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New Zealand Equity and Fixed Income

Our Philosophy 

Our New Zealand’s equity and bond teams have a united voice on ESG issues. We are primarily medium- to long-term investors with a fundamentally driven bottom-up approach. We seek to understand how industry and company ESG factors may impact investments and, ultimately, client portfolios. The ESG risks and opportunities faced by a company form an important element in understanding investments but cannot be managed in isolation. The quality of a management team, for example, must also be carefully assessed. 

 

We use our extensive experience to help us understand and evaluate the materiality of ESG factors. A specific understanding of ESG analysis can help us build a picture of the risks and opportunities faced by a company. However, there is no set formula for quantifying the importance of each ESG factor or adjusting how we value each company. 

 

ESG Implementation 

On a quarterly basis, we screen the investments we hold across all portfolios — together with investments on watch or under active assessment — using the MSCI ESG Research tool. This process assists the team by adding another layer of scrutiny to our knowledge of companies. Many debt issuers are also listed on the NZX and, therefore, also captured during this screening. 

 

The outcome of this process is that companies are rated on a scale from AAA to CCC relative to the standards and performance of their industry peers. We engage with these companies in an effort to raise the bar in relatively weak areas or areas where ongoing improvement is beneficial to stakeholders. These areas could be identified by the MSCI research or our own research. A rating of BB or less does not necessarily make a company un-investable from our perspective but does necessitate active company engagement on the main issues underlying the relatively poor rating. 

 

A higher MSCI rating does not alone dictate a higher investment weight. The primary driver of a company’s weight in our portfolios will still be determined by the relevant portfolio manager, given a range of both quantitative and qualitative factors. The current MSCI rating is explicitly assessed as a quantitative factor consistent with our established investment process. Companies that have higher ratings or are actively improving their ESG standards will ultimately be recognised by market participants, so our process is likely to highlight these opportunities. 

 

The team regards voting as an integral part of being a responsible steward of capital. Analysis of a company’s corporate governance structure helps to form our view of the quality of a management team. We exercise proxy voting rights independently and solely in the interests of our clients and beneficiaries. When we exercise voting rights against company resolutions, it is our policy to write to investee companies to explain our reasons in an endeavour to advance the company’s development. 

Important Information

The funds mentioned are EMEA registered funds approved for sale or purchase in EMEA. By proceeding, you are representing and warranting that you are either resident in EMEA or the applicable laws and regulations of your jurisdiction allow you to access the information.

The information on this website is not intended to be an offer, or a solicitation of an offer, to buy or sell any product or service to any person in any jurisdiction where such offer, solicitation, purchase or sale would be unlawful under the laws of such jurisdiction.

This website may contain links to the website of certain overseas affiliates of Amova Asset Management UK Limited. However, providing such links should not be considered as offering or solicitation by Amova Asset Management UK Limited of any product or service of its affiliates to any person.

This website is purely for informational purposes only with no consideration given to the specific investment objective, financial situation and particular needs of any specific person. It should not be relied upon as financial advice. The mention of individual securities, sectors, regions or countries within this website are for illustration purposes only and does not imply a recommendation to buy or sell. You should seek advice from a financial adviser before making any investment. In the event that you choose not to do so, you should consider whether the investment selected is suitable for you. Investments in funds are not deposits in, obligations of, or guaranteed or insured by Amova Asset Management UK Limited.

Past performance or any prediction, projection or forecast is not indicative of future performance. The Funds or any underlying funds may use or invest in financial derivative instruments. The value of units and income from them may fall or rise. Investments in the Funds are subject to investment risks, including the possible loss of principal amount invested. You should read the relevant prospectus (including the risk warnings) and product highlights sheet of the Funds, which are available and may be obtained from appointed distributors of Amova Asset Management UK Limited or our website www.emea.amova-am.com before deciding whether to invest in the Funds.

The information contained herein may not be copied, reproduced or redistributed without the express consent of Amova Asset Management UK Limited While reasonable care has been taken to ensure the accuracy of the information as at the date of publication, Amova Asset Management UK Limited does not give any warranty or representation, either express or implied, and expressly disclaims liability for any errors or omissions. Information may be subject to change without notice. Amova Asset Management UK Limited accepts no liability for any loss, indirect or consequential damages, arising from any use of or reliance on this website.