NZ Funds Kiwisaver Scheme Earns 'Recommended' Rating

NZ Funds Kiwisaver Scheme Earns 'Recommended' Rating From Australian Research House Lonsec.

NZ Funds Advocates Qualitative Reviews Of All Kiwisaver Scheme Portfolios

NZ Funds Management, which has become the first KiwiSaver investment manager in New Zealand to have its KiwiSaver Scheme Portfolios qualitatively researched by a third-party research house, is advocating all KiwiSaver Scheme portfolios undergo a qualitative review.

The three portfolios in the NZ Funds KiwiSaver Scheme all earned recommendations from leading Australian research house, Lonsec. Income Strategy received a rating of 'Highly Recommended', whilst Inflation Strategy and Growth Strategy received a rating of 'Recommended'.

Following a series of meetings with NZ Funds Management over an extended period, Lonsec's reports say it observed a "strong investor focused culture, supplemented by extensive research, and a strong corporate governance and compliance regime". [1] <>

Further, the reports note Lonsec has conviction that the NZ Funds Management portfolios reviewed "can achieve their objectives and, if applicable, outperform peers over an appropriate investment timeframe"

The reports also note that NZ Funds Management has "competitive advantages over its peers in people, process and product design". The research approach of NZ Funds Management is considered "to be diligent and thorough and with a greater consideration of end investor needs than is sometimes apparent amongst more 'benchmark relative' peers."

"Lonsec has observed a strong risk management culture at NZ Funds Management. Daily attribution reports circulated and peer reviewed at regular team meetings."

NZ Funds Management Chief Investment Officer Michael Lang says New Zealand Funds Management has put considerable resource into designing what it believes is the most purpose-built KiwiSaver Scheme available to New Zealanders.

"To have one of Australasia's leading research organisations review our Scheme's Portfolios is a significant achievement for us and is a credit to our KiwiSaver Scheme investment management team."

Lang says the reports, which result from a rigorous qualitative review process, are designed to be used by qualified advisers to assist them in helping client's choose the most appropriate KiwiSaver Scheme to meet their needs.

Lang says he believes every KiwiSaver Scheme portfolio in New Zealand should be qualitatively reviewed. "It should be compulsory for all KiwiSaver Scheme portfolios to be qualitatively reviewed. The alternative, a quantative review processes, is based solely on numbers and does not take the investment process into account so it is insufficient to determine whether a KiwiSaver Scheme portfolio is likely to meet clients' needs."

"We are optimistic that in future having comprehensive qualitative research will become the minimum standard for managers and advisers offering or promoting KiwiSaver to the New Zealand public."

ENDS

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