Booster First into SRI Global Corporate Bonds Market

Wellington, 31 May 2018 – Booster Financial Services continues to lead the way in socially responsible investments (SRI) by today confirming its commitment to seed a new global bond fund product.

The fund, issued and managed by Vanguard Australia, will exclude all investments in bonds issued by companies in a range of controversial sectors, including weapons, gambling, fossil fuels and tobacco.

Booster has committed at least $200million to the new bond fund, which is expected to be launched in August. The fund complements the existing Vanguard International Shares Select Exclusions Index Fund, also seeded by Booster in 2016.

“To date, investors in Booster’s SRI funds have not been able to invest in global corporate bond funds, as they typically do not exclude companies involved in sectors such as alcohol, tobacco, gambling, pornography, fossil fuels and armaments. We know that New Zealanders are passionate about what their money could be supporting, and this new fund will provide Kiwis with the opportunity to invest in global bonds without compromising on their values,” said David Beattie, Booster Chief Investment Officer.

“We have enjoyed a 15-year relationship with Vanguard, and working in partnership reflects the strength of that relationship. We are delighted to continue our work with Vanguard to ensure our core investment strategy aligns with New Zealander's values,” said Beattie.

Although specific details of the fund are not yet available, the new bond fund has been designed to suit the wider exclusion requirements of Boosters SRI clients and continues Booster’s programme of responsible investment development.

“We will now be able to add the new Vanguard fund into our SRI fund options, providing ethical investors with an opportunity to invest in funds with enhanced return and diversification benefits,” said Beattie. The new fund will also be included in Booster’s full range of multi-sector KiwiSaver, Superannuation and Investment funds, not just their SRI funds, replacing the existing Vanguard bond funds.

As well as committing to this fund, Booster is working with Vanguard to explore several other exclusion-type funds and positive ESG funds across a broad range of asset classes.

Booster’s SRI funds have been certified by the Responsible Investment Association Australasia according to the strict operational and disclosure practices required under the Responsible Investment Certification Program. See www.responsibleinvestment.org for details.

Booster is one of only three KiwiSaver providers to offer RIAA certified New Zealand managed socially responsible investment funds.

ENDS

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