In a groundbreaking achievement here in New Zealand, the Grosvenor KiwiSaver Scheme has received recognition from the Responsible Investment Association of Australasia (RIAA), marking a significant milestone for ethical investing in the region. Grosvenor proudly offers two Socially Responsible Investment (SRI) KiwiSaver funds, both of which have received certification from RIAA.
The increasing popularity of responsible and ethical investing is excellent news for advisers, with Grosvenor’s experience revealing that SRI funds attract clients with more substantial balances. By gaining RIAA certification, Grosvenor ensures that the recommended funds have undergone thorough scrutiny and received the endorsement of an independent body.
The Grosvenor team regularly receives calls from clients actively seeking ethical investment options, leading to successful referrals to Advisers. If you’re interested in delving into the realm of responsible investing, reach out to your Business Development Manager (BDM) and consider attending our upcoming roadshows.
What does Socially Responsible Investing mean for me?
Socially responsible investing has fast become a growing trend in New Zealand. RIAA’s Benchmark Report 2015 notes that there is growing demand from New Zealand consumers to align retirement savings with their values and beliefs. This demand is set to grow as individuals become more concerned with social and environmental issues and aware that they can choose financial products which reflect these values.
People who think this way have been investing accordingly. In the year ended 31 December 2014, assets invested in New Zealand according to core responsible investment policies (including the Grosvenor KiwiSaver Scheme SRI funds) grew by 19%. 10% of this growth came from investment returns, which indicates that nearly half of this growth in assets came from New Zealanders moving money into SRI products, either by switching from other products or simply making deposits.
Investors in SRI funds tend to have more significant amounts to invest, as reflected in the average Grosvenor KiwiSaver Scheme account balance for members in SRI funds, which is 27% higher than other members. This means that not only are SRI funds growing at a faster rate than non-SRI options, but those clients who are interested in investing in SRI options are likely to be more valuable to advisers.
The balance of members with 2/3 of their savings in SRI funds is on average 27% higher than other members.
If you’re keen to learn more or wish to explore access to Grosvenor’s ethical funds, feel free to reach out, I’ll be happy to assist.