It will apply to all KiwiSaver and non-KiwiSaver funds
Non-profit KiwiSaver provider Simplicity has announced that it would cut ties with companies violating UN protocols on human rights, labour rights, anti-corruption, and the environment.
Simplicity's exemptions would apply to all KiwiSaver and non-KiwiSaver funds, effective immediately. It also extended its exemptions to include more companies linked to fossil fuels, which involves selling its holdings in Genesis Energy.
“We've worked with international fund manager Vanguard to make these products available to all KiwiSaver managers at very low cost. There is no excuse now for any KiwiSaver manager to ignore ethical investing,” said Sam Stubbs, the managing director at Simplicity.
“Simplicity credits ethical investing and low fees for making it the highest returning KiwiSaver scheme for the last three years to 30 June. Ethical investing boosted our fund returns by up to 1.5% per annum.”
A recent consumer magazine survey revealed that 59% of KiwiSaver investors want to invest their money in ethical businesses. However, industry website Mindful Money has not yet identified any New Zealand bank that meets its responsible investing standards.
“It's hypocritical for the big banks to say they act ethically yet invest their members' KiwiSaver savings into fossil fuel companies,” Stubbs concluded.
