CareSaver makes private equity investments

Pathfinder-run KiwiSaver scheme CareSaver has taken a stake in medicinal cannabis company Rua Bioscience and the online investment platform Sharesies.

Thursday, June 4th 2020, 6:08AM

John Berry

It has invested $420,000 in Rua and $460,000 in Sharesies.

They are the scheme’s first investments in unlisted companies – Pathfinder has long advocated for KiwiSaver schemes to invest in private equity.

KiwiSaver providers Booster and Milford already have investments in unlisted companies.

CareSaver head of investment Paul Brownsey said private New Zealand companies made sense from two perspectives. They could generate better returns than publicly listed companies and they represented an investment in the future of the local economy.

“It’s a great side benefit that in the current climate we can provide capital to growing local companies that provide jobs and develop expertise here in New Zealand. We plan to make more of these investments over time.”

Chief executive John Berry said he was pleased to see his aspiration for KiwiSaver coming to fruition.

“Given the long-term focus of KiwiSaver, private investments are a perfect fit. We can provide our investors access to high-growth New Zealand companies that are otherwise inaccessible.

“It is not just about diversifying away from the listed companies in which all KiwiSaver providers invest, it is about accessing the higher return potential of exciting and high-growth private companies that currently very few KiwiSaver providers invest in. This is about being committed to the best outcomes for our investors and for New Zealand.”

All investments must meet CareSaver’s ethical investment and financial screens.

Private equity investments – which are potentially high returning but also comparatively illiquid – are expected over time to make up between 5% and 10% of CareSaver’s conservative, balanced and growth funds.

Pathfinder’s Ethical Trans-Tasman Fund has also invested in both Rua and Sharesies.

Tags: Caresaver KiwiSaver Pathfinder Asset Management Sharesies