Castle Point fund washes up on KiwiSaver platform
The actively managed Castle Point 5 Oceans Fund is now available as a KiwiSaver option, on a largely passive platform.
Monday, July 27th 2020, 6:00AM
The 5 Oceans Fund has been added to the Smartshares-owned SuperLife platform which mainly has exchange traded funds.
Smartshares chief executive Hugh Stevens admits an active fund like 5 Oceans doesn't fit the firm's philosophy, but it is about giving customers choice.
"It's not necessarily our house philosophy," he says. However, the business does use this fund and funds from T. Rowe Price and Schroders for its pension schemes used by governments in Nauru and Tonga.
The $65 million 5 Oceans Fund is a diversified fund that invests in New Zealand and global securities. It also invests in strategies that have the specific purpose of reducing the impact of market crashes.
Castle Point co-founder Richard Stubbs says 5 Oceans is a "more practical approach to building a balanced fund."
He says the fund's strategies to protect on the downside is a key differentiator to other funds.
"A lot of assumptions used to build a (traditional) balanced fund fall apart when there is a Black Swan event."
"This was particularly apparent in March when the fund was only down 1.1% versus the median balanced fund in the Aon survey, which was down 9.0%."
Stevens says SuperLife isn't necessarily looking to add more active funds to its platform.
He says any decisions are driven by the needs of its corporate superannuation clients.
"We are not going to expand massively in the platform space," he says.
SuperLife is wholly owned by the New Zealand Stock Exchange (NZX). The SuperLife platform currently gives KiwiSaver investors choice and flexibility.
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