INDEPENDENT NEWS

Generate launches first non-KiwiSaver Fund

Published: Fri 4 Oct 2019 01:27 PM
Generate launches first non-KiwiSaver Fund
Generate has launched its first non-KiwiSaver managed fund. The Focused Growth Trust is based on its market leading KiwiSaver Focused Growth Fund which is the #1 fund in the Morningstar Aggressive Multi-sector category for both one year and five year returns to 31 August 2019.
The Morningstar category includes both KiwiSaver funds and managed funds. The Generate KiwiSaver Focused Growth Fund is 1st out 21 funds over the year with a return of 7.16% and 1st out of 17 funds over the past five years with a return of 11.67% p.a. (a sizeable 3.22% p.a. above the category average).
Sam Goldwater, Generate’s Lead Portfolio Manager, said “We are delighted to have delivered such strong (after fees) returns for our KiwiSaver members over the past five years. Although we don’t think markets will deliver such strong returns over the next five years, we will strive to maintain strong performance versus our peers”.
Generate CEO Henry Tongue said “We have had a lot of members and advisers asking us for a non-KiwiSaver version of this fund. They want a fund that invests that same way but they don’t want the money locked in until they turn 65.”
Generate has been beefing up its team of late to cope with its popularity in KiwiSaver and the launch of this Unit Trust Scheme. Andrew Bolland joined the investment team as a portfolio manager from a local fund manager and Peter Grayson has joined as Chief Operating Officer from Northern Trust in the UK.
To date, Generate has given KiwiSaver advice to nearly all their 74,000 members who have $1.6bn invested. This has resulted in 84% of members’ savings being in growth funds and only 16% in conservative funds. This compares well to the whole of KiwiSaver which has only 33% in growth funds and 38% in cash, default, conservative and fixed interest funds. Further 78% of Generate’s members got some or all of this years’ $521 annual Government KiwiSaver contribution versus 64% for the whole of KiwiSaver. These two important factors alone should materially improve the outcomes at retirement for those KiwiSaver members, and shows the value of advice.
A copy of the Generate Unit Trust Scheme and Generate KiwiSaver Scheme Product Disclosure Statements are available at www.generatewealth.co.nz. The issuer is Generate Investment Management Ltd. Past performance is not a reliable indicator of future performance. The PDS has been lodged on the Disclose Register. However, we cannot accept applications for at least the first five business days.
The Morningstar source is https://www.morningstar.com.au/Funds/FundReport/23849.
© 2019 Morningstar, Inc. All rights reserved. Neither Morningstar, its affiliates, nor the content providers guarantee the data or content contained herein to be accurate, complete or timely nor will they have any liability for its use or distribution. Any general advice or ‘class service’ have been prepared by Morningstar Australasia Pty Ltd (ABN: 95 090 665 544, AFSL: 240892) and/or Morningstar Research Ltd, subsidiaries of Morningstar, Inc, without reference to your objectives, financial situation or needs. Refer to our Financial Services Guide (FSG) for more information at www.morningstar.com.au/s/fsg.pdf. You should consider the advice in light of these matters and if applicable, the relevant Product Disclosure Statement before making any decision to invest. Our publications, ratings and products should be viewed as an additional investment resource, not as your sole source of information. To obtain advice tailored to your situation, contact a professional financial adviser.
ENDS

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