Want crypto, clean energy or property with your KiwiSaver?

Kōura Wealth has added three thematic funds to its KiwiSaver offering, but limits how much of a member's portfolio can be invested in them.

Saturday, May 7th 2022, 9:00AM

The three funds are a Carbon Neutral Crypto Currency Fund; Clean Energy Fund, and a New Zealand Property Fund.

Some may be surprised about the notion of a carbon neutral crypto fund, considering how much energy is used by crypto creators. However, this fund will offset all carbon emissions generated by the underlying tokens through the purchase of carbon offsets.

The maximum KiwiSaver portfolio allocation permitted for this fund is capped at 10%.

Kōura founder and managing director, Rupert Carlyon, says the funds only appropriate for investors with a long-term investment horizon and capacity to withstand significant volatility.

The fund will invest in an exchange-traded fund built by one of the biggest fund managers in the world, Fidelity.

The Clean Energy Fund will provide investors with an exposure to companies involved in the clean energy transition. There is an estimated $30.3 trillion of investment required by 2030 to start the transition toward renewable energy, Carlyon says.

The underlying fund is the First Trust Clean Energy Fund. While there have been reports that thematic funds do not have longevity, Carlyon notes this funds has a 17 year track record.

Kōura is building its own New Zealand Property Fund, which will differ from other such funds as it will invest in retirement village companies such as Summerset as well as listed property trusts.

"Kiwis who love property can choose to invest in the property market without owning a home; the fund will provide investors with financial investments in the New Zealand property market," Carlyon says.

Carlyon says the launch of the new specialty funds was "a no-brainer given their strong investment characteristics and interest from KiwiSaver members to invest in these themes."

Interestingly, fellow passive-focussed manager Kernel recently launched a property and clean energy fund.

Carlyon says the funds are being launched as the investment landscape is changing and investors want new options.

“While Kiwis are becoming more engaged and involved in their investments generally, KiwiSaver is still largely treated as a set-and-forget financial tool. We want to change that by responding to what Kiwis are telling us they want: more choice and more control, with the protection of advice,” he says.

Under the Kōura Facilitator Model, financial advisers can – without attaining the Level 5 Investment qualification – play an important role in helping their clients secure financial freedom in retirement.

“There is an obvious need for trusted professionals – advisers that Kiwis turn to for their mortgage, insurance and other needs – to get the KiwiSaver conversation underway: to help clients understand that they can, and need to take an active interest in their KiwiSaver,” says Carlyon.

“Our Facilitator Model is designed to help advisers do just that. And with the launch of our new funds, our adviser partners can now introduce their clients to unparalleled choice; to get engaged and interested in their KiwiSaver and take control of their financial future.”

Tags: KiwiSaver Kōura Wealth