KiwiSaver finally gets personal

Sam Bryden, Head of Distribution, Nikko AM

With over three million members, it’s fair to say that most New Zealanders now see KiwiSaver as integral to their retirement plan. But I also think it’s fair to say that, to-date, most schemes have lacked the investment options that cater for the diversity reflected across three-fifths of our total population.

Comprising members of all ages, life-stages, professions, personal situations and incomes, KiwiSaver can’t effectively operate as a one-size-fits-all investment scheme. This is something many of you have been pointing out for some time now as you’ve been calling for greater innovation and flexibility. We agree with you that it’s important that the diversity of its participants is reflected in the tailored, diversified solutions available to them. This is why we’ve taken action with a significant enhancement of our product.

Our new GoalsGetter KiwiSaver scheme – which has effectively replaced the Nikko AM KiwiSaver scheme – comprises a diversified mix of 18 high-calibre funds from six of New Zealand’s leading fund managers: Generate, Harbour, Milford, Pathfinder, Salt and (of course) Nikko AM. These funds have been hand-picked by our own vastly experienced investment team, with further due diligence undertaken by MyFiduciary and our own Portfolio Solutions Group based in Singapore.

By initially limiting the fund selection to these 18 high-quality funds, we’ve designed the scheme to simultaneously solve the conundrum of too little and too much choice. Through this, and an adviser-first approach, we’re now able to provide the opportunity for you to efficiently build quality diversified portfolios for your clients, with funds from managers you know and trust, weighted together in a way that matches their unique KiwiSaver profile and strategy.

Not only have we designed the new scheme around the core GoalsGetter brand tenets of knowledge, innovation, diversification and personalisation, we’ve invested heavily in the financial adviser functionality of the platform to deliver you and your clients a streamlined, fully-digital experience from onboarding to tracking performance and transacting.

For you as advisers, this includes embedding a 20bp advice and servicing fee for you within the fund fee in the PDS, with the facility to add an additional 30bp fee on top of this at your discretion.

We strongly believe the ability to provide personalised solutions through a multi-manager approach is the future of KiwiSaver. This is more than just a hunch. You only need to look to the more mature retirement scheme markets of Australia or the UK, which are multi-manager by nature, to recognise this is the way forward.

Not only do multi-manager schemes offer investment diversification, they mitigate the risk associated with exposure to a single manager. With our tailored GoalsGetter KiwiSaver scheme, we’ve embedded further risk mitigation through our manager and fund pre-selection process.

Below you’ll see a full list of the funds (and their target asset allocations as at 6th May 2024) we’ve handpicked to make it easy for you to support your personal commitment to your clients with a personalised solution for their KiwiSaver needs.

If you’re looking to future-proof your KiwiSaver business, we encourage you to get in touch with the GoalsGetter team to discuss how easy it is to become accredited to ensure your clients can benefit from the personalised, tailored solutions we all deserve.

GoalsGetter Growth Funds

• Generate Focused Growth Fund (95% Growth; 5% Income)
• Harbour Active Growth Fund (65% Growth; 30% Income; 5% Other)
• Milford Active Growth Fund (78% Growth; 22% Income)
• Nikko AM Growth Fund (78% Growth; 17% Income; 5% Other)
• Pathfinder Ethical Growth Fund (66.8% Growth; 28.2% Income; 5% Other)
• Salt Sustainable Growth Fund (80% Growth; 20% Income)

GoalsGetter Balanced Funds

• Generate Balanced Fund (60% Growth; 40% Income)
• Harbour Sustainable Impact Fund (55% Growth; 27.5% Income; 17.5% Other)
• Milford Balanced Fund (61% Growth; 39% Income)
• Nikko AM Balanced Fund (59% Growth; 36% Income; 5% Other)

GoalsGetter Conservative Funds

• Milford Conservative Fund (18% Growth; 82% Income)
• Nikko AM Conservative Fund (23% Growth; 77% Income)

GoalsGetter Other Funds

• Generate Thematic Fund (98% Growth; 2% Income)
• Nikko AM NZ Cash Fund (100% Income)
• Nikko AM Corporate Bond Fund (100% Income)
• Nikko AM SRI Equity Fund (100% Growth)
• Nikko AM Global Shares Fund (100% Growth)
• Nikko AM ARK Disruptive Innovation Fund (100% Growth)