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While 2018 was a volatile year for KiwiSaver funds, all three Generate funds performed strongly versus the competition over the year and the past five years, according to leading investment research provider Morningstar.
Monday, February 25th 2019, 10:18AM
Lead Portfolio Manager Sam Goldwater commended the survey results, noting: “As a New Zealand owned and operated KiwiSaver specialist we are proud of these results which are measured on a net return after fees basis. This means that our members received not only great relative performance but most importantly, excellent value for money.”
Performance highlights from Morningstar’s KiwiSaver Survey Report – 31 December 2018 (released February 2019):
- Generate Focused Growth Fund ranked 1st out of 10 for 2018 and 1st out of 7 for the past five years in the Morningstar KiwiSaver Multi Sector Aggressive category.
- Generate Growth Fund ranked 3rd out of 27 for 2018 and 3rd out of 21 for the past five years in the Morningstar KiwiSaver Multi Sector Growth category.
- Generate Conservative Fund ranked 1st out of 19 for 2018 and 2nd out of 12 for the past five years in the Morningstar Multi Sector KiwiSaver Moderate category.
Generate’s strong performance, straight-forward client advice and high service levels have helped make it the fastest growing KiwiSaver scheme over the past five years*. It is currently the 10th largest by number of members and manages approximately $1.1 billion of investments for its members**. These aforementioned factors have also helped Generate to receive Gold KiwiSaver status from SuperRatings every year from 2016 to 2019^.
CEO Henry Tongue says a key part of Generate’s offering has been providing simple and effective KiwiSaver advice to everyone who joins. As a result, Generate has more members in growth funds than nearly any other scheme. With more than $500m now invested in the Focused Growth Fund and a track record of 9.3% per annum after fees over the past five years, many Generate members are significantly better off, especially if they have transferred in from a default fund.
“We have prioritised educating and empowering all our members so they can make smart financial decisions and we have followed up by providing great service and performance.”
Tongue says Generate has become known for “being good” to its KiwiSaver members.
“Ninety-six per cent of new members say we provide them with valuable information and that talking with us was an excellent use of their time,” he says. “One of the most common feedback comments we get is “why didn’t someone tell me this sooner?!”^^.
Goldwater adds that 2018 was a notably “tough year” for the global equity market with international funds vulnerable particularly in the last quarter. However, Generate continued to produce strong relative performance.
“We’re delighted for our members that our funds continued to stack up very well against their KiwiSaver peers. Our active management style and hands-on approach certainly helped us in this endeavour.”
The Generate team are experts in KiwiSaver. They would love to hear from you to help you ensure your clients are getting the most out of KiwiSaver. Please contact Carl Pheasant at [email protected].
*Based on percentage growth of members and funds under management. **Workplace Savings Quarterly KiwiSaver Survey Sep 18. ^SuperRatings does not issue, sell, guarantee or underwrite this product. Go to superratings.com.au for details of its ratings criteria. ^^Generate New Member survey up to Dec 18.
A copy of our PDS is available here. Generate Investment Management Ltd if the issuer of the Generate KiwiSaver Scheme.