5 things you should know about your KiwiSaver investment
9th Jan. 2020
Mindful Money’s analysis has been built on over a year of research and is backed by strong financial expertise, as well as leading thinking on sustainability. This has revealed five key things that you should know so you can manage your KiwiSaver better.
1. You can earn good returns from investing ethically
Companies with high sustainability standards are the most trusted companies. They have loyal customers; motivated employees, they don’t get sued for environmental damage and they don’t operate in declining industries like coal or oil. As a result, their financial returns are high. It’s the same with the funds you invest in. Research shows that funds invested ethically have financial returns that are, on average, as high or even higher than conventional funds.
2. What KiwiSaver funds invest in matters
According to finance theory, it doesn’t matter what companies you invest in—it’s all about the returns and the risks. But that’s not true. Mindful Money has done annual surveys of the New Zealand public, undertaken by leading research company, Colmar Brunton. They show that over 80% of the public care deeply about where their money is invested. Kiwi’s want to avoid companies that abuse human rights, destroy the environment, test products on animals, and produce fossil fuels that lead to climate change.
3. You should find out where your money is invested
Getting good information about KiwiSaver investments has been a nightmare. Mindful Money can now show you, not only what your KiwiSaver invests in directly, but also what is in the indirect funds they invest in. This full view of KiwiSaver investments hasn’t been available until now. Mindful Money can show you how much of your KiwiSaver is invested in each of the sectors that New Zealanders want to avoid, and in which companies.
4. It’s easy to find an ethical fund
Mindful Money’s website has a ‘Fund Finder’ tool which asks you a few simple questions about your ethical priorities, your investment approach and your risk profile. Then gives you a list of the Mindful funds that are the best fit with your criteria. It’s so easy that users say it takes them around 10 minutes to find a KiwiSaver fund that fits their values.
5. You can make a big difference
We take our bags to the supermarket, recycle and buy ethical clothes, but most New Zealanders don’t think about the impact of their investments. A Swedish study shows you can create 27 times more positive impact through making your money ethical than by eating less meat, using public transport, reducing water use and flying less, combined! The way you use your money has an impact on people and the environment. But taking control of your KiwiSaver choice, you can make a positive difference.
This summer, put your money where your heart is and invest ethically. You can feel good about your investments, do good in the world and earn good returns. Why not tick off that New Year’s resolution?