Generate launches first non-KiwiSaver Fund

Generate is no longer just a KiwiSaver manager as it has now opened a new fund.

Monday, October 7th 2019, 6:00AM

Generate has launched its first non-KiwiSaver managed fund the Focused Growth Trust, which is based on its $1.6 billion KiwiSaver Focused Growth Fund .

The KiwiSaver fund has been successful on a performance basis, but also the manager has done well supporting its members.

Generate chief executive Henry Tongue says the firm has given KiwiSaver advice to nearly all of its 74,000 members. He says 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.

More than three-quarter (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," Tongue says.

Tongue said the new fund has been launched as: “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. (See People section)

Generate's KiwiSaver scheme has been a top performer over recent years, topping the Morningstar tables in the Aggressive Multi-sector category.

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”.

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