There is always a certain amount of risk involved with any investment. Kiwi Wealth has a number of safeguards in place to help protect you against unnecessary risks.
Client funds are never held by Kiwi Wealth. The money and assets in your Portfolio are held by Portfolio Custodial Nominees Limited (PCN), which is owned by Kiwi Wealth. The money and assets of each client are separately identified within PCN. PCN subcontracts custody of the investments to JBWere (NZ) Nominees Limited, who provide monthly reports to Kiwi Wealth and PCN on the money and assets it holds for PCN on behalf of all clients. Find out more.
PCN is audited annually by PWC to help ensure that client investments are recorded and reported accurately. The reports of those audits are available on request.
There is a clear segregation of duties for Kiwi Wealth's staff. Advisers do not handle your funds, that role is fulfilled by our Operations and Customer Services Team and monitored by our Compliance Team. For example, a member of the Customer Services Team can enter details of a client withdrawal but only Compliance can authorise it.
There are three groups with governance and oversight functions – the Kiwi Wealth Investments Limited Partnership (KWILP) (formerly known as Gareth Morgan Investments Limited Partnership or GMILP) Board and the Investment Governance Committee (IGC).
The KWILP Board currently consists of Dame Alison Paterson (Chair), Alistair Nicholson and Michael O'Donnell.
The IGC is a committee responsible for overseeing investment strategy, setting investment guidelines and holding the Investment Management Team to account.
Kiwi Wealth's detailed monthly reports to clients provide full transparency about the investments held in the Kiwi Wealth Private Portfolio Service and how the returns have been generated.
This level of transparency makes it easier for you to assess the level of risk.