QuayStreet

Who is QuayStreet?

QuayStreet Asset Management is a New Zealand-based specialist fund manager operating under the NZX Limited corporate umbrella. Specifically, it functions as a brand managed by Smartshares Limited, a wholly owned subsidiary of NZX — the operator of New Zealand's stock exchange. This lineage gives QuayStreet meaningful institutional credibility and the regulatory infrastructure of one of the country's most established financial market operators.

The investment manager entity, QuayStreet Limited, runs both the QuayStreet managed funds range and the QuayStreet KiwiSaver scheme. It is worth understanding that QuayStreet and Smartshares are philosophically distinct: while Smartshares focuses on low-cost passive ETFs, QuayStreet is positioned as the active management counterpart within the same group.

By 2019, the QuayStreet KiwiSaver scheme had already accumulated approximately $180 million in funds under management, signalling a well-established operation with meaningful scale. The scheme is accessible both directly through QuayStreet's own platform and via third-party platforms such as InvestNow, broadening its reach to retail investors.

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Investment Philosophy

QuayStreet's defining characteristic is its commitment to active management. Rather than tracking a benchmark index, the investment team makes deliberate decisions on security selection, position sizing, and portfolio construction — with the stated goal of delivering superior risk-adjusted returns over time.

This approach is built on three core pillars:

• Research-driven stock selection — Individual securities are analysed for their risk-return characteristics before inclusion in any portfolio.
• Disciplined portfolio construction — A structured, repeatable process governs how positions are built and managed across the fund range.
• High-conviction concentration where appropriate — The Altum Fund, a focused Australasian equity portfolio, exemplifies this: fewer holdings, stronger conviction, and commensurate volatility.

QuayStreet also operates a dedicated Socially Responsible Investment (SRI) Fund, which applies environmental, social, and governance (ESG) criteria through what appears to be a positive selection process — not merely excluding harmful industries, but actively identifying companies that meet rigorous ESG standards. This positions the firm well for the growing cohort of New Zealanders seeking values-aligned KiwiSaver options.

It is important to note: active management carries the risk of underperformance relative to benchmarks, and past performance is not an indicator of future returns. Investors should weigh the potential for outperformance against the higher cost of this approach versus passive alternatives.

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Fee Structure Explained

As an active management provider, QuayStreet's management fees are structurally higher than those charged by passive index funds. This is by design — the fees reflect the cost of the investment team's ongoing research, analysis, and portfolio oversight. Specific fee rates vary by fund and are disclosed in each fund's Product Disclosure Statement (PDS), with a consolidated PDS issued as of 28 March 2025 and available through New Zealand's Disclose register.

We at WealthWatch note that the fee differential between, for example, a conservative multi-asset fund and a concentrated equity fund like the Altum Fund is likely to be meaningful, and investors should review the PDS carefully before committing. Broadly, investors can expect:

• Diversified funds (Conservative through High Growth) to carry moderate active management fees.
• Sector-specific equity funds (NZ, Australian, International) to reflect the cost of specialist regional research.
• Specialty funds (Altum, SRI, Income) to potentially carry distinct fee structures given their unique mandates.

The Financial Markets Authority (FMA) requires full fee disclosure as part of KiwiSaver scheme licensing obligations, so all applicable charges must be transparently documented. Investors comparing QuayStreet against passive KiwiSaver alternatives should factor in whether the active management premium is justified by their personal risk profile and return expectations.

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Who Should Consider QuayStreet?

QuayStreet suits investors who are comfortable paying a premium for active professional management and believe skilled stock selection can add value over time. It offers 12 distinct funds spanning conservative income through to high-growth equity, giving members genuine flexibility to match their KiwiSaver allocation to their retirement timeline and risk tolerance.

The provider is particularly relevant for:

• Hands-off investors who want research-backed portfolio decisions made on their behalf across a defined risk spectrum.
• ESG-conscious members seeking a credible, structured SRI option within their KiwiSaver scheme rather than a superficial exclusions-only approach.
• Growth-oriented investors comfortable with higher short-term volatility in exchange for long-term capital appreciation potential, particularly via the High Growth or Altum funds.
• Income-focused investors who may find the Income Fund a compelling alternative to low-yield bank term deposits.

QuayStreet is likely a poor fit for fee-sensitive investors, those who prefer transparent index-tracking strategies, or KiwiSaver members satisfied with a simple default fund structure. The active management proposition only holds value if the investment team consistently delivers — and that outcome is never guaranteed.

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The WealthWatch Verdict

QuayStreet occupies a credible and clearly defined position in the New Zealand KiwiSaver market: a professionally managed, research-driven provider backed by the institutional infrastructure of NZX Limited. Its breadth of 12 funds — covering everything from conservative fixed interest to high-conviction Australasian equities and ESG-screened portfolios — reflects genuine strategic intent rather than a tick-box product range.

The core tension, as with any active manager, is whether the management fees are consistently justified by returns. We at WealthWatch emphasise that this is a question no provider can answer with certainty in advance, and investors must conduct their own due diligence using the FDS and PDS documents available on the FMA-administered Disclose register. The NZX parentage and regulatory standing of QuayStreet do reduce counterparty and governance risk materially.

WealthWatch Sentiment Score: 7.2 / 10 — A well-structured, institutionally credible active manager with genuine product depth and a serious ESG offering. Best suited to investors who understand and accept the active management trade-off. *This review is general information only and does not constitute personalised financial advice.*