The NZ Stewardship Code has added three new members in its first year of operation on top of the 15 foundation signatories, bringing the total underlying asset pool covered by the agreement to more than $100 billion.
Mint, Nikko and Pathfinder signed on to the code during the previous 12 months to join a mixed group of foundation members including boutique managers, all four Australian banks and the NZ Superannuation Fund (NZS).
NZS alone manages about $65 billion at the latest count with ANZ, ASB, BNZ and Westpac holding a similar collective amount. Milford, also a foundation signatory, last reported about $17 billion under management.
According to the latest Reserve Bank of NZ statistics, the local fund management sector reached almost $268 billion at the end of June this year, excluding the NZS and Accident Compensation Corporation funds that would add a further $115 billion or so to the total.
Launched last September, the NZ Stewardship Code is designed to emulate similar offshore programs (notably a UK version) aimed at giving “investors a clear framework for using their influence to steer the companies they own on critical environmental, social and corporate governance issues”, according to a release.
Secretariat lead for the code, Jackson Rowland, said in the statement that the significant take-up from the fund industry in year one showed NZ investors were committed to sustainable strategies.
“Feedback to us from Signatories is that climate change is their main area of focus, followed by modern slavery. Signatories are also releasing dedicated stewardship reports to align with the Code, showing a clear commitment to the Code,” Rowland said.
“Stewardship is about maximising long-term value for current and future generations, and the fact that most of New Zealand’s assets under management have committed to stewardship is a really positive sign for Kiwis.”
The full list of foundation signatories covers: ANZ, ASB, BNZ, Castle Point, Devon Funds, Harbour Asset Management, Kiwi Wealth, Metrics, Milford, Northern Trust Asset Management, NZS, Russell Investments, Salt, Trust Management, Westpac.