Generate KiwiSaver actively engaging in 'impact investing'

Moving towards an 'ethical approach to investment' for those of our clients that want this approach means that we are talking to our existing and future fund managers about how they are investing, and why, and making sure that there is substance behind their claims.

We were impressed to see Generates' announcement that they were the cornerstone impact investor in The Salvation Army Community Bond.

The Community Bond is a fixed interest, 5 year impact investment yielding 2.30% per annum and delivers investors a sound investment return and social impact.

There is more information here:  KIwisaver-provider-generate-believed-to-be-the-first-to-invest-in-social-housing

Impact investment refers to investments made into companies, organisations, assets and funds with the intention to generate a positive social or environmental impact alongside a financial return.

This project represents a significant commitment from the Salvation Army to develop new housing on their land holdings in urban centres across the country. National Director of The Salvation Army Social Housing, Greg Foster, says the Army is very grateful for the investment. “The Army is delighted to be partnering with Generate KiwiSaver through The Salvation Army Community Bond. We have a large, new housing construction programme across the country and the only significant barrier is access to construction finance on terms that work. The investment is a winner for all parties, The Salvation Army will be able to use the investment to build more social housing, and Generate KiwiSaver will be receiving a competitive return for their investment, while knowing that the funds are being used to address urgent social and housing needs in the community. This set of arrangements means more and more families who are currently living in garages, or are bunking down with family members are going to get to live in their own warm, dry and safe home, within a thriving community setting. We are thrilled for these families, and it will be life changing for them.”

Barry Coates, Founder and CEO of Mindful Money, says: “Affordable housing was a major challenge before COVID, and now it is even more urgent. We congratulate Generate KiwiSaver for stepping up to help fund the Salvation Army’s programme. This is an example of investment for good – earning a sound return while making warm and healthy homes available to those who need them.”