As a KiwiSaver provider, Booster considers environmental, social, and governance risks when they asses investments for their Investment and KiwiSaver Funds. And, if you want to go one step further, you can invest in Boosters Socially Responsible Investment Funds (SRI).
How Ethical is Booster?
Booster is certified as a responsible investor by the responsible investment association Australasia and a partner of Mindful Money. Booster uses a combination of company reports, in-depth analysis, and environmental, social and governance (ESG) factors to help assess investment opportunities. These factors include:
- Environmental – Climate change, Resource use, Products & packaging
- Social – Product impacts, Employee wellbeing, Ethics
- Governance – Board independence, Diversity of employees, Alignment of interests
In addition to applying select controversial exclusions, Boosters Socially Responsible funds also exclude funds with a select threshold of revenue derived from the exclusions.
Boosters SRI Funds
The Boosters Socially Responsible Funds and Boosters Standard fund with the same fund type is essentially the same funds. The difference is mainly in the investments the SRI Fund excludes. Also, some Booster SRI Funds have performed better in the past than their standard funds, as you can see in the table below. However, you should not use past performance to predict future performance. It is a good indicator for comparison purposes within different funds of the same type and how they hold up against the market average.
The Booster SRI Funds include a small but essential allocation to the Booster Innovation Fund. The Booster Innovation Fund invests in early-stage companies that are helping commercialise intellectual property originating in New Zealand. Investments within this fund aim to solve global problems and build great businesses, which gives the allocation the potential to positively impact the world we live in.
The Booster Socially Responsible Investment (SRI) funds exclude investing in 15 specific industries listed below:
- Fossil fuels
- Civilian firearms
- Gambling
- Tobacco
- Whaling
- Military weapons
- Nuclear power
- Alcohol
- Pornographic material
- Recreational cannabis
- Export of live animals
- Factory farming
- Genetically modified organisms
- Animal testing (non-medical)
- Palm oil production and plantations
A KiwiSaver provider can simply say that they are investing ethically or responsibly, but that could mean differently to different people. Booster is regularly engaging with various providers and investment managers to thoroughly understand their investment policies and how they are used when selecting companies to invest in.
Booster SRI KiwiSaver Funds Currently Offered:
|
Fund Name |
Fund Fees |
Fund Time Investment Frame |
Fund Asset Allocation |
SRI Fund 5yr Average Return |
Standard Fund 5yr Average Return |
|
Socially Responsible Moderate Fund |
1.14% |
4 years + |
35% Growth Assets 65% Income Assets |
N/A |
3.96% |
|
Socially Responsible Balanced Fund |
1.29% |
5 years + |
55% Growth Assets 45% Income Assets |
6.57% |
6.09% |
|
Socially Responsible Growth Fund |
1.32% |
7 years + |
75% Growth Assets 25% Income Assets |
N/A |
7.88% |
|
Socially Responsible High Growth Fund |
1.35% |
10 years + |
98% Growth Assets 2% Income Assets |
9.95% |
8.71% |
|
Socially Responsible Geared Growth Fund |
1.80% |
15 years + |
99% Growth Assets 1% Income Assets |
N/A |
10.91% |
Choosing a KiwiSaver fund that invests ethically may be vital for you, and National Capital will take that into consideration in our investment selection process. In addition to ethical considerations, ensuring that the funds we recommend to you are the most suitable for your situation and goals is important. To optimise your investments in KiwiSaver, you need to make sure that your KiwiSaver fund is right for you. Submit our KiwiSaver HealthCheck to find out more.