Kiwisaver

In a world first, welcomed by RIAA, the NZ Government will require default pension funds to exclude investments in fossil fuel producers. The Responsible Investment Association Australasia (RIAA) welcomes the announcement by the NZ government that will see the New Zealand pension system take strong steps to ensure New Zealanders auto-enrolled in a default KiwiSaver funds will not be invested in companies producing fossil fuels in addition to other strong mandated requirements for responsible investment commitments, starting June 2021. This announcement comes at a time when there is increased recognition that the financial services sector must play a strong role in supporting the transition to a low carbon world, with ever greater numbers of investors setting in place 2050 emissions reductions targets, in line with global goals under the Paris Agreement. This is a world first whereby default pensions will be mandated under law to exclude fossil fuels from portfolios, aligning with New Zealand’s strong commitments to take action under the Paris Agreement. Simon O’Connor, CEO of RIAA said: “RIAA welcomes this strong announcement by the NZ Ministers for Finance and Commerce and Consumer Affairs that will embed responsible investment into default KiwiSaver funds, consistent with RIAA’s own calls made in our submission to this review process.” In a world first, welcomed by RIAA, the NZ Government will require default pension funds to exclude investments in fossil fuel producers. The Responsible Investment Association Australasia (RIAA) welcomes the announcement by the NZ government that will see the New Zealand pension system take strong steps to ensure New Zealanders auto-enrolled in a default KiwiSaver funds will not be invested in companies producing fossil fuels in addition to other strong mandated requirements for responsible investment commitments, starting June 2021. This announcement comes at a time when there is increased recognition that the financial services sector must play a strong role in supporting the transition to a low carbon world, with ever greater numbers of investors setting in place 2050 emissions reductions targets, in line with global goals under the Paris Agreement. This is a world first whereby default pensions will be mandated under law to exclude fossil fuels from portfolios, aligning with New Zealand’s strong commitments to take action under the Paris Agreement. Simon O’Connor, CEO of RIAA said: “RIAA welcomes this strong announcement by the NZ Ministers for Finance and Commerce and Consumer Affairs that will embed responsible investment into default KiwiSaver funds, consistent with RIAA’s own calls made in our submission to this review process.” “This announcement recognises that investors who have strong commitments to a responsible investment including tackling climate change risks in their portfolios deliver better client outcomes.“

More than 8 in 10 New Zealanders (83%) expect their KiwiSaver or other investments to be invested responsibly and ethically, new research commissioned by the Responsible Investment Association Australasia (RIAA) and Mindful Money has revealed. This compares with 7 in 10 New Zealanders (72%) in 2018. In an important signal to New Zealand’s KiwiSaver, banking and wealth management sectors, 2 in 3 New Zealanders would consider switching their KiwiSaver or other investments to another provider if their current fund engaged in activities inconsistent with their values. The NZ-wide polling, conducted by Colmar-Brunton in September, shows consumer demand for responsible and ethical investment is on the rise, as the responsible investment industry continues to grow in size and influence. “The rising consumer sentiment around ethical investing is reflected by the continuing growth in the responsible investment sector in NZ” said RIAA’s CEO Simon O’Connor. “The challenge lies with fund managers to develop and provide consumers with suitable products which match their interests, concerns and values.” Mindful Money’s founder and CEO, Barry Coates said “The survey shows that New Zealanders want to avoid investing in companies that do not reflect their values – human rights violations and labour rights abuses top the list. Now, for the first time, investors can see where their funds are invested by using the Fund Checker on Mindful Money’s website.”

A large majority of New Zealanders expect their Kiwisaver and investment funds to be invested ethically and are ready to shift their funds if company practices are inconsistent with their values. A new Responsible Investment Association and Mindful Money consumer survey undertaken by Colmar Brunton has been released today revealing New Zealanders care deeply about how their savings are invested. The research was conducted online with 1,000 research panel members. The data has been weighted to ensure it is representative of the New Zealand population in terms of age, gender and regional spread. The maximum margin of error associated with this survey is ±3.1%. It shows that people expect managers of their Kiwisavers and other investments to consider issues important to them, as well as delivering strong financial outcomes. The survey shows concern over a much deeper range of issues beyond just tobacco and controversial weapons when it comes to where their funds are invested.

Responsible investment in New Zealand has hit a major milestone, with a new report finding the vast majority of professionally managed investments are now invested as responsible investments, with total assets under management having more than doubled in just two years. Environmental, social, corporate governance and ethics considerations now sit alongside financial as critical components informing the investment decisions of the majority of New Zealand’s professional investors. The 4thannual New ZealandResponsible Investment Benchmark Report 2018 (KPMG), the most comprehensive review of the sector,reveals the industry hitting new heights with $183.4 billion now managed as responsible investments, up from $131.3 billion in 2016 and $79 billion in 2015. “The single most significant driver of growth in responsible investment is coming from the demand and desire from clients to align investments to their values – which we can track to the 2016 revelations of many KiwiSaver funds being invested in weapons and tobacco,” said Simon O’Connor, CEO of Responsible Investment Association Australasia (RIAA). “In that short amount of time, we have seen nearly the entire investment industry move to put in place a responsible investment approach, from 2.5% of the industry two years ago.

Investment funds in New Zealand have shifted towards responsible investing in droves over the past year, with negatively screened funds growing by over 2500% and reaching a total of $42.7 billion in 2016. Following the large controversy around KiwiSaver funds in August 2016, there has been a massive increase in the use of negative screens to avoid investments in tobacco and controversial weapons, the latest Responsible Investment Benchmark Report 2017 has found. Launched today by the Responsible Investment Association Australasia (RIAA), the Report shows ‘Core’ responsible investments – made up primarily of screened funds – jumped from $1.6 billion in 2015 to $42.7 billion at the end of 2016. This jump is primarily due to the introduction of negative screening of multiple issues by the majority of New Zealand’s KiwiSaver providers.

Consumer polling released today highlights just how strongly New Zealanders believe their KiwiSaver providers should consider environmental, social and ethical factors as a part of delivering good investment products and financial returns. A clear majority of respondents (81%) believe that it is important that KiwiSaver funds consider environmental, social and/or ethical factors providing a loud and clear signal to the industry that New Zealanders expect that their retirement savings are invested in a responsible manner. Launched today at the New Zealand Responsible Investment Conference in Auckland, the polling very clearly highlights that New Zealanders don’t see this as a choice between financial considerations or personal values, but that both should be part of good investment practice.

Opinion: RIAA CEO says “It’s time for default Kiwisaver products to better reflect Kiwi values”

A significant sum of New Zealand’s capital is now being invested responsibly – totalling $NZ 78.7 billion – with early signs showing consumer demand is increasingly following this rise that has resulted in billions shifting from mainstream to responsible funds. The new report launched today by the Responsible Investment Association Australasia (RIAA), shows this strong up take of responsible investment, from the largest institutions through to boutique funds and KiwiSaver products, is not only benefiting New Zealanders by underpinning strong investment strategies that deliver strong returns, but also contributing to a better environmental and social outlook for New Zealand.

Responsible investment assets in New Zealand continue their strong growth reaching $63.5 billion following a 10% increase in 2014. Launched today, the new report from the Responsible Investment Association Australasia (RIAA), the most comprehensive review of the responsible investment sector in New Zealand (now in its 14th year, but the first year as a stand alone NZ report), found more money is being invested under responsible investment portfolios through superannuation funds, fund managers, advisers and kiwisaver accounts to underpin strong investment returns, and deliver a healthier environment and society.