If you want your KiwiSaver to reflect your values, there are now several credible options in New Zealand — but they are not all equal in depth of ethical screening, transparency, or cost. This comparison covers the three most commonly considered ethical providers: Pathfinder, Booster’s Socially Responsible Investing range, and ANZ’s Responsible Growth fund.
Disclosure: MoneyBalance may earn a referral fee from some providers linked on this page. This does not influence our analysis.
The Ethical KiwiSaver Landscape
Most KiwiSaver providers apply some minimum exclusions (typically weapons and tobacco, as required by the responsible investment norms referenced in their statements of investment policy). Genuinely “ethical” providers go further — applying positive screening, engagement, and detailed ESG integration.
The spectrum in NZ runs roughly:
| Approach | Providers |
|---|---|
| Minimum exclusions only | ANZ standard, ASB, Westpac |
| Some ESG integration | Milford, Generate |
| Dedicated ethical range | ANZ Responsible Growth, Booster SRI |
| Ethical-first, all funds | Pathfinder |
Quick Comparison: Ethical Providers
| Feature | Pathfinder | Booster SRI | ANZ Responsible Growth |
|---|---|---|---|
| Ethical scope | All funds ethical-first | Dedicated SRI range alongside standard funds | One ethical fund among standard range |
| Exclusions | Weapons, fossil fuels, gambling, tobacco, adult content, human rights violations | Weapons, fossil fuels, gambling, tobacco, negative social impact | Weapons, tobacco, some fossil fuels |
| Positive screening | Yes — active ESG leaders | Yes — positive impact companies | Limited |
| Engagement | Active shareholder engagement | Yes — Mindful Money rated | Limited disclosure |
| Growth fund fee | ~0.85%–0.99% | ~0.75%–1.19% (SRI range) | ~1.07% |
| 5-yr growth return (indicative) | ~7.5%–8.5% | ~7.0%–8.0% | ~6.8%–7.5% |
| Default provider | No | Yes | No |
| Mindful Money rating | Strong | Strong | Moderate |
Fees indicative; check current provider product disclosure statements for exact rates.
Pathfinder KiwiSaver
Pathfinder is New Zealand’s most explicitly values-driven KiwiSaver provider. Unlike providers that add an ethical fund to a standard range, Pathfinder applies its ethical framework across all investments.
What Pathfinder excludes:
- Fossil fuel extraction and production
- Weapons and military contracting
- Gambling and gaming
- Tobacco and alcohol production
- Adult content
- Companies with significant human rights violations
What Pathfinder invests in:
- Companies with positive environmental and social practices
- Renewable energy and clean technology
- Businesses with strong governance and labour practices
Mindful Money rating: Pathfinder consistently receives one of the highest ethical ratings from Mindful Money (NZ’s independent ethical investment research service).
Fee: Growth fund at approximately 0.85%–0.99% — reasonable for an active ethical manager, significantly cheaper than ANZ Responsible.
Performance: Pathfinder’s growth fund has delivered competitive returns — broadly in line with the market over 5 years, though slightly behind Milford and Generate. For members where ethical alignment is the primary criterion, the performance trade-off is modest.
Booster Socially Responsible Investing (SRI) Range
Booster offers a dedicated SRI range alongside its standard fund options. As a 2021 default provider, Booster has significant scale and regulatory credibility.
Booster SRI approach:
- Applies negative screening to exclude harmful industries (weapons, fossil fuels, gambling, tobacco)
- Applies positive screening to include companies with strong ESG practices
- Engages with investee companies as a shareholder
- Rated by Mindful Money for ethical depth
Booster SRI fees: The SRI range runs at approximately 0.75%–1.19%, depending on fund type. Slightly more expensive than Booster’s standard range, reflecting the additional research involved.
Key advantage: Booster’s SRI range is available within the same provider as Booster’s standard Glidepath product — members can hold an ethical fund without changing providers.
Note on Booster’s standard default fund: The default Glidepath product is not ethically screened. Only the explicitly SRI-labelled funds apply ethical criteria.
ANZ Responsible Growth Fund
ANZ offers a single “Responsible Growth” fund as the ethical option within its standard KiwiSaver range. It applies exclusions and some ESG tilt — but is the least rigorous of the three options on this page.
