18 October 2021

Media Release: Nikko AM invites investors to not just be good with money

Return to all

Media release

Nikko AM invites investors to not just be good with money, but do good with
it too, with launch of unique, fee-free philanthropic investment fund Freedom Fund to use 100% returns from dormant capital to support the fight against modern slavery

Leading Fund Manager and KiwiSaver provider, Nikko AM NZ, has launched a unique new philanthropic investment fund that allows individuals and business to put savings and capital, which they may otherwise have sitting in the bank or in a low-interest term deposit, to work in the fight against modern slavery and human trafficking.

The Nikko AM NZ Freedom Fund is an actively-managed PIE fund with a target annual return of around 2%. So far, so normal. But rather than generate income for the investor, the returns from the pooled capital are donated directly to Tearfund NZ, while investors retain the flexibility to withdraw their money from the fund at any time.

With the returns from the fund treated as donations and therefore exempt from tax, and Nikko AM and their service providers covering the operating costs and donating their management fees, 100% of the returns generated can be donated directly to Tearfund NZ. This unique structure makes it the most efficient way of generating charitable donations from invested capital, meaning more money ends up being used for good.

Nikko AM NZ Managing Director, George Carter, says the Freedom Fund is not only innovative, but timely, as the global pandemic has shifted the focus away from supporting charities and the important work they do.

“Traditionally, charitable financial support has relied solely on people or businesses giving their money away. By allowing us to employ our investment expertise to use some of their savings or capital to generate income, we’re providing a new option for them to donate without donating, while still being able to access their money at any time.”

“We hope the fund will have wide appeal. However, we think it may be of particular interest to philanthropic investors, trusts and businesses seeking to continue their commitment to positive social impact in these challenging times.”

Carter says the choice to support Tearfund was influenced partly by Nikko AM NZ being part of a global family, but also as the extent, prevalence and proximity of modern slavery is not widely recognised here in New Zealand.

“There are an estimated 40 million victims of slavery in the world today, and over two-thirds of these are in the Asia Pacific area. 25 million of these victims are in forced labour, so as consumers we can quite easily become unwitting beneficiaries of exploitation. Therefore, our aim – and the aim of our partners who have provided their time and expertise for free to help us set up the Freedom Fund – is not simply to address abuse and suffering through donations, but also to help Tearfund NZ raise awareness here of how we might help by making more informed choices.”

Nikko AM NZ Managing Director, George Carter, is available to chat further about the fund. To organise, please contact Gez Johns, Network Communication: 027 808 8455 gez@nwkcom.co.nz

About the Freedom Fund

The Nikko AM NZ Freedom Fund has been set up with the aim of providing regular financial support to help Tearfund NZ continue to fight against human trafficking and modern slavery. Tearfund NZ’s work focuses on creating systemic change to protect vulnerable women and children by dismantling criminal networks and bringing them to justice. Nikko AM’s initial goal for the fund is to generate returns in excess of $50,000 a year. This would enable Tearfund’s partners to carry out investigations on suspected cases of sexual exploitation, leading to the arrest and prosecution of offenders, and support survivors on their road to recovery. For more information on this visit www.tearfund.org.nz 

How it works:
The unique fee-free and tax-free structure of the Nikko AM NZ Freedom Fund makes it the most efficient way of generating charitable donations from invested capital. 100% of all investment returns will go to Tearfund, while the investor retains access to their invested capital.