Investors’ appetite for funds that are aligned with their values and investment beliefs is growing
Ethical investing in New Zealand, which is responsible investing that takes into account environmental, social and governance factors, grew 28% in the past year to $78.7 billion in response to consumer demand and strong returns.
The New Zealand Responsible Investment Benchmark Report 2016 shows that core responsible investment – ethical or socially responsible investment at the retail end of the market (including investments made by KiwiSaver schemes) – also increased by 18% over the year to $1.6 billion, reaching 2.6% of total assets under management.
Competitive returns from ethical investing
Dispelling the myth that socially responsible investment returns are weak compared to mainstream funds, the Australian Responsible Investment Benchmark Report 2016 shows that core responsible investment Australian equities funds outperformed both the ASX300 index and the average large cap Australian equities funds across one, three, five and 10 years.
Recently in New Zealand we read in the media about some KiwiSaver members who did not want to be part of funds that invested in cluster bombs and landmines.
For the younger generation, demand may be driven more by concern for the environment and a need to know where their money is going.
Older groups, such as boomers, are increasingly concerned about the kind of world they are leaving for younger generations and the kind of legacy that they will leave behind them.
What responsible investment is right for you?
If you’re like a growing number of New Zealanders who want to make a difference, while still enjoying the benefits of strongly performing investments, talk to your adviser today on 0800 102 100 or click here to find out about what ethical investment options are best for you.
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