Q. Why is Simplicity setting up InfraKiwi?

A. New Zealand faces a significant infrastructure deficit, and we believe Kiwi investment can help fill it. InfraKiwi has been established to create a long-term locally owned infrastructure company that we hope will be ultimately owned by New Zealanders, for New Zealanders.

It’s envisioned as a trusted steward of essential national assets, partnering with councils, government, and other asset owners, and harnessing the collective strength of KiwiSaver scheme and domestic investor capital to improve and benefit from the infrastructure we already rely on.

Q. How is InfraKiwi funded?

A. Any investment from Simplicity’s KiwiSaver or Investment Funds schemes will only occur after approval from our Supervisor, Public Trust, and in line with their investment mandates. It is our intention that InfraKiwi will initially be seeded with private equity investment sourced from Simplicity’s KiwiSaver and Investment Fund schemes’ Growth and High Growth Funds. We may then seek to expand our investment to include an allocation to unlisted infrastructure to fund further expansion.

The plan is for InfraKiwi to buy existing or newly built New Zealand infrastructure assets. Once InfraKiwi achieves sufficient scale, the intention is to seek a listing on the NZ Stock Exchange. Following any future listing, the company will also aim to meet the criteria for inclusion in a S&P/NZX index. At that stage, the Simplicity KiwiSaver and Investment Funds schemes would likely add InfraKiwi to their exposure to the NZ share portfolio.

At this early stage in InfraKiwi’s development there is no current investment in InfraKiwi by our schemes - if and when that happens it will be properly approved and disclosed to investors through our schemes’ Statement of Investment Policy and Objectives documents (SIPOs) which will include the nature and objectives of the investment, including any risks involved. 

Q. Why do you want InfraKiwi to be a listed company?

A. If InfraKiwi is listed on the NZX, it would allow all KiwiSaver schemes, Iwi and other New Zealanders to buy shares and have a stake in a company that operates some of the local infrastructure they rely on and use every day. 

A listing on the NZX would also provide liquidity, price transparency, and potential index inclusion for InfraKiwi shares  - meaning many Kiwis could have a stake in InfraKiwi through KiwiSaver and other investments that track NZ equity market indices.

Q. What does InfraKiwi want to buy and own?

A. InfraKiwi will focus on essential New Zealand infrastructure — energy, water, transport, data, and social assets such as schools and hospitals, prioritising operational excellence and long-term stewardship over short-term financial engineering.

Q. How will InfraKiwi’s purpose be protected?

A. InfraKiwi’s constitution will include a ‘Golden Share’ which will be held by a special purpose trust to safeguard its long-term structure and purpose, ensuring it remains New Zealand-owned and that its mission remains intact.

Q. How will InfraKiwi deliver value to shareholders?

A. As a long-term owner and operator of established assets, InfraKiwi’s goal will be to generate steady, inflation-linked income streams and pay regular dividends to shareholders. Assuming its shares are listed, its share price will fluctuate with market conditions.

Q. How much money will Simplicity invest?

A. InfraKiwi is currently owned and being developed by Simplicity Investment Management Limited. To scale up, InfraKiwi will need to identify suitable assets, and agree valuations and terms with asset owners. Any future investment by our schemes into InfraKiwi will be subject to our scheme investment mandates, any change to which requires approval from our Supervisor, Public Trust, and disclosure to investors.

Q. Why will InfraKiwi only have New Zealand owners?

A. Two principal reasons. First, we think the current owners of infrastructure assets, who tend to be public entities, will only consider selling these assets to a New Zealand owned company in order to ensure that they remain under local stewardship.

And second, we believe that savings in KiwiSaver schemes and other investment vehicles will scale up over time and be capable of investing to fund InfraKiwi’s growth. Our economists estimate that if KiwiSaver managers kept 30% of their schemes’ investments in New Zealand, these schemes would have up to another $295 billion to invest domestically by 2050. We believe infrastructure-related investments are one of a very few asset classes that can productively absorb investments at this scale.

Q. What is different about InfraKiwi compared to other infrastructure investment options, like Infratil?

A. InfraKiwi is different because it’s designed for long-term ownership and stewardship of established infrastructure — not short-term trading or development. Its focus will be on operating essential New Zealand assets efficiently and sustainably, aiming to generate consistent cash flows and provide reliable dividends to its shareholders. Unlike more commercially driven companies, InfraKiwi will prioritise stable, enduring value over financial engineering or speculative growth.

The intention is that InfraKiwi won’t have exposure to the risks and gains associated with developing new assets, but it may acquire assets at completion with a view to operating them for the long term. We think its shares may well be a counter-cyclical investment as infrastructure companies tend to generate reliable returns across economic or business cycles.

Q. Why are you announcing this now?

A. InfraKiwi is currently a private company, owned and incubated by Simplicity Investment Management Limited, our wholesale fund manager. We’re announcing it now, before any investments are made, to begin discussions with potential partners - such as councils, central government and private developers - and to share our long-term vision for the company with our members.

Q. Who is funding InfraKiwi before it gets listed?

A. The initial set up and administration of InfraKiwi is being funded by Simplicity NZ Ltd. Our KiwiSaver and Investment Funds schemes may provide private equity funding for the company to help it get started, provided it meets our investment criteria.

Q. Is this normal overseas?

A. Yes - globally, pension and sovereign wealth funds are major long-term owners of infrastructure, recognising the stable returns and public importance of this asset class. We aim to bring that model home to New Zealand, although InfraKiwi will have characteristics that are specific to New Zealand. 

Q. Why hasn’t anyone else done this in New Zealand?

A. We can’t know for sure, but we suspect that because it is hard to buy established infrastructure assets, and because other investment alternatives have been available, no one has tried. 

Q. What is InfraKiwi’s long-term vision?

A. InfraKiwi aims to be a trusted, long-term steward of essential New Zealand infrastructure, delivering reliable services, sustainable returns, and intergenerational fairness. Its mission is to give every Kiwi a stake in some of the infrastructure they use every day.

Note: InfraKiwi is currently privately owned and in the early stages of formation - its plans may change. No money is currently being sought, and financial products cannot be acquired. Any offer of financial products will be made in accordance with the Financial Markets Conduct Act.