NZ retail investors may soon have access to a new ‘dark green’ investment vehicle launched by Australian multi-affiliate firm, Apostle Funds Management.
According to an Apostle spokesperson, the hardcore ‘People and Planet Diversified Fund’, which has a zero-tolerance approach to exclusions based on several criteria, should soon be available in retail format in NZ after first sounding out institutional appetite.
“The fund is initially targeting institutional and wholesale, but we plan to launch to retail later in the year,” the spokesperson said. “But we have already had NZ interest, mainly from the wealth management space.”
Released in Australia in March this year, the ‘People and Planet’ product follows a multi-asset class approach, banning all investments in companies that garner direct income from a wide range of activities including:
- fossil fuel production;
- weapons production;
- gambling;
- alcohol and tobacco production;
- pornography; and,
- nuclear power (uranium mining or production of conventional nuclear power facilities).
Many funds operating under environmental, social and governance (ESG) labels have a tolerance for revenue gained from such ‘sin’ sectors up to a certain threshold.
In addition to its hard-line exclusions, the Apostle fund also screens companies for other ESG offences such as human rights violations, animal cruelty or unnecessary animal testing and environmental degradation.
Furthermore, the ‘People and Planet’ fund aims to support companies making a positive impact on issues such as climate change and gender diversity.
Apostle, headed by Karyn West, has had some success among NZ financial advisers with the Dundas global equities strategy but the firm is optimistic about rising demand this side of the ditch for responsible investment options.
Last year new specialist third-party fund marketing firm, Zanoma Investments, took on a suite of sustainable products managed by Australian firm, Artesian, which is in the Apostle stable.
And Apostle has also slated a new ethical high-yield strategy for release in NZ this July targeting wholesale investors.
“This is an ethically screened fixed income strategy that is targeting a net 5-7% return,” the spokesperson said.
“For the NZ institutional market we are also introducing Kayne Anderson’s newly launched Multi Family Impact Housing Fund. Apostle has a focus on offering ethical and impact investments and believes this aligns well with NZ investors.”
Headquartered in Sydney, Apostle has about A$5 billion under management.