How Managed Funds work

Managed Funds make investing simple and easy.

With Generate Managed Funds, you get all the benefits of a professionally managed investment portfolio. You don’t have to pick individual stocks or follow the market – our team of qualified, expert fund managers take care of all that, actively managing your funds and constantly re-evaluating investments with the goal of producing superior returns.

So, how do Managed Funds work?

When you join a Managed Fund you buy ‘units’ in the fund. Each unit represents a share in the overall value of the fund. The unit price on any given day is how you know what your share of the fund is worth.

Your money is pooled with all the other money in the fund and invested by our team of expert fund managers in local and international markets.

The value of units in a Managed Fund changes as the value of the financial assets it is invested in increase or decrease. The difference between the unit price when you contribute to the fund and the unit price when you withdraw from it is your investment return.

This makes Managed Funds easy to get into, and easy to move out of again.

When can you withdraw your money?

You are free to access your money whenever it suits you. This flexibility is one of the best things about Managed Funds. There is a $500 minimum for lump-sum withdrawals, or you can choose to make regular withdrawals weekly, fortnightly or monthly of at least $100.

We generally process withdrawals on the next business day after the withdrawal form has been accepted, using the closing unit price of that day. However, up to 10 days’ notice may be required for a large withdrawal.

What’s the difference between Managed Funds and KiwiSaver?

Managed Funds are very similar to KiwiSaver funds, but the big difference is accessibility. Your KiwiSaver savings are typically locked away until retirement, or when you are buying a first home. Managed Funds have no such restrictions, so you can access your money at any time.

Managed Funds are not eligible for KiwiSaver benefits such as the annual government contribution, employee contribution or First Home Grant.

Who can invest in Managed Funds?

Anyone can invest in our Managed Funds. You can invest on your own, with someone else, or as a trust, company or partnership.

Anyone under 18 will need a parent or legal guardian to approve the application.

How easy is it to invest?

Super-easy. Individuals or joint account holders just need a minimum of $1,000 to get started, and $100 for any subsequent lump sum investments. 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.

You can apply online for an individual or joint account here. Just make sure you have the necessary information on hand, such as photo ID, proof of address, IRD number and bank details. The complex account application can be downloaded here. If you happen to miss anything, a member of our friendly Client Relationship team will get in touch with you.

Common FAQ’s:

What’s a PIR?
PIR means ‘Prescribed Investor Rate’. This is the Tax rate used to calculate how much tax you’ll pay on the income (dividends) you earn from your investment. You’ll need to know your PIR for your application. You can calculate your PIR here.

How can you invest, and how often?
You can invest as often as you like, whenever you like. You can invest a lump sum, or make a regular investment by direct debit or bank transfer. See details here

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

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

What are the risks?
We offer three Managed Funds with a range of risk profiles according to your savings goals, age and needs. Contact us to talk to an adviser for more information. It’s important to remember that every investment has risks, and the value of your investment can rise and fall, and investments in managed funds are not guaranteed.

Managed funds in New Zealand are required to 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. The risk indicator for each of the Generate funds is included in the Product Disclosure Statement.

More information is in the Product Disclosure Statement found here.

Ready to start investing? Or still want to know some more?

We’re here to help and happy to chat. Simply contact us or call 0800 855 322 – we will answer any questions you have and provide any further information you need.