- How we invest
How we invest
Our over-arching investment goal is to maximise investment returns over the long-term so our members can enjoy a better future. We don’t settle for run-of-the-mill returns. We aspire to have the best performing funds in the market.
We are active managers
Our general philosophy is that markets are not efficient and that an actively managed portfolio of diversified assets can exploit these inefficiencies. We continuously seek out high-quality investment opportunities across a range of asset classes, and strategies, and adjust our exposures as conditions evolve.
At Generate, we don't have one house view on the best way to invest. Instead, we hire experienced investment professionals with different investment approaches. We do this because no investment approach works in all market environments.
There'll be times in the market cycle when an investment approach works well and times when it struggles. By combining a number of different approaches within our diversified funds, we aim to smooth out some market volatility.
Here are just some of the types of companies we've invested in. Please note, due to our active management, we may not always be invested in these companies.
Responsible investment
We incorporate environmental, social and governance issues (ESG) into investment analysis and decision-making processes. We believe that this is not only the right thing to do but will lead to enhanced risk-adjusted returns over the long term. We actively avoid various sectors that do not align with our values. These include companies involved in the manufacture of tobacco, anti-personnel mines and the processing of whale meat.
Read more about our Responsible Investing policy here.
We are leaders in the sector
Our three original Generate KiwiSaver Scheme funds have been market leaders for their long-term returns. Our Generate KiwiSaver Scheme Moderate, Growth and Focused Growth Funds have been one of the top three performing funds for 10-year returns within their sector every year since their 10-year anniversary (1).
See more about our Generate KiwiSaver Scheme fund performance here.
We're proud to be a leader amongst KiwiSaver providers in the NZ venture capital space with our investments, through Movac and Icehouse Ventures, into high-growth New Zealand companies.
Generate's investment makes a difference to ordinary Kiwis
We're proud to say that Generate was the first KiwiSaver provider to invest into social housing, and since then we have made several more impact investments.
Since 2020, Generate has invested over $45 million into affordable housing for New Zealanders, contributing to the financing of 192 homes. Our partners include Community Finance, the Salvation Army and Brightlight.
Our investment managers
Our team of experienced portfolio managers and analysts look after our members’ investments. It is a responsibility we do not take lightly. With over 90% of our investments managed in-house, we can keep fees lower for our members.
The wider Generate investment team has many years of financial markets experience, with the team having worked for companies such as Goldman Sachs, JP Morgan, and Macquarie Group in locations such as London, Hong Kong and Sydney.
Alignment in investing is important. We invest alongside our investors in our funds and most of the investment team are shareholders in the parent company.
Meet our Investment Team here.
Disclaimers