The Generate KiwiSaver Growth Fund has retained its “3 IP” rating by Research IP, with a score of 3.30/5.
The Generate KiwiSaver Scheme Growth Fund is actively managed and includes invests in an actively managed diversified portfolio of proven externally managed funds, international equities, property and infrastructure assets, Australasian equities and cash. Volatility is likely to be higher than the Moderate Fund but lower than the Focused Growth Fund. Long-term returns are likely to be higher than the Moderate Fund but lower than the Focused Growth Fund due to its weighting of growth assets.
What is the Fund’s competitive advantage?
Qualitative Research Report and Data Tear Sheet
Research IP says
“The Manager is more benchmark aware following the internal launch of the wholesale feeder funds into this strategy. There is more scrutiny on the contribution of these funds measured against the relevant fund benchmarks.”
“Within the equity allocation to Australasian equities (including property and infrastructure) the bias will consist of earnings quality and yield factors. The Manager takes an active approach, so stock selection will drive a significant portion of the Fund’s performance over the long-term.“
“The international equity allocation has a quality bias. For example, through listed exposure to Astrazeneca and Berkshire Hathaway Class B shares. However, there is also an element of growth through the Manager’s allocation to the T. Rowe Price Global Equity Growth Fund, and stocks like Microsoft, Visa, Alphabet, and Thermofisher. Between 2017 and 2022 the allocation to direct stocks increased from around 12% of the Fund to approximately 33%. The performance contribution of the increased allocation to international companies versus the managed fund exposures is not clear. Therefore, the contribution of the Manager skill is difficult to evaluate.”
“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, 1 December 2022
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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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