A Positive Outlook

This is CareSaver’s first quarterly update for our Growth, Balanced and Conservative funds. We are an active manager of CareSaver, meaning we can decide if we want to be in high risk (and more volatile) assets like shares or lower risk (and less volatile) assets like cash.  So far the funds have maintained relatively high holdings of cash over the quarter as we have wanted to sit on the sidelines through shaky markets. 

We’ve been pleased with our performance so far – each fund is positive in its first 2 months.


We have chosen to be under-invested in fixed income (bonds).  We are concerned about low interest rates globally and the future risk for bond prices. Interest rates are at historically low levels around the world – and yields on government bonds are often negative.  Many regard bonds as an asset class with currently more risk than shares (which is the opposite of the normal risk relationship).

We have had some good wins in the ‘growth’ allocation for the funds.  A couple of examples are Activision (a US online gaming developer up almost 20% since we first invested) and Summerset (a NZ listed retirement home operator up around 15% since we started investing).  We believe Activision presents good value, having a promising pipeline of new on-line games and is involved the growth of e-sports. We regard Summerset as a top-class operator, benefiting from lower interest rates and ageing populations.  

We have four long-term themes that we believe have the potential for above average returns – data centres, water, forestry and renewable energy. These reflect our views on future structural shifts in the global economy and consumer behaviour (and at the same time these support resource sustainability).

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