NZ Funds launches new options

NZ Funds says its new suite of KiwiSaver-esque funds are designed to be used in conjunction with a financial advice process to help investors hit their goals.

Friday, November 22nd 2019, 5:00AM

It is launching a new WealthBuilder range next week which offers similar funds to its KiwiSaver offering, but comes without the rules of the retirement savings scheme.

It includes an income strategy, inflation strategy and growth strategy fund. The fees are in line with those charged by KiwiSaver, ranging up to 1.65%. Investors can invest direct but there is no additional fee in using a financial adviser.

NZ Funds said the funds were designed for individuals or joint investors saving for retirement or other specific goals.

“WealthBuilder offers two ways to invest, using either SelfSelect or LifeCycle. SelfSelect offers an investor the ability to determine their own asset allocation using the three WealthBuilder Portfolios: Income, Inflation and Growth. LifeCycle automatically allocates a client's investment across the three WealthBuilder Portfolios each year based on their age. It is designed to ensure that a client's asset allocation is consistent with their investment timeframe at all times.”

In its statement of investment policy and objectives, NZ Funds said its approach to wealth management was to try to provide investors with a strategy to achieve their goals, and regular access to financial advisers to help make informed decisions.

“Our objective is for investors to hold local and international diversified portfolios with downside mitigation through use of specialist investment managers and our active management approach, which seeks to maintain a balance between preserving an investor's capital and growing their wealth in a manner consistent with each Portfolio’s objective.

"Our active management approach also seeks to ensure that over the economic cycle, investors are exposed to both active and passively managed investments and that their capital is diversified across New Zealand and international investment markets.”

NZ Funds said it strongly encouraged investors to work with a financial adviser to develop a financial plan and approach specific to their goals.

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