Faith, fa’alavelave, and finance: A Pacific perspective on ethical investing

Experts are urging Pacific communities to normalise conversations about money, addressing the shame often associated with hardship and taking control of their financial futures, whether through KiwiSaver, business ventures, or traditional practices.

Financial wellbeing advocate Victoria Ongolea said more people were starting to evaluate their investment options, such as KiwiSaver.

“It depends on people's values and ethics and morals. If it's just about the money, of course, go ahead and put it where you will get more out of your investments, but these days, ethical investment is more of a term that's gaining popularity.”

Ongolea said different types of investment schemes can align with many values from across the Pacific, as long as they promote social and environmental responsibility.

“We acknowledge the importance of relationship and reciprocity, maintaining the balance between families, communities, even coming to working as a family where we belong to multiple families, and spirituality is a key factor as well, because it shapes our beliefs and our values and our worldviews.

“For example, sustainable agriculture or environmental stewardships or renewable energy and if they focus on generating a positive social impact.”

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Christian Kiwisaver Scheme is a KiwiSaver fund that’s part of the Anglican Financial Care. Chief executive Margaret Bearsley said they decide where to invest based on their religious values.

“We are careful about animal testing, but obviously animal testing is important for some things so we don't just automatically cut it out.

“One of the jewels I think in the crown for us is our sanctity of human life policy, so we don't invest in companies that make their money out of embryonic stem cell research or selling the drugs for euthanasia or for the death penalty.

"We focus our investments on companies that produce more good than harm."

Anglican Financial Care manages a portfolio of $290 million, and its Christian Kiwisaver Scheme is exclusive to people who are Christian and their family members, or those working for a Christian organisation. It has a 12 month return rate to September 2024 of 16.6 per cent for its Growth Fund, before fees and taxes.

Other ethical KiwiSaver providers also choose not to invest in companies that earn revenue from gambling and casinos, the production of weapons, tobacco products, adult entertainment or cannabis production.

Economist and investment specialist Filipo Katavake-McGrath said money was morally neutral, and could be used for both good and bad.

“Money has always been a token, but it's actually we, the people, that get really overexcited about what money costs, how much money should be or shouldn't be, and also how we can take money off one another, so it's really not money that's the problem, it's people.”

Katavake-McGrath said some investments could also be considered immoral such as futures funds, where traders make bets on what commodities such as wheat, palm oil, rice or meat might cost in the future.

“If you think about things like rice and flour, basic staples of food energy for people that for some people are really hard to come by, they can't afford it. So it’s betting on the price of food that even the poorest people can sometimes not access, and no one considers that to be unethical investing.

“If you are investing in something like KiwiSaver, which gives a lot of responsibility and a lot of flexibility to the person who takes your money, then it's one thing to criticise one group of markets, but you might also be investing in other markets who are doing even worse damage.”

Other ways to build generational wealth

Another way to create ongoing income is through a business, said Katavake-McGrath.

“I'm the grandson of a Ma’ufanga shopkeeper, so any respective family business is in its own right a Pacific form of long term investment.”

He said many Pacific families often practice business without realising, and aspects are “baked into our DNA already”.

“If you think about the family and the fa'alavelave, bringing everyone together to invest in something, that is ‘angel investment’.

“Whenever we have a funeral or a wedding, whenever the family gets together and starts fighting about the cost, that is what is known in the business world as an ‘investor due diligence session’.”

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Ongolea said concepts such as “investment” and “budget” can seem foreign, and is developing financial workshops grounded in Tongan cultural practices.

“Our ancestors were well prepared people. Males know their roles, they have plantations they have livestocks and that's their contribution to their fatongia (obligations), while women are preparing throughout the year, through koka‘anga through lalanga where they make ngatu (tapa) and the fine mats that they're giving or contributing towards those kavenga (social responsibilities).”

It’s OK to ask for help

In her work, Ongolea has supported some families to withdraw their Kiwisaver due to hardship, and get into a better position to rebalance their finances.

“It can be from their bills, they're behind in their rent or their car is about to be repossessed, they've lost a job or they can't afford the school fees for the children because of their financial situation.

“Then once these are sorted, then they have clarity with their finance to move forward, otherwise, they just continue to be in this cycle of hardship because bills just keep on piling up and they continue to be in arrears.”

Katavake-McGrath said talking about money needs to be normalised in our communities.

“When I get called into situations where families are in financial crisis, the biggest amount of time I spend is on helping people come out of the shame, before you even talk about any of the dollars, and it's been interesting how that hasn't changed over the decades.”

The Anglican Financial Care organisation also supports families who are part of the church's ordained clergy with grants, health and welfare schemes if they are struggling financially, Bearsley said.

“There's one solely for Pasifika clergy, whether they're in those Polynesian islands or in New Zealand, called the Basden Fund, that helps them with the education costs for their children.

“Then the welfare fund is to help Anglican clergy if they are in need of something, they can apply to us and we may be able to give them grants or loans.

“Likewise, if they are in need of medical costs, they can apply to us and we can cover some of the costs of things like hearing aids and glasses and things like that.”