Ethical investment option for KiwiSaver investors

6 August 2007 For Immediate Release

Asteron fund the only ethical investment option for KiwiSaver investors

KiwiSaver investors don’t have to sacrifice good financial returns for the sake of their principles, says Asteron Managing Director, Sean Carroll.

Mr Carroll was commenting on a Green Party study of 25 KiwiSaver providers, which identified Asteron as the only provider offering a “responsible investment” option to the public. Greens Co-Leader Dr Russel Norman noted that Asteron operates negative screening against companies involved in destructive activities as well as encouraging firms to become more responsible.

Mr Carroll said Asteron was responding to a rapidly growing demand from investors for socially responsible investment (SRI) choices.

“According to the Ethical Investment Association of Australasia, managed SRI portfolios in Australia grew by a staggering 56 percent in the 2006 financial year, growing from AUD$7.76 billion, to AUD$11.98 billion. Managed mainstream portfolios grew by just 15.5 percent over the same period.”

Those investing in ethical funds were generally ordinary people who shared a concern about the world they live in.

“However, they still expect a reasonable return on their money,” Mr Carroll added. “Just because a fund is a socially responsible investment doesn’t mean performance is sacrificed. The Asteron Socially Responsible Investment Share Fund has performed solidly, outstripping the NZX50 over the past three years.”

Mr Carroll said the net return for Asteron’s SRI fund was 13.28 percent to February 2007, compared with the NZX50 average of 12.08 percent.

Asteron’s fund manager, Tyndall Investment Management New Zealand Ltd, screens out companies which socially responsible investors want to avoid. These include companies involved in tobacco, alcohol, gambling or armaments.

In addition to this screening, there are active steps taken to promote the ethical behaviour of companies whose shares form part of the Asteron SRI fund. Mr Carroll said Rodger Spiller and Associates Ltd, research specialists in ethical and sustainable investments, are appointed to engage with management of companies in the fund. “They encourage these companies to continuously improve their business performance by adopting better environmental and social practices.”

He said the Asteron SRI fund is part of a comprehensive offer to KiwiSaver investors with plenty to back it up.

“We offer a broad choice of investments, proven expertise and experience in managing large funds – currently $1.2 billion in New Zealand. We also offer competitive fees and an independent trustee to look after investors’ interests”.

“We are very proud to offer New Zealand’s only socially responsible fund as part of this range of options for KiwiSaver investors”.

“Those who make the wise choice to join KiwiSaver are clearly thinking about their long-term financial security. A socially responsible investment fund such as Asteron’s also gives them the opportunity to promote the future security of their community and environment.”

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