Children are eligible to join KiwiSaver. Enrolling your children in KiwiSaver qualifies them for:
The $1,000 kickstart from the Government
participation in the first home withdrawal and subsidy programme (subject to conditions)
Joining is easy. Just follow the in's and out's as detailed below.
We do not require an initial contribution nor is there a minimum annual contribution. Your child will need an IRD number and one form of ID to setup an account. Click here to obtain an IRD number application form.
Your children will need to contribute to KiwiSaver when they begin paid employment (even if it is an after school job). However, once they have been in KiwiSaver for over a year, they are entitled to take a contributions holiday.
You can make voluntary contributions to your children’s KiwiSaver accounts at any time. If you do wish to set up a savings regime for your children you may want to consider alternatives outside of KiwiSaver as there is no restriction on accessing funds like there is with KiwiSaver. Feel free to call our Client Services team on 0508 347 437 to discuss how Fisher Funds other investment options may be able to help.
Enrolling your children in KiwiSaver is a great way to kickstart their investment future. Fisher Funds takes a proactive stance on educating members and your children will benefit from learning about saving and investing.
Getting your children into a savings regime from an early age is a great start for their financial future. Fisher Funds proactive stance on educating members also means they will continue to learn about saving and investing.
However, KiwiSaver does have restrictions on accessing funds. In additition, your children will need to contribute to KiwiSaver when they begin paid employment (even if it is an after school job), so you may want to consider alternatives outside of KiwiSaver.
Feel free to call our Client Services team on 0508 347 437 to discuss how Fisher Funds other investment options may be able to help.
We believe the best way to grow the real value of your investment is to invest in growth assets.
Growing the real value of your investment is vitally important in any long term savings plan. Simply putting your money in the bank on term deposit is safe but will see the purchasing power of your investment reduce every year as up to 38% of the interest earned can be lost in tax.
Even a 2% improvement in average return per year makes a significant difference in the value of your savings at retirement. The graph below clearly illustrates how much of a difference a 2% improvement makes.
Historically shares have provided the best long term growth.
Fortunately, under NZ tax regulations, capital gains from the sale of shares in New Zealand companies and Australian resident companies included in the Australian All Ordinaries Index are not taxed, which helps to increase your return relative to income-focused investments.
The graph below illustrates the difference in the retirement value of a KiwiSaver investment based on returns that are 4.5% p.a. and 6.5% p.a. respectively. Historically the return on growth assets, such as shares, has been more than the return on more conservative investments such as bonds.
Results are simulated in this chart. This analysis assumes an investor starts saving at age 23 with an annual salary of $35,000. Their salary rises steadily at 3.5% p.a. until age 65 when they retire. Of this salary they contribute an after tax 4% to their KiwSaver Scheme and their employer contributes 2%. Two investment return assumptions are presented. One is an assumed return of 4.5% after tax and fees each year. The other is an assumed return of an additional 2% making a total return of 6.5% after tax and fees each year. All portfolio amounts are shown in today’s dollar terms.
By presenting portfolio amounts in today’s dollar terms, we have stripped out the impact of inflation from the results, so as to compare purchasing power at retirement with today’s oprices for goods and services. Inflation is assumed to average 2%.
The assumed returns are illustrative only and do not reflect the actual or prospective performance of the Scheme or of any investment fund. The returns to members of the Scheme are subject to investment and other risks (including loss of income and principal invested) and no amount of returns is promised or guaranteed. Returns will vary depending on the investment performance of your chosen investment fund or funds.
Why choose Fisher Funds as your KiwiSaver provider
Great question!
One of the great things about KiwiSaver is that you can choose your own provider. We firmly believe people should make an active choice and if you are looking for a KiwiSaver provider that has:
A strong track record
A straightforward and time tested investment strategy, and
A reputation for open and honest communication
Then you should seriously consider Fisher Funds.
Here are a few simple reasons why:
We are a specialist investment manager, channelling all our efforts into achieving investment returns. Our key staff own Fisher Funds – this means that our interests are directly aligned with yours.
We have a straightforward approach. We simply invest in good quality, proven investments. When we tell you about our investments and why we've made them, you'll see that thye just make sense.
We try to know more about our companies than any other investor. We visit them often, know them well, and in many cases, have owned them for a very long time.
We choose our share investments company by company and only invest after we have completed a thorough analysis of each business, its competitors and its management. We believe that this thorough research approach minimises the risk of nasty surprises.
Our approach has been time-tested over twenty years. We recognise that past performance is no guarantee of future results, however our investment style has been successful in good times and bad. Our KiwiSaver Growth Fund is the best performing KiwiSaver Growth Fund over one and two years to 31/5/10 (as reported by Morningstar).
