For many New Zealanders they will be relying on KiwiSaver to provide a major part of their income in retirement and therefore it is important to make sure that the right choices have been made.
I personally have and also promote Generate KiwiSaver.
It was therefore pleasing to see that Generate was again the best performing of the 21 Growth Funds for the 2015 calendar year.
CLICK HERE to read the Morningstar Report
Key Points From The Morningstar Report
The Morningstar report stated that “volatility continued to be felt in investment markets across asset classes and geographies during the quarter, as economic developments, predominantly in China, continued to worry investors. Nonetheless, positive market returns resulted in strong performance across the KiwiSaver landscape.”
Morningstar was established in Chicago in 1984 and has grown to be a respected provider of investment analysis around the World. Morningstar Australasia is a leading provider of independent investment research which has operated in the Australian and New Zealand markets since 1999.
Why We Like The Generate KiwiSaver Offer
When you select your KiwiSaver provider you are offered choice which is good, but also it can be confusing. Unfortunately many Kiwi’s end up with a default provider or with their bank – neither which would typically be the provider of choice.
The great thing about the way KiwiSaver was set up is it is very simple to change providers.
Generate is quite a new KiwiSaver provider, but has a very experienced investment team. In the short time they have been operating they have proven themselves in many ways;
- Generate were recently voted the Investment Provider of the Year for 2015 by the Professional Advisers Association.
- The three funds that they offer have all been top performers
- Sorted.org.nz rate Generate as one of the highest KiwiSaver fund managers for service
Generate are specialists – a New Zealand owned and operated investment company focused only on providing KiwiSaver. You can CLICK HERE to get an investment statement or your adviser will provide one.
The 2015 Investment Results
The returns that you get on your KiwiSaver could make a huge difference to the amount of money that you will have in retirement.
The Morningstar report showed that the default funds the average return was 4.80% with the best of the funds producing a return of 5.40%.
As mortgage advisers (registered financial advisers) we only provide ‘general advice’ which means any advice is general and not personalised. It is also to be noted that we will not compare any KiwiSaver products, but in this case have provided the Morningstar information to illustrate past fund performance.
Generate has three funds to choose from;
Generate Conservative Fund
The 1-year return to 31st December 2015 was 8.20%
This was the top-rated fund as reported by Morningstar in the moderate category where the fund returns averaged 5.30% and the 2nd best performing fund was the ASB Moderate fund which returned 6.70% which was 1.50% less.
Generate Growth Fund
The 1-year return to 31st December 2015 was 11.60%
This was the top-rated fund as reported by Morningstar in the growth category where the fund returns averaged 8.30% and the 2nd best performing fund was the Forsyth Barr balanced fund which returned 10.90% which was 0.70% less.
Generate Focused Growth Fund
The 1-year return to 31st December 2015 was 11.90%
This was the second-rated fund as reported by Morningstar in the aggressive category where the fund returns averaged 7.90% and the best performing fund was the Forsyth Barr growth fund which returned 13.00% which was 1.10% higher.
Generate only have these three KiwiSaver funds but they also have a Life Stages option which uses a combination of the funds and is adjusted on the basis of age to ensure that it moves to a more conservative investment strategy as you get older.
Note: Past returns alone are not a good reason to choose one fund over another.
Calculate & Get Sorted
The Government have created a website which is a guide on all things about money with a lot of useful information and tools.
There is a KiwiSaver account calculator which is good for working out how much you can save and it highlights what a difference a higher return can make to your retirement savings goals.
CLICK HERE to calculate
How To Change To Generate KiwiSaver
Changing your KiwiSaver provider is very simple.
The best way is to contact us and we can either meet with you or provide you with the forms required. The forms take less than 10-minutes to complete.
Of course when you meet with one of our advisers you have the opportunity to have things fully explained too.
CLICK HERE to take a quick survey and you could WIN a $3,000 House of Travel voucher.
