Stepping Stones is changing

Posted by Generate Contributor in Kiwisaver on

Our Stepping Stones and Stepping Stones Growth options invest your Generate KiwiSaver savings based on your age. The investment strategies for these options are changing on 16 May 2022.

Why are these changing and how it will impact members?

We're launching three new KiwiSaver funds; from 16 May 2022 we'll offer the following six funds:

  • KiwiSaver Focused Growth Fund
  • KiwiSaver Growth Fund
  • KiwiSaver Balanced Fund
  • KiwiSaver Moderate Fund*
  • KiwiSaver Conservative Fund*
  • KiwiSaver Defensive Fund

*Note that the Conservative Fund is being renamed as 'Moderate Fund'. And the 'Conservative Fund' that launches on 16 May 2022, will be a new fund.

For more details on these funds including their investment mix and risk profile, click here.

Launching new funds has given us the opportunity to reassess the investment strategy for our Stepping Stones KiwiSaver options. We are changing the investment strategy for these options to be more growth-orientated up until retirement. Generally speaking and depending on your attitude to risk, the longer you have until retirement, the more growth assets you should consider holding.


How are they changing?

We’re making these investment options more growth-oriented, by increasing the percentage of 'growth assets' the options invest in up until our member's reach retirement.

Increasing the investment in growth assets means Stepping Stones members have the potential to earn higher returns over the long-term, however it also increases their risk, as growth assets are more susceptible to market fluctuations - so these members might see more ups and downs along the way.

We'll also be updating the fees across many of the age groups for Stepping Stones. Over a lifetime, these fees work out lower than our current fees.

See below a comparison showing how our Stepping Stones options are changing:

Old Stepping Stones Investment Strategy

OLD SS.jpg

New Stepping Stones Investment Strategy

NEW SS.jpg



Old Stepping Stones Growth Investment Strategy

OLD SSG.jpg

New Stepping Stones Growth Investment Strategy

NEW SSG.jpg



What do current Stepping Stones members need to do?

If you’re currently a member or our Stepping Stones or Stepping Stones Growth KiwiSaver options, your investment strategy will be updated as per the tables above from 16 May 2022.

If you would prefer to change your level of risk, you can choose to invest in one (or a combination) of our six KiwiSaver funds. You will be able to switch to one of these funds from 16 May 2022 either in your Generate Online Account or by contacting us.

Need help?

Now may be a good time to review your KiwiSaver investment strategy with your adviser.
Or if you have any queries feel free to give us a call on 0800 855 322 or email info@generatewealth.co.nz



Disclaimers:
Fees estimate for the year ahead. Annual fund charges for the fund are made up of: the management fee; the supervisor fee; other administration charges.

No part of this blog is intended as financial advice; it is intended as general information only. To see our Financial Advice Disclosure Statement, please see Generate FAP Disclosure Statement. For more information about the Generate KiwiSaver Scheme please refer to the Generate KiwiSaver Scheme Product Disclosure Statement. For more information about the Generate Focused Growth Trust please refer to the Generate Unit Trust Scheme Product Disclosure Statement or the fund updates.

Note these Product Disclosure Statements relate to the existing funds and will be changing on 16 May 2022 to reflect the introduction of our new funds.

The issuer of both schemes is Generate Investment Management Limited and the Product Disclosure Statements are available at generatewealth.co.nz/pds. Past performance is not indicative of future performance.