Unit Prices as at 30 November 2016 ($)
Conservative 1.2071 Growth 1.2936 Focused Growth 1.2964 |
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Funds under Management as at 30 November 2016: $323.2 million |
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In other news Fee debate welcomedPerils of the passive strategy SuperRatings Releases 2017 Kiwisaver Ratings |
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Your online account Remember you can see your balance, transactions and returns on your savings via your Generate KiwiSaver Scheme online account. To access it click on “Member Login” at the top of our home page. Should you need to reset your log-in details please click on “Forgot your password/username” and follow the simple instructions. If you have been locked out just email us at info@generatekiwisaver.co.nzand we will unlock it for you as soon as possible.For all the latest KiwiSaver and Generate news and to stay in touch with us, please like us on Facebook and connect with us on Linkedin! |
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Contact Us If you have any questions after reading your newsletter, give us a call on 0800 855 322 or email us at info@generatekiwisaver.co.nz and we would be more than happy to help.We thank you for your support. The Generate Team |
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Disclaimer The Generate KiwiSaver Scheme Member Newsletter has been prepared by Generate Investment Management Limited. It is based on information believed to be accurate and reliable although no guarantee can be given that this is the case. Clients, directors or employees of Generate Investment Management Limited may have an interest or holding in companies and securities mentioned in the newsletter. No part of the newsletter is intended as financial advice. For more information about the Scheme please refer to the Generate KiwiSaver Scheme Product Disclosure Statement. |
Welcome to the December edition of the Generate KiwiSaver Scheme Newsletter.
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Performance of Our FundsReturns to 30 November 2016 (after fees and before tax).
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The month that was…November was a strong month for global equities although the New Zealand share market underperformed for the third month in a row. More on this later. |
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Warren Buffett WisdomsAfter 50 years at the helm of Berkshire Hathaway (which is typically one of our largest investments for both of our growth funds) Warren Buffett has become widely regarded as the world’s greatest investor. In his annual letters to shareholders, and in various interviews he has given, he has shared many of the lessons he has learned during his career. This month:“I bought a slot machine a long time ago and put it on the 3rd floor of my house. I could then give my children any allowance they wanted, as long as it was in dimes, and I’d have it all back by nightfall. I wanted to teach them a good lesson. My slot machine had a terrible payout ratio, by the way.” It is probably of little surprise that the ‘Oracle of Omaha’ handed out many financial lessons to his three children when they were growing up. We think this one was a gem. |
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What's New in KiwiSaverIf you haven’t already tried the new Generate online member area we would encourage you to give it a go. We are getting very positive feedback from new members who log in and experience all the functionality - especially compared to what they were used to seeing on their internet banking apps. Our functionality allows you to see your balance, the breakdown of contributions and performance, your transactions history and to switch between our funds with the click of a button. Importantly we also provide a full breakdown of all your direct investments so you can see exactly what your KiwiSaver account is invested in, or more importantly for some - what it is not invested in! |
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Investing 101DerivativesA derivative is a security that has its value ‘derived’ from a separate underlying asset. Its value changes with price fluctuations in the underlying asset. The most common underlying assets include shares, bonds, commodities, currencies, interest rates and market indices. However, derivatives do not have to be based on financial assets. For example, there are derivatives based on weather data, such as the amount of rainfall over a period of time in a particular region. A derivative is a contract typically between two parties. When the value of the underlying asset goes up one party benefits at the expense of the other; when it falls the other party gains. Derivatives can be used for hedging, or insuring against risk on an asset. For example, at Generate we use foreign exchange forward (derivative) contracts to partially hedge our offshore investments from movements in the underlying currencies. Derivatives can also be used for speculation or betting on the future price of an asset. Derivatives play a large part in financial markets. Earlier in the year the Bank for International Settlements calculated the total notional value of derivatives contracts around the world to be an astounding USD544 trillion dollars. |
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Top Holdings as of 30 November 2016
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International Equities Manager SpotlightPolar Capital Technology TrustPolar Capital Technology Trust Plc (PCT) aims to maximise capital growth for shareholders through investing in a diversified portfolio of technology companies around the world. Managed by a team of dedicated technology specialists, PCT has grown to become a leading European investor with a multi-cycle track record. PCT believes that “we’re in the midst of a new technology cycle, driven by cloud computing, internet applications and mobility.” The Company seeks to capitalise on such cycles, by gaining exposure to exciting emerging themes and harnessing potential returns through investing in companies believed to have the highest growth potential from across the global technology spectrum. As at 30 September 2016 PCT managed GBP1,087 million of total net assets and had returned an average of 20.1% p.a over the last 5 years (in GBP). Next month: Jupiter European Opportunities Trust Plc. The Generate member newsletter is taking a break in January - returning in February. We wish you a happy and safe holiday season. |
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