The Trustee has determined it will not invest in certain categories of directly held listed equities (companies) because of associated environmental, social or governance risks that we believe may impact the long-term performance of members' money. These exclusions are relevant to the Australian listed equity and International listed equity component (if any) of each investment option or strategy in the Fund. It's important to note that we may also exclude (including by selling down existing holdings of) individual companies at any time, acting in the best financial interests of members, pursuant to our overarching investment governance framework.
Investment Exclusions List |
Vision Super maintains a list of directly held listed equity securities that we consider to be prohibited investments – the Investment Exclusions List (IEL). The IEL is reviewed regularly by the Vision Super Responsible Investment (RI) team and Investments team. Using the methodology and definitions of our ESG service provider MSCI we have identified listed equity securities in the excluded categories for smoking products and controversial weapons. The MSCI methodology can be found here. The IEL is reviewed at least bi-annually and where new listed equity securities are identified for exclusion we seek to divest our holdings within a reasonable timeframe. The IEL is only available to Vision Super members with positive account balances by contacting member services, as MSCI has requested that access to the list is restricted in this manner. |
The Trustee has determined the following categories (types) of companies will be excluded from its directly held listed equities.
This exclusion category is comprised of two sub-categories:
Controversial Weapons (ex Nuclear).
Nuclear Weapons
These sub-categories are defined below.
Companies with any revenue associated with such weapons are on the IEL. MSCI defines this category as those companies:
“involved in the production of whole weapon systems, delivery platforms or components of cluster munitions; production of whole weapon systems or components of landmines and biological or chemical weapons; production of depleted uranium weapons, blinding laser weapons, incendiary weapons, or weapons with non-detectable fragments; or is involved indirectly through ownership ties to companies involved in such products. Nuclear weapons are not considered for this screen.”
Companies with 5% or more of their revenue associated with such weapons are on the IEL. MSCI defines this category as those companies that have:
“reported revenue (or, where not disclosed, maximum estimated revenue) from nuclear weapons, intended and dual-use components for such products, delivery platforms capable of deploying nuclear weapons, essential components for such delivery platforms, and support services for such products as a percentage of total revenue in its most recently completed fiscal year.”
This exclusion category is comprised of two sub-categories:
Tobacco Producers.
Alternative Smoking Products Producers.
These sub-categories are defined below.
Companies with any revenue associated with such activity are on the IEL. MSCI defines this category as those companies that are:
“involved in the production of tobacco products. Tobacco products include nicotine-containing products, including traditional and alternative tobacco smoking products.”
Under this screen (defined by MSCI), companies that generate any revenue from the following activities are part of the Vision Super IEL:
“Companies that produce tobacco products, such as cigars, blunts, cigarettes, tobacco inhalers, beedis, kreteks, smokeless tobacco, snuff, snus, dissolvable and chewing tobacco. This also includes companies that grow or process raw tobacco leaves;
Contract manufacturing companies that produce the whole/complete electronic nicotine delivery system (ENDS); and
E-cigarette devices with injected e-liquid/tobacco substance.”
In contrast, companies that generate revenue from the following activities (defined by MSCI) are not part of the Vision Super IEL:
“Companies that sell private-label tobacco products manufactured by a third party; and
Companies that applied for or hold license to manufacture tobacco products, including e-cigarettes, but have not yet started production.”
Companies with any revenue associated with such activity are on the IEL. MSCI defines this category as those companies that:
“exclusively produce products that are alternatives to traditional smoking products. Companies that produce traditional smoking products are excluded from Tobacco Producer – Alternative Smoking Products.”
Under this screen (defined by MSCI), companies that generate any revenue from the following activities are part of the IEL:
“electronic nicotine delivery systems (ENDS), including but not limited to vapes, vaporizers, vape pens, hookah pens, electronic cigarettes (“e-cigarettes” or “e-cigs”), tobacco inhalers, e-pipes and heated tobacco products (HTP).
ENDS/E-cigarette devices should be disclosed as having nicotine or tobacco content.”
In contrast, companies that generate revenue from the following activities (defined by MSCI) are not part of this screen but may be captured as part of the Tobacco Producers screen outlined above:
“Companies that produce traditional smoking products; and
Cessation products.”
The controversial weapons and smoking products exclusions are implemented based on assessments (including methodologies and definitions) of MSCI. The MSCI methodology can be found here.
The MSCI platform groups companies by factors (also known as screens) and we apply the screens that are most closely aligned with our exclusions. Definitions for the screens are sourced from either the MSCI Business Involvement Screening Research (BISR) methodology document or the MSCI web portal (which is not publicly available). A link to the latest BISR is provided immediately below.
The Vision Super Board has determined the exclusion of G8 eductaion.
Vision Super only excludes listed equities directly held where engagement is impracticable, where we don’t believe engagement can reduce harm, or where we believe there is a long-term risk to our members’ money. Our exclusions apply to directly held listed equity, given it is impractical to effect this for pooled funds, derivatives or listed pooled vehicles (such as Exchange Traded Funds (ETFs)). Based on the exclusion categories determined by the Trustee, we identify companies that fall within the scope of the exclusion categories with (where relevant) the assistance of our ESG service provider (MSCI). Our list of excluded companies is reviewed regularly (at least bi-annually) by our Responsible Investment (RI) team and Investments team. Further information about the implementation of the exclusion categories is set out below.
When new companies are identified for exclusion under an exclusion category and the Fund directly invests in that company, we seek to divest our holdings within a reasonable timeframe (typically up to 30 days however the timeframe may be longer where necessary to ensure adherence to the exclusion is achieved in a low cost and efficient way).
Our list of excluded companies is available on request by members of the Fund with positive account balances, as MSCI has requested that access to the list is restricted in this manner.
From time to time, it will be necessary for some of our investment managers to transition the portfolios they manage to reflect the IEL, for example where a portfolio has been transferred into the Fund as part of a merger.
In these circumstances, we will instruct our managers that they must comply within a nominated transition period. If these circumstances apply, we will provide a notice that this is occurring on our website.