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KiwiSaver responsible investment Updated: 05 Aug 2008

Your choice

Responsible investment offers the chance to put your money where your mouth is. But if you're looking for a KiwiSaver scheme that lets you do this, you'll need to consider your options carefully.

If all you want is a scheme that doesn't invest in alcohol or tobacco, then your choice may be straightforward. Most responsible investment schemes say they "aim to avoid" direct investment in these areas.

But if your requirements are more specific - say you want a fund that invests in renewable energy and rules out non-renewables - then it's Hobson's choice. None of the existing funds do this.

If you don't like any of the options currently available, keep looking and keep asking questions. At least one other KiwiSaver provider - AMP - says it's in the process of developing a policy on responsible investment. Prometheus Finance, an ethical investment company established in 1983, is also planning to become a KiwiSaver provider next year.

Fees

Responsible investment funds may have higher management fees than other KiwiSaver funds offered by the same provider.

ABN Amro Craigs, ASB, Asteron, Fidelity Life, Forsyth Barr and Superlife all offer other KiwiSaver funds in addition to their responsible investment options. Management fees on responsible investments are at the upper end of these companies' fee scales.

You might think higher fees are justified if the fund manager is working hard to deliver the investment mix you want. But if you can't find out where your money is going, then you may not be so keen on paying.