tmmonline.nz  |   landlords.co.nz        About Good Returns  |  Advertise  |  Contact Us  |  Terms & Conditions  |  RSS Feeds

NZ's Financial Adviser News Centre

GR Logo
Last Article Uploaded: Thursday, August 6th, 1:36AM

Investments

rss
Investment News

Ditching fossil fuels will pay off: Fund manager

A decision to end investment in companies producing or distributing fossil fuels should pay off for investors over the medium to long-term, says Hunter Hall Investment Management’s chief executive.

Wednesday, June 4th 2014, 6:00AM

Hunter Hall has announced it is amending its investment screen to end investments in fossil fuel companies.

It already excludes investment in companies directly involved in tobacco, gambling, armaments, uranium, nuclear energy, forestry of old growth forests and intensive animal husbandry.

Hunter Hall will implement this enhancement to its ethical policy by excluding companies with a Global Industry Classification Standard of Oil, Gas and Consumable Fuels. This classification accounts for 8% of the MSCI World Index and currently represents 2.2%  or two stocks of Hunter Hall’s overall portfolio.

Chief executive David Deverall said the manager was in the process of selling the two stocks affected.

He expected limited impact on investment performance over the short term.  “The investment universe is very large, there are plenty of other parts of the global sharemarket to invest in.”

Over a medium to longer-term, he said such a strategy could help investors avoid investing in companies that ended up with “stranded assets” – coal and gas reserves worth billions on balance sheets that ended up being worth a lot less in reality.

“We’re hoping that by not owning those stocks, over the long term [funds] will perform better.”

The response from investors had been positive, he said.

Over time, those companies Hunter Hall was rejecting would find it harder to raise capital and it was possible that would influence the types of projects they were able to invest in, he said. “Every journey starts with a small step.”

Hunter Hall was not specifically seeking renewable energy companies to invest in instead, but would when they offered an opportunity to make money, Deverall said.

« Low volatility feeds a search for yieldUnderstanding risk and volatility »

Special Offers

Comments from our readers

No comments yet

Sign In to add your comment

 

print

Printable version  

print

Email to a friend

Good Returns Investment Centre is brought to you by:

Subscribe Now

Keep up to date with the latest investment news
Subscribe to our newsletter today

Edison Investment Research
  • The Law Debenture Corporation
    5 August 2020
    Proof of proposition in challenging H120
    The Law Debenture Corporation (LWDB) has reported another strong set of results for its independent professional services (IPS) business in H120, with...
  • The Bankers Investment Trust
    31 July 2020
    Quality-focused global growth and income fund
    The Bankers Investment Trust (BNKR) has continued to deliver on its twin objectives of long-term capital and income growth, rebounding strongly from the...
  • Worldwide Healthcare Trust
    30 July 2020
    Marking 25 years with strong performance
    Worldwide Healthcare Trust (WWH) is celebrating its 25th anniversary. Managed by Sven Borho and Trevor Polischuk at OrbiMed, the trust has an enviable...
© 2020 Edison Investment Research.

View more research papers »

Today's Best Bank Rates
Rabobank 1.00  
Based on a $50,000 deposit
More Rates »
Cash PIE Rates

Cash Funds

Institution Rate 33% 39%
ANZ 0.10    0.10    0.11
ASB Bank 0.05    0.41    0.42
ASB Bank 0.05    0.59    0.56
ASB Bank 0.05    0.61    0.64
ASB Bank 0.08    0.66    0.69
ASB Bank 0.08    0.72    0.75
BNZ 0.10    0.10    0.10
Heartland Bank 1.00    2.59    2.70
Kiwibank 0.05    -    -
Kiwibank 0.50    -    -
Nelson Building Society -    -    -
SBS Bank -    -    -
TSB Bank 0.35    0.36    0.38
Westpac 0.35    0.36    0.38
Westpac 0.05    0.10    0.11
Westpac 0.50    2.16    2.26

Term Funds

Institution Rate 33% 39%
ANZ Term Fund - 90 days 0.75    0.77    0.80
ANZ Term fund - 12 months 1.50    1.54    1.61
ANZ Term Fund - 120 days 0.95    -    -
ANZ Term fund - 6 months 1.50    1.54    1.61
ANZ Term Fund - 150 days 1.15    -    -
ANZ Term Fund - 9 months 1.60    1.64    1.71
ANZ Term Fund - 18 months 1.50    1.54    1.61
ANZ Term Fund - 2 years 1.50    1.54    1.61
ANZ Term Fund - 5 years 1.60    1.64    1.71
ASB Bank Term Fund - 90 days 0.65    0.65    0.68
ASB Bank Term Fund - 6 months 1.40    1.44    1.50
ASB Bank Term Fund - 12 months 1.40    1.44    1.50
ASB Bank Term Fund - 18 months 1.40    1.44    1.50
ASB Bank Term Fund - 2 years 1.40    1.44    1.50
ASB Bank Term Fund - 5 years 1.50    1.55    1.62
ASB Bank Term Fund - 9 months 1.40    1.44    1.50
BNZ Term PIE - 120 days 0.90    -    -
BNZ Term PIE - 150 days 1.00    1.02    1.07
BNZ Term PIE - 5 years 1.65    1.70    1.78
BNZ Term PIE - 2 years 1.60    1.65    1.73
BNZ Term PIE - 18 months 1.65    1.70    1.78
BNZ Term PIE - 12 months 1.50    1.55    1.62
BNZ Term PIE - 9 months 1.50    1.55    1.62
BNZ Term PIE - 6 months 1.50    1.55    1.62
BNZ Term PIE - 90 days 0.65    0.65    0.68
Co-operative Bank PIE Term Fund - 6 months -    -    -
Heartland Bank Term Deposit PIE - 12 months 1.65    1.70    1.78
Heartland Bank Term Deposit PIE - 6 months 1.60    1.64    1.71
Heartland Bank Term Deposit PIE - 9 months 1.60    1.64    1.71
Heartland Bank Term Deposit PIE - 18 months 1.70    1.75    1.83
Heartland Bank Term Deposit PIE - 2 years 2.00    2.06    2.16
Heartland Bank Term Deposit PIE - 5 years 1.80    1.86    1.94
Kiwibank Term Deposit Fund - 90 days 0.85    0.86    0.90
Kiwibank Term Deposit Fund - 6 months 1.60    1.64    1.71
Kiwibank Term Deposit Fund - 12 months 1.65    1.69    1.77
Kiwibank Term Deposit Fund - 150 days 1.15    1.18    1.23
Kiwibank Term Deposit Fund - 120 days 1.05    1.08    1.15
Kiwibank Term Deposit Fund - 9 months 1.70    1.73    1.81
Westpac Term PIE Fund - 150 days 1.00    1.02    1.07
Westpac Term PIE Fund - 120 days 0.95    0.97    1.02
Westpac Term PIE Fund - 18 months 1.55    1.59    1.66
Westpac Term PIE Fund - 12 months 1.50    1.53    1.60
Westpac Term PIE Fund - 6 months 1.50    1.53    1.60
Westpac Term PIE Fund - 9 months 1.50    1.53    1.60
Westpac Term PIE Fund - 90 days 0.75    0.77    0.80
Westpac Term PIE Fund - 2 years 1.60    1.64    1.71
About Us  |  Advertise  |  Contact Us  |  Terms & Conditions  |  Privacy Policy  |  RSS Feeds  |  Letters  |  Archive  |  Toolbox
 
Site by Web Developer and eyelovedesign.com