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RIAA & Kiwi Wealth

New Zealand Consumer Research

What issues are important to New Zealander’s when investing in KiwiSaver funds?

Responsible InvestmentBenchmark Report 2016Australia

Break down of results by responsible investment segmentsResponsible InvestmentBenchmark Report 2016Australia

Sample

Total survey sample size = 1,001

Kiwi Saver account holders = 72%

18-29 y.o.: 24%30-39: 19%40-49: 22% 50-59: 20 %60-69: 15%

Female: 51%Male: 49%

Household composition. Living…Alone:

13%With friends: 8% With family:

39

Household Income (pre tax):

Under $25K: 18%$25K - $40K: 16% $41K - $62K: 20% $63K - $83K: 14% $84K - $104K: 12% $105K - $125K: 7% Over $125K: 12%

Sample reliability at a total survey level = 95% +/- 3.1%Rounding of the data set has been undertaken in the analysis. Readers should note this may cause a variation of +/- 1% in individual responses.

UniversityEducation:

(Undergraduate or post-graduate)

38%

“81% think it is important that KiwiSaver funds consider environmental, social and / or ethical factors

in addition to financial analysis” Q: When choosing a KiwiSaver scheme, how important is it that the scheme considers environmental, social, governance and/or ethical factors along with established financial analysis when investing?

Proportion of respondents nominating a given level of importance

Extremely Important

Not Important

“One third weight personal values and financial performance as equal considerations. Kiwi’s want their values considered,

but not at the expense of good investment”Q: When considering how to invest your retirement savings, to what extent are your decisions influenced by any personal environmental, social or ethical values or concerns you may have about the way the fund invests, versus your desire to maximise financial returns? Please indicate on the scale below the extent to which your decision to invest in a KiwiSaver account is motivated by financial factors compared to your personal values.

Proportion of respondents nominating a given weighting towards financial factors vs personal values

% Personal Values% Financial Factors

Q: If there were two KiwiSaver funds, one that invests in responsible investments (i.e. that takes into account environmental, social, ethical and governance considerations) and a standard KiwiSaver fund; how well do you think they would perform financially over the next five years?

Proportion of respondents nominating a given level of expected financial performance over five years

“The myth that ethical funds underperform is not as deeply entrenched as some think – over 50% see no difference in

performance or don’t know”

Performance of Core Responsible Investment Funds

AnswerOptions VeryImportant ImportantSomewhatImportant

NotatallImportant

Don'tKnow/Can'tSay

Whaling 49% 25% 16% 8% 4%Nuclearpower 40% 21% 16% 19% 4%Tobacco 38% 20% 16% 23% 3%Gambling 36% 24% 18% 19% 3%Militaryarmaments 34% 23% 21% 16% 5%Personalfirearms 33% 23% 21% 19% 4%Palmoil 31% 26% 22% 15% 6%Adultentertainment 29% 19% 19% 29% 4%Fossilfuels 27% 24% 26% 18% 6%Sugaryfoodsanddrinks 21% 20% 28% 27% 4%Junkfoods 20% 21% 27% 28% 4%Logging 15% 21% 28% 28% 7%

Q: How important is it to you that your KiwiSaver fund avoids investing in the following industries? Proportion of respondents nominating a given level of importance per industry

“The industries most Kiwi’s want to avoid are whaling, nuclear power and tobacco”

“The key issues that Kiwi’s want taken into consideration by KiwiSaver providers relate to people and animals, above

environmental issues, but all are seen as important”

Q: Please indicate how important it is to you, that your KiwiSaver fund takes the following issues into account when investing your retirement savings

AnswerOptions VeryImportant ImportantSomewhatImportant

NotatallImportant

Don'tKnow/Can'tSay

Slavery 49% 25% 15% 5% 6%Childlabour 45% 28% 16% 5% 6%AnimalCruelty 44% 29% 17% 6% 5%Briberyandcorruption 43% 29% 17% 5% 6%Humanrights 38% 35% 19% 4% 5%Labourrights 29% 36% 24% 6% 5%Environmentaldamage 25% 35% 28% 7% 5%Carbonemissions 20% 32% 30% 11% 6%

Proportion of respondents nominating a given level of importance per issue

Q: Do you agree or disagree with the following statements regarding switching to a responsible or ethical KiwiSaver fund (or option within a KiwiSaver fund)?

“The barriers to greater uptake are not enough time and independent information”

“A quarter said they’d be much more likely to choose a fund that was Certified as Responsible or Ethical –

55% ‘more likely’”Q: Would you be more likely or less likely to invest in a KiwiSaver fund that is certified by an independent body as a “Responsible or Ethical Investor” (i.e. a certification program for providers of responsible investment products that takes into account environmental, social, ethical and governance considerations)?

Proportion of respondents nominating a given level of likelihood

Investment organisations included in this year’s report:

Investment organisations included in this year’s report:

Investment organisations included in this year’s report:

Global Phenomenon:In EU, EUR 21 trillion in RI AUM, with significant growth in retail marketExclusions continue to be top RI strategy, with over EUR 10 trill AUM

EUROSIF, European SRI Study 2016

LAUNCH:

RIAA & Kiwi Wealth

New Zealand Consumer Research

What issues are important to New Zealander’s when investing in KiwiSaver funds?