Morningstar’s KiwiSaver Report three-year return numbers include Pathfinder, a responsible investment KiwiSaver provider, for the first time, outperforming conservative, balanced and growth funds.
Friday, November 18, 2022 at 10:10am
Pathfinder, a boutique fund manager focused on sustainable and impactful investing, entered the ranking in 2019 when it was founded by John Berry and Paul Brownsey. In his September quarter data from Morningstar, Pathfinder’s three-year returns were conservative 2.8% vs. -1.9% average, balanced 5.2% vs. 1.4% average, growth 7.9% vs. 2.3% average. .
CEO Berry breaks down that performance into a number of factors. Changes in advisor attitudes towards RI, increased number of ethical investment products offered, increased client awareness. A generational shift in investor behavior is also a factor, says Berry. However, he also points out that many senior citizens are thinking about what to leave to the next generation when making investment choices.
“Advisors these days want to incorporate RI into their business rather than wait for clients to ask them about RI. The world is changing rapidly and climate change is rampant. Superfund From small boutiques to small boutiques, everyone is thinking about how their investment impacts, and of course it is also a reflection of their performance.”
Chief investment officer Brownsey said aside from the feel-good factor, RI’s fund managers still have the burden of proof. “The majority of people still want to see proof that it works, and they are beginning to realize that being an ethical investor has no cost. Ultimately it comes down to three things: Are you avoiding what you don’t want, are you investing in what you want, and are you getting good returns?”
What makes Pathfinder’s success even more striking is that it is an impact fund manager, actively seeking investments with the intention of generating measurable and beneficial social or environmental impact along with financial returns. That’s it.
“There are many shades and approaches to implementing responsible investment,” says Berry. “At a very light level, we can exclude controversial industries, which is the most common practice, such as excluding the fossil sector. A proactive approach would exclude fossil fuels. Not only do we focus on renewable energy, we can then take it a step further with impact investing to find hard-to-reach private companies that are doing good. is Wool-Aid, a New Zealand company that makes biodegradable Band-Aids from merino wool.
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