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 Craigs Kiwisaver Scheme's own website, fund updates, and the product disclosure statement published in 23 July 2020.
Facts & History of the KiwiSaver provider
A lot has happened since Craigs Investment Partners opened its first office in Whakatane. In 1984 Neil Craig (now Executive Chairman) left his job in the corporate planning division of Tasman Pulp and Paper and established Craig & Co in Whakatane. In 2019 they opened their 18th & 19th Branches Queenstown branch relocated to new premises in Craigs Investment Partners House in Queenstown. They opened their 18th branch in Havelock North and their 19th branch in Nelson.
In 2020 After a very successful strategic alliance for nearly ten years, an agreement was made for Craigs to acquire Deutsche Bank’s 49.9% equity interest previously held in Craigs. The acquisition is expected to settle in late June 2020 and will place 100% ownership back to Craigs staff shareholders.
They have grown from one small regional branch to a national network, advising on some of New Zealand's largest corporate transactions to providing personal investment advice to individuals from Kerikeri to lnvercargill.
For more information on their History, please click on the link below :
Craigs Investment Partners KiwiSaver has Assets Under Management (AUM) of over $NZ 290 million and 5,777 members.
The investment team, structure and their alignment with clients
Neil Craig - Executive Chairman | Director
Neil graduated from Lincoln University with a B.Ag Com (Economics). He founded Craig & Co. Ltd in 1984 and through a series of acquisitions, he built the Company into a retail broking business with a national presence. Craigs Investment Partners now has 19 branches throughout New Zealand and Neil retains the role of Chair.
Neil is also Chair of NZX-listed Comvita Limited and Chair of the Tauranga based angel investment group, Enterprise Angels Inc. He is also a Director of Pohutukawa Private Equity Limited, AGInvest Holdings Limited, NZ Cricket, and a number of private, largely horticulture based and early-stage companies. He is a member of the Institute of Directors.
Mark Lister - Head of Private Wealth Research
Mark joined Craigs Investment Partners in 2004. Before joining Craigs, he worked in the electricity sector for a number of years.
Mark is Head of Private Wealth Research for Craigs Investment Partners Private Wealth division. His team is responsible for all of the asset allocation, strategy, and portfolio recommendation decisions for Craigs clients.
Mark has a regular presence in the business media, and spends time across the country speaking with business people, investors, and clients.
Brett Shepherd - CEO, Investment Banking | Director
Throughout his career, Brett has led or advised on some of the largest M&A and ECM activity in New Zealand, including advisor to Vodafone on the sale of its NZ business for $3.4bn, the acquisition of Nuplex by Allnex for $1.2bn, the acquisition of Tegel Group by Bounty Fresh for $574m, JLM on the IPO's of Ports of Napier and Oceania, Crown Advisor to NZ Government on the $4.Sbn Mixed Ownership Model IPO Program, JLM on the $1.9bn IPO of Meridian Energy and Crown Advisor on the MRP IPO of $1.7bn.
Brett Shepherd also serves as a Director of Craigs Investment Partners, after joining Craigs Investment Partners in 2013. Prior to this Brett was CEO of Deutsche Bank New Zealand for 7 years. Brett was named Outstanding Maori Business Leader in 2007.
Ronan McCabe - Head of Portfolio Management
Geoff joined Craigs Investment Partners in 2014 and has 40 years' experience in financial markets. His first role was as a research analyst with a UK stockbroking firm. On returning to New Zealand, Geoff undertook institutional dealing roles with a number of local broking firms, during which time he Chaired the Auckland Stock Exchange and was a Board Member of the New Zealand Stock Exchange.
He later undertook various roles including CFO at NZX. As Acting Head of Advisory, Geoff is responsible for managing the Craigs Investment Partners Private Wealth network. This incorporates 19 branches throughout New Zealand, employing over 160 Authorised Financial Advisers and a number of Adviser Assistants.Geoff is an Authorised Financial Adviser and an NZX Adviser. He has been a Member of the NZX Markets Disciplinary Tribunal for 6 years and has just completed a 7-year term on the Board of Swimming New Zealand.
The Craigs KiwiSaver Scheme is registered under the KiwiSaver Act 2006 and was established by the Trust Deed dated 27 June 2007 and is now governed by an amended and restated deed dated 15 November 2016. Craigs Investment Partners Superannuation Management Limited (also referred to as “the Manager” or “CIPSML”) is the manager of the Scheme. It is a specialist funds management firm responsible for issuing and managing the Scheme. It is a wholly-owned subsidiary of Craigs Investment Partners Limited (“CIP”).
The Manager utilises the following services in relation to the Scheme:
Below is a link to the SIPO in full:
The Scheme’s investment philosophy and strategy are based on the following principles:
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.
