Insights
Adviser News - October 24
A new version of investing success | Impactful stock - SciDev | The US election | Renewed B Corp status
What does success mean to your client?
Ask an 80-year-old what they value with their investments, and they are likely to say returns, ask a 40-year-old and may get a very different answer as you'll find they care about very different things.
Traditional metrics of investment success have been dominated by returns, risk management, and portfolio growth. But new market research suggests that things are changing, and we could see far more people measuring success differently, especially younger generations.
Key insights from our recent market research suggests: -
A promising future for ethical brands, including investment funds.
A generational shift in attitudes that will organically grow demand for ethical funds in the future.
A segment of investors that know that doing ‘good’ is rewarding – for society and themselves financially.
A clear skew towards ethical attitudes to investing compared to those that are simply after maximising returns.
And it made us think, are we seeing a generation shift in what investing success looks like? We think so. In this article we dive deeper into our insights and other research and suggest ways to navigate this shift with your own clients.
Stocktake: A deep dive into SciDev
SciDev announced in September that their last financial year-to-date (FY24) was the most significant they have had. This positive result was on top of three consecutive years of improved organic revenue and operating performance. They were also named in the Financial Times High-Growth Companies list in March 24.
On top of being a growth company, Pathfinder believe that the products and services SciDev offer have a significant place in the future of water and water technology, can contribute towards a number of the United Nation Sustainable Development Goals and assist with the global water crisis due to the innovative solutions they offer. For example, an announcement by Sydney District Council in August this year, saying they found ‘forever chemicals’ (PFAS) in Sydney’s drinking water, is something SciDev is well equipped to help with.
SciDev were one of the first companies our flagship Global Water Fund invested with in 2010. Additionally, they now feature in our Ethical Trans-Tasman Fund, our Ethical Growth Fund and all our KiwiSaver Funds. They are a brilliant example of a company that's delivering on ethics and returns.
The US election - a make-or-break moment
Whatever the outcome of the US election, there will be global implications. These range from a potential 10% tariff imposition on all imports promoted in the Trump campaign while the Harris campaign is committed to a 10% lift in corporate tax rate. There will likely be a lot for the business community and investors to adjust too.
The incoming president will also inherit an increasingly divided and partisan world, with a minefield of geopolitics to navigate including: a grinding Russia-Ukraine war, a rapidly evolving Middle East conflict, and a tense relationship with China. Both presidential candidates represent, to varying degrees, the US’s continuing drift towards more protectionist policy. This is particularly relevant for US-based manufacturing and automotive industries, and this will continue to impact trade, international relations, and global economics.
The Centre for Strategic and International Studies recently published a comprehensive paper ‘The Global Impact of the 2024 US Presidential Election’ that assesses the various implications of the election on different parts of the world. The report notes that many are viewing this election as a ‘make or break moment’ for the global economy, trade, geopolitics, and international conventions, concluding that “there could not be a more consequential moment for the US to be choosing its next leader."
Read the report on what this means for 'Australia, New Zealand and the Pacific in a new US Administration' on page 67.
Pathfinder renews B Corp certification
We are thrilled to share that Pathfinder is now re-certified as a B Corp. This certification is testament to our commitment towards the movement to use business as a force for good.
Certified B Corporations are leaders in the global movement for an inclusive, equitable, and regenerative economy. Unlike other certifications, B Lab’s Impact Assessment is unique in that it measures a company’s social and environmental impact holistically, considering various stakeholders. Obtaining B Corp certification is not easy, it requires a high level of transparency as well as social and environmental performance. B Corps are recognised globally as leaders in the movement for economic systems change.
It takes a lot of time and energy to achieve this, and I would like to thank my colleague Bryony Greenhalgh for her work on this project.
Simon heads up the distribution team at Pathfinder, setting strategy and managing third party relationships. This portfolio includes independent financial advisers, investment platforms and referrers, and corporate & community programmes. Simon is a purpose driven collaborator, holds an Executive MBA through Massey University, and lends his expertise to multiple charities on a board/committee level.