Report Shows New Zealand Fund Manager Puts 5% of Retirement Plan’s Assets Into Bitcoin

Local news outlet Stuff. The report shows New Zealand Funds Management Ltd. (NZ Funds)’s KiwiSaver growth fund has invested 5% of its money in bitcoin. Accordingly, the fund’s chief investment officer. said; 

“If you are happy to invest in gold, you can’t really discount bitcoin,”

As reviewed by the company product disclosure document, the KiwiSaver Growth Strategy Fund, had NZ$350 million (US$244 million) in assets at the end of December after investing in cryptocurrency from October,

The fund’s chief investment officer, James Grigor, through the outlet said he expects competitors to follow suit over the next five years and further stresses that, “If you are happy to invest in gold, you can’t really discount bitcoin.”

The retirement fund falls under the auspices of the national KiwiSaver program founded by the New Zealand Labour party in 2007. It is similar to a 401(k) in the U.S. and Superannuation in Australia, which allows access to a user’s savings only after he or she reaches a certain age.

However, despite being an applaudable move, the fund manager’s move seems like a drop in the bucket when compared with the $66.5 billion (US$46.3 billion) market for assets currently under management by providers throughout the nation, Morningstar discloses.