In July 2022, the Financial Markets Authority of New Zealand (FMA) - Te Mana Tātai Hokohoko published a review of managed funds and KiwiSaver funds to examine how they incorporate non-financial factors (e.g responsible, green and ESG) in their financial products so called integrated financial products (IFP). The assessment covered 14 KiwiSaver and non-KiwiSaver funds labelled as IFP Fund.
Some key results and findings include:
- There are deficiencies in both the information that IFP Funds provide to investors, and the way in which that information is presented due to difficulties.
- Relevant information is scattered across different sources, and information that is provided often doesn’t give a complete picture, or lacks sufficient detail.
- Blurring of the line” between financial and non-financial factors, as many factors regarded as non-financial will have a financial impact over time
FMA set its expectations for IFP Funds and earlier provides a guidance note for issuers on disclosure framework for IFP products.