Craigs Supervisor is Guardian Trust. Their experience and reputation have made them the preferred corporate trustee for many of New Zealand's leading corporations, financial institutions, fund managers, and banks. They are licensed by the Financial Markets Authority under the Financial Markets Supervisors Act 2011 to act as a supervisor of issues to the public in respect of Debt securities
KiwiSaver schemes, non-fund schemes, specified managed funds, and superannuation 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.
Below you will find a link to the Guardian Trust in full:
Custodial Services Limited (CSL) is Craigs Custodian. 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.
Custodial Services Limited (CSL) is a wholly-owned subsidiary of Craigs Investment Partners Limited. CSL provides custody through a nominee service whereby securities are registered in the name of CSL but held by CSL on your behalf in a bare trustee capacity. Although CSL assumes the legal title of your securities, you retain beneficial ownership of your securities at all times.
The investment processes followed by the manager
The CIP Product Committee is responsible for approving and reviewing the Scheme’s Investment Options and meets at least quarterly. The Committee forms part of the Scheme’s governance structure and is authorised by the CIPSML Board.
It ensures that all securities listed as Investment Options have been through an appropriate due diligence review ensuring all securities are either:
Where an Investment Option is not covered by CIP Private Wealth Research, a due diligence review is undertaken by the CIP Product Committee, which includes fund performance and risk, administration functions and a review of the issuing manager’s structure and processes.
Further details on the CIP Product Committee are available in the Other Material Information document available on the CIP website or from the offer register at:
Each Scheme member will select investments from the list of Investment Options with the benefit of access to advice and assistance from Craigs Investment Advisers and also through the screening of investments for the Investment Options list by the CIP Product Committee. Investment Options include equities, investment trusts, managed funds, index funds, listed property trusts, and cash.
The CIP Private Wealth Research team analysts undertake analysis or use analysis from chosen providers, which considers data relating to a particular security, the industry and markets it operates in, competitive position, market liquidity together with general and specific economic indicators and commentary.
The key principles of the CIP Private Wealth Research team’s philosophy can be summarised as:
When considering whether a security should be covered on the list of Investment Options, the CIP Investment Committee considers amongst other things:
The CIP Product Committee is then responsible for determining whether a security should be included as an Investment Option.
The Investment Options include the QuayStreet Funds offered by QuayStreet Asset Management Limited, a related party of Craigs Investment Partners Superannuation Management Limited.
A list of the current Investment Options is available on the CIP website:
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 Investment Options include the QuayStreet Funds (a related party of CIPSML):
The guiding philosophy of the QuayStreet Socially Responsible Investment Fund is to endeavour to have a diversified portfolio of investments that are considered to be environmentally and socially sustainable, whilst still applying our traditional portfolio investment criteria.
The Socially Responsible Investment Fund is one of New Zealand’s longest-running socially responsible retail funds.
The Fund invests in income (e.g. fixed interest) and growth assets (e.g. shares) which are selected in accordance with their Socially Responsible Investment (SRI) Policy. The investment objective is to provide a return above the Fund’s benchmark over the long term.
Below is a link to their Responsible Investment Approach in full:
Over the past decade, socially responsible investment (SRI) funds across the globe have experienced tremendous growth. This has largely been driven by increasing investor demand for products across the following three broad categories of responsible investment:
The first stage, of the two-stage SRI screening methodology, is identification of business activities that have a negative influence on the society or the environment.
They define this as their “exclusionary” list, formally represented by the following activities:
> Alcohol Production
> Tobacco Production
> Weapons/Armaments Production
> Gambling > Mining of Fossil Fuels
> Nuclear Power
> Adult Entertainment
On a best endeavours basis, QuayStreet will avoid direct investment in companies that have direct and primary revenue exposure to these types of activities.
If a company, held by the portfolio that is governed by this Policy, happens to start generating revenue from these activities, QuayStreet will seek to divest as soon as practically possible. The divestment will be executed in such a way to avoid excessive costs or causing significant market impact.
The second stage of the screening process is a strict evaluation of ESG factors, both the associated risks and opportunities. Analysis and evaluation of ESG factors also ensure that high ethical standards will be achieved as exclusionary screening, by default, only looks at one aspect, type of business activity.
QuayStreet conducts comprehensive ESG analysis in order to identify companies whose primary business activity may not be deemed to have a negative influence on society or the environment but, in fact, whose behaviour or method of conducting business is questionable, harmful, or unsustainable.
This analysis does not only apply to companies but across the entire investment spectrum of assets, regions, and security types. QuayStreet recognises that a strong ESG profile can have a material impact on the long term risk and return the outcome of an investment. Therefore, the integration of this process is thoroughly conducted and monitored. Some of the considerations QuayStreet evaluates as part of its ESG analysis framework is shown over the page.
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?
Craigs KiwiSaver Plan has KiwiSaver Funds and The Investment Options include the QuayStreet Funds offered by QuayStreet Asset Management Limited, a related party of Craigs Investment Partners Superannuation Management Limited. More details on each of these funds can be found in the PDS.