The Proof You Needed That Investing Ethically Pays
In just two years the leading ethical KiwiSaver, Pathfinder, has reached $100 million under management. And it has reached this delivering market leading returns, proving ‘profit’ is not a dirty word.
Can you invest ethically and at the same time make great returns? The answer is a resounding “yes”. We call this ‘conscious capitalism’ or ‘stakeholder capitalism’ but the proof is there. You can avoid harm and do well with your investments.
Each of Pathfinder’s KiwiSaver funds are in the top 4 for their category over the 12 months to 30 June 2021*, and its flagship Growth Fund is a massive 7.8% ahead of the growth KiwiSaver category average for the period.* Over the last two years it has achieved 18.60% per annum.** Pathfinder’s Conservative Fund is number 1 in its category over the last 12 months.*
Co-founder and CEO John Berry says “We’re ecstatic to reach the $100 million milestone, and even more excited that we have reached it with fantastic return outcomes for our investors. We are delivering on our mission for our ethical investing to grow individual wealth and collective well-being. Ethical investing does not come at a cost, in fact we believe the opposite is true – accounting for environmental and social considerations should add to long-term financial returns.”
Pathfinder KiwiSaver has a unique social enterprise business model where they want to achieve social good as a business. They do this not only through their commitment to ethical investing, but also by donating 20% of their KiwiSaver management fees to charities as selected by their members.
They have just added the New Zealand Anti-Vivisection Society (NZAVS) as their 18th charity. NZAVS’s mission is to end animal experimentation and the harmful use of animals for research, testing and teaching in Aotearoa - for animals, humans and science. This aligns well with Pathfinder KiwiSaver and its focus on avoiding animal exploitation. Pathfinder’s KiwiSaver does not invest in companies that engage in animal testing or factory farming.
Pathfinder, NZ’s first dedicated ethical fund manager and certified B Corp, is a leader when it comes to environmental, social and governance (ESG) investing. Its KiwiSaver investments include unique and impactful private investments like Sir John Kirwan’s technology driven mental health app (Mentemia), large scale solar in New Zealand (Lodestone), biodegradable bandages (Wool+Aid), microfinance for women in South-East Asia (Women’s Livelihood Bond) and the tech-based democratisation of investing (Sharesies). Pathfinder KiwiSaver has also provided capital for several social housing projects in New Zealand.
Last month Pathfinder was awarded “Best Ethical KiwiSaver Provider” by MindfulMoney.
*Source: Morningstar for the 12 months ending 30 June 2021
** Return for the 24 months ending 30 June 2021 provided by Pathfinder (after fees, before tax)