Australia's Retail Employees Superannuation Trust, a A$60 billion ($46.3 billion), Sydney-based retirement fund, hired Morgan Stanley Investment Management affiliates Parametric and Calvert Research and Management to oversee the equity exposures for REST's newly launched sustainable growth option, a REST spokeswoman confirmed.
According to a news release, Calvert — a global responsible investment boutique — will manage the equities portion of the new option, which will comprise roughly 72.5% of the portfolio, "supported by implementation specialist manager Parametric."
The portfolio — with asset allocated in Australian and overseas shares, property, infrastructure, bonds and cash — will have "enhanced environmental, social and governance investment characteristics," the news release said.
"Companies who are involved in labour and human rights abuses, unethical supply chains, fossil fuels, animal cruelty, gender discrimination, tobacco, gambling, palm oil, controversial weaponry, or have a recent track record of environmental damage, or excessive executive remuneration have been excluded from all equity allocations," the news release said.
The assignment will mark the first time in Australia that Calvert's alpha-seeking responsible investment capabilities will work in tandem with Parametric's after-tax-focused implementation strategies, said Chris Briant, head of Australia and New Zealand, Parametric and Calvert, in the news release.