Crypto currency, clean energy, and property: more options for your KiwiSaver plan with kōura specialty funds
Choice and personalisation – it’s what we, at kōura, have stood for since the beginning. We believe that Kiwis deserve a KiwiSaver scheme that listens to them and gives them freedom to choose, with the support of our personalised advice.
It’s in that spirit that we have launched these three new specialty funds: the kōura Carbon Neutral Crypto Fund (a New Zealand-first), the kōura Clean Energy Fund, and the kōura New Zealand Property Fund.
We want KiwiSaver investors to be more engaged and involved in their investments. And with KiwiSaver members reporting high interest in cryptocurrency1, New Zealand property, and clean energy-focused investment options, the launch of these three specialty funds was an obvious next step for New Zealand’s most personalised KiwiSaver Scheme.
Here’s what we’ve launched and why.
kōura Carbon Neutral Crypto Fund
The newly released kōura Carbon Neutral Crypto Fund, a New Zealand-first, will allow Kiwis to invest up to 10% of their personalised KiwiSaver portfolio in cryptocurrency, with the guidance of kōura and our digital advice tool.
The fund is invested in Bitcoin – the most popular digital asset among institutional investors – and all carbon emissions generated by the underlying tokens will be neutralised through the purchase of carbon offsets.
Now, to the ‘why’.
Local and international research shows that crypto is no longer niche. In fact, not only are more and more people investing in it, but institutions have long been taking notice.
A recent survey by Fidelity2 showed that 80% of institutional investors believe that digital assets have a place in a portfolio, and 43% believe that cryptocurrency should make up a component of the alternative asset class. What’s more, internationally, alternative assets have grown over the past 15 years from 12% of a typical institutional portfolio to 26% of an individual portfolio.
It’s important to note that crypto is a highly volatile asset, and relatively unregulated. It’s most definitely not for everyone. But it is for some. And for those KiwiSaver members, we want to provide access to this option with the managed support of kōura digital advice. Kiwis are already investing their own money in these alternative assets. Now with kōura, where appropriate, both ‘crypto enthusiasts’ and the ‘crypto curious’ can diversify and invest a small portion of their KiwiSaver in crypto.
kōura Clean Energy Fund
Like to be part of the clean energy revolution? Now, with kōura, you can invest up to 10% of your KiwiSaver in our Clean Energy Specialty Fund.
The global economy is transitioning away from fossil fuels. It’s a big job and it’s estimated that US$150 trillion will be required to transition the global economy to carbon neutral by 2050;3 investment that will be focused on areas like replacing fossil fuel power generation with renewables, creating low energy appliances for the home, and so much more.
With the new kōura Clean Energy Fund, you can now invest your KiwiSaver plan in companies that are helping realise that transition, for a more sustainable world.
kōura New Zealand Property Fund
The new kōura New Zealand Property Fund gives Kiwis access to New Zealand’s favourite investment, without actually having to own and manage a property.
Property has long been a mainstay of New Zealand investment, and a popular way for Kiwis wanting to create wealth. Plus, having little correlation with shares and bonds, property investment can be a good diversification tool and an efficient hedge against inflation.
Like to add a slice of property to your KiwiSaver plan? Click here to learn more.
More options, more engagement, more control
What does it all mean for you? Not much, if you don’t intend to invest your KiwiSaver in any of these assets. Everything, if you do. One size doesn’t fit all.
What we know is that Kiwis tend to take a ‘set and forget' approach to KiwiSaver, as demonstrated by the very low switching numbers (<4% switches every year). But it is this lack of engagement in what for many will be the biggest investment in their life, that often leads to inappropriate fund choices and insufficient outcomes for their retirement (and other) financial goals.
And the answer? In our view, it’s all about personalised choice, which with the launch of our new funds today, we’re now taking to the next level.
Like to get started?
Take a look at what a kōura KiwiSaver plan – with or without our new funds (your choice) – could do for you. Click here to run your numbers.
Sources:
1 kōura Customer Research on non-kōura KiwiSaver scheme members’ portfolio/fund selection criteria (2021)
2 Fidelity Digital Assets, The Institutional Investor Digital Assets Study (2021)
3 Bank of America Global Research Report, The “Transwarming” World: A Net Zero Primer (2021)