Responsible investment policy prompts changes in BNZ KiwiSaver scheme

In September 2016 we announced we would be reviewing the BNZ KiwiSaver Scheme investments. We’re glad to report that we’ve developed a responsible investment policy spanning all investments made on behalf of our customers.

This has led to a number of exclusions being applied in our international equity holdings. Companies involved in the production of cluster munitions, anti-personnel mines, nuclear weapons as well as tobacco are excluded.

In the past BNZ invested in global/international equities alongside other institutional investors. Over the last 3.5 years, funds under management grew from $1.5 billion to almost $4 billion today and that enables us to establish our own investment mandates with fund managers, giving us greater control of where and how our customers’ money is invested.

BNZ Head of Wealth and Private Bank Donna Nicolof says: “We have been developing our approach to responsible investing over the past six months to ensure we have a robust framework where investment decisions align with both our investment beliefs and the changing attitudes of our investors and society. This is the start of an exciting journey for us.”

Environmental, social and governance factors are becoming increasingly important considerations to better manage risk and return. The regulatory and litigation risks faced by the tobacco industry are significant and there is no safe level of use for its products, which has led to the decision to exclude stocks in tobacco manufacturers completely.

We will continue to review all our investments on a regular basis because we want you to be able to be good with money in every respect.

BNZ Investment Services Limited, a wholly owned subsidiary of BNZ, is the Issuer and Manager of the BNZ KiwiSaver Scheme. Download a copy of the BNZ KiwiSaver Scheme Product Disclosure Statement PDF 1.7MB, or pick up a copy from a BNZ store. Investments made in the BNZ KiwiSaver Scheme do not represent deposits or other liabilities of BNZ or any other member of the National Australia Bank Limited group, and are subject to investment risk, including possible delays in repayment and loss of income and principal invested. None of BNZ, any other member of the National Australia Bank Limited group, the Supervisor, any director of any of them, the Crown or any other person guarantees (either fully or in part) the performance or returns of the BNZ KiwiSaver Scheme or the repayment of capital.

This blog is solely for information purposes [and is only for BNZ KiwiSaver Scheme members who are New Zealand residents]. None of the matters in this blog are personalised financial advice. We recommend that you seek financial advice specific to your personal situation and goals from an Authorised Financial Adviser. No representation or warranty is made as to the accuracy, reliability or completeness of any statement made in this blog. Neither BNZ nor any person involved in the preparation of this blog accepts any liability for any loss or damage arising out of the use of, or reliance on, all or any part of this blog. The information and recommendations are the personal views of the author and do not necessarily reflect the views of BNZ.