What does socially responsible investing mean to you? Some things seem glaringly obvious, like avoiding investment in companies that make money from landmines or cluster bombs. But all weapons manufacturing? How about tobacco? Pornography? Fossil fuels? Genetically modified organisms? Nuclear power? Gambling? Alcohol? Where do you draw theline?
"Ethical" will mean different things to different people. And investment funds have a variety of approaches to these questions.
That said, there are more socially responsible options than ever in KiwiSaver. According to the latest Sorted survey of providers, 38 per cent of KiwiSaver schemes now include an ethical option. Out of the 205 publicly available funds, 35 screen out a variety of "undesirable" investments.
Here is the latest list to compare, grouped by the type of fund. (Not sure which type is right for you? Try these three questions.)
Fisher Funds TWO Preservation Fund Mercer Cash Fund NZ Funds Income Strategy Summer New Zealand Cash Summer New Zealand Fixed Interest
Conservative
Fisher Funds KiwiSaver Conservative Fund Fisher Funds TWO Cash Enhanced Fund Fisher Funds TWO Conservative Fund Mercer Conservative Fund Simplicity KiwiSaver Conservative Fund
Balanced
AMP Fisher Balanced Fund AMP Responsible Investment Balanced Fund Booster Socially Responsible Investment Balanced Fund Craigs Investment Partners Quaystreet Balanced SRI Fund Fisher Funds TWO Balanced Fund Mercer Balanced Fund Mercer Moderate Fund Simplicity KiwiSaver Balanced Fund Summer Investment Selection Superlife Ethica Fund
Growth
Booster Socially Responsible Investment Growth Fund Fisher Funds KiwiSaver Growth Fund Fisher Funds TWO Growth Fund Mercer Growth Fund NZ Funds Growth Strategy NZ Funds Inflation Strategy Simplicity KiwiSaver Growth Fund Summer Global Equities Summer New Zealand Equities
Aggressive
ANZ Sustainable International Share Fund Fisher Funds TWO Equity Fund Mercer High Growth Fund Mercer Shares Fund Summer Australian Equities Summer Listed Property
Keep in mind that "ethical investment" is just one of the criteria you need to consider when choosing your fund.
The fund you're in also needs to be the right level of risk for you, have the level of services you want, with fees that seem reasonable. And of course it can't have consistently underperformed, either - which could be a sign of poor management.
You don't want to end up in the "ethically perfect" fund that doesn't suit your other needs. Still, in terms of investing ethically in KiwiSaver, it's good to know that you've got more options than ever.
