Are your retirement savings benefiting the planet?
The horrendous tragedy that took place in Christchurch this month has brought back in to focus the concept of ethical (socially responsible) investing. In the wake of this horrible event, some KiwiSaver funds have chosen to sell their shares in Facebook whilst the NZ Super Fund is set to withdraw from gun investments entirely.
It’s only natural that our primary concern when it comes to retirement savings is return, but at FoxPlan we believe it is also important to consider the ethical consequences of financial investing. We know it matters to New Zealanders as well with 78% of KiwiSavers rating it important that their money is not invested in military or personal weapons manufacturers.
What is ethical investment?
Ethical investment seeks to divest your KiwiSaver funds from the following industries, including not just businesses involved in direct production but suppliers such as distributors and retailers:
Alcohol
Gambling
Tobacco
Weapons
Firearms
Nuclear
Fossil Fuels
Adult Entertainment
Genetically Modified Organisms
Responsible investing funds also go further to take in to account the environmental impacts (climate change/pollution/greenhouse gases), social impacts (working conditions/child labour/health & safety) and governance (diversity/executive pay/lobbying practices/corruption) of businesses in which they invest.
The outcome of such investing is that your retirement savings help to increase pressure on other funds and businesses to improve their own practices and directly support businesses that minimize harm.
The Responsible Investment Association Australasia (RIAA) provides certification to KiwiSaver and Australian Superannuation Funds to give consumers the confidence that their funds really walk the talk when it comes to ethical investment.
We can help you become ethical
FoxPlan can help ensure your KiwiSaver is ethical and not at the cost of performance. Through our partners at Booster, we offer two socially responsible investment funds; Balanced and Growth. Both are RIAA certified.
The Booster Growth Fund has generated an average annual return of 9.2% in the past five years. Of the 32 growth type funds tracked by the FMA over the same period, Booster outperformed 22 of these (as of December 2018).
Talk to us today at info@foxplan.nz, on any of our social media channels or call 0800 667 873 and we can get your Kiwisaver working for us all.