KiwiSaver funds will be one of the main sources of financial support in retirement for many Kiwis – so it’s essential to put your savings in good hands.
As the owner of a KiwiSaver account it’s down to you to choose the type of fund you invest in, but the actual management of your KiwiSaver investment falls almost exclusively to your provider. This is what’s known as a managed fund. KiwiSaver isn’t guaranteed by the government. So it is vital you choose an expert provider to protect and grow your investment.
Let’s have a closer look at how your KiwiSaver account is managed and why you should choose an expert provider for your investment.
What is a managed fund?
KiwiSaver is a managed investment fund. This means your provider pools together contributions from all of its members and selects many different types of investments with the aim of maximising returns at an appropriate level of risk. This means that your fund is professionally managed by a fund manager who aims to give you strong returns over time. The better the fund manager, the higher the chances of your investment performing better.
A managed fund pools together contributions from its members and selects many different investments with the aim of maximising returns at an appropriate level of risk.You pay for the services of your fund manager through fees. Usually the more aggressive and actively managed funds have higher fees than conservative and passive funds, as a reflection of the amount of managing each needs.
Why should you research your KiwiSaver provider options?
As with all financial products, not all KiwiSaver providers are created equally. Providers with experience of the market place and proven expertise are far more likely to enhance your investment. To put it simply, the better your provider the more your investment will grow, so it is in your interests to research and find the best provider for you.
So what does an expert provider bring to the table?
- They keep you in the loop: KiwiSaver providers are obliged to inform their clients of any changes and answer questions, but expert providers take this a step further. The best providers work hard to build trusting relationships with their clients and are always there to help you with your investment.
- They work with you towards your goals: Expert providers help you determine if you’re on track to achieve your financial goals through various communications and online tools.
- They are constantly working to get the best outcomes for their clients: Financial expertise is not a stagnant quality, it is constantly being improved and developed. The best providers are constantly reviewing their processes to create the best investment outcomes for their clients.
Not all KiwiSaver providers are created equally. Choose an expert to manage your fund.What sets Milford’s KiwiSaver Plan apart?
Milford Asset Management is an established KiwiSaver provider and has several features that set it apart from other providers:
- Active investment approach: Milford takes an active investment approach, meaning we aim to take advantage of investment opportunities as they arise and protect our investors’ capital quickly when markets are less favourable.
- Proven expertise: Milford’s excellent performance speaks for itself. With one of the largest and most globally experienced investment teams in NZ, our strong performance is confirmed by receiving the Morningstar KiwiSaver Fund Manager of the Year award in 2013, 2014, 2016 and 2018. As well as the Consumer NZ People’s Choice award for highest customer satisfaction.
- Research: Milford does it’s own research, interacting with hundreds of companies every year to identify opportunities that others may miss.
If you’re looking for true expert management of your KiwiSaver account, switch to the Milford KiwiSaver Plan today.