Generate has recently updated some of the offer documents for the Generate KiwiSaver Scheme and Generate Unit Trust Scheme (Managed Funds).
These updates include changes to the investment mix of some funds, updated risk indicators and lower annual fund charges across our Managed Funds, along with a number of other updates to ensure our documents reflect how our funds operate today.
Here’s a summary of what’s changed.
Changes to how some of our funds are invested
We’ve updated the target investment mix for some of our KiwiSaver and Managed Funds following approval from our Investment Committee.
The changes include increasing the allocation to international equities and reducing the allocation to Australasian equities in certain funds.
Notably our Focused Growth KiwiSaver Fund and Focused Growth Managed Fund will also increase their target allocation to growth assets from 95% to 98%, with a corresponding reduction in cash.
These changes reflect how our investment team believes the funds should be positioned to meet their long-term investment objectives.
We have also updated the name of the Australasian equities benchmark in our documentation to the S&P/NZX 50 Gross Index. This is a change to the name only and does not change the benchmark we use.
Updated risk indicators
Risk indicators can change over time based on how much a fund’s returns have moved up and down over the relevant period.
The following risk indicators have been updated:
- KiwiSaver Moderate Fund: 3 to 4
- KiwiSaver Australasian Fund: 5 to 4
- Australasian Managed Fund: 5 to 4
- Stepping Stones 61 to 64: 3 to 4
- Stepping Stones Growth 61 to 75: 3 to 4
A higher risk indicator means a fund has experienced greater ups and downs in returns over the period used to calculate the indicator. It does not mean we expect the fund to perform better or worse in the future.
Lower annual fund charges for our Managed Funds
We’ve made some changes to the fees associated with our Managed Funds, including removing GST from the base management fee and reflecting small changes to underlying third party fees.
Together, these changes mean annual fund charges have decreased across our Managed Funds.
Generate Managed Funds
Previous estimated annual fund charge
New estimated annual fund charge
CashPlus Managed Fund
0.46%
0.46%
Fixed Interest Managed Fund
0.83%
0.82%
Conservative Managed Fund
1.15%
1.13%
Balanced Managed Fund
1.29%
1.26%
Focused Growth Managed Fund
1.31%
1.29%
Thematic Managed Fund
1.25%
1.23%
Australasian Managed Fund
1.25%
1.23%
Global Managed Fund
1.25%
1.23%
While a number of the underlying fund base fees within our KiwiSaver scheme fees have also decreased, there is no change to the estimated annual KiwiSaver fund fees when rounded to two decimal places.
Other updates to our documents
We’ve also made a number of smaller updates to make sure our documents are accurate, consistent and up to date. These include:
- Aligning fund objectives and minimum investment timeframes where there were differences between documents.
- Updating information about the Government’s KiwiSaver contribution changes now that these have come into effect.
- Changing the term “administration fee” to “membership fee” in our Product Disclosure Statement and Other Material Information, and making it clearer that this fee is charged in addition to percentage based annual fund charges.
- Adding further information about how unlisted private assets are valued.
- Increasing the period for which certified identity documents can be accepted from three months to 12 months.
Where can I find the updated documents?
You can find the latest versions of our Product Disclosure Statements, Statements of Investment Policy and Objectives, and Other Material Information documents here:
KiwiSaver
Product Disclosure Statement
Statement of Investment Policy and Objectives
Other Material Information
Managed Funds
Product Disclosure Statement
Statement of Investment Policy and Objectives
Other Material Information
If you have any questions about what these changes mean for your investment, please get in touch with our team.