Amanah KiwiSaver Plan - Ethical Mandate

Amanah KiwiSaver Plan applies an Ethical Mandate which is defined in its Trust Deed and Statement of Investment Policy and Objectives.

We believe that applying an Ethical Mandate to our investing approach provides transparency for our investors, and allows our investors to take responsibility for how their investing affects society.


about our ethical mandate

Our Ethical Mandate complies with the investment standards set by the Accounting and Auditing Organisation for Islamic Financial Institutions (AAOIFI). We believe that the AAOIFI standards promote investments which seek to consider both financial return and social good. We believe Amanah KiwiSaver Plan advances a strong ethical statement and makes it an appropriate investment vehicle not only for persons who abide by similar religious principles, but also for those who ethically value these investment ideals.

Our Ethical Mandate is as follows:

Equity Investments

All equity investments must be in companies with strong balance sheets showing:

• Interest-bearing debt less than 30%;

• Interest-bearing investments less than 30%; and

• Illiquid assets greater than 33% (i.e. there are assets making or doing something for the good

of mankind that exceed 67% of total assets).

Explanation: a company must have low debt and high asset ratios, with a strong balance sheet, often referred to as “Blue Chip Stock”.

All investments are prohibited from the following activites:

• Money lending (i.e. this includes all financial institutions e.g. Banks lend money using interest-based products)

• Gambling and speculative investments (this excludes high-risk investment products)

• Derivatives (i.e. a high-risk product that, in our opinion, is considered unethical gambling)

• Alcohol

• Tobacco

• Weapons of war

• Adult entertainment

• Pork

• Leverage (i.e. borrowing against investors (your) money, not assets).

Explanation of leverage: Leverage is a practice of many fund managers. In our opinion, leverage puts your investment at an unethical risk. We strongly disagree with the use of leverage. Additionally, hedging instruments cannot be used to manage currency risk as they are derivatives and therefore are prohibited by the Ethical Mandate.


Any cash held in the Scheme is held in interestfree bank accounts to ensure compliance with the Ethical Mandate.


authorised investments

Amanah KiwiSaver Plan may only hold “Authorised Investments”; for Amanah Growth Fund this is currently defined as investment products approved as compliant with the Ethical Mandate and cash (New Zealand dollars).

AmanahNZ is currently the only ethical investment product that has been approved as an “Authorised Investment.” AmanahNZ is managed by Amanah Trust Management (NZ) Limited, the parent company of the Manager and Amanah Growth Fund invests into the US dollar denominated AmanahNZ units.




The Amanah Ethical Advisory Board is responsible for reviewing the Ethical Mandate compliance of Amanah KiwiSaver Plan, Amanah Growth Fund and its investments. The Advisory Board reviews compliance with the Ethical Mandate but does not undertake investment selection. The current members of the Advisory Board can be viewed here.



Purification is the method used to cleanse any investment income that may have been generated by a corporation from non-permissible activities (for example, pork or alcohol) by a donation to charity. The units of AmanahNZ in which Amanah Growth Fund invests are regularly purified. Inland Revenue may pay interest on your contributions which is credited to your account. This interest is noncompliant income. The payment of purification by the member can only be lawfully made when the member is eligible to withdraw their full investment.