What sort of investment is the FirstChoice KiwiSaver Scheme?
FirstChoice KiwiSaver is a registered KiwiSaver scheme under the KiwiSaver Act 2006. FirstChoice KiwiSaver allows investors to pool their savings into a selection of Investment Funds. Contributions are accepted from a number of investors and then collectively invested in specified asset classes.
Your investment in FirstChoice KiwiSaver is measured in "Units" in the various Investment Funds. Your contributions to FirstChoice KiwiSaver buy a number of Units at what is known as a "Unit Value". As the investments made by an Investment Fund rise or fall in value, so too does the value of each individual Unit.
What is index-tracking?
Index-tracking Investment Funds follow an investment style that aims to track the return of the markets in which they are invested. For example, investments in New Zealand shares track the NZX 50 Index, which is made up of New Zealand's 50 largest listed companies. This type of Investment Fund has two major benefits:
- Firstly, index-tracking Investment Funds give investors confidence that they will get a return similar to the return of the market that their funds are invested in.
- Secondly, index-tracking Investment Funds generally have lower investment management fees than actively managed Investment Funds. This is important because fees may have a big impact on returns over time.
What is active management?
An active management style means that investment managers buy and sell assets with the aim that the portfolios they construct should produce a better return than the market in the long term. Actively managed funds generally have higher fees than index-tracking funds.
What is the difference between income and growth assets?
The proportion of your Investment Fund that is invested in income assets versus growth assets determines the level of risk that investment has.
- Income assets (cash and fixed interest such as bank deposits and government bonds) are lower risk investment types that primarily generate a regular income.
- Growth assets (shares and property) are higher risk investment types that have the potential over time to increase in capital value and deliver higher returns to investors
How do I join FirstChoice KiwiSaver?
Joining FirstChoice KiwiSaver is easy. Simply go to the Join Now page to download or order a FirstChoice KiwiSaver Investment Statement and Enrolment Form.
What do I do if I want to join FirstChoice KiwiSaver but do not want to choose my investment strategy right now?
If you prefer not to choose an Investment Fund, your savings will be invested into the Tracker Conservative Fund. Even if you don't make a choice initially, you can always change your mind later and ask us to change your investment to one or more of our other Investment Funds.
Do you have a responsible Investment Fund?
The Global Sustainability Fund is ASB Group Investments' responsible investment option.
The fund invests in companies that demonstrate sustainable practices and policies, recognising that environmental, social and/or governance factors can impact a company's long-term performance.
Click here for further information about ASB Group Investments' responsible investment policy.
Disclaimer
A copy of the Investment Statement for the FirstChoice KiwiSaver Scheme ("FirstChoice KiwiSaver") is available here or by calling 0800 1ST CHOICE (0800 178 246).
