Green research finds only one 'responsible investment' KiwiSaver provider

A Green Party study of 25 KiwiSaver providers shows only one could be reasonably described as providing a "responsible investment" option for the public. The Greens are calling on other KiwiSaver providers to put responsible investment products on the market and calling on workers to pressure their providers to offer a responsible investment option.

"I believe many if not most New Zealand workers who will be putting part of their pay packet into KiwiSaver will want to know whether the money is likely to make the world better or worse," Greens Co-Leader Russel Norman says. "For example,
will the money be invested in nuclear weapons and cluster bomb manufacturing, like the investments of the New Zealand Superannuation Fund? Or is it invested in health care and renewable energy?"

The result of the party's survey carried out over the past month or so shows there is currently only one KiwiSaver provider, Asteron, which can be fairly described as following a responsible investment approach, aiming to achieve a good return but also making sure the investments are responsible, Dr Norman says.

"Asteron operates negative screening against companies involved in destructive activities as well as engaging with firms on a broad basis to encourage them to become more responsible.

"Honourable mention goes to four KiwiSaver providers — AXA, Gareth Morgan, Grosvenor and Legal and Professional Investments Services — that make some effort with their direct investments to avoid firms involved in particularly bad practices such as whale meat processing and tobacco manufacture. Unfortunately this kind of negative screening generally only applies to a small part of their portfolio.

"Seven Kiwisaver providers — AMP, ASB, Fidelity Life, Medical Assurance Society, Mercer, SuperLife, and Tower - have indicated they are actively considering offering a responsible investment option under KiwiSaver but have not yet made a final decision."

Dr Norman says he wants to stress that many KiwiSaver providers are waiting to see "which way the wind blows" on responsible investment and so it is vital that workers put pressure on their KiwiSaver provider to offer a responsible investment option.

"Although this is a good summary of the present situation, it will change, especially as people put pressure on other providers who may offer a responsible option in the future. Also, it should be noted New Zealand's leading ethical investor, Prometheus, currently does not operate a KiwiSaver fund but is examining the possibility of doing so in the future."

See a copy of the report here