We first became aware that Kiwi's were interested in ethical investing in 1997, when one of our first clients asked us about making investments that are going to be good for people and the world. Over the years, the world of ethical investing has changed significantly.
The Responsible Investment Association of Australasia (RIAA) and Mindful Money have carried out a survey of consumers to see what their views are in relation to ethical investing. Since at least 2020 - there has been a strong trend that shows that consumers want their KiwiSaver providers and their financial advisers to take into account where their funds are being invested.
We find it interesting that on industry blogs, when this report is released each year there are predictable comments (from the same people) saying 'my clients have never raised this issue with me'. Which we find fascinating, given that - when we have asked our clients their preferences for their investments - the vast majority want to make sure that their investments are made in companies that do not cause harm to people or animals.
The results are more mixed when we talk to our clients about companies that have exposure to fossil fuels, alcohol, gambling, and we have seen some changes in opinions about investing in weapons since the Russian invasion of Ukraine.
We are proud to sponsor this survey that shows that New Zealanders still want their fund managers and advisers to understand where their money is being invested and to avoid treating people and animals badly. A consistent response in this survey is that we don't want companies to 'not pay their fair share of tax' or to cause environmental damage.
One of the topics that we would like to see covered in surveys is to find out how consumers feel about Bribery, Corruption and Fraud in the companies that we invest in,. This is because, over the last 20 years, these three things have not been acceptable business practice, with laws against it, and prosecution and prison sentences carried out by perpetrators. But since the start of 2025 - these are all things that seem to be more acceptable (based on changes to legislation and the Presidential pardons) in the USA - and the US has historically been a global leader in indicating to companies and businesses how they should carry out their business and approach issues.
The consumer survey results from New Zealanders come in spite of the (very loud) messages coming from the US White House to the contrary. We know that the current US administration doesn't believe that actions should be taken to mitigate climate change, to protect from environmental degradation or pollution, that human rights violations and labour rights abuses seem to be okay. But our consumers are still wanting these things to be avoided - where possible.
While many of our clients are in Hybrid portfolios, where four of the fund managers wouldn't meet our ethical portfolio standards, the ethical investments are still doing a great job at present, (maybe because they have a greater diversification and less US based companies in them?)
