Written: 31 May 2022

Author: Jono O'Grady

3 min read

In the investment world the shortlist announcement for the 2022 Mindful Money awards is eagerly anticipated by all. In this article we discuss the recent rise in ethical investing, unpack the Mindful Money awards and applaud the funds on Flint that have been selected as finalists! If you’re an investor who is keen to know which funds on Flint are in the running for these 2022 ethical accolades, then enjoy a read.

Mindful Money

Mindful Money is one of the most prominent consumer platforms in New Zealand for information on ethical and responsible investing. The organisation is a charitable organisation whose ‘aim is to make money a force for good.’ If you’re interested in ethical investing, then we’d encourage you to head on over to the Mindful Money website and look through their funds. You’ll find that some of the funds listed on the Mindful Money platform are available here on Flint.

Ethical investing is on the rise in New Zealand

Mindful Money and Responsible Investment Association Australasia (RIAA) partnered together to conduct consumer research into ethical and responsible investments in 2022. Consumer expectation for investments that are ethical or responsible is high in New Zealand. A huge 73% of Kiwis surveyed expected their investments to be ethical or responsible, and almost half of the population (48%) know what responsible or ethical investing means. This is up 13% from 2020. With this growing knowledge, 56% of Kiwis would consider moving their money if they found that their current investment fund invested in companies engaging in activities that weren’t consistent with their values. Many New Zealanders are clearly wanting their money to be a force for good.

With this rise in ethical and responsible investing comes the danger of ‘greenwashing,’ when an investment appears to look ethical or responsible, but this may not be the case. Greenwashing may also be hard to spot, as there is no standard industry approach to assessing ethical investing, responsible investing or evaluating ESG (Environmental, Social and Governance) practices.

There are also different ways in which organisations ‘slice and dice’ ethical and responsible investing or ESG practices. Certifications, fund labelling and awards by independent organisations can be helpful to aid investors in their decision making. This is where organisations like Mindful Money play a vital role – the consumer research conducted by Mindful Money and RIAA showed that 54% of kiwis would be more likely to invest in a fund if it is independently labelled as ethical or responsible.

Mindful Money Awards

The Mindful Money awards are an industry benchmark for ethical and responsible investing. The awards have grown in popularity over the last few years and Mindful Money were delighted to see more entries in 2022 than in previous years. Chief Executive Barry Coates comments that:

“This year, ethical and responsible investment has become the norm for investment management in New Zealand and the entries to this year’s awards show significant progress in raising the bar.”

Coates says “There was an exceptionally strong field of entries. The finalists showed a mature approach and analytical rigour in their policies and practices, raising the bar for domestic funds. They add depth and diversity to the range of New Zealand funds on offer.”

Applauding the finalists on Flint

Flint is delighted that several of the fund managers and funds featured on Flint have been highlighted as finalists in the Mindful Money awards. We applaud all of them and note the bar is continuing to rise as the mainstream spotlight turns to ethical and responsible investing. Being named as a finalist is an achievement worthy of celebration.

Devon Funds Management

Devon has two funds that have been named as finalists for the ‘Best New Ethical Fund.’ Way to go Devon!

The two funds are the Devon Global Impact Bond Fund, and the Devon Global Sustainability Fund. Devon’s sustainability strategy is led by Victoria Harris, a portfolio manager at Devon, with ESG experience.  

These two Devon funds are an exciting addition to the funds that Devon run. The Devon Global Impact Bond Fund ‘seeks to invest primarily in debt issued by companies that are addressing the world’s environmental and social problems.’

The Devon Global Sustainability Fund ‘aims to generate long term total returns by investing in a selective portfolio of global companies that generate high return on capital relative to their peers, and whose management teams and boards display exemplary stewardship to sustain those returns over time.’

Note: Both Devon funds will be available on Flint shortly.

Harbour Asset Management

Well done Harbour Asset Management on being names as a finalist for the ‘Best Ethical Retail Investment Provider.’ This is a worthy achievement!

Harbour has three funds available on Flint which have been RIAA certified and a history of active engagement with the companies that it invests in.

They comment that: “At Harbour, we employ a strategy of integration and company engagement. This means our team researches all the companies we invest in and actively checks for any environmental, social or governance (ESG) risks that may apply to them. It helps our Portfolio Managers develop an understanding of each company, and influences not only whether we invest in companies, but also how much.”

Pathfinder Asset Management

A big congratulations is also due to Pathfinder for their selection as a finalist for ‘Best Ethical Retail Investment Provider.’

Pathfinder has a strong focus on ethical and responsible investment. John Berry, CEO of Pathfinder comments that “We believe our individual decisions as an investor are as important as our individual decisions as a consumer. Both have real-world outcomes that can benefit or harm our planet and communities. We also believe investing ethically can generate good financial returns."

The Pathfinder Global Water Fund, a fund that Pathfinder has been running for 11 years, is available on Flint. It’s also RIAA certified.

Clarity Funds Management

Clarity run the TAHITO Te Tai o Rehua Fund. Tahito has also been named as a finalist for ‘Best Ethical Retail Investment Provider.’ Another great achievement for a Fund Manager on Flint! Tahito ‘have developed a unique way of measuring companies using Māori ancestral knowledge. In doing so we are applying our best Māori ancestral knowledge for the future.’

The TAHITO Te Tai o Rehua Fund is available on Flint, and according to Tahito is a world-first. TAHITO selects listed companies based upon indigenous Māori values.

Roll on the awards!

Flint applauds each of the fund managers who have been selected as finalists for the Mindful Money awards. The winners of the 2022 Mindful Money awards will be announced on 28 June 2022. We’re pleased to see that ethical and responsible investing is on the rise in New Zealand and thrilled to bring consumers choice through the funds on Flint. We wish all managers well for the upcoming awards.

IMPORTANT NOTICE AND DISCLAIMER:

All content shared is of a general nature, current to the time it was penned, and is not financial advice. Before making any investment decisions, please be sure you have completed full due diligence. This should include reading the product disclosure statement (PDS), considering fees and taxation, identifying your time horizons, and understanding the performance history and reputation of the investments you are considering.

Please note: When investing you are not guaranteed to make money (and on occasion you may lose some or all of the money you began with). Seek independent advice to establish if an investment is suitable for your financial situation and long-term wealth generation goals.

References

Devon Funds Global Impact Bond Fund; Devon Funds Global Sustainability Fund; Mindful Money finalists; Mindful Money; Harbour Asset; Pathfinder; Tahito; Good Returns.