What is active management of my investments and why does Generate do it?
We believe that international investment markets are not perfect. Too often human nature, including fear and greed, will drive investment decisions. This creates a market where someone may want to buy or sell assets at a price below or above their fair value. Active management aims to take advantage of those situations.
Active managers rely on analytical research, forecasts, and their own judgment and experience in making investment decisions on what securities to buy, hold and sell. The opposite of active management is called passive management, better known as "indexing", where an investor simply buys a proportion of all the shares in an index, like the NZX50, and will receive the same return as the market.
We have identified market-leading investment managers who have all fashioned outstanding track records over a long period of time. We invest in funds that have substantial funds under management and are run by well-resourced teams of investment managers and research analysts located around the world. Importantly, some of our managers seek positive returns from rising and falling asset prices. After all, the Global Financial Crisis was a timely reminder that asset prices don’t always go up in value.
All investments have different levels of risk. For information on the risks see the Generate KiwiSaver Product Disclosure Statement.