ANZ Responsible Growth exclusions:
- Weapons manufacturing
- Tobacco
- Some fossil fuel exclusions (with carve-outs that other ethical managers don’t allow)
Limitations compared to Pathfinder and Booster SRI:
- No positive screening — the fund excludes bad actors rather than actively seeking ESG leaders
- Less transparent on engagement activity
- Mindful Money rating is lower than Pathfinder or Booster SRI
- Fee (~1.07%) is higher than Pathfinder for weaker ethical depth
When ANZ Responsible Growth makes sense: If you’re already with ANZ, want some ethical screening, and don’t want to switch providers. It’s a meaningful step above ANZ’s standard funds but not the most rigorous ethical option available.
Performance Comparison
Ethical fund performance is harder to benchmark because these funds may intentionally exclude high-performing sectors (e.g., fossil fuels in certain years, weapons manufacturers during conflict periods). However, over the past 5 years:
| Provider | 5-yr indicative growth return | Notes |
|---|---|---|
| Milford (non-ethical, for reference) | ~9.5%–10.2% | Active, no ethical screen |
| Simplicity (non-ethical, for reference) | ~8.2%–8.8% | Passive, no ethical screen |
| Pathfinder | ~7.5%–8.5% | Ethical-first, slight performance lag vs Milford |
| Booster SRI | ~7.0%–8.0% | Competitive for ethical focus |
| ANZ Responsible Growth | ~6.8%–7.5% | Weakest ethical depth AND weakest return |
The ethical premium (return given up for values) is approximately 1–2 percentage points per year versus Milford. Against Simplicity, Pathfinder is broadly comparable. Against ANZ standard, ANZ Responsible performs similarly — with marginally better ethical screening.
Mindful Money: An Independent Check
Mindful Money is New Zealand’s independent ethical investment research organisation. It rates KiwiSaver funds on their ethical depth — screening methodology, engagement, transparency, and company exclusions.
Use Mindful Money to verify any provider’s ethical claims before committing. “Responsible” and “sustainable” labelling in fund names is not standardised — Mindful Money provides the independent verification.
Which Ethical Provider Should You Choose?
| Your priority | Recommended option |
|---|---|
| Most rigorous ethical screening, all funds | Pathfinder |
| Ethical fund within a default provider | Booster SRI range |
| Staying with ANZ, some ethical screening | ANZ Responsible Growth |
| Ethical + lowest cost | No current option (ethical screening costs more) |
| Ethical + best performance | Pathfinder (competitive on both criteria) |
For most members where ethical alignment is genuinely important, Pathfinder is the strongest dedicated option. Booster SRI is a solid alternative with the backing of a default provider. ANZ Responsible Growth is the weakest of the three on ethical depth while also being the most expensive.
Frequently Asked Questions
Is Simplicity ethical? Simplicity does not market itself as an ethical fund and does not apply dedicated ESG screening beyond standard exclusions. Its passive index funds hold the broad market. For dedicated ethical investing, Pathfinder or Booster SRI are more appropriate.
Does ethical KiwiSaver underperform? On average, the performance gap between ethical and standard funds has been modest in the NZ context — approximately 1–2 percentage points per year against the best-performing active manager (Milford). Against standard bank providers, ethical funds like Pathfinder perform comparably or better.
How do I verify whether a fund is genuinely ethical? Use Mindful Money (mindfulmoneyguide.co.nz) to review independent ethical ratings. Also read each provider’s Statement of Investment Policy and Objectives (SIPO) for the specific fund.
Can I switch to Pathfinder easily? Yes. Apply directly at Pathfinder’s website and they manage the transfer. The process takes approximately 10 working days. See our switching KiwiSaver providers guide.
What to Read Next
- Bank vs Independent KiwiSaver NZ — the full provider landscape
- Booster KiwiSaver Review — full Booster provider analysis
- ANZ KiwiSaver Review — full ANZ analysis including Responsible Growth
- KiwiSaver Fees Comparison — ethical funds in context of the full fee table
- Best Performing KiwiSaver Funds NZ — where ethical funds rank on performance
- Switching KiwiSaver Providers — how to move to an ethical provider