Responsible Investment News

Kiwi Wealth cuts weapons, tobacco and whaling companies from investment strategy

That resulted in a public backlash from consumers which has seen providers move out of the investments.

Kiwi Wealth, a sister company to Kiwibank, said it had designed a new fund built and directed by its in-house investment team.

The enhanced index fund will initially exclude the same companies listed by the New Zealand Superannuation fund on its exclusion lists.

But it will also take it a step further by excluding those with poor ESG track records.

Simon O’Grady, chief investment officer at Kiwi Wealth, said the fund would remain low cost but keeping it in house meant the company could change it over time.

“Our new fund has been built from the ground up by our investment management team and is tailored for the New Zealand market, with an expectation that the enhanced tracker will outperform passive index funds used by other KiwiSaver providers.”

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O’Grady said it would also incorporate responsible investing “throughout our process”.