KIWISAVER: HOW ACTIVE IS YOUR SCHEME PROVIDER?
Is your KiwiSaver account balance growing? The answer for most people is “yes”. But is that enough? It’s the smart decisions you make now that matter most in the long run.
One of the other benefits of active management is that managers can choose socially responsible investments.
That’s why Kiwis need to look at what their scheme provider is doing behind the scenes, and whether it ’s working hard for its members, says Paul Huxford, Chief Investment Officer at ANZ Investments. The difference between a good and a great KiwiSaver scheme can be significant. An additional 1% annual return for a 22-year- old earning $45,000 and contributing 3% of income matched by the employer could boost their KiwiSaver account balance by $100,000 come retirement.
ACTIVE AND RESPONSIBLE
Ask yourself, is your scheme provider actively choosing investments for your KiwiSaver account? This is called “active management” and involves hand-picking investments which it believes are best placed to succeed in the future. It ’s the approach that ANZ Investments favours. An active manager never stops following the markets and working for you. One of the other benefits of active management is that managers can choose socially responsible investments. “At ANZ Investments we have signed up to the United Nations Principles for Responsible Investment and there are investments we simply don’t want to own,” says Huxford. “That includes companies involved in the manufacture of tobacco and controversial weapons, such as cluster bombs and landmines.” Picking quality investments that can provide solid growth over the long run is important for ANZ Investments, says Huxford. “We go for investments with a strong track record, which our managers believe have good future prospects. And we don’t speculate when buying or selling investments just to make a quick buck.”
INVEST WITH THE EXPERTS
KiwiSaver members should find out more about the investment teams that manage their money, says Huxford. Is it just a handful of people? ANZ Investments has one of the largest investment teams in New Zealand. “We have 38 hard-working investment professionals, split into dedicated teams. Of those, nine have passed the highly sought af ter Chartered Financial Analyst qualifications and more are studying for them. “ANZ does this really well,” says Huxford. “It gives us great emerging talent.” In addition, ANZ Investments has partnered with some of the world’s leading investment managers to invest in some of the best international companies and manage the offshore portion of members’ money. “We accept that it ’s difficult from our offices in New Zealand to research the entire universe of companies ourselves,” says Huxford. “That’s why we’ve chosen managers who have true global reach. “It ’s not just ANZ Investments beating its own drum. Global investment research company Morningstar said that ‘ANZ Investments continues to lead the way in multi-asset investing.’ (Investing in a combination of assets such as cash, equities and bonds.) There’s a continuity of people and process no one else in New Zealand can match.”¹
TAKE CONTROL
Putting your money into a KiwiSaver scheme is more than simply saving. It should be investing your money to make sure it is working every bit as hard as you do, now and in the future. ANZ makes it easier for you to do this online with ANZ Internet Banking and through its mobile banking app ANZ goMoney, both of which allow you to easily track and manage your KiwiSaver account.