Open and honest communication = transparency. Since Fisher Funds establishment in 1998 we have found that investors appreciate knowing where their moeny is invested and why. We send a monthly newsletter keeping you up to date on where your savings are invested, the performance of each Fund and developments in KiwiSaver. Our website is updated regularly with latest unit pricing and material announcements and you can also access your KiwiSaver account online 24/7.
Investment custody = security. All investments are held in the name of the Scheme by TEA custodians Limited (a subsidiary of Trustees Executors Limited, NZ's oldest trustee company). Trustees Executors Limited supervises over $29 billion of investor's assets.
Our mission is to make KiwiSaver easy for you from the day you join until long after you retire!
Our KiwiSaver investment approach - giving you flexibility
Fisher Funds has generated attractive long term returns over many years. We have done this by having a well thought out, disciplined investment approach.
The Scheme offers both a Conservative Fund and a Growth Fund, giving you flexibility as your investment needs change. You may choose either Fund or a combination of the two in any ratio you choose.
The Growth Fund seeks to grow the real value of your KiwiSaver savings by principally investing in the shares of growing New Zealand, Australian and International companies. This is the Fund that really differentiates our Scheme from other KiwiSaver providers. If you are seeking to achieve higher returns over the long term this is the core Fund to invest some or all of your KiwiSaver savings in.
The Conservative Fund has an emphasis on capital preservation, seeking secure investments to achieve returns better than bank term deposits over the long term. The Conservative Fund may invest in all or any of a range of different asset classes principally comprising cash, fixed interest, shares, infrastructure securities and property securities both in New Zealand and internationally.
Growth Fund investments
We favour small, growing companies
The Growth Fund focuses its investments in the shares of smaller, growing New Zealand, Australian and other International companies that have the potential for substantial business growth. Smaller companies tend to be overlooked and under-researched by other investors, giving us the opportunity to find some real gems. We also prefer smaller companies because they are usually easier to understand, compared with large multi-faceted corporations.
It is not our intention to buy shares in new or unproven companies, nor do we look for bargain stocks. We look for quality. Once we buy shares in a company, we generally hold them for the long term, unless the fundamental reason for buying no longer exists. After all, if you find a great business, why would you not want to hold on to that business forever?
History has shown that companies who consistently grow their profits will increase the value of their business and hence their share price over time. This is at the core of how Fisher Funds achieves attractive long term returns.
We strive to know more about our Portfolio companies than anyone else
We are close to all our Portfolio companies, visit them regularly and get to know the management teams well. We never invest in a company without first meeting the management and we pride ourselves on the relationships that we have established with the management teams of many successful businesses.
Our favourite companies will be our largest investments
We are stock pickers who invest in companies on the basis of their individual merits. The company that we like the most will have the largest position in the Fund. Our portfolios are concentrated, typically having between 10 and 20 stocks in each of New Zealand and Australia at one time and 30 to 40 internationally. We do not want too many holdings, diluting our efforts and knowledge, but we want enough to reduce the risk if something goes wrong. We believe there will always be companies that will do well, irrespective of the economy or market environment. We are constantly searching for these businesses.
We have the ability to invest in both listed and unlisted companies. However you can generally expect that at least 90% (by value) of the Growth Fund portfolio will be investments in listed companies. Although we like the idea of buying an unlisted company at a relatively low price, we are mindful that the listed environment gives us greater protection and ensures that we get regular information about each company.
Our investments favour smaller, growing companies. However if a company grows to become a large company, it is our intention that the Scheme will maintain its holding as long as it remains an attractive investment. If we find a company that otherwise meets all our criteria, we will not exclude it from the Portfolio based on size.
Conservative Fund investments
The Conservative Fund’s goal is to achieve returns better than bank term deposits over the long term. Its focus is on preserving your capital and protecting the purchasing power of your investments against inflation. The Conservative Fund may invest in cash, fixed interest, shares, infrastructure securities and property securities locally or internationally. The amount invested in each asset class will change when we think one asset class might be better than another. However, generally you can expect around 80% (by value) of the Conservative Fund portfolio to be invested in “income” assets such as cash and fixed interest, with around 20% invested in growth assets such as shares, infrastructure and property.
Which Fund is best for me?
Fisher Funds understands that every investor has different investment goals (and timeframes in which to achieve these) and varying appetites for risk. We have developed our Scheme to allow you to select or tailor a KiwiSaver investment strategy that meets your needs.
Before choosing your investment strategy, it is important that you think about your investment timeframe (how long you have to save until your retirement) and your investment goals (are you saving to buy your first home or growing your savings for retirement?).
