Investment principles

The Foundation seeks to achieve consistent investment returns through responsible investing.

The Foundation invests to first meet the commitment made to donors to steward their gifts wisely for an agreed purpose for Victoria University of Wellington.

Secondly, it invests to generate income so it can provide funds to Victoria University of Wellington for student scholarships and support outstanding academic research and teaching.

The Foundation’s investment objectives are set out in the Statement of Investment Policy and Objectives. A core part of the Statement of Investment Policy and Objectives directs investment into a wide range of asset classes (i.e. global and local shares, cash, fixed interest etc.) to ensure consistent investment returns over the long term.

The Trustees of the Foundation believe engaging in responsible investment is in the best interests of the University, its students, our donors, and stakeholders, and that considering environmental, social, and governance (ESG) factors improves long-term investment returns. This view is set out in the Statement of Investment Policy Objectives and is considered as part of the appointment of fund managers and the ongoing monitoring of their performance.

United Nations Principles for Responsible Investment

Victoria University of Wellington Foundation is proud to be one of only three organisations in the tertiary education sector in Australasia that have signed up to UNPRI (United Nations Principles for Responsible Investment). Becoming a UNPRI signatory demonstrates our commitment to responsible investment and holds us to account.

See the UNPRI’s 2023 assessment of the Foundation:

How the Foundation invests

The Foundation manages two primary investment Funds: an Endowed Fund where donors have instructed that their gift should be held and only the income used; and a Non-Endowed Fund where the donor has provided that all the funds are available for use. Other Funds may be used from time to time.

The Foundation’s investments are made in accordance with the Statement of Investment Policy and Objectives (SIPO). The SIPO outlines the investment goals for each Fund, the tolerance for risk in achieving those goals, the applicable timeframe, and the appropriate investment strategy (i.e. the mix of global and local shares, cash, fixed interest etc.)

The Foundation uses a range of specialist fund managers for different types of assets (e.g., global and local shares, cash, fixed interest etc).

The Foundation currently invests with the following fund managers. All fund managers are UNPRI signatories.

Investment choices

The Foundation’s fund managers are selected and monitored with the assistance of the Foundation’s independent investment consultant.

When selecting fund managers, the Foundation prefers managers with strong environmental, social, and governance (ESG) credentials, such as those fund managers who practise the six Principles for Responsible Investment (PRI).

Investment in pooled funds, managed by the selected fund managers, is the most effective and efficient way for the Foundation to achieve its goals. That is, while the Foundation selects each fund manager, it is up to the manager to determine which companies or securities to invest in (in accordance with the rules applying to the pooled fund).

In selecting each fund manager, the Foundation also looks at the pooled fund it will be invested in to ensure the rules of that fund are, as far as possible, aligned with the Foundation’s responsible investment expectations.

In some cases, these rules will exclude certain companies or securities. The Foundation expects that its investment managers will seek to exclude or reduce investments in companies that undertake activities that are illegal, cause harm, or do not meet generally accepted ESG standards.

In addition to exclusions, the Foundation favours those fund managers that actively engage with the companies they invest in, both through voting on company resolutions and dealing directly with management for more sustainable outcomes. The Trustees of the Foundation believe that sometimes it can be more effective to achieve change by owning a company than by not owning it.

Monitoring and reporting

The Foundation actively monitors and stewards the Foundation’s funds.

The Foundation’s Finance, Risk and Investment Committee works with the Foundation’s Board of Trustees to assure the quality and integrity of the financial management of the Foundation. This includes monitoring compliance with the SIPO, monitoring the investment performance of the fund, and its fund managers.

Through reporting and regular meetings, the Finance, Risk and Investment Committee not only monitors the investment performance of each fund manager, but also monitors the actions each manager has taken to invest responsibly. This includes monitoring climate change metrics, the frequency and nature of engagement with companies, how managers have exercised their voting rights, and how managers are incorporating environmental, social and governance factors into their decision-making.

The Finance, Risk and Investment Committee requires an annual statement of compliance from all fund managers and sets out its responsible investment expectations at an annual review meeting with each fund manager.

Investment principles review date

The Statement of Investment Policy and Objectives (SIPO) is reviewed every three years. The next formal review of the SIPO is due in April 2027.