KiwiSaver Simplicity to make investment in social housing

March 23, 2021 12:46 PM AEDT | By Sonal
 KiwiSaver Simplicity to make investment in social housing

Source: Olsa_iv Shutterstock

Summary

  • Simplicity has committed NZ$20 million to Aotearoa Pledge, created by Community Finance.
  • Aotearoa Pledge seeks to raise NZ$100 million to build affordable and social housing solutions.
  • Investments have also been made by Caresaver, ANZ and Generate.

As more investors seek social and financial returns on their retirement savings, a growing number of KiwiSaver providers are funding the Community Finance Scheme. The scheme makes investment in housing projects possible through community bonds and plans to raise NZ$100 million for building new affordable and social housing.

A KiwiSaver provider Simplicity has pledged NZ$20 million to the bond scheme Aotearoa Pledge after investments from Generate, Caresaver, and ANZ. It is the biggest contribution till date, bringing investment in the bond scheme to NZ$71 million.

Source: Copyright © 2021 Kalkine Media Pty Ltd.

Simplicity is a not-for-profit business, which runs entirely online, so there are no hidden fees or commissions. Simplicity funds are completely diversified, with over 3,000 investments in 23 countries, and 15% of fees go to assist New Zealand charities through the Simplicity Charitable Trust.

Low-cost financing offered by affluent ethical investors and organisations is a crucial component of the idea, which aims to break the community housing sector’s heavy reliance on government funds.

By investing in community finance bonds, KiwiSaver providers will make a profit for their investors, and their money will go towards the construction of affordable and social housing. Investors will get a return in the range of 2-2.5% p.a. from the investment.

Benefit of housing through Kiwi investments

Simplicity chief executive Sam Stubbs stated that Kiwi investors would not want to miss the opportunity to get safe and secure homes while also making good returns. KiwiSaver funds have a large-scale and long-term investment model, which is optimal to create more homes on a large scale for helping families and others in need, he added.

According to Stubbs, KiwiSaver funds and organisations such as NZ Super, iwi, and ACC have a combined investment portfolio of more than NZ$150 billion, making them crucial in the drive to develop more homes, and address the housing crisis. Generate KiwiSaver Scheme, ANZ Bank, and Pathfinder Asset Management are among the other corporations and investors, who have committed NZ$10 million each to the Aotearoa Pledge.

Shamubeel Eaqub, Director at Simplicity, stated that Aotearoa Pledge had pointed the power of finance to the deteriorating housing crisis. He added that the housing crisis is too enormous to be addressed by philanthropic funds alone, but if regular Kiwis investments can be used to benefit New Zealanders' housing, a difference can be made.


Disclaimer

The content, including but not limited to any articles, news, quotes, information, data, text, reports, ratings, opinions, images, photos, graphics, graphs, charts, animations and video (Content) is a service of Kalkine Media Pty Ltd (Kalkine Media, we or us), ACN 629 651 672 and is available for personal and non-commercial use only. The principal purpose of the Content is to educate and inform. The Content does not contain or imply any recommendation or opinion intended to influence your financial decisions and must not be relied upon by you as such. Some of the Content on this website may be sponsored/non-sponsored, as applicable, but is NOT a solicitation or recommendation to buy, sell or hold the stocks of the company(s) or engage in any investment activity under discussion. Kalkine Media is neither licensed nor qualified to provide investment advice through this platform. Users should make their own enquiries about any investments and Kalkine Media strongly suggests the users to seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice), as necessary. Kalkine Media hereby disclaims any and all the liabilities to any user for any direct, indirect, implied, punitive, special, incidental or other consequential damages arising from any use of the Content on this website, which is provided without warranties. The views expressed in the Content by the guests, if any, are their own and do not necessarily represent the views or opinions of Kalkine Media. Some of the images/music that may be used on this website are copyright to their respective owner(s). Kalkine Media does not claim ownership of any of the pictures displayed/music used on this website unless stated otherwise. The images/music that may be used on this website are taken from various sources on the internet, including paid subscriptions or are believed to be in public domain. We have used reasonable efforts to accredit the source wherever it was indicated as or found to be necessary.


AU_advertise

Advertise your brand on Kalkine Media

Sponsored Articles


Investing Ideas

Previous Next
We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it.