KEY POINTS:
KiwiSavers who want to add a "green" touch to their investment can now do so through a fund being launched by ASB.
The new Global Sustainability Fund (GSF) will invest in companies committed to sustainable activities and practices long-term.
The investment manager for this new fund is Generation Investment Management, established in 2004 by former US vice-president Al Gore and former global CEO of Goldman Sachs Asset Management, David Blood.
The GSF provides investors with access to a growth fund comprising 100 per cent global shares, all of which have an absolute focus on sustainability, said ASB head of wholesale distribution Greg McAllister.
The GSF option is available to ASB's FirstChoice KiwiSavers, not those in their default Kiwisaver scheme. Investors will have the option to transfer all or part of their savings into the new fund.
"Our Global Sustainability Fund is currently the only true sustainability fund available to KiwiSavers," Mr McAllister said.
"Other funds may include some elements of sustainability, but are more accurately described as ethical or socially responsible funds."
ASB's research showed there was a growing interest in investing in sustainability funds and this demand was not being met, he said.
The GSF would invest in global companies that were committed in their business decision-making and operations to minimising the social, economic, environmental, ethical and governance impacts of their businesses on society.
Until now, to invest in a true sustainability fund New Zealanders have had to invest directly offshore, Mr McAllister said.
A spokeswoman for ING, a key player in the Kiwisaver market, said the company did not offer a fund that was specifically branded as an ethical fund.
She agreed that some funds did offer a degree of sustainability in their investments.
- NZPA
