First they pulled out of bombs and cigarettes and now a New Zealand investment provider has gone a step further by offering a vegan-friendly fund.

Pathfinder Asset Management, which specialises in responsible investment and manages money on behalf of Ngāi Tahu, said it had tweaked one of its global equity funds to screen out companies with animal welfare and animal testing issues.

John Berry, Pathfinder chief executive, said it had made the move on the back of demand from investors.

"This year we have been approached by many investors who are concerned about animal welfare issues.

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"These have included vegans, who are very passionate about cruelty-free investment, but also a much wider audience focused on animal testing and how animals are treated generally."

A survey released by the Responsible Investment Association Australasia this week also found animal welfare was top of mind for KiwiSaver investors.

Berry said it had used a specialist analytics company to screen its Global Water Fund which had resulted in its removing one company.

The fund already excludes companies involved in thermal coal, gambling, adult entertainment, pornography and controversial weapons.

He didn't believe the change would have any negative impact on the returns of the fund.

"We do not believe incorporating animal welfare screening will change the risk and return characteristics of the fund."

The fund has a minimum investment of $5000.