Another KiwiSaver provider is set to launch with sustainability-focused Auckland boutique manager Pathfinder throwing its hat in the ring.
According to its recently-released statement of investment policy and objectives (SIPO), the ‘CareSaver’ scheme features three risk-weighted portfolios that invest into directly-held stocks that score highly on environmental, social and governance (ESG) measures.
The new scheme invests according to “ethical beliefs” as well as “robust” research-based approach, the CareSaver SIPO says.
“We expect companies with high environmental, social and governance (ESG) metrics to perform better than low scoring companies,” the SIPO says. “We also believe high ESG companies are better for our planet and its people. For these reasons, we will actively seek out high ESG companies to invest in.”
The CareSaver ethical beliefs skew to investments that: help meet the UN Sustainable Development Goals; are low carbon-intensity; respect human and animal rights; and, engage with shareholders on environmental, social and governance issues.
Pathfinder will partner with certain charities as part of its CareSaver social enterprise model.
In February this year Pathfinder, which has about $150 million under management, sold a 51 per cent stake to Alvarium Wealth Management, a group of NZ and UK investors. Alvarium (previously known as LJ Partnership) also bought half of Auckland hedge fund-of-funds NZAM last year. John Berry and Paul Brownsey, Pathfinder founders, continue to hold equal shares of the remaining half of the fund management firm.
The UK-headquartered Alvarium and Tailorspace (the investment firm of high-powered Christchurch businessman, Ben Gough) own about 70 per cent of Alvarium Wealth with NZAM associates holding the remaining 30 per cent.
Pathfinder launched in 2009, rolling out a range of five funds over the years covering global equities, international property, water, commodities and its latest global responsible equity product released in 2017.
This June Pathfinder appointed two new directors: Mei Fong (Alvarium head of compliance); and, Anya Satyanand, Princes Trust chief executive.
It is understood other new providers are eyeing up the KiwiSaver market, which has seen scheme numbers tick up in the last couple of years following a long period of consolidation. Including CareSaver, the Disclose website counts 32 separate KiwiSaver schemes (across 28 providers) – up from 29 in 2017. Last year two NZ fund managers – Nikko Asset Management and Pie Funds (via the Juno brand) – launched KiwiSaver schemes with mixed success to date.