Industry super fund First Super has appointed investment services provider IFM Investors to manage a new indexed international equities strategy.
The strategy is designed to provide exposure to a diversified portfolio of publicly-listed global companies, with an aggregate overweight to those that have demonstrated a commitment to manage labour risk effectively and prioritises companies with strong ESG practices.
It also incorporates meaningful governance factors, as poor corporate governance may increase the risk of labour rights violations. Factors examined included the strength of frameworks around labour, human capital management and governance, and recent involvement in severe labour rights.
The portfolio seeks to generate long-term returns while managing social factors risk by prioritising companies with sound labour practices and screening out companies with poor records.
The strategy will be regularly reviewed and adjusted to ensure the portfolio reflects companies’ labour and governance practices.
First Super cited labour rights as a priority due to the fund’s connections to members employed in the furniture and joinery, pulp and paper, and timber industries.