Many KiwiSaver investors are set to discover exactly how socially and environmentally friendly their investments really are. From 1st April 2008, KiwiSaver providers will be required to disclose in their investment statements whether or not their investment policies and procedures give consideration to responsible investment principles.

In an amendment to KiwiSaver legislation, the new proposal will ensure New Zealanders enrolled in KiwiSaver will have open access to the social and environmental credentials of the investments they fund. A statement indicating the extent to which the provider’s policies and procedures support responsible investment practices must be made, with further information made available free of charge on request.

Ethical investing (also known as responsible or sustainable investing) is directed towards investors wanting to combine their longer term financial objectives with their personal values. It considers environmental, social, ethical and governance issues in addition to the usual underlying investment selection and management process. The first KiwiSaver provider to offer a socially responsible investment option is Guardian Trust’s sister company Asteron, which has been operating a Socially Responsible Investment Trust in New Zealand since 2002. The Trust invests primarily in New Zealand company shares.

Asteron’s KiwiSaver Socially Responsible Investment Share Fund excludes shares in companies principaly involved in the tobacco, alcohol, weapons and gambling industries. In addition to screening shares, active steps are taken to promote the ethical behaviour of companies whose shares the fund comprises. An independent research firm specialising in ethical and sustainable investments is appointed to engage with the management of these companies to encourage continual improvement in social and environmental practices.

The Asteron Socially Responsible Investment Trust has performed well, outstripping its comparable stock index over the last three years to 31 December 2007, averaging a gross return of 11.15%* per annum, compared with the NZX50 Gross Index which averaged just 9.66% per annum for the same period.

If you would like more information about the Asteron KiwiSaver Scheme please call 0800 87 87 82, or ask your adviser for an Investment Statement.
*Note: Past performance is not indicative of future performance.