New Zealand Fund management firm has allocated 5% of its Growth KiwiSaver Scheme fund in Bitcoin. KiwiSaver Growth Strategy is a $350 million retirement plan managed by New Zealand Wealth Funds Management. It has invested 5% in Bitcoin, emphasizing the constant foray of institutional investors joining the digital asset space. Growth funds are a scheme fit for investors witnessing reasonably high growth over the long term. The fund principally funds growth assets such as equities, listed infrastructure, and listed property.
The Growth KiwiSaver Scheme fund had $244 million in assets at the end of December 2020. It began investing in Bitcoin in October last year. Various fund managers from other firm investment schemes were not satisfied with the company’s decision, opining that Bitcoin did not have multiple use cases and was highly volatile. Nevertheless, as per James Grigor, the CIO at New Zealand Funds Management, Bitcoin’s remarkable similarities to gold were mentioned as one of the most important reasons for joining the trade. He associated Bitcoin with gold and labelled Bitcoin as a commodity and a good store of value against fiat inflation.
New Zealand Fund Management’s CIO expects Bitcoin to feature more within the fund
Furthermore, KiwiSaver is a retirement plan from New Zealand Wealth Funds Management. The fund mainly manages conventional assets, shares and bonds with $244 million under management. James Grigor anticipates Bitcoin to highlight more within the fund and extend to other investment schemes in the next five years. Grigor disclosed that his firm acquired Bitcoin for the first time in October at $10,000. Moreover, New Zealand Fund Management had to modify its offer documents to provide cryptocurrency investments to accomplish the trade.
The KiwiSaver scheme fund’s newest announcement occurs when various institutions worldwide have reported their Bitcoin exposure to support their treasuries. Moreover, MicroStrategy purchased over $1 billion in Bitcoin in 2020. Last month, Tesla acquired $1.5 billion in Bitcoin and had commenced receiving it as payment. Other publicly listed firms like Square, Meitu, Mode Global Holdings, Ruffer Investment Company, and others have purchased Bitcoin as a treasury reserve asset originated to preserve investors’ assets against fiat inflation and to maximize long-term value for shareholders.
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