Fund updates

Fund updates let you see how your managed fund or KiwiSaver fund is performing, what it’s costing you and what your fund is currently investing in. They follow a standard format so you can easily compare the risk, return and fees of your fund to other similar funds.  You’ll find fund updates on your provider’s website.

Risk

Fund updates include a risk indicator to help you see at a glance how much the value of the fund’s assets are likely to go up or down. It’s not a guarantee of future performance and there are other risks not considered by the rating.

Find out more about having a clear understanding of your own goals and attitude to risk.

Investment returns

Fund updates present returns relative to a ‘market index’ that invests in assets similar to the assets the fund invests in. This is to help you assess whether the return your fund is making is reasonable.

Annual and average returns are shown. Most funds (except restricted schemes) also have a complete list of their weekly / monthly returns on the Disclose register.

Fees

Take time to review the fee information and compare it to the same information for other similar funds.

Fund updates show the total fees you are charged as a percentage of the net asset value of the fund. It will also include a breakdown of what that total fund charge is made up of, and other costs such as annual membership fees.

In this section the update will also include an example (like the one below) that shows how fees impact returns.

Example of how fees impact returns

Jane had $10,000 in the fund at the start of the year and did not make any further contributions. At the end of the year, Jane received a return after fund fees were deducted of $700 (that is 7.00% of her initial $10,000). Jane also paid $60 in other charges.  This gives Jane a total return after tax of $640 for the year.

Other useful information

Fund updates also include a summary of what the fund has invested in over the period. It shows:

  • your actual investment mix* compared to the planned, or target investment mix.
  • the 10 largest individual investments the fund holds as at the date of the fund update - for example ‘Airport bonds’, ‘XYZ energy shares’. If credit ratings apply, these will be shown too.

They also provide the names of the top five directors and employees who have the most influence on investment decisions. This helps you understand who is managing your money and enables you to do your own research about them.

*The investment mix means the percentage of the fund invested in each investment type (shares, bonds, property etc)