Impact Investments
Hand-picked investments in businesses that are actively building a better future for the world.
Save for your retirement while helping save the planet
The ASB KiwiSaver Scheme Positive Impact Fund has been created to provide Kiwis with an alternative option to investing their KiwiSaver savings. A fund that can align with your values while still helping you save for your future.
Here you'll find more information on the fund, including:
- Why we have created it
- What the fund invests in
- What is impact investing and a look at exclusions and ESG criteria
- How to tell if it’s right for you
- How you can join or switch
Investing in your future, and the planet with the ASB KiwiSaver Scheme
The latest Morningstar KiwiSaver Survey has ranked the ASB KiwiSaver Scheme Positive Impact Fund as one of the top performing balanced funds over the past 12 months and the top performer in this category over the last quarter*. With the ASB KiwiSaver Scheme Positive Impact Fund you’ll invest in companies looking to make a positive impact on society or the environment, for similar cost to the average balanced fund.
*Source: Morningstar KiwiSaver Survey June Quarter 2021. Returns are a reflection of past performance and are not a guarantee or indication of future performance because returns fluctuate (move up and down). Returns can be negative and you may receive back less than the total amount of your contributions.
A little more about the journey we're on
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.
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.
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.
What does the Positive Impact Fund invest in?
The fund is made up of both income assets (around 40%) and growth assets (around 60%), with a preference for investments that generate a positive and measurable social and/or environmental impact, alongside a financial return.
The fund uses three approaches to determine what it invests in:
Exclusions
The policies around the industries the fund avoids investing in.
ESG integration
Criteria used to measure the sustainability and social impact of the companies it invests in.
What is impact investing?
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 KiwiSaver Scheme Positive Impact Fund, working to improve societies and our environment across the world.
Exclusions – how do they work?
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 KiwiSaver Scheme Statement of Investment Policy and Objectives.
Environmental, Social and Governance (ESG) factors
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.
Is the Positive Impact Fund right for me?
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.
If your priority is to save as much as you can for your first home deposit or retirement, then one of our other funds may be the best option for you. Check out our Help Me Choose tool.
We also have a Positive Impact Fund available for our ASB Investment Funds customers, if this sounds more like you, please find further information here.
Important things to know before investing in the Positive Impact Fund
The Positive Impact Fund aims to provide moderate to high returns allowing for large movements in 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.
- More growth assets than income assets
- Appropriate for investors that have at least 11 years to invest
- Significant ups and downs in your balance are expected
- Aims to achieve moderate to high returns over time
- A preference for investments that make a positive social and/or environmental impact
Learn more about income assets and growth assets.
The most recently compiled list of portfolio holdings for the ASB KiwiSaver Scheme Posivitive Impact Fund is provided here.
Join or transfer to the ASB KiwiSaver Scheme
Change your fund
You can switch your fund using FastNet Classic online banking or via the ASB Mobile App, or move some of your funds through this form.
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 KiwiSaver Scheme).
