Analyst, discusses the high risk of modern slavery in global supply chains.

Can battery recycling revolutionise vehicle emissions?

Nick Morgan, Sustainable Investment Analyst, shares his analysis of battery recycling in the transportation sector.

Our public commitment to

sustainable investment

Milford made a public commitment to explicitly and consistently incorporate environmental, social and governance factors into our investment decision making by becoming a signatory to the United Nations Principles for Responsible Investment (UNPRI). Full details are available in Milford’s UNPRI Transparency Report.

Milford is also a member of the Responsible Investment Association Australasia (RIAA) and a founding signatory to the New Zealand Stewardship Code.

In 2022, Milford was named a Responsible Investment Leader by the RIAA in their Responsible Investment Benchmark Report 2022 Aotearoa New Zealand.

There are more details about Milford’s approach to sustainable investing below. For additional information, please see our Sustainable Investment Statement.

^{*In 2020, Milford was awarded an A rating on four UNPRI modules including our overall Strategy and Governance and ESG Incorporation.}

Investment exclusions

There are companies we simply will not invest in. These include companies that produce a range of weaponry and manufacture tobacco or recreational cannabis.

We will also not invest in companies that fail our own ESG analysis or will not engage when we have identified the need for change.

Across all Milford funds, including our KiwiSaver funds, we will not directly invest in companies involved in the following activities:

Production or sale of anti-personnel land mines that are not compliant with the Anti-Personnel Mines Prohibition Act 1998
Production, design, testing, assembly, or refurbishment of nuclear explosive devices
Production or development of cluster munitions
Processing of whale meat
Manufacture of tobacco and alternative tobacco products
Manufacture of recreational cannabis products
Companies involved in the manufacture of civilian automatic and semi-automatic firearms, magazines or parts

To the extent it is feasible and commercially prudent, we will avoid indirect investment in companies on the Exclusion List (i.e. through Exchange Traded Funds (ETFs), other collective investment vehicles and hedging strategies). These types of investments are assessed on a case-by-case basis by our portfolio managers and any potential for indirect exposure is carefully considered and factored into investment selection.

Milford’s

community engagement

In addition to our sustainable investing philosophy and process, our core purpose includes making a positive contribution to our community. We have launched the Milford Foundation to achieve just that.

The Milford Foundation aims to help strengthen the future of the communities within Aotearoa, New Zealand by leveraging Milford’s financial resources, investment expertise and commercial discipline.

Our mission is to strengthen New Zealand communities through the lenses of youth, education and environment. Through a combination of investment expertise, our generous donor community, a commitment to efficiency, effectiveness and transparency, and strong partnerships, we can – and will – make a meaningful impact for New Zealand’s future generations.

View our investment process

Stage 1 - Investment universe

- New Zealand, Australian and Global listed equities
- New Zealand, Australian and Global fixed interest securities
- Unlisted New Zealand entities
- Global Investment Managers
- Cash

Stage 2 - Negative screening

Based on Milford’s Exclusion List

Stage 3 - Economic and investment analysis

- Economic Outlook and Global themes
- Assessment of management and ESG factors
- Financial Analysis
- Manager Research
- Company Meetings
- Industry Analysis

Stage 4 - Investment forum

- Chairman of the Investment Forum
- Portfolio Managers
- Senior Analysts
- Analysts
- Dealing Desk

Stage 5 - Research recommendations

Research presented and debated

Stage 6 - Portfolio manager selection

Portfolio manager selects securities and implements portfolio

Stage 7 - Dealing desk executes

Dealing desk executes transactions

Your rights as an investor

At Milford, we believe in a set of seven Investor Rights.

Our Funds

View our diversified range of funds.