How Managed Funds work
Generate Managed Funds make investing simple and easy. You get all the benefits of a professionally managed investment portfolio, as our team of qualified, expert fund managers actively manage your investment for you.
How do Managed Funds work?
When you join a Managed Fund you buy ‘units’ in the fund. Each unit represents a share of 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 increases or decreases. 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.
When can you withdraw your money?
You are free to access your money whenever it suits you. This flexibility is one of the benefits of Managed Funds. There is a $500 minimum for lump-sum withdrawals, or you can choose to make regular withdrawals either 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.
What are the risks?
Generate offers three Managed Funds which each have different levels of risk.
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 Generate Unit Trust Scheme (Managed Funds) Product Disclosure Statement
We recommend talking to an adviser before selecting a Managed Fund, to make sure you choose one that suits your savings goals, investment timeframe and risk appetite. 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.
What do you need to start investing with Generate?
Opening a Generate Managed Funds account is relatively easy. You can invest on your own, open a joint account with someone else, or for larger investments you can open an account on behalf of a trust, company or estate.
Anyone under 18 years will need a parent or legal guardian to approve the application. See more details below.
For individual or joint accounts
- Minimum of $1,000 to get started
- $100 for any subsequent lump sum investments
What do you need to apply?
- Photo ID
- Proof of address
- IRD number
- Prescribed Investor Rate (PIR)
- Proof of bank account
To apply for an individual or joint Managed Funds account use the button below and start the application online.
This includes Managed Funds accounts set up for trusts, companies, estates, charities, incorporated societies or associations, etc.
- $25,000 minimum initial investment
- $100 for each subsequent lump sum investment
To apply for a Managed Funds account you will need to download an application form and post us a physical copy, with the required supporting information. Use the button below to find the application form right for your situation.