NZ a standout for ethical investment funds flow

Sustainalytic's advisory team head, Jono Broome, says that New Zealand had recorded 16 consecutive quarters of consistent net inflows into ethical funds.

He described that as a "standout" compared to other markets such as Australia, Europe and the United States.

Broome says the US has had three years of redemptions from ethical funds, largely driven by political factors. The European markets had done better and had some boom times but where now seeing net negative inflows.

Overall, investment into ethical funds in New Zealand hit $7.3 billion during the third quarter of this year, which is an increase of 11.5% over the past nine months.

KiwiSaver funds dedicated to ethical or sustainable investment rose by 7% to sit at $4.92 billion. That is up by two-thirds since the end of 2022.

Net new inflows into KiwiSaver totalled $84 million during the quarter, with Booster leading the charge with flows into its socially responsible high growth, geared growth and balanced funds.

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