Positive impact companies
Businesses actively building a better future for the world.
The ASB Investment Funds Positive Impact Fund has been created to provide you with an alternative investing option. A fund that can help you invest for your future while aligning with your values.
Here you'll find more information on the fund, including:
The reason behind the fund is pretty simple; to help our customers who want to build their financial future while investing according to their values.
This fund is the first of its kind for us, and we're excited to be starting our journey with likeminded New Zealanders who believe in creating positive change.
We feel it's important to share with you what the fund is and isn't; but also, our vision for the fund as it grows.
Investments held in the fund are determined by three considerations:
Impact investing is a growing area of investment focusing on investing in companies that are addressing the world’s social and environmental issues.
What are these impact companies doing? They’re working in a range of areas including renewable energy, water infrastructure, pollution and waste management, social services, affordable housing, sustainable consumer goods and responsible finance.
70% of the growth assets in the Positive Impact Fund are made up of impact investments. These are shares in listed companies that are selected based on their positive impact to society. These investments align with many of the sustainability themes and metrics outlined by the UN Sustainable Development Goals.
You can learn more about some of the companies in the ASB Investment Funds Positive Impact Fund, working to improve societies and our environment across the world.
Currently we're using other fund managers to manage our Positive Impact Fund's investments. This is the best approach while the fund is still small in size. These fund managers have exclusion policies which state they will not invest in companies with ‘significant business activities’ in fossil fuels, alcohol, tobacco, gambling, controversial weapons and adult entertainment.
It's important to note that these definitions are often narrower than the common understanding of these terms. For example, the fund does include some companies with activities in the fossil fuel sector, because they are permitted under the definitions being used. However, the growth asset portion of the fund is currently 64% lower carbon intensity compared to the wider market.
As the fund grows, it's our aim to become more involved in its management, giving us further options around the structure of the fund and more control over what’s excluded.
We know some customers feel strongly about the sectors they invest in, so we recommend reading the detail to get a full picture of what types of companies could be included in the fund. To find out more about the exclusion policies, read the Positive Impact Fund Schedule in the ASB Investment Funds Statement of Investment Policy and Objectives.
ESG factors are used to measure the sustainability and ethical impact of investing in a company. In the Positive Impact Fund they’re used to identify the right sort of companies to invest in, along with incorporating these considerations into the investment decision making process.
The Positive Impact Fund aims to provide moderate to high returns allowing for large movements of value up and down, from an exposure to a portfolio of investments with a preference for those that make a positive impact on society or the environment. The number of years with negative returns are generally expected to be similar to the Growth Fund.
The fund could be suitable for you if you want your values to play a larger role in how your savings are invested, and you understand that this could mean a different financial outcome.
We also have a Positive Impact Fund available for our ASB KiwiSaver Scheme customers, if this sounds more like you, please find further information here.
You can switch to the Positive Impact Fund, or open an additional ASB Investment Funds account by contacting the ASB Wealth Advisory Service.
Interests in ASB Investment Funds are issued by ASB Group Investments Limited, a wholly owned subsidiary of ASB Bank Limited (ASB). ASB provides administration and distribution services for ASB Investment Funds. No person guarantees interests in ASB Investment Funds. Interests in ASB Investment Funds are not deposits or other liabilities of ASB. They are subject to investment risk, including possible loss of income and principal invested. For more information see the ASB Investment Fund Product Disclosure Statement available from this website and the register of offers of financial products at www.disclose-register.companiesoffice.govt.nz (search for ASB Investment Funds).
Interests in the ASB KiwiSaver Scheme and ASB Investment Funds (Schemes) are issued by ASB Group Investments Limited, a wholly owned subsidiary of ASB Bank Limited (ASB). ASB provides administration and distribution services for the Schemes. No person guarantees interests in the Schemes. Interests in the Schemes are not deposits or other liabilities of ASB. They are subject to investment risk, including possible loss of income and principal invested. For more information see the ASB KiwiSaver Scheme Product Disclosure Statement or the ASB Investment Funds Product Disclosure Statement available from this website and the register of offers of financial products at www.disclose register.companiesoffice.govt.nz (search for ASB).