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Nikko AM NZ Launches Unique, Fee-free Philanthropic Investment Fund

Nikko AM NZ launches unique, fee-free philanthropic investment fund to redirect dormant capital to the fight against modern slavery

Nikko AM invites investors to not just be good with money, but do good with it too

Freedom Fund to use 100% returns from dormant capital to support the fight against modern slavery

Leading Fund Manager and KiwiSaver provider, Nikko AM NZ, has launched a unique new philanthropic investment fund that allows individuals and business to put savings and capital, which they may otherwise have sitting in the bank or in a low-interest term deposit, to work in the fight against modern slavery and human trafficking.

The Nikko AM NZ Freedom Fund is an actively-managed PIE fund with a target annual return of around 2%. So far, so normal. But rather than generate income for the investor, the returns from the pooled capital are donated directly to Tearfund NZ, while investors retain the flexibility to withdraw their money from the fund at any time.

With the returns from the fund treated as donations and therefore exempt from tax, and Nikko AM and their service providers covering the operating costs and donating their management fees, 100% of the returns generated can be donated directly to Tearfund NZ. This unique structure makes it the most efficient way of generating charitable donations from invested capital, meaning more money ends up being used for good.

Nikko AM NZ Managing Director, George Carter, says the Freedom Fund is not only innovative, but timely, as the global pandemic has shifted the focus away from supporting charities and the important work they do.

“Traditionally, charitable financial support has relied solely on people or businesses giving their money away. By allowing us to employ our investment expertise to use some of their savings or capital to generate income, we’re providing a new option for them to donate without donating, while still being able to access their money at any time.”

“We hope the fund will have wide appeal. However, we think it may be of particular interest to philanthropic investors, trusts and businesses seeking to continue their commitment to positive social impact in these challenging times.”

Carter says the choice to support Tearfund was influenced partly by Nikko AM NZ being part of a global family, but also as the extent, prevalence and proximity of modern slavery is not widely recognised here in New Zealand.

“There are an estimated 40 million victims of slavery in the world today, and over two-thirds of these are in the Asia Pacific area. 25 million of these victims are in forced labour, so as consumers we can quite easily become unwitting beneficiaries of exploitation. Therefore, our aim – and the aim of our partners who have provided their time and expertise for free to help us set up the Freedom Fund – is not simply to address abuse and suffering through donations, but also to help Tearfund NZ raise awareness here of how we might help by making more informed choices.”

The Nikko AM NZ Freedom Fund can be accessed via Financial Advisers or directly through Nikko AM NZ’s online investment platform

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