Lack of PE investment in KiwiSaver means members miss out

“There’s a reason high net worth investors in large, long-term sophisticated endowment funds invest in private assets. Over the long term they pay higher returns than listed markets if managed and diversified properly.”

While Pathfinder and other boutique KiwiSaver firms such as Generate and Booster invest in private equity, not enough providers are, says Berry. And KiwiSaver members are missing out.

However managing a private equity inclusive fund “properly” comes at a higher cost.

Pathfinder charges 0.84% to 1.29% which among other things covers extra staff, including those who look at private deals, plus additional audit and compliance requirements.