CareSaver KiwiSaver review

A KiwiSaver scheme with a focus on ethical investing.

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CareSaver is a KiwiSaver provider that enables its clients to invest their savings into a variety of plans for better returns. Compared to other KiwiSaver providers, CareSaver has a focus on rating all companies it invests in against environmental, social and governance (ESG) metrics with the aim of building a more sustainable future.

CareSaver also mandates that 20% of its management fees go to a charity of the scheme holder’s choice.

About CareSaver

CareSaver is an ethical KiwiSaver scheme with a strong commitment to financial investments that support social good. The CareSaver scheme itself is managed by Pathfinder Asset Management, which has nearly a decade’s worth of experience in ethical investments.

What is ethical investing?

Ethical investing involves investing in companies that follow best ESG practices. CareSaver believes that investing in companies that act ethically ultimately means a better outcome for everyone.

As part of their ethical investment policy, CareSaver actively avoids companies that harm the environment — such as those involved with tobacco, animal testing, factory farming, fossil fuels and gambling. By investing instead in corporations that contribute to a more sustainable future, CareSaver believes that they can generate better long-term returns, influence corporate behaviour and promote positive change.

CareSaver KiwiSaver fund types and performance

CareSaver offers 3 different KiwiSaver investment options with different levels of risk.

  • Growth Fund: The Growth Fund offers medium-to-high returns by taking on a higher risk focus. An investment time frame of more than 10 years is suggested. It has a higher than usual exposure (80%) to growth assets like stocks and a 20% exposure to income assets. As of May 2020, this fund has had returns of 6.18% since inception (July 2019).
  • Balanced Fund: For medium returns and risk, the Balanced Fund may be best for investors with a time frame of 3-10 years. It has a 60/40 allocation to higher-return growth assets and lower-risk income assets respectively. As of May 2020, this fund has resulted in returns of 2.09% since inception (July 2019).
  • Conservative Fund: The Conservative Fund is designed for investors with a short-to-medium time frame of up to 3 years, who are comfortable with attaining modest returns for limited risk. This CareSaver fund primarily invests in stable income assets with an 80/20 allocation, where just 20% of the fund is invested in higher-risk growth assets. As of May 2020, the Conservative Fund has produced returns of 3.24% since inception (July 2019).

Since all three funds were initiated in July 2019, you should take fund performance with a pinch of salt as the limited time frame might not accurately indicate the true potential of the fund. Similarly, past performance is neither representative nor a guarantee of future returns.

CareSaver KiwiSaver fees

CareSaver charges a few types of fees that you should be mindful of. Here’s what you may expect to be charged if you join CareSaver:

  • Management fees. Annual management and administration fees range from 0.80% to 1.25%, depending on the risk level of your fund. Riskier funds incur greater annual management and administration fees.
  • Annual administration fees. This stands at $27 per year. The administration fee is charged for any costs and expenses associated with the administration and registry costs. If your fund balance is lower than $1,000, however, you will not be charged this fee.
  • External costs. CareSaver charges an additional estimated 0.01%, 0.02% and 0.03% for investing in its Growth, Balanced and Conservative funds, respectively.

Do take note that CareSaver fund fees may differ across account types and the amount you have invested in your KiwiSaver. Always check beforehand to get an accurate gauge of how much you can expect to pay for your CareSaver KiwiSaver fund.

How do I join CareSaver?

The application process for CareSaver is simple and can be done completely online as long as you meet the eligibility criteria and have the necessary documents at hand. The entire application should only take a few minutes, and you do not have to contact your current KiwiSaver provider if you are switching to CareSaver.

Eligibility criteria

In order to qualify for the CareSaver scheme, you must be:

  • A resident, permanent resident or citizen of New Zealand

People of any age can join the Generate KiwiSaver Scheme. However, those aged 15 or under must have an application signed by their parent or guardian.

Documents required

You will need to have your IRD number and either an NZ driver licence or NZ passport.

Summary

CareSaver offers three KiwiSaver funds to suit different investment preferences. What’s more, each of these funds allows you to grow your wealth in a sustainable, responsible manner. Pick the fund that best meets your financial needs and sign up easily online.

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