How the Unit Trust Works

What is the Generate Unit Trust Scheme?

The Generate Unit Trust Scheme is a Managed Investment Scheme. The Scheme is structured as a unitised trust, governed by a trust deed which appointed Generate as Manager and Public Trust as Supervisor. The Scheme currently offers one fund for you to invest in, the Generate Focused Growth Trust (the Trust).

The money you invest is used to buy units in the Trust. A unit represents a share in the overall value of the Trust and has a unit price so that you know what your share of the Trust is worth. The value of units in the Trust will change as the assets of the Trust increase and decrease in value. The difference between the unit price when you contribute to the Scheme and when you withdraw from the Scheme is your investment return.

Where is my money invested?

The Trust aims to provide a higher growth investment return over the long term through investment in nearly all growth assets. The Trust’s portfolio is actively managed and can include cash, fixed interest, property and infrastructure assets, Australasian equities and international equities.

Who can invest?

No matter what stage of life you are at, anyone can invest in the Trust. You can invest as an individual, as part of a joint application or as a minor. Or you could be a trust, company or partnership.

If you are applying for and on behalf of a minor (under 18 years) a parent or legal guardian will need to approve the application.

How easy is it to invest?

You can apply online at generatewealth.co.nz/join. Make sure to follow the instructions and have the necessary information on hand. Alternatively, you can fill out the application form at the back of the PDS. For applicants who are under 18 years of age, one parent must sign the application form.

How can I invest?

You can invest any time by making a lump sum or regular investment by direct credit, bank transfer, direct debit or cheque.

Initial and lump sum investments 

The minimum initial investment for individuals or joint account holders is $2,000, and $100 for each subsequent lump sum investment.

For non-individuals (trusts, partnerships, companies, estates, charities, incorporated societies or associations) the minimum initial investment is $25,000, and $100 for each subsequent lump sum investment.

Regular investments 

The minimum regular investment is $100.

What are my risks?

It's important to remember that every investment has risks and the value of your investment can rise and fall. Investments in the Unit Trust are not guaranteed.

Managed funds in New Zealand must have a standard risk indicator.  The risk indicator is designed to help investors understand the uncertainties both for loss and growth that may affect their investment. 

More information on the above questions can be found in the Product Disclosure Statement found here