Insights
Adviser News - September 24
Pathfinder now has 'good' 5-year returns | Our position on Gaza | Reasons to love our Ethical Tran-Tasman Fund | The markets journey through July.
Woohoo for ‘good’, 5-year returns!
It always amuses me that one of the greatest ironies in the KiwiSaver investment industry is the dichotomy introduced by advertising returns. In its barest form, the two-sentence paragraph gives confidence, but at the same time feels in conflict with the advice 'current returns are not an indicator of future performance'. However, it's now our turn to make the asterisk laden, disclaimer filled exaltation, and to be honest, we're proud of this milestone! Here it is...
“Pathfinder now has 5-year returns that outperform the benchmark since inception for Conservative, Balanced and Growth Funds." (disclaimer below*)
So, what does this show? Firstly, a significant (5-year) milestone many advisers use as a minimum acceptable period for a fund manager to prove their investment thesis actually works. Secondly, the results show that no one should have to choose between an ethical investment and a profitable one.
Something that has stood out to me over recent years, is that many of you within our independent adviser community have made exceptions to your own rules by recommending Pathfinder to clients without these 5-year performance figures. I’d like to take this opportunity to say thank you for believing in us and helping us to achieve our mission - to generate individual wealth and collective wellbeing by investing ethically.
| Fund | Total returns p.a. | Benchmark p.a. |
|---|---|---|
| Growth | 10.6% | 9.5% |
| Balanced | 7.8% | 7.2% |
| Conservative | 4.2% | 2.8% |
Performance as of 31 July 2024
* Disclaimer: Past performance is no guarantee of future return. We encourage all investors to seek financial advice prior to making investment decisions.
Pathfinder's position on Gaza for your clients who are asking.
We get asked a lot of questions from conscientious investors about Pathfinder's position on current conflicts and we expect you get asked them also, so we have answered them in this article. Questions include:
Does Pathfinder invest in Israeli companies?
Does Pathfinder have a position on war?
Does Pathfinder still invest in Caterpillar (as it was listed as a company of concern on Mindful Money)?
Is not investing in weapons harmful and destabilising for the world?
Are our funds weapon free?
Why do we have a 5% threshold for military weapons, equipment and services related to military weapons?
We’ve noticed first-hand that access to transparent information about our holdings is becoming a driver for change - investors are reviewing information about our exclusions and often have questions. This article aims to answer any questions you receive with regard to the intersection between ethical investing, human rights and war. Ultimately, we hope it will help with more engaged, long-term relationships with clients and help during fact-finding conversations that incorporate values-based investing.
Three reasons to love our Ethical Trans-Tasman Fund:
| One: It invests in local companies hand-picked from within Aotearoa and Australia. | Two: It has a carbon intensity over 50% lower than benchmark per dollar of revenue. By carbon intensity we mean greenhouse gas emissions relative to financials within our portfolio. | Three: It has returns of 9.5% p.a. since inception (4% p.a. above benchmark currently). |
Monthly market commentary for August
| Globally interest rates are coming down and the NZX listed real estate index went up by 7% over August. Does this make it a good time for your investors to buy a house and are we out of the woods yet when it comes to the recession? |
If you are looking for further ideas and insights to help your clients understand the impact of their invested dollar, I encourage you to visit our insights page. We are constantly uploading stories, aimed at helping investors understand their investments are having. Please feel free to share articles with your clients or link them into your newsletters.
And as always, please get in touch if you have any further questions.
Warm regards,
Simon Leach
Senior Relationship Manager
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.