MyFiduciary in partnership with the Climate and Energy Finance Group from the University of Otago, Saturn Advice, and Morningstar surveyed asset managers of global equity funds available to Australasian investors to understand how they integrate sustainable practices within the investment decision-making process. Findings showed that Responsible investing by fund managers is driven mainly by performance value and attracting investors, not ethical values and responsibilities.
Here to read the report findings Here to read University of Otago media release The recent report on climate change released by the IPCC says that the impacts such as extreme weather events are becoming more common and frequent, temperatures will rise more quickly than forecast, and much more action is needed to reduce greenhouse gas emission levels.
In New Zealand the Aotearoa Circle commissioned Chapmann Tripp to provide a legal opinion on how Trustees should factor climate change into their investment decision making as part of their fiduciary duties (this follows from an opinion released last year for Company Directors and fund managers). A link to the opinion is here and the key conclusion is copied below: In light of the increasing understanding and awareness of climate-related financial risk in New Zealand in 2021, it is appropriate that trustees identify and assess this risk to determine whether it is likely to be material. Where it is likely to be material, trustees should appropriately manage that risk over the mid–long term, including by diversification and/or divestment of certain investments if appropriate. Trustees that fail to undertake any consideration of climate-related investment risk, where that risk is likely to be material, will be at risk of breaching their duties to beneficiaries. This opinion is ground-breaking, and we believe will be material for most Trusts in New Zealand. Aaron Drew and David Rae, of MyFiduciary were speakers at the 2021 Responsible Investment webinar series by the Asia Pacific Association for Fiduciary Studies. The webinars presented included:
SRI and Investment Manager Due Diligence, by David Rae Here to access the webinar. A copy of the presentation slides can be found here. Direct Investment and taking SRI to the next level, by David Rae Here to access the webinar. A copy of the presentation slides can be found here. Investing for Impact, by Aaron Drew Here to access the webinar. A copy of the presentation slides can be found here. SRI and Fiduciary Duty, Panel Discussion Here to access the webinar. A copy of the presentation slides can be found here. Designees can access these webinars in our learning site for PD credits. For more information about this event and the Asia Pacific Association for Fiduciary Studies follow this link. MyFiduciary and Kernel Wealth have co-written a white paper on taxation of foreign equities. Overseas investment funds can be attractive for several reasons compared to New Zealand based products. There is a great deal more to choose from, investors can pick from some of the world’s best investment managers, and headline fund manager fees are sometimes much lower. However, in many cases, you will pay more tax than if you invested in a New Zealand product. The extra tax may more than offset any saving in manager fees, leaving you with a lower overall return.
Here to download executive summary Here to download paper Gold’s recent surge to all-time highs is generating renewed interest amongst investors and has rekindled the age-old debate about whether it ought to be part of diversified investment portfolios. We consider the issues for and against gold and determine that, under certain scenarios, it does have characteristics that enhance the resilience of portfolios.
Here to download the paper There are many legislative changes taking place in the financial advice industry and it is important to understand how these relate. The aim of this paper is to provide an overview of the new Privacy Act and how its principles align with the new financial advice regime. We discuss what we see as the most significant practical implications for adviser businesses.
Here to download paper Fi360 Pacific provides education and training in investment governance best practices with reference to a global fiduciary standard. The new regime provides firms with the opportunity to assess and evaluate their compliance, processes and practices. Fi360 Pacific's investment governance framework can help advisers and financial advice providers meet many of their new duties and obligations.
The new regime will start on the 15 March 2021. The Government delayed the 29 June 2020 start date due to the COVID-19 pandemic. For more information please download our paper and infographic. Aaron Drew, MyFiduciary was a speaker at the 2019 RI Conference in New Zealand. He spoke about Social Responsible Investing and Fiduciary responsibilities.
Evidence now shows that factoring ESG into advice and investment processes can reduce risk and at least do no harm to returns. What are the implications for regulators and fiduciary obligations? A copy of the presentation slides can be found here. For more information about this event and the Responsible Investment Association Australasia follow this link. This paper discusses the new Trusts Act 2019 and its implications for trustees’ obligations and duties. The new Act will come into force in February 2021. Under the new legislation, beneficiaries will have the right to access information such as the financial performance of their assets, trust distributions, and trust administration. The Act’s approach to information disclosure paves the way for increased awareness of beneficiaries’ right to be informed and hold trustees to account. This is in-line with the transparency and accountability focus of the new Financial Advisers Amendment Act (2019), which regulates advice provided to retail investors, and increasing transparency in larger scale ‘wholesale’ investment entities, such as KiwiSaver providers and New Zealand Community Trusts.
Click here to download paper This paper sets out what should be included in an Investment Policy Statement (IPS) for an any organisation with a pool of investment assets to manage. This includes charitable trusts and foundations, Māori and Iwi investment organisations, superannuation and provident funds, and other board-governed investment entities. It provides helpful tips for Stewards who are preparing the IPS internally or adopting an IPS prepared by a financial adviser or fund manager.
Click here to download the paper Click here to download IPS template guide Click here for TPK resources for Māori investors |