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Simplicity extends ethical investing


26/08/2020

Ethical exclusions

We believe in investing ethically. So do our members, and it's increased returns %)

Until now we've excluded investments in eight industries, globally and in New Zealand. Australia was the only country not included, now it is. 

We also announced today that we have extended the companies we will not invest in to those violating UN principles on Human Rights, the Environment, Labour Rights and Anti-Corruption. More details here.

The exemptions will apply to all funds, KiwiSaver and Non-KiwiSaver, effective immediately.

“We’ve worked with international fund manager Vanguard to make these products available to all KiwiSaver managers, at very low cost," said Sam Stubbs, Simplicity Managing Director. “There is now no excuse now for any KiwiSaver manager to ignore ethical investing.”

And we're extending our exclusions to more companies involved in fossil fuels. In New Zealand, that means selling our investments in Genesis Energy, who own the Kupe gas field and Huntly Power Station.

A recent Consumer magazine survey showed 59% of KiwiSaver investors wanted good returns and their money invested ethically.

Currently no bank in New Zealand is ranked by industry website Mindful Money as meeting its responsible investing standards. The largest four all allow KiwiSaver funds to be invested in fossil fuel producing companies.

“It’s hypocritical for the big banks to say they act ethically, yet invest their members’ KiwiSaver savings into fossil fuel companies” said Mr Stubbs.  

We credit ethical investing and low fees for making Simplicity the highest returning KiwiSaver scheme for the last three years to 30 June. ‘Ethical investing boosted our fund returns by up to 1.5% per annum,” Mr Stubbs said.

At Simplicity we believe the finance industry can be a force for good, and we want to play a leading role. 

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