The FirstChoice KiwiSaver Scheme is designed to offer a range of investment options to help New Zealanders achieve their retirement goals. You have the assurance of knowing the FirstChoice KiwiSaver Scheme is managed by ASB Group Investments, a recognised expert in retirement savings, and is also available through ASB and Sovereign, known and trusted names in providing financial services.
Choose from ten Investment Funds
FirstChoice KiwiSaver has ten funds that are open to investment, each with a distinct risk/return profile. Seven of the ten Investment Funds invest in a pre-set mix of asset classes including cash, fixed interest, property and shares (Diversified Investment Funds). The other three Investment Funds invest in single asset classes (Single Sector Investment Funds). The Investment Fund you choose will depend on your return expectations, risk appetite, levels of investment confidence, investment timeframe and preferred investment management style. Click here to view the FirstChoice KiwiSaver Investment Funds.
How are the Investment Funds managed?
The Investment Funds offered under FirstChoice KiwiSaver offer two distinct investment management styles - index-tracking and active management. Investors may choose to invest in Investment Funds using either index-tracking or active management styles, or a mixture of both. In addition, the Global Sustainability Fund has been introduced as part of ASB Group Investments' Responsible Investment Policy.
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:
- Index-tracking Investment Funds give investors confidence that they will get a return similar to the market that their funds are invested in.
- 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 about diversification?
Another important consideration is diversification. This is the word used to describe the way investments are spread out among different asset classes such as cash, fixed interest, shares and property. Seven of the Investment Funds invest in more than one asset class so that overall returns are not determined by one particular market's performance. This is a good idea because different markets perform best at different times. For example the share market may perform well at one time, but the property market may perform better at another.
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).
