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.
Note: The following information is taken from Christian Kiwisaver Scheme's own website, fund updates, and the product disclosure statement published in September 2020.
Facts & History of the KiwiSaver provider
The Christian KiwiSaver Scheme provides eligible Christians with an opportunity to invest in a KiwiSaver scheme that is founded on ethical investment principles that the scheme believes reflect Christian values, notably their care when dealing with others, their ethical stance and their financial stewardship.
Importantly, even though they make choices based on an ethical policy, they do not make concessions about our performance. They evaluate investment performance against their peers.
This Scheme was established in 2007 shortly after the Government introduced KiwiSaver. They were already managing retirement schemes for the Anglican clergy and employees of religious charitable organisations under a mandate to invest ethically. This mandate and culture naturally flowed into the Christian KiwiSaver Scheme.
The Scheme was originally under the Koinonia (koy-nohn-ee’-ah) brand. Koinonia was the Anglicisation of a Greek word used in the New Testament of the Bible to describe the relationships within the early Christian church. The essential meaning of koinonia embraces concepts conveyed by the English terms fellowship, association, community, communion, joint participation, and sharing – all attributes that continue to be relevant to the Scheme.
In 2018 the Scheme was renamed Christian KiwiSaver Scheme. As it is a KiwiSaver scheme that is offered only to people within the active Christian community, they felt the new name made this easier to understand and better explained their unique place in the market.
✅ New Zealand Based Provider
For more information, please see the About Us page below:
The Christian KiwiSaver Scheme has total KiwiSaver Assets Under Management (AUM) of over $NZ 54 million and 1,941 KiwiSaver clients.
The investment team, structure and their alignment with clients
Brendan O’Donovan - Chair & Licensed Independent Trustee
Brendan has a background in financial markets, banking, monetary policy, financial stability and industry analysis. He has also part-owned, developed and been a director of a number of private companies, particularly in the retirement and child-care sectors. Brendan is a professional director and is Chairman of The Co-operative Bank. He was appointed chair of the Investment Committee on 4 September 2019.
Don is a business consultant with more than 30 years’ experience in the superannuation industry. He is an associate actuary and a member of the Institute of Directors. Don was a member of the Board from 1989 to 2012 and its Chair from 2003 to 2012.
Simon Brodie - Chief Investment Officer
Simon joined the Pension Board’s investment team in 2011 and was appointed Chief Investment Officer in 2014. Prior to this Simon worked for Tower Asset Management for 23 years where he was Head of Global Equities, acting Head of Strategy and Chief Investment Officer.
Bruce Dutton - Manager, Superannuation & Trusts
Bruce joined the Board in 1994 and has over 35 years’ experience in the superannuation industry. Prior to joining the staff, he worked for Tower for 10 years in its actuarial and superannuation divisions. Bruce manages the administration and compliance team.
The Committee maintains a conflicts of interest policy and each Committee member is required to disclose interests which the member believes may have the potential to lead to conflicts or may be relevant to the perception of their conduct as a member of the Committee.
The Committee oversees the implementation of the investment strategy for each Fund which involves investing that Fund’s assets (excluding forests and forest land) in The New Zealand Anglican Church Pension Board Investment Trust (Investment Trust), an underlying investment fund of which Christian KiwiSaver are the trustee.
The scheme employs professional investment management staff who invest most of the Investment Trust’s investments directly. The management are also accountable for:
The manager and the Investment Committee maintain conflict of interest policies. Members of the Board and the Investment Committee are required to disclose interests which they believe may have the potential to lead to conflicts of interest or may be relevant to the perception of their conduct as a member of the Board and/or the Investment Committee.
Notwithstanding the interests of the parties which have appointed them, all of the Board’s members must act honestly and in the members’ best interests, treat members equitably and not use Scheme information either for improper advantage or to cause detriment to members. The Board must also, in exercising any power or performing any duty, exercise the care, diligence and skill that a prudent person engaged in that profession would exercise in those circumstances. Christian KiwiSaver has a Licensed Independent Trustee as a member of the Board, as required by the FMCA.
Where the Board has entered, or enters, into any transaction providing for a related party benefit (as defined in the FMCA) to be given:
If any particular conflicts of interest do arise in relation to the Scheme then the Board’s members will identify and record those conflicts and take steps to manage them (as appropriate) on a case by case basis. Those steps might include (for example):
For more information follow link below to the Other Material Information document:
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.
