Ethical investment has become the centre of attention in New Zealand since more investors have started prioritising how funds affect the environment, society, and governance.
Ethical investing helps to hold companies accountable for their actions and can lead to long-term sustainability. When investing ethically, there are benefits to the environment and society, but ethical investing also leads to financial gains.
People who choose ethical investment options such as socially responsible investing funds (SRI Funds), avoiding controversial areas such as gambling, firearms, tobacco, and fossil fuels, can potentially see higher returns in the long term. Therefore, ethical investing in KiwiSaver can provide investors with both monetary and moral benefits.
KiwiSaver & The Core Values
KiwiSaver is a well-known and popular retirement savings scheme in New Zealand. It is designed to help people save for retirement by regularly contributing to their KiwiSaver account.
This scheme offers a range of benefits, such as employer contributions, tax credits, and the ability to withdraw funds for specific purposes, such as buying a first home.
It is crucial to establish the core values of New Zealanders who want both the fund and the companies it backs to align with and to identify the principles people would be at ease with their money endorsing before selecting the appropriate fund for their needs.
Can You Invest Ethically and Still Make Money?
Different providers meet the commitment to Ethical investment in KiwiSaver, such as Booster, AMP, and ANZ. Some KiwiSaver providers offer options for ethical and responsible investment, aligning clients' savings with their values by avoiding industries that collide with their moral beliefs.
National Capital CEO Clive Fernandes expresses his view on "encouraging more providers to offer clients a more sustainable and ethical base". The most recent KiwiSaver Value for Money Report by National Capital shows that many funds achieve both sustainability and performance. People usually do not know that they are in a fund that violates their moral ethics. This is why they should seek financial advice to become financially secure and align with their core values.