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Caresaver KiwiSaver Scheme Details

There's a lot more to selecting a KiwiSaver fund than just checking past returns and fees. If your hard-earned money is invested in KiwiSaver, you need to ask the important questions to understand where and how that money is invested.

What questions are important to Investors?

Note: The following information is taken from CareSaver Kiwisaver Scheme's own website, fund updates, and the product disclosure statement published in 15 July 2019.

Who is Caresaver ?

Facts & History of the KiwiSaver provider

History

CareSaver is a KiwiSaver plan actively managed by Pathfinder Asset Management. They have been managing investments ethically for nearly a decade. This KiwiSaver plan is for Kiwis who care about investing wisely for their retirement as well as their community and the planet.

Pathfinder is a boutique fund manager based in Auckland. They focus on Responsible Investment (RI) in global assets. They started investing ethically in 2010, and now manage 7 Funds. They recently launched 3 new KiwiSaver Funds of which one is CareSaver.

✅   New Zealand Based Provider

Below is a link to more information about their history:

 

History

 

Size

CareSaver manages seven funds under their KiwiSaver scheme, varying in levels of risk from the Cash Fund to the Shares Fund. As of March 2020, the total Assets Under Management (AUM) for CareSaver and Pathfinder is over $77 million.

Awards

A+ Governance and Strategy rating from the United Nations Principles of Responsible Investment

Who are the people looking after my money?

The investment team, structure and their alignment with clients

The Investment team

John Berry - Pathfinder Asset Management - Chief Executive Officer

John is committed to making ethical investment accessible to all NZ investors. 

Before co-founding Pathfinder in 2009 John worked in law firms and investment banks in Auckland, London and Sydney. He has a BCom/LLB(Hons) from Auckland University. 

He’s a board member of Men’s Health Trust and a member of the government appointed Code Working Group (designing a new code of conduct for financial advice in NZ).

Paul Brownsey - Pathfinder Asset Management - Chief Investment Officer

Paul heads CareSaver’s investment team and its ethical investment processes.

Before co-founding Pathfinder in 2009, Paul had extensive experience in financial markets, having worked in Wellington, London, Singapore, and Auckland.

Paul has a BSc (Operations Research) from Canterbury University and is a member of the Investment Committee for Arthritis NZ.

Hamesh Sharma - Portfolio Manager

Hamesh has 9 years’ financial services experience. As a Portfolio Manager, he researches company finances and operations and also meets management to ask how they integrate environmental, social, and governance considerations into their business. Hamesh has a BCom (Hons)/LLB from Auckland University.

Kate Brownsey - ESG Analyst

Kate is CareSaver’s resident environmental, social, and governance (ESG) analyst. She also gives her time to causes she is passionate about, which usually have an environmental focus. Kate has a Postgraduate Diploma in Environmental Science from the Auckland University of Technology.

How is the Investment Team Structured?

The CareSaver Conservative Fund is run collaboratively by Paul and Hamesh. Paul as Head of Investment has the responsibility, however, much of the work is done by both him and Hamesh. Kate (the environmental scientist) is also involved on the research side. This is overseen by their Investment Committee (which includes an independent member - Kent Fraser) which typically meets quarterly to review risk and long-term thematic views.

Incentives/Alignment

CareSaver’s incentives align with their goals of managing funds that contain companies that do social good. Their investment basis relies fundamentally on the UN sustainable development goals, making investment decisions that align with these and invest only in companies that operate and have policies that adhere to these guidelines.

According to MindfulMoney, they are completely aligned with these goals, with 0% of their investments being associated with companies that might violate these principles.

Below is a link for more information on their Ethical Investment incentives :

 

Ethical Investing

 

How do I know my money is safe?

Governance & Compliance processes

All KiwiSaver Scheme Providers must ensure they meet regulatory standards and act with customer interests in mind.

KiwiSaver Scheme Managers must exercise care, diligence, and skill in the investment of scheme assets, and act in accordance with the stated investment policy and objectives. The FMA monitors that KiwiSaver Schemes are compliant with their obligations. Additionally, KiwiSaver Scheme Trustees also have a responsibility as front-line supervisors for monitoring the management and administration of these schemes.

CareSaver's Custodian & Supervisor 

The Supervisor and Custodian of the Scheme are the Public Trust (PT). The PT is responsible for the supervision of the Scheme and the performance of Pathfinder’s duties as manager of the Scheme. The PT is independent of Pathfinder and is regulated by the Financial Markets Authority.

A custodian plays a key role in protecting your investments. They hold your money and investments (i.e. keep custody of them) on your behalf. So they are the legal holder of your assets while you are the beneficial and ultimate owner.

A supervisor is a  licensed entity independent of a KiwiSaver scheme provider that supervises the provider’s management of the scheme. KiwiSaver schemes are trusts, and (except for restricted KiwiSaver schemes) the terms of the trust deed states that the supervisor (or another custodian) must hold all contributions and investments in trust for the investors.

Below is a link for more information on the Public Trust (PT):

 

The Public Trust 

 

Caresaver's Governance Process 

CareSaver is owned and managed by Pathfinder, another investment firm involved in ESG investment. Paul and John report to Pathfinder, which is overseen by five directors (two are independent) to maintain a high standard of corporate governance and adherence to the investment policies outlined in the SIPO.

The obligations of Pathfinder as Manager of the Funds include:

  • Investing assets in accordance with this SIPO, offer documents, and trust documents.
  • Reporting to investors and Public Trust (the Supervisor) on each Fund
  • Monitoring compliance with this SIPO
  • Reviewing this SIPO every year

The Manager will maintain an investment committee (the Pathfinder Investment Committee) to oversee the management of the Funds.

How do they decide where to invest?

