Simplicity Extends Ethical Investing To Include Human Rights, The Environment And Corruption.
Nonprofit KiwiSaver provider Simplicity announced today that it was extending the companies it would not invest in to those violating UN protocols on Human Rights, the Environment, Labour Rights and Anti-Corruption.
The exemptions will apply to all funds, KiwiSaver and non-KiwiSaver, effective immediately.
“We’ve worked with international fund manager Vanguard to make these products available to all KiwiSaver managers, at very low cost," said Sam Stubbs, Simplicity Managing Director. “There is no excuse now for any KiwiSaver manager to ignore ethical investing.”
Simplicity is also extending its exemptions to include more companies linked to fossil fuels. In New Zealand, this involves selling its holdings in Genesis Energy, who own the Kupe gas field and Huntly power station.
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,” Mr Stubbs said.
A recent Consumer magazine survey showed 59% of KiwiSaver investors wanted good returns and their money invested ethically.
Currently no bank in New Zealand is ranked by industry website Mindful Money as meeting its responsible investing standards. The largest four all allow KiwiSaver funds to be invested in fossil fuel producing companies.
“It’s hypocritical for the big banks to say they act ethically yet invest their members’ KiwiSaver savings into fossil fuel companies,” said Mr Stubbs.
Simplicity was New Zealand’s best performing KiwiSaver manager for the last 3 years to 30 June, and has ranked #1 in the most recent Consumer NZ People's Choice and Canstar’s Most Satisfied Customers KiwiSaver awards.