We think growth assets such as shares are important, as most KiwiSaver members have a long time to save for their retirement. Historically, investing in growth assets has produced better long term returns than investing in other asset classes, minimising the impact of inflation over time on your savings.
If you are nearing retirement or saving for your first home, you may want to have a more conservative investment approach. Income assets such as cash and fixed interest typically produce more stable returns in the short term.
The diagram below has been designed to help you decide the best Fund/option for you.
This section is a guide only. If you have specific retirement needs, or are unsure about which Fund or strategy to choose, please see a financial adviser.
Current Unit Price (as at 01 September 2010)
Growth Fund: $1.0431
Conservative Fund: $1.0160
Fund Size (as at 31 July 2010)
Growth Fund - $149.2
Conservative Fund - $3.1M
Fund Inception
Growth Fund - 1 October 2007
Conservative Fund - 12 June 2009
How have the funds performed as at 31 July 2010
Fund Pre-tax Returns
One Month
Three Months
Six Months
Twelve Months
Two Years*
Since Launch*
Growth KiwiSaver
+ 1.5%
- 5.8%
- 2.9%
+ 9.9%
+ 6.4%
+ 0.5%
Conservative KiwiSaver
- 0.6%
- 0.1%
- 0.7%
+ 1.1%
n/a
+ 0.9%
* Annualised return before tax and after fees
The above returns are based on the percentage change in the unit price of the fund for the period specified, they are not the returns individual investors will receive as this will depend on the prices at which units are purchased on the date of each individual contribution. Changes in the unit prices reflect changes in the market value of the assets of the fund. The above returns exclude government contributions and no allowance has been made for monthly administration fees. Returns displayed are after management fees but before tax.
Growth Fund Performance as at 31 July 2010
Graph illustrates cumulative increase in unit price (after fees and tax)
How do we compare?
In short, very well.
KiwiSaver is a long term savings plan. Our investment approach is focused on generating meaningful investment returns over the long term.
When comparing returns it is important that you compare “apples with apples” i.e. schemes with similar investment strategies.
Morningstar has just released its quarterly KiwiSaver Performance Survey to 30/06/10 which can be viewed by clicking here. As you’ll see we rate amongst the top performing growth or aggressive schemes with the best returns over the two years to 30/6/10 for the KiwiSaver growth and aggressive categories.
A couple of Morningstar’s comments are worth highlighting and we have included them below:
"Looking out over two years is of course a better indicator of a fund manager's performance record. Over this period, AMP, Aon Russell, AXA and Mercer did well in the Conservative and Moderate categories. In the more growth (equities-heavy) categories Fisher Funds, ING and Mercer were the KiwiSaver options with the best results.
The next quarterly report will be the three-year anniversary of KiwiSaver. It's still early days, but given the upheaval in markets over this period, this will be a very interesting time to look at medium-term results."
Source: Morningstar Performance Survey to 30/06/10 dated 26/07/2010
To keep track of performance on a more regular basis the Sunday Star Times now has a weekly KiwiSaver facts and performance update in the Business section. Information is supplied by Morningstar.
You can either:
a. Complete our online application form, or
b. Contact our team on 0800 FFKIWI (0800 335494) or complete the form below to receive a KiwiSaver information pack:
* indicates required fields
Complete and sign the Application Form (on pages 35-36 of the Investment Statement).
To view a sample completed Application Form click here.
Before sending in your Application Form, please be sure to do the following:
1. Read the How to Join section on pages 33-34 of the Investment Statement
2. Sign the Application Form
3. Include a copy of your identification as required
4. Keep a copy of your Application Form
Return the original Application Form by post to:
Fisher Funds Management Limited
C/- Trustee Executors Superannuation Limited
PO Box 409
Wellington, 6140
If you are an employee, please ensure that you inform your employer that you have selected Fisher Funds as your KiwiSaver scheme provider, how much you want to contribute (i.e. 2%, 4% or 8%) and when you want your contributions to start. As you have dealt directly with Fisher Funds you do not need to complete the IRD’s KS2 form.
Please contact us on 0800 FFKIWI (0800 335 494) if you require any assistance completing the Application Form.
What happens next?
Once we have received your Application Form, we will send you written confirmation of your membership. You will also receive our monthly investor newsletter by email.
You and your employer will also receive written confirmation from the IRD that you have joined our scheme. Please be aware that there may be delays with the IRD process.
You can keep track of your balance and transactions via our online access facility which updates daily. The unit price for the Fisher Funds KiwiSaver Scheme is also updated on our website daily. You will also receive quarterly transaction statements and an Annual Report from the trustees of the Fisher Funds KiwiSaver Scheme.
One Month
To view a sample completed Application Form 