The investment processes followed by the manager

Investment Philosophy & Process


CareSaver’s investment philosophy is built on two foundations: 

  • Ethical beliefs are core to their investment process
  • The investment process must be research-based and robust (as well as ethical).

CareSaver’s investment philosophy is described below. 

UN Sustainable Development Goals: Aspire for their investment decisions to contribute to the UN Sustainable Development Goals. 

Investing ethically: Companies with high environmental, social, and governance (ESG) metrics to perform better than low scoring companies. They also believe high ESG companies are better for our planet and its people. For these reasons, They will actively seek out high ESG companies to invest in. They will also exclude companies engaged in industries or activities They believe to be harmful. This includes companies focused on gambling, tobacco, cluster munitions, fossil fuels, factory farming, and several other categories (please see www.caresaver.co.nz and their Ethical Investment Policy for more information on exclusions). 

Climate change awareness: Companies with a lower carbon intensity will make better long-term investments. They believe they will benefit our planet and its people in a warming world.

Aware, Fair, Care: Avoid investing in companies whose business practices are inconsistent with the dignity of individuals (for example, how they treat staff, customers, and suppliers. They also avoid companies where their operations involve animal testing or very high levels of controversy.

Engagement and shareholder voting: Vote as a shareholder to encourage positive change. This means they vote on issues from their ESG perspective. With this approach, they will at times actively vote against the recommendations of a company’s management where their view conflicts with CareSaver’s ethical purpose. They will also actively promote ethical investment and encourage positive change by corporates.

Manager Responsibilities

Although CareSaver is a part of Pathfinder, the members are directly involved with the management of the fund as well. The obligations of Pathfinder as Manager of the Funds include:

  • Investing assets in accordance with this SIPO, offer documents and trust documents;
  • Reporting to investors and Public Trust (the Supervisor) on each Fund; and
  • Monitoring compliance with this SIPO

The Manager will maintain an investment committee (the Pathfinder Investment Committee) to oversee the management of the Funds and adherence to this SIPO.

Investment Performance Monitoring

Fund compliance with the SIPO is monitored on an ongoing basis by Pathfinder. Fund performance is reported monthly. Each Fund is also reviewed at least annually by Pathfinder. 

Does Caresaver Invest responsibly?

Social and Ethical Considerations

Socially responsible investing (SRI) or Environmental, Social and Governance investing (ESG), also known as sustainable, socially conscious, “green” or ethical investing, is any investment strategy which seeks to consider both financial return and social/environmental good to bring about social change regarded as positive by society.

Basically, SRI investing is investing in companies that have a positive impact on society, based on a number of factors.

CareSaver’s Responsible Investment Policy

CareSaver may exclude investments in companies that they view as doing substantial and irreparable harm to society or the environment provided the risk/ return implications of excluding such companies is not expected to lead to a significant financial detriment for clients and can be effectively managed.

Below is CareSaver’s Responsible Investing Policy that outlines the strategies used to employ ESG:

 

Responsible Investing

 

Ethical Exclusions

Below is a list of industries CareSaver chooses to exclude :

  • Tobacco
  • Gambling
  • Lack of women on boards
  • Civilian weapons
  • Alcohol
  • Adult entertainment
  • Animal Testing, factory farming, livestock export, whaling, and animals for entertainment
  • Fossil fuel extraction
  • Palm oil and GMOs
  • Controversial weapons

Corporate Governance & Proxy Voting

CareSaver believes ethical investors have a responsibility to use their ownership rights to influence corporate behavior and promote change. This starts with voting at company meetings in a manner consistent with CareSaver’s ethical beliefs. 

Engagement is not just voting. It also means actively promoting ethical investment and encouraging positive change by corporates. This includes:

  • Communicating with companies for example meeting with company management.
  • Being an active member of key organisations. CareSaver is currently a member of the Responsible Investment Association Australasia and the Investor Group on Climate Change. They want to add their voice to lobbying efforts on key issues.

How do Caresaver compare to others?

Best Performing KiwiSaver Funds

FUND TYPE
FUND NAME
5YR AVERAGE
Conservative
Milford
Conservative
6.3%
Moderate
Aon Russell
Lifepoints
7.3%
Balanced
Milford
Balanced
9.1%
Growth
Milford Active
Growth
10.7%
Aggressive
Booster
GearedGrowth
12.4%

*Past performance is not necessarily indicative of future performance.

*All returns are after fees and before tax, updated 30th September 2020.

*Source: MorningStar Fund Report September 2020

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Look at more than just fees and past performance

We have looked at the best performing KiwiSaver funds based on their 5-year returns, however, looking at past performance of a fund is just one aspect when choosing a KiwiSaver fund. Other questions you should be asking include:

  • How and where is my money invested? 

  • What is the level of volatility (risk) of this fund? Does it align with my volatility tolerance and capacity?

  • How do the fees compare to other funds with a similar rate of return?

  • What are the providers processes when selecting investments and making changes in the funds?

Our research team at National Capital looks at over 100+ funds and can recommend the right KiwiSaver investment for you. 

Why get advice from National Capital?

  • Detailed Research: We research various factors of KiwiSaver funds – from asset allocation all the way to ethical investing.

  • Answers: How do I know my money is safe? What risks are being taken?

  • Monitoring: We’re constantly monitoring the KiwiSaver landscape.

  • Expertise: Our team specialise in Investment and KiwiSaver research.

  • No cost to you: We get paid by the KiwiSaver providers

  • Gift of Time: We do the hard work, so you can focus on life.

Our KiwiSaver recommendations look at the big picture and not just the scorecard. So, what are you waiting for?

List of Caresaver KiwiSaver Funds

Caresaver KiwiSaver Scheme has the following KiwiSaver Funds. More details on each of these funds can be found in the links below.

 

List of Caresaver Funds