Responsible investing

At MLC Asset Management we believe a sustainable economy and healthy society are key drivers of long-term wealth creation for our clients.

With MLC you can have confidence we aim to invest your money in a responsible way. We take into account Environmental, Social and Governance (ESG) risks which impact the sustainability of companies and governments and influence an investment’s long-term performance.

MLC Asset Management's responsible investing update summarises our ESG approach and provides examples of recent ESG-related activities in client portfolios.

Responsible investing update (PDF)

What are ESG risks?

Environmental - climate change, waste and pollution, resource depletion.

Social and labour standards - working conditions, employee relations and diversity, health and safety.

Governance - executive pay, bribery and corruption, tax strategy.

Further we believe companies that best manage ESG risks are more likely to be financially sustainable in the long run.

For example, if a company isn’t taking into account pollution risks (E), underpays its workers (S), or has weak oversight of key business functions (G), then it will likely experience adverse consequences at some point, which in turn will negatively impact its operations, financial performance and share price.

This is why we carefully consider ESG factors when selecting individual investments for our clients’ portfolios.

We also believe voting on resolutions for the companies we invest in and actively engaging with companies provides an opportunity to enhance and protect the long-term value of clients’ portfolios.

We believe that by investing responsibly we’re helping our clients Participate and Protect – Participate in the returns from investing, while keeping a close eye on ways we aim to Protect wealth.

Our approach

Our key beliefs and processes are outlined in MLC Asset Management’s Responsible Investment Policy.

We believe engagement with companies is more likely to lead to better investment outcomes and positive change than negative screens. We engage mainly via our specialist investment managers and can also engage directly.

We assess ESG risks in our asset allocation and our investment manager selection processes.

We require our specialist investment managers to report to us each quarter on their ESG activities, how they’ve engaged with companies, and their proxy voting actions.

We have a Proxy Voting Policy that details our approach to voting on our funds’ investments, and how we’ve voted.

We place additional emphasis in our process on the critical issues of climate change and modern slavery.

MLC Asset Management is a member of the Responsible Investment Association of Australasia (RIAA), and the Investor Group on Climate Change (IGCC) because we believe working with others in the industry helps us all to invest in a manner that supports sustainable capitalism for the benefit of investors generally.

Resources

MLC Asset Management’s Responsible Investment Policy

MLCI’s Proxy Voting Policy

MLCI’s Proxy voting summary for the financial year

Important information

The information in the Responsible Investing section of the website is indicative and prepared for information purposes only and does not purport to contain all matters relevant to any particular investment or financial instrument. Any opinions expressed constitute our judgement at the time of issue and are subject to change. We believe that the information provided is correct and that any estimates, opinions, conclusions or recommendations are reasonably held or made at the time of compilation. However, no warranty is made as to their accuracy or reliability. The information provided is subject to change without notice, and we shall not be under any duty to update or correct it. All statements as to future matters are not guaranteed to be accurate and any statements as to past performance do not represent future performance. We may rely on third parties to provide certain information. We are not responsible for its accuracy or liable for any loss arising from person relying on information provided by third parties. Subject to any terms implied by law and which cannot be excluded, we shall not be liable for any errors, omissions, defects or misrepresentations (including by reasons of negligence, negligent misstatement or otherwise) or for any loss or damage (whether direct or indirect) suffered by persons who use or rely on the communication.

IOOF Holdings Ltd ABN 49 100 103 722.

MLC Limited uses the MLC brand under licence. MLC Limited is a part of the Nippon Life Insurance Group and not part of the IOOF Group of Companies.