UP FRONT | NEWS
New Zealand investors motivated by ethics, report reveals As New Zealand prepares to release its sustainable finance roadmap, new research shows that more than threequarters (78%) of New Zealanders with KiwiSaver or other investments believe that ethical or responsible investments perform better in the long term. The new study, conducted by Dynata for Mindful Money and the Responsible Investment Association Australasia (RIAA), highlights the significant consumer demand for responsible and ethical investment, as the industry continues to grow in its size and influence. RIAA CEO Simon O’Connor told Good Returns that he was not surprised by the findings. “We have seen now for a number of years that [for the] vast majority of New Zealanders their investments and savings are aligned with their values. What has fundamentally changed is that we now see that the vast majority of New Zealanders, almost 80%, also believe that responsible investment
performs better in the long term.” “It is really encouraging to see that the myth that ethical and responsible investments underperform is rapidly being put to bed.” The research is part of a wider sea change in New Zealand’s investing culture. “What we have here is an opportunity to align financial capability and wellbeing through the use of responsible investment,” O’Connor says referring to the two-thirds of New Zealanders who would be more motivated to save and invest more money if they knew their savings and investments made a positive difference in the world. O’Connor says that this momentum shift also needs to be taken up by advisers. “This doesn’t mean that we need to go out and immediately divest from every industry that this survey says that Kiwis care strongly about. It’s really important that fund managers, KiwiSaver providers and financial advisers are being really clear with their clients with how they plan
to manage these risks and alleviate any harm that comes from their investments.” “Tools such as Mindful Money and Responsible Returns make it much easier for advisers to be able to have a conversation with their clients, to engage their clients, and to provide solutions for their clients that match their values.” O’Connor believes that the trend seen in this survey is only going to get stronger. “In New Zealand we have a vast majority of the financial service sector with responsible investment measures in place. We see about half of those with a leading approach. We think there is room to continue to strengthen that.” “This has become more than just about avoiding harm. This is now about using financial services to influence change and support sustainable businesses. Positive impact is where New Zealand investors really start to get excited.”
Trust in advice report released by Financial Advice NZ A report released by Financial Advice New Zealand based on research undertaken by Core Data has revealed that nearly 95% of those who use a financial adviser feel positive about the advice they receive. The report, which was released at the Financial Advice NZ annual general meeting in October, sought to understand the sentiment around the experience of those who use financial advisers, and whether they felt more confident around their financial health. It was established that 55.3% of Kiwis who received financial advice felt extremely secure around their future, compared to 38.9% who hadn’t. And of advised New Zealanders 69.9% said
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that they had enough money put away for the future, as opposed to 52.4% of those who weren’t advised. It also revealed that financial advisers were seen as highly trusted professionals, with 93.7% of those surveyed rating their adviser as good or very good with regard to trustworthiness. “We are excited that this report clearly shows that New Zealanders who get professional financial advice are much better prepared for the future than those who don’t. In addition to this financial advisers are seen as trusted professionals,” says chief executive officer Katrina Shanks.
