The ASB is soon to wind up its Positive Impact Kiwisaver fund - affecting about 5000 customers - citing global changes and declining customer demand. It follows global investment firm Blackrock's decision to close down its Global Impact Fund, which makes up half of the fund's underlying investment.
Regulators are also turning their attention to such funds and whether "greenwashing" is involved. A number of court cases in Australia involving Mercer, Vanguard and Active Super have brought home the risk of green-stickering investment products. Local KiwiSaver fund Simplicity founder
Sam Stubbs says there has been a global swing away from ethical investing, but it's more than likely a short term blip, rather than the start of a longer-term trend.
