By John Berry

An apparent conflict may not be a ‘real’ conflict. Regardless, both the ‘substance’ (is this an actual conflict?) and the ‘optics’ (does it just look like a conflict?) matter.

Here’s a live example. On Linkedin comments have been made suggesting a potential conflict of interest for me personally with a charity called Mindful Money.

I co-founded and am currently CEO of Pathfinder KiwiSaver Plan. Mindful Money gives ethical ratings for KiwiSaver funds. I’m listed on Mindful Money’s website as a ‘foundational supporter’. The implication from the Linkedin comments was that I have funded Mindful Money’s platform and somehow this helps me influence and receive higher ethical scores. The irony of acting unethically to be rated as more ethical is not lost on me.

Here’s why I don’t see this as a conflict.

Firstly, my intent in connecting with Mindful Money was not for commercial gain.

Barry Coates, founder of Mindful Money, cold-called me back in 2017/18 asking for thoughts around his new KiwiSaver screening idea.  It was just an idea, with no name or charity registration. I liked his thoughts around transparency and helped by providing feedback. To be clear, we didn’t launch our KiwiSaver until 2019, so this wasn’t about self-interest.

I often share time with people who want to bounce an idea off me. I’m not alone in this, lots of executives in our industry freely do the same. This helps create a better future and is a pay-back to those people who kindly gave us time over the years. (In addition to one-off coffees, I currently also give my time to Men's Health Trust, a church-based investment committee and an impactful education business, Mind Lab). 

Secondly, I did help them financially, but as an individual, and with no expectations or strings attached.

I supported Mindful Money with a donation, I paid it personally and did not reclaim it as a business expense.  It was small – Mindful Money tell me it was less than half of one per cent of all donations they have received. As a result Mindful Money listed me as a ‘foundational supporter’ on their website.

Giving time and money in their set up was never going to provide me any form of advantage.

I have no influence over Mindful Money or how it operates. They treat my business the same as any other, and they screen our portfolios the same way they screen other managers.

If anything, the influence goes the other way - Pathfinder takes Mindful Money's ethical screens seriously.  Mindful Money’s research may highlight concerns about a particular company we hold, which is the same for all fund managers.

What may look like a conflict on its surface, can in fact be quite innocuous. It would be no surprise to anyone who knows me to hear I supported the set-up of Mindful Money which helps investors know what they’re invested in.

We don't always agree with them, but we’re grateful tools like Mindful Money and the Responsible Investment Association’s fund screening tool exist to help make the finance sector more accountable.  It’s not a conflict to support them setting up.