Kia ora to our charity whānau!
We wish you and your teams well during this difficult period. While we hope that your charity and all your supporters are flourishing, we know the best to really hope for is merely ‘coping’ in this environment. We recognise you’re facing a range of challenges – high demand for your services, social disruption, and also likely a desperate need for additional funding.
In this note, we want to provide you with some transparency on the donations we are making for the short period since our launch on 31 July 2019.
Each of you has been chosen as one of our charity family for the positive impact you have on New Zealand society or our natural environment. You are all needed now more than ever by our country and our communities.
Quick reminder on CareSaver
At CareSaver we aspire to be New Zealand’s most ethical KiwiSaver. This is reflected in the way we invest, the way we run our business, and our support for you, our family of 17 charities.
Good returns are fundamental to our mission: As a responsible KiwiSaver provider we want to invest for a better world. We also recognise we will not be able to do this if we don’t also generate great returns for New Zealanders. We are delighted to report that over Q1 (January, February and March) despite the financial disruption from coronavirus our Growth and Balanced funds were over 5% ahead of the average KiwiSaver. In fact, our Growth and Conservative funds were number one in their category.
How we invest: Our investment process includes environmental and social metrics (as well as financial) when we select investments – for example how a company looks after its staff, cares about consumer safety of its products and works to reduce carbon emissions. We also avoid a range of companies including tobacco, gambling, factory farming, companies testing products on animals, fossil fuels, weapons and companies committing human rights or environmental violations. We are an active manager and focus investment into positive themes like water and renewable energy.
Our model for giving: CareSaver is run on a social enterprise model to support our charity family. Every investor selects one of the 17 charities that we have built a relationship with when they sign up. We then pay 20% of the management fees we receive from that investor to you. Our intention is for this payment to provide you with a long-term, sustainable and growing annual income stream of donations. This is a cost to CareSaver’s shareholders, not our investors.
Income for your charity: Effectively we are creating a ‘crowdfunding’ model. If your charity can build up to 300 supporters with us, then you could receive $20,000 – and that payment would be annual, reliable and recurring every year into the future. (Our most popular charity currently has over 200 supporters so is well on the way).
March 2020 charity payments
We currently manage over $20 million in CareSaver and are working hard to grow this to more than $100 million next year. How fast we get there will depend on how many new supporters join us and how much they entrust to us to look after.
For the 8 months from our inception to 31 March 2020 we are giving just over $15,000 to our 17 charities. This has been a period of launching and ramping up – we hope to be giving much more (in the region of $100,000) in a year’s time.
Below is a list of our charities and the amount they will be receiving.
- Forest & Bird: $3,891
- Arthritis NZ: $434
- Men’s Health Trust: $1,795
- Project Jonah: $378
- Mental Health Foundation: $1,405
- Melanoma NZ: $300
- NZ Vegetarian Society: $1,056
- Tania Dalton Foundation: $300
- Heart Kids: $905
- Drug Foundation: $300
- Breast Cancer Cure: $874
- Chalky Carr Trust: $300
- Youthline: $825
- Plunket: $300
- Rainbow Youth: $806
- Leadership NZ: $300
- Garden to Table: $546
- CareSaver to choose: $466
Of our 17 charities, there are 6 that have not yet had a large number of supporters. We will top up their donation so everyone gets at least $300.
In addition to the $15,187 above we have donated an additional $5,400 across a range of charities which have included some in our charity family and others like the Sustainability Trust, and Movember Foundation. That takes our total donations for the 8 months to 31 March 2020 to just over $20,000.
Generating good investment returns is critical to us
What is key for us is that investors choose CareSaver because they feel we are the right choice for them to save for their retirement. That means two things – firstly an alignment with our values and how we invest. Secondly, because they believe our approach to ethical investment will generate good returns, in fact great returns, for them. Our charitable giving should be a nice bonus on top of ethical investment returns.
To those of you that have switched your KiwiSaver to us or have made CareSaver KiwiSaver the default KiwiSaver for your charity, we sincerely thank you. We require nothing from you in terms of joining us or communicating about us to your supporters – but when you choose to and want to align with our values we greatly appreciate it.
Right now at CareSaver, we combine courage and kindness with how we run our business and with how we interact with others. We hope our small donation to you this year is helpful for your good work – we’re striving to grow this because we’re motivated to provide a more significant helping hand for you in the future.
Kia kaha, kia maia, kia manawanui.
John Berry and Paul Brownsey
Co-founders of Pathfinder Asset Management and CareSaver KiwiSaver