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What is the NZ Funds KiwiSaver LifeCycle Portfolio Management?

One of the most important considerations you will need to take into account when investing in a KiwiSaver scheme is what type of assets your KiwiSaver scheme invests in (for example income assets or growth assets).  The most appropriate mix of assets for you is likely to change as you get closer to your retirement.  This is where NZ Funds Management’s LifeCycle Portfolio Management Process (LifeCycle Process) can help. The LifeCycle Process provides you with a disciplined and systematic method for managing your investment.  If you choose the LifeCycle Process your contributions will not be allocated to a single Portfolio.  Instead, your investment will be progressively reallocated over your investing time frame across three Portfolios depending upon your age.

  • The Income Strategy – aims to provide greater stability to your investment by primarily investing in income-orientated assets using an active investment management approach.
  • The Inflation Strategy – aims to mitigate the impact of inflation on your investment over the medium and/or long term by investing in income-orientated assets and growth-orientated assets using an active investment management approach.
  • The Growth Strategy – seeks to grow your investment over the long term by investing in income-orientated assets and growth-orientated assets using an active investment management approach.

The portion of your investment allocated to each Portfolio will change over time.  Your investment will be progressively reallocated out of the Growth Strategy toward the Inflation Strategy and Income Strategy as you approach retirement.  This is designed to ensure your investment is allocated in a manner that is consistent with your investing time frame. The LifeCycle process has been developed based on the proprietary research of our investment team.  It is supported by academic research on the need for disciplined asset allocation when saving to fund long term retirement goals. Please note, the implementation of the LifeCycle Process may change from time to time.

How your investments will be allocated?

Your initial investment in the NZ Funds KiwiSaver Scheme will be allocated across all three Portfolios.  The allocation across the Portfolios will remain constant until you reach age 46.  From then the allocation of your investment to the Inflation Strategy will progressively increase, and your allocation to the Growth Strategy will correspondingly reduce.  When you turn 60 your allocation to the Income Strategy will begin to increase. Further information on the NZ Funds KiwiSaver Scheme is contained in the current investment statement which is available upon request.  Contact ISN 0800 66 66 78.  

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