The Generate KiwiSaver Conservative Fund has been issued a “3 IP” rating by Research IP, with a score of 3.12/5.
The Generate KiwiSaver Scheme Conservative Fund (“the Fund”) is actively managed and includes cash, fixed interest, property and infrastructure assets, Australasian equities and international equities.
Volatility is likely to be the lowest of the funds. Long-term returns are likely to be lowest of the funds due to the lowest weighting of growth assets.
What is the Fund’s competitive advantage?
Qualitative Research Report and Data Tear Sheet
Research IP says
“At present the coverage across the Manager’s funds is manageable though as the size of funds under management grow the investment team will need to expand. Naturally this will be a challenge, though Research IP believes the Manager is well-equipped to grow the team when needed. Recent hires in risk and compliance have demonstrated the ability of the Manager to attract experienced professionals in the New Zealand market.“
“The international equity allocation has a growth bias through the Manager’s allocation to stocks like Tencent, Facebook, Alphabet, and Alibaba. Unlike the Manager’s other KiwiSaver funds, this Fund does not allocate to external fund managers.“
“Research IP believe staff equity ownership of the Manager is evidence of a strong alignment of interest with investors. Research IP highlights that each of the key individuals accountable for the management of this Fund are shareholders.“
“Research IP commends specific actions taken by the Manager in implementing the responsible investment policy to date. The following examples demonstrate the active approach applied by the Manager:
– Signatory to a collaborative engagement to encourage Facebook, Alphabet and Twitter to strengthen controls to prevent the livestreaming and dissemination of objectionable content.
– Significant investment in a community bond where proceeds will be used for specific public housing projects.”
Research IP, 30 August 2021
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Disclaimer, Disclosures and Warnings
Research IP strongly recommends this document and report be read in conjunction with the relevant Product Disclosure Statement. Research IP gives no warranty of accuracy or completeness of information in this document. Any information, opinions, views or recommendations are general information only and do not take into consideration any person’s particular financial situation or goals and therefore does not constitute financial advice. This document should not be relied upon as a substitute for financial advice from your financial adviser.
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