Barry Coates, CEO of Mindful Money, opened the seminar by warmly welcoming John Berry, co-Founder and CEO of CareSaver. John explained that although CareSaver was launched only last year, the team behind it have a long and successful track record with Pathfinder investment funds.
Barry presented data showing that Mindful funds, including CareSaver, have outperformed the KiwiSaver average over COVID-19. John added that this has been the case for ethical investment funds over a longer time period as well, and that CareSaver funds have outperformed the market since the launch in July last year.
John explained that they achieve good returns and high ethical standards through selecting a limited number of companies with high environmental, social and governance standards, rather than investing broadly. And they avoid sectors with poor returns and harmful impacts, such as fossil fuels.
Barry and John discussed the right time to switch to an ethical fund. John explained that shifting to a lower risk fund can mean locking in losses. But that's not the case with switching within the same risk category. So people should ensure they are in the right risk category, and then choose the fund that is right for them, ethically and financially.
CareSaver investors have not only invested ethically, and earned good returns, but 20% of their CareSaver fees are also donated to charities.
John suggested that investors should keep making contributions while prices are low. The future remains uncertain and markets will be volatile for some time to come. The IMF has warned that the downturn is likely to be more severe than the GFC so investment managers need to be selective.
CareSaver has three funds, which are all featured as Mindful funds on the Mindful Money website. Click on the links below to see details on their funds, or click here to see what your current fund is investing in.
With thanks to our principal sponsors - Generate KiwiSaver, Harbour Asset Management, Booster Asset Management, and Sustainalytics; contributing sponsors - AMP Capital, Harbour Asset Management, Mercer and Milford Asset Management; and supporting sponsor - Devon Funds Management.