UniSuper changes weapons threshold on sustainable option

UniSuper is introducing new measures when screening out companies with revenue assoicated with weaponries.

Effective July 1, the super fund's negative screens will allow the portion of reported revenue a company may derive from conventional weapons systems and components to be up to 5%, instead of up to 1% currently, for the Sustainable Balanced, Sustainable High Growth, and Global Environmental Opportunities options.

The negative screen will also no longer consider reported revenue derived from weapon support systems (for example, software and/or telecommunication systems and services).

"As at the date of this 'Important product changes' notice all other negative screens are unchanged across these three sustainable and environmental branded investment options," UniSuper said.

"UniSuper continues to screen companies with any reported revenue from the manufacture of whole weapon systems or components developed for exclusive use of controversial and/or nuclear weapons."

Meanwhile, the super fund also changed the investment strategy for Global Companies in Asia option with the addition of developed and emerging Asian economies.

"To invest in a portfolio of global securities (including but not limited to international shares) which may include Australian shares and securities that seeks to take advantage of the expected growth in Asian economies by investing in well-established global companies," the super fund said.

Its approach to screening for the Australina Bond and Australian Income investment options has also been updated to exclude companies with any reported revenue from the production of tobacco, manufacture of nicotine alternatives and tobacco-based products, excluding the supply of key products necessary for the manufacture of tobacco or nicotine products.

Further, as a result of "prevailing market circumstances", both the High Growth and Sustainable High Growth options have diverted concentration towards cash and fixed interest, allocating a 5% holding into cash and fixed interest from the zero-exposure prior.

The High Growth option has also reduced holdings in Australian (40% to 38%) and international shares (52% to 51%), while the Sustainable High Growth option increased international shares exposure (56% to 57%) but reduced domestic equities drastically (38% to 34%).