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.
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.
Christian KiwiSaver is a restricted KiwiSaver scheme and therefore does not have a supervisor or external custodian.
For more information, follow the link below:
|Product Disclosure Statement|
The Committee reports to the Trustee on a quarterly basis.
The reporting includes a commentary on the current state of the markets, a commentary on the investment strategy and tactical asset allocation decisions, performance reports (and supporting commentary) including gross returns (three year returns versus SIPO return targets in relation to inflation), returns relative to benchmarks (by asset class), attribution analysis (the contribution of asset allocation, stock selection and hedging to overall performance, by asset class) and return relative to peers.
The manager monitors the Funds each month for compliance with the investment objectives, strategies and policies in the SIPO. Each Fund has limits on the amount of income assets (such as cash and cash equivalents and fixed interest) and growth assets (such as equities and alternative assets) it can hold. If a Fund moves outside a limit they will correct the allocation of assets for that Fund within five working days of discovering this or as soon as practicable where circumstances are outside their control (such as a suspension in market trading).
The investment processes followed by the manager
The Trustee incorporates responsible investment practices, including consideration of environmental, social, and governance factors, within the investment policies and procedures of the Scheme as at the date of the SIPO.
In particular, they use a leading provider of corporate governance and responsible investment research when considering investing in equities. They also have a relationship with the UK based Church Investors Group, which enables further insights into ethical matters and provides them with an opportunity to vote on equity investments with like-minded investors.
They administer and invest the Scheme in a manner that they believe is consistent with Christian values, recognising that economic decisions involve ethical choices. The Christian tradition recognises that these ethical choices are made in a world marred by human failure and its consequences. Yet the Church still seeks goodness and the growth of human flourishing and believes God is active in restoring the world.
They have investment policies for entities whose activities involve the production or retail of alcohol, livestock management or animal testing, armaments and defence, fossil fuels, gambling, pornography and tobacco. While these sectors would traditionally be excluded from our portfolios, they recognise that some entities within some of these sectors may be adopting and practicing corporate responsibility policies which weigh against the misuse and harm related to their business activities. In such cases, they consider that exclusion may be inappropriate and inconsistent with God’s redemptive purpose and the transition to a better world.
Establishing an investment strategy involves ensuring alignment between agreed investment objectives and the structure of the Scheme’s investments. The strategy setting process includes consideration of:
The investment strategy is formulated with reference to the risk and return objectives for the Funds, as well as the considerations listed above.
The investment strategy is reviewed every three years, and more frequently if required. Normally, an independent consultant is engaged to produce a report recommending one or more investment strategies for each Fund.
Follow the link below to the SIPO document for more information:
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.
The New Zealand Anglican Church Pension Board (the Board), trading as Anglican Financial Care, is trustee of a number of trusts and retirement savings schemes and recognises its legal obligation to beneficiaries to work in their best financial interests. This involves considering the fiduciary risks associated with including and excluding investments.
The Board has invested ethically since its inception in 1972. However, in 2002 the Anglican Church’s General Synod / te Hīnota Whānui declared its commitment in principle to a strategy for ethically investing Church funds by passing a resolution which recognises that ethical considerations form an integral part of the investment process in keeping with the Church’s Christian values.
The Board recognises that economic decisions involve ethical choices. The Christian tradition recognises these ethical choices are made in a world marred by human failure and its consequences. Yet the Church still seeks goodness, the growth of human flourishing and believes God is active in restoring the world.
The purpose of the Board’s investment activity is to turn members’ savings into wealth. The Board’s legal requirement is to act in the financial interests of its Members but their investment activity will also seek to participate in the good God is doing in the world.
This SIPO does not prohibit any investments including those that would be non-compliant with its Ethical Investment Policy.
Borrowing is prohibited without the specific consent of the Trustee.
No more than 5% of the assets of the Investment Trust can be invested in any one asset, with the exception of:
For more on information, follow the link below:
|Ethical Investment Policy|
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:
Our research team at National Capital looks at over 100+ funds and can recommend the right KiwiSaver investment for you.
Our KiwiSaver recommendations look at the big picture and not just the scorecard. So, what are you waiting for?
More details on each of their funds can be found in the PDS.