Sharesies KiwiSaver adds multiple-base fund selection

When Sharesies launched its self-select KiwiSaver scheme last November, members had to choose between one of five base fund options, ranging from conservative to high
growth, and could also invest up to half their portfolio in individual company shares and ETFs. This year Milford Aggressive Fund was added and there are plans to add more, says Sharesies head of Kiwisaver Matt Macpherson.

Now customers can invest as much or as little as they like of their KiwiSaver portfolio in each base—provided they total at least 50% of their investment plan,

“It’s important we make it possible to spread contributions across multiple base funds. We’ve had lots of requests for this and we’re prioritising the features that are important to our members.”

Virtually no-one is going to say they want all six, says Machpherson who envisages customers choosing two or three. “But they may want a bit of Milford and a bit of Pathfinder. It enables more personalisation. Our whole thing is about control.”

In support, Sharesies has also upgraded its investment plan builder tool on its website. This enables a draft investment plan to be created which allows members, or those considering joining the scheme, to view the overall make-up of their portfolio, including their personalised risk score and fee estimate. The plan can be saved and revisited.

Once changes are made, members can keep track of how their KiwiSaver investments are performing in the Sharesies app which offers details such as price history, returns, fees and holdings.

“When you combine two base funds you will have a weighted average around fees. We’ve also brought in underlying ETF charges and we will be adding more over time.”

Sharesies is looking at adding other base funds, such as single sector and there will definitely be US self-select options, says Macpherson.

Of Sharesies’ 8000 KiwiSaver members, about 40% have opted to self-select covering about 10% of contributions.

Macpherson says at $110b funds under management, total KiwiSaver funds are destined to keep growing and there needs to be innovation to support this growth.

“We see so much potential, not just as a KiwiSaver offering, but this is a wealth creation opportunity for the country.”

With a membership that skews younger, the average balance is just under $30,000 across the scheme, says Macpherson.

He says Sharesies is definitely interested in partnering advisers. “We spent several months earlier this year doing some research to find out what the best member and adviser experience would be.

“We have quite a big feature roadmap and you will be likely to see us enter the adviser business next year.”

Overall Sharesies, has more than 650,000 investors across New Zealand and Australia and more than $3b in funds under management.