Mindful Money adds two fixed interest funds to ethical list

Mindful Money has expanded the number of managed funds it recommends as being ethical, dubbed Mindful Managed Funds, on its website.

Friday, June 7th 2024, 8:04AM

by Andrea Malcolm

It has added the Pathfinder Green Bond and Artesian Green and Sustainable Bond, both around one year old, to bring the total to 47.

Mindful Managed Funds make up 9% of all managed funds (502 funds in total) and approximately 9% by total value ($76bn to end September 2023) of those listed on the Mindful Money site.

Separately there are 38 recommended KiwiSaver funds, which total 10% of all KiwiSaver funds by number (370 funds) and 9% by total value ($109bn to end September 2023), says Mindful Money founder and co-CEO Barry Coates.

Coates says both new funds meet the charity’s ethical criteria; avoiding harmful impact, undertaking effective stewardship and engagement, investing in companies that have positive impacts on people and the environment, and demonstrating commitment to ethical practices, including reducing the climate impacts of investments in their portfolios.

Pathfinder launched the Pathfinder Green Bond Fund last February in partnership with Affirmative Investment Management (a specialist bond management division within MetLife Investment Management). It exclusively invests in bonds allocated to green purposes, such as clean transportation, clean water access, increasing resilience to extreme weather events, and renewable energy supply networks.

Coates says, the criteria for Pathfinder’s Green Bond Fund go beyond the certifying bonds (fixed interest loans) to include expert analysis. Affirmative Investment Management, is an internationally-recognised green bond specialist. “This provides additional assurance that the green bonds are credible.” It also won the Mindful Money award last year for most ethical new fund.

The Artesian Green and Sustainable Bond Fund, run by Artesian and marketed in New Zealand by Devon from June last year, invests solely in green, sustainable and social bonds, with a focus on corporates and a bias towards Australia and New Zealand.

The fund targets projects with carbon abatement or social impact outcomes. Artesian's impact report showcases a sound framework and examples of their impact bonds, earning the fund the highest rating for fixed income from Australian Impact Investments.

Coates says the Artesian fund, which is a finalist for best new ethical fund in this year’s awards, provides more choice particularly through the focus on short interest duration bonds, with strong ethical credentials and a positive impact orientation, based on measured impact from use of proceeds data.

Mindful Money’s data update to end Mach 2024 will be finalised around 20th June – the closing date for fund providers to file their data with the Companies Office was 25th May.

Tags: Mindful Money