KEY POINTS:
What is it called and what sort of savings product is it?
The First Choice KiwiSaver Global Sustainability Fund is an international sharemarket investment.
Which company is behind it?
The fund is promoted as part of ASB Bank's KiwiSaver offering. The underlying fund is Generation Investment Management LLP. Generation was co-founded by former US Vice-President, Al Gore, and David Blood, former global chief executive of Goldman Sachs Asset Management.
Who is the target market?
It suits investors wanting "higher long-term capital growth" and, of course, it appeals to people interested in "responsible" investment. It says sustainable investing is different from ethical or socially responsible investing. It involves a long-term investment strategy, and recognises that economic health, environmental, social and governance factors will ultimately drive a company's long-term profits.
What return does it offer?
Past performance figures are not available as it is a new fund, but it benchmarks itself against the MSCI world index (ex-Australia).
When was it launched?
April 1.
What other products is it like or is it competing with?
It is up against other "responsible investments", including the KiwiSaver offerings from ABN Amro Craigs, Asteron and Aventine.
Is it long term, short term or medium term?
Definitely long term.
What is the product's unique selling point?
This fund has star status as it is associated with Al Gore, who won a Nobel Prize for his documentary An Inconvenient Truth.
How strong a stomach do you need for it?
Strong. People need to be aware there could be significant fluctuations in returns over the short to medium term, and there may be periods of negative returns and the risk of capital losses.
What's the hitch?
The fund's potential volatility.
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