Insights
Pathfinder High Growth Fund: a new ethical option
Our new fund for those aiming higher
“It’s great to now be able to offer investors more choice when it comes to investing ethically for their long-term goals” Simon Leach, Distribution Manager at Pathfinder.
Ready for some good news? For those with at least 10 years to invest, we have a new product for you – the KiwiSaver High Growth Fund.
Designed for long-term investors comfortable with higher risk, this fund stays true to the principles in our Ethical Investment Policy while including a higher allocation of growth assets.
With five years of strong performance across our Conservative, Balanced, and Growth funds, we’ve proven that doing good doesn’t have to mean earning less. Our new High Growth Fund builds on our track record, giving values-driven investors a new way to aim higher –saving for their future while investing in our collective future.
What’s different about the High Growth Fund?
The High Growth Fund targets a 90% allocation of growth assets – such as shares in companies and property and the remaining 10% in typically more stable income assets such as bonds and cash/term investments. If you compare this to our other funds, you’ll note they have a lower target allocation of growth assets 70% for Growth, 50% for Balanced, and 10% for Conservative. Note that in investing a target is what we are aiming for, but it’s not always exactly what is in the fund and because Pathfinder are active managers these allocations can change slightly as we respond to market dynamics.
Why would we put so many growth assets into the Fund? It’s because growth assets (eg. equities such as tech companies, software, and emerging innovators) can have strong potential for appreciation over time, this means that long-term you are likely to see higher returns as these assets grow and evolve.
To balance out this excess upside, growth assets tend to experience greater volatility in the short term, meaning they can go up and down more. As a result, investors need to be prepared to ride out those dips and be OK with greater market fluctuations. Patience is key—a time horizon of at least 10 years is often recommended to fully realise the long-term growth potential.
Is the High Growth Fund right for you?
Everyone has a different risk tolerance and time horizon, so you need to find the right fund type to suit you.
The Pathfinder KiwiSaver Fund Quiz contains three questions - each designed to learn more about what you need your KiwiSaver to do and for how long. At the end, you’ll be introduced to the Funds we think you’ll be most interested in (based on your answers).
The quiz is not financial advice, it’s information about our Funds. Ultimately, where you choose to invest is your decision. If you are still unsure about which Fund is right for you, we recommend you seek financial advice before changing your investment strategy. You can also contact our customer services team for a chat.
How to switch to the High Growth Fund
If you think the High Growth Fund is right for you, fill in the “Changing your investment options form” on our website. It will take 2-3 business days. Before switching it’s important that you read the offer documents on our website including the Product Disclosure Statement, our Statement of Investing Policy & Objectives and Other Material Information, they can all be found on our website.
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Pathfinder Asset Management is the issuer of the Pathfinder KiwiSaver Plan and Pathfinder Investment Funds. A Product Disclosure Statement for the offer is available at pathfinder.kiwi. Learn more about how we invest ethically by reading our Ethical Investment Policy & Exceptions Register on our website.
Photo by Johannes Kopf on Unsplash
by John Berry
Co-Founder, CEO & Resident Wayfinder, Member of Ethics & Investment Committee
John is committed to making ethical investment accessible to all NZ investors. Before co-founding Pathfinder in 2009 John worked in law firms and investment banks in Auckland, London and Sydney. He has a BCom/LLB(Hons) from Auckland University and is a board member of Men’s Health Trust. In 2023 John was awarded as the Sustainable Business Networks Sustainability Superstar.
