12/9/2023 11:00:00 PM

Pie KiwiSaver Scheme: “We invest like it’s our own money. Because it is.”

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At the Pie KiwiSaver Scheme, we use five key principles to guide our investment choices, and we talked to Founder and Chief Investment Officer, Mike Taylor, about what principle one means to us, and why it’s so important.

Principle one: We want to see skin in the game
When you join the Pie KiwiSaver Scheme, you invest alongside us. We invest like it’s our own money because it is. Over $100m of the money we manage across our investment funds and KiwiSaver Scheme comes from our staff, directors, and shareholders (as at 31.01.24). We also look for this commitment in companies we invest in. We love founder-led companies where managers are heavily invested, including financially. They often have extra passion for the company that can give it an edge in the market.
This means that we’re invested in the outcome, just like you. Why is this principle so important to us? Investing can be a risky business. Whether you're investing in stocks, mutual funds, or other assets, there are always risks involved.
For the Pie KiwiSaver Scheme's Founder Mike Taylor, it all comes down to accountability. "Put your money where your mouth is," he says. "Our team backs our strategy. Our own money is on the line, on the same terms as our clients. We share the upside and the downside." This means that everyone involved has a vested interest in making sure the investment is successful.
But it's not just about accountability. The Pie KiwiSaver Scheme also looks for this same level of commitment in the companies we invest in. Our team loves companies where managers are heavily invested, because it means that those managers are highly motivated to improve the value of the company for shareholders. "It means that you’ll go the extra mile and you're more likely to take that customer call on a Sunday night."

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Though it’s heavily ingrained into our DNA, this philosophy isn’t unique to the Pie KiwiSaver Scheme. Many well-known tech companies have founders or management teams with skin in the game, which has ultimately led to their success. Some high-profile examples include Apple, Microsoft, Amazon, Netflix, and Meta, but it's not just limited to tech companies. Taylor says that there are plenty of examples of less well-known companies outside of tech with high insider ownership.
Of course, having skin in the game doesn't guarantee success. But as Taylor points out, in his experience, "very few companies are successful over the long-term without this attribute”. When everyone involved has a vested interest in the outcome, we think there's a greater chance that they’ll all work together to make an investment successful.
As active management specialists, we stick to these principles when markets are up and when they’re down too. Pie's KiwiSaver Scheme has a range of actively managed funds, led by our local and global investment specialists that aim to provide expert insights and above average returns over the long-term. Plus, we're proud to offer a fee free account for members under 13 years old, making it even easier to start and grow their savings.

Information is current as at 30 November 2023. Pie Funds Management Limited is the manager of the funds in the Pie Funds Management Scheme and Pie KiwiSaver Scheme. Any advice is given by Pie Funds Management Limited and is general only. Our advice relates only to the specific financial products mentioned and does not account for personal circumstances or financial goals. Please see a financial adviser for tailored advice. You may have to pay product or other fees, like brokerage, if you act on any advice. As manager of the Pie Funds Management Scheme investment funds, we receive fees determined by your balance and we benefit financially if you invest in our products. We manage this conflict of interest via an internal compliance framework designed to help us meet our duties to you. For information about how we can help you, our duties and complaint process and how disputes can be resolved, or to see our product disclosure statement, please visit www.piefunds.co.nz. Please let us know if you would like a hard copy of this disclosure information. Past performance is not a reliable indicator of future returns. Returns can be negative as well as positive and returns over different periods may vary.