Generate Results An Opportunity To Reflect On 10 Years Of Kiwis Helping Kiwis

A decade after its launch, award-winning KiwiSaver provider, Generate, has published category leading long-term returns for its members across three flagship KiwiSaver funds. Focusing on providing easy to understand KiwiSaver advice, and active management to drive fund performance, the New Zealand owned KiwiSaver provider is proving that a boutique company can make a big impact and take on the big Aussie banks.

Generate’s Focused Growth and Moderate funds both ranked first for returns over 10 years in their respective categories, and their Growth fund ranked second for 10-year returns in the Growth category. These results demonstrate how a purpose-driven approach can deliver for kiwisavers.

Generate CEO, Henry Tongue, says its 10-year results, coupled with the company’s continued growth, validates its ethos and commitment to investing for the long-term and empowering Kiwis to make smart decisions regarding their KiwiSaver savings.

“When Generate first started, one of our key objectives was to educate Kiwis about making the most of their retirement savings,” says Mr Tongue. “We’re thrilled that 10 years on, we have over 81% of our members' funds in growth funds, versus the market average of 47%. That reflects the success of our strategy, and should make a significant improvement to our members’ retirement.”

In the last 10 years to 30 June 2023, Generate’s Focused Growth Fund has created returns of 9.4% p.a. for its members, outperforming other similar aggressive investment schemes which average an 8.7% return.

Other top performing funds include the Moderate Fund which was first in its category for the 10-year return in the Morningstar KiwiSaver Quarterly Report returning 5.5% p.a. in the 10 years to 30 June 2023. The Growth Fund is another notable winner, returning 8.7% to members p.a.

“It’s likely that those in a growth fund will be materially better off at retirement than those who remain in default balanced funds or more conservative funds over the long-term. Awareness of that relies on having the kind of access to information and advice that Generate offers through our extensive adviser network,” explains Mr Tongue.

“Over the years, our nationwide network of advisers has supported New Zealanders in choosing the appropriate KiwiSaver fund for their savings goals and the right contribution rate, meaning that many of our members have chosen growth focused funds, like our Focused Growth Fund.”

While over the decade delivery of fund performance for members has been and remains the key goal, Generate looks for opportunities to make impact investments that make a difference for communities, such as social housing developments and New Zealand Air Ambulance, via a material shareholding in the parent company.

Since 2020, the company has invested over $45 million into warm, affordable housing for New Zealanders with partners including the Salvation Army and Brightlight. With over 150 homes built through Generate’s investments, the company is able to support New Zealanders, while providing fair market investment returns to their KiwiSaver members.

“Our 10-year results are an opportunity for us to reflect on 10 years of Kiwis helping Kiwis. We’re proud to have table-topping KiwiSaver funds, and know that the impact of some of our investments reaches not just our members, but also communities around New Zealand.”

Source: Morningstar KiwiSaver Survey June Quarter End 2023. The Generate Focused Growth Fund returns ranked 1st out of 7 NZ Multi Sector Aggressive Category Funds, the Generate Growth Fund ranked 2nd out of 13 NZ Multi Sector Growth Category Funds and the Generate Moderate Fund ranked 1st out of 12 NZ Multi Sector Moderate Category Funds, for a period of 10 years as of 30/06/2023. © 2023 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 in New Zealand.

Past performance does not guarantee future returns. Investment involves risk and returns can be negative as well as positive. See PDS and advertising disclosures at generatewealth.co.nz/advertising-disclosures. The issuer is Generate Investment Management Ltd.

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