At Radical Investment, we want to help clients have more control over their KiwiSaver portfolio and have a greater engagement with their KiwiSaver account. As the variety of options available to investors has improved over time, we have observed a marked increase in engagement.

To put it simply…

Our objective is to help clients build a personalised KiwiSaver portfolio that suits their long-term goals and objectives.

With escalating concerns about the US dollar and general currency debasement, we are observing an increasing demand for exposure to assets like gold & silver (along with Bitcoin) as hedges. Inflation resulting in cost-of-living concerns, geopolitical risks, and the reclassification of gold as a ‘tier 1’ reserve asset for central banks (next to Treasuries), has led to significant price appreciation for these alternative forms of money in recent years. 

Gold has the advantage of more than 5,000 years of investment history and has provided the benefit of a low correlation with broader share market performance over time, making it a valid inclusion in portfolios. Silver has displayed some similar characteristics over the long-term, but with generally more volatility and cyclicality along the way.

 ‘If you don’t feel comfortable with idea of holding coins in a treasure chest like a pirate, good news! You’re able to get exposure to gold & silver within your KiwiSaver account. How? Via KiwiWRAP KiwiSaver Scheme. Over time, more investment options have continued to be added to KiwiWRAP KiwiSaver Scheme following our requests and the requests of clients.

What Gold & Silver investments are currently available via KiwiWRAP?

Most consistently we are seeing demand for:

Physical Spot Gold ETFs

• iShares Gold Trust (IAU)

• abrdn Physical Gold ETF (SGOL)

• Global X Physical Gold ETF (GOLD)

• Sprott Physical Gold ETF (PHYS)

• SPDR Gold Trust (GLD)

Physical Spot Silver ETFs

• iShares Silver Trust (SLV)

• abrdn Physical Silver ETF (SIVR)

• Global X Physical Silver ETF (ETPMAG)

• Sprott Physical Silver ETF (PSLV)

Gold & Silver Miners ETFs

• VanEck Vectors Gold Miners ETF (GDX)

• VanEck Vectors Junior Gold Miners ETF (GDXJ)

• Global X Silver Miners ETF (SIL)

• Amplify Junior Silver Miners ETF (SILJ)

Gold & Silver Mining Companies

• Avino Gold & Silver Mines Ltd (ASM)

• Newmont Mining Corporation (NEM)

• Sibanye Stillwater Ltd (SBSW)

• Coeur Mining Inc (CDE)

For a full list, you can refer to the KiwiWRAP Investment Options Supplement (IOS) which is updated quarterly.

KiwiWRAP does not strictly prevent any asset allocation for a client, provided that:

• The client has received advice from an accredited Financial Advice Provider (such as Radical Investment)

• The advice is fit for purpose.

• The client is investing in assets permitted within the scheme.

• There will be sufficient cash in the client portfolio to cover for fees & costs along the way.

What’s the process?

• Get in touch, to see whether Radical Investment & KiwiWRAP are a fit for you (there is a $50,000 minimum KiwiSaver balance requirement for KiwiWRAP).

• Complete our risk profile, helping us to understand your circumstances, objectives and how you want to see your portfolio function, including the place that KiwiSaver fits in your overall wealth picture.

• Answer any further questions to ensure you have the tolerance, timeframe, knowledge/expertise & understanding for the investment approach you wish to take, and/or that we recommend.

• Agree a scope for the advice and service to be provided.

• Receive our advice, detailing specific investments in your portfolio, specific expected costs for your portfolio, and details on how your portfolio will function.

• Confirm advice if/once satisfied, and provide other documentation needed to process an application for KiwiWRAP.

• Wait for funds to be received and invested.

• Annual reviews with your adviser at Radical Investment.

General Advantages of KiwiWRAP KiwiSaver Scheme

• High degree of flexibility and ability for client input compared to most KiwiSaver Schemes.

• Ability to request new investments within the scheme, reviewed quarterly and approval subject to certain criteria.

• Transparency of performance reporting, value of investments and visibility of individual transactions

• Ability to structure your KiwiSaver account around your personal circumstances – not forced into a ‘one-size-fits-most’ type structure.

• Ability for conviction-based investing - We are observing greater financial literacy, and a frustration with feeling ‘babied’ by more traditional multi-asset class KiwiSaver funds.

Disclaimer

Individual companies such as gold and silver miners can be subject to high volatility, particularly over short timeframes. The above detail is informational in nature and not to be considered financial advice. 

Clients requesting exposure to gold & silver in a KiwiSaver or investment portfolio need to be accepting and understanding of the associated risks.