What does socially responsible investing mean to you? Some things seem glaringly obvious, like avoiding investment in companies that make money from landmines or cluster bombs. But all weapons manufacturing? How about tobacco? Pornography? Fossil fuels? Genetically modified organisms? Nuclear power? Gambling? Alcohol? Where do you draw the line?
“Ethical” will mean different things to different people. And investment funds have a variety of approaches to these questions.
That said, there are more socially responsible options than ever in KiwiSaver. The following schemes have a framework in place to filter out investments that could be considered unethical, such as tobacco or weapons:
- AMP, Aon, ASB, BNZ, Booster, Fisher Funds, Fisher Funds TWO, Generate, Kiwi Wealth, Lifestages, Mercer, Milford, NZ Funds, QuayStreet, Simplicity, Summer, and Westpac
You can search up any of their funds by typing the scheme name here.
There are also specific ethically oriented funds, here grouped by type of fund. (Not sure which type is right for you? Try these three questions.)
Balanced
AMP Responsible Investment Balanced Fund
Booster Socially Responsible Investment Balanced Fund
Craigs Investment Partners Quaystreet Balanced SRI Fund
Growth
Booster Socially Responsible Investment Growth Fund
Aggressive
ANZ Sustainable International Share Fund
Keep in mind that “ethical investment” is just one of the criteria you need to consider when choosing your fund. The fund you’re in also needs to be the right level of risk for you, have the level of services you want, with fees that seem reasonable. And of course it can’t have consistently underperformed, either – which could be a sign of poor management.
You don’t want to end up in the “ethically perfect” fund that doesn’t suit your other needs. Still, in terms of investing ethically in KiwiSaver, it’s good to know that you’ve got more options than ever.
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Comments (6)
1:28pm | 14 Jan 2018
You can't withdraw money from Kiwisaver, except under special circumstances like hardship or using the money for a first home. There are several Statutes (laws) that pertain to kiwisaver. The government wants people to have money at retirement and a forced retirement scheme you cannot get out of, is the only way they know how to achieve that goal. You can park the kiwisaver for a maximum of five years which means you don't put any money into it. If you are self employed you just don't put any more into it at all, ever. If you withdraw kiwisaver under special hardship provisions the government contribution still remains. Even if you stop putting money into kiwisaver fees still get deducted from it. As far as I am aware you can never leave it. Regarding finding out where your money goes to kiwisaver, you will need to contact the scheme provider and ask them. Your kiwisaver provider may have a Kiwisaver Scheme Prospectus that you can look at. People only found out that the banks and other providers were investing the kiwisaver in unethical investments because a radio station conducted an investigation because not all of Kiwisaver whereabouts are made available to the public. I think the only people that truly know where kiwisaver goes are the analysts who research the investments for the kiwisaver providers who then decide where to put that kiwisaver money.
11:36am | 5 Jan 2018
Hi. 2 questions:
1. How can I find out where my Kiwisaver 'investment' is being put? I am keen to know whether or not my involvement in any investment is ethical. If I thought my investment was contributing to hardship for others, I would be horrified.
2: just wondering why you didn't answer Anonymous's question about how to withdraw all his/her money from the scheme?
9:32am | 22 Dec 2017
Hi there Anonymous, you are right that KiwiSaver is an investment scheme, and that everyone in KiwiSaver is actually an investor, not just a saver. But the money is in your own account, and not "used" by the government for anything. In fact, the government actually contributes up to $521 into your account each year. And thousands of people have used KiwiSaver to afford their first home and pay for the necessities you mention in their retirement. Have a closer look to make sure you have the right information, as there are a number of myths swirling around these days.
1:53pm | 21 Dec 2017
I have just discovered that KiwiSAVER is actually a fraudulent title, being as it seems that this is an Investment scheme NOT a savings scheme. I do not wish to be part of this capitalist confidence trick - how do I remove ALL my funds from this fraudulent scheme so that I can instead put this money into a savings account. I've seen what the NZ government and its partners in grime have done with Kiwisaver money, and I do not wish to have my money used to kill people in foreign countries (unlike most investors it seems). Investors are the reason why most people in NZ can't afford to buy their own homes (because 'investors' think money is more important than fed, clothed and housed citizens. So, my question is, how do I get all my money back? I will NOT invest directly or indirectly in a system which treats people's needs as secondary to the needs of 'markets' and 'profit'. This 'vision' of the world promoted by 'brokers' is a pipe-dream designed to con poor people into spending money they don't have, so that others can live the high-life on other's hard work, and leads to an unfair and unequitable society. When a person is hungry, they need FOOD not money, when a person has no home, they need a HOUSE, not money, when a person is cold, they need more clothes, not money. Placing money in the process between people getting what they need is the sign of a morally bankrupt society, that only ever benefits those whom control that money. EVERY single one of the companies listed on this pages has been in some form of legal trouble for corruption regards misuse of the funds at their command, but for some reason you keep telling us to place our futures in these self-serving, morally corrupt hands! Meanwhile our country becomes more and more divided by the have-nots, and the people who are standing with a booted foot on their necks. Convince yourselves all you want otherwise, but YOU are the problem. You are disease that this planet is infected with. Your absolute belief that you are right - the common belief of those who have committed the most evil on this planet.
9:47am | 27 Mar 2017
Cheers Mark, the best place to look is on the KiwiSaver fund finder (fundfinder.sorted.org.nz) under "Compare funds". By sorting by fees, services and returns, you can easily see which are above or below average in those categories, as well as watchlist those funds that stand out for you. Cheers
5:45pm | 22 Mar 2017
Tom
But how do these funds rate re return and fees. Are they above average, average, below average?
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