With a total of nearly 120,000 investors using Fisher Funds KiwiSaver Growth Fund, it is nearing a total value of $2,933 Million. We will be going through what makes this a popular investment among KiwiSaver investors and what that means for you.
Description
Fisher Funds Growth Fund aims to grow your investment over a long period by investing mostly into growth assets. These Growth assets are investments that have high volatility so that over time, the investment will see higher returns on average. As mentioned, the Growth Fund currently is $2,933 million in value and started on the 2nd of October 2007.
Performance
The performance of the Growth Fund has shown great annual returns over the past 5 years, with the average being 11.38%. Even with the high returns from the past year being 20.33%, this still shows a great performance for those invested in Fisher Funds.
|
Average over past 5 years |
Past Year |
|
|
Annual Return (after deductions for charges and tax) |
11.38% |
20.33% |
|
Annual Return (after deductions for charges but before tax) |
12.26% |
21.19% |
|
Market Index annual return (reflects no deductions for charges and tax) |
11.83% |
19.34% |
With how the Growth Fund has performed, it makes sense why it’s being recommended to many and why so many KiwiSaver investors choose Fisher Funds as their preferred provider over others.
You can see how it compares with other providers or view a list of the best KiwiSaver funds here.
Fees
Although it may seem too hard to believe that a Fund can perform this well, it also comes with some fees to your KiwiSaver account. As seen below, the total fund charges 2.51% with an account fee of $23.40 a year. You also need to remember that these fees may change over time, which can affect your investment over the long term.
|
% of net asset value |
|
|
Total Fund charges |
2.51% |
|
Which are made up of: |
|
|
Total management and administration charges |
1.03% |
|
Including: |
|
|
Manager’s basic fee |
0.95% |
|
Other management and administration charges |
0.08% |
|
Total performance-based fees |
1.48% |
|
Other charges: |
$ amount per investor |
|
Annual account fee |
$23.40 |
These fees need to be taken into account when planning for your future and goals in the long term.
Investment Mix
Last quarter the Fisher Fund Growth Fund’s actual investment was as seen below. From what can be observed, we see some outliers when it comes to the invested proportions.
Actual Investment Mix
Target Investment Mix
The assets that changed the most from their targeted mix were Listed property, International fixed interest, and New Zealand fixed interest. We see a considerable drop from 4.5% to 0.84% for listed property in the actual investment. For International fixed interest, we see a decrease from 9% to 4.98%, and New Zealand fixed interest increased from 6% to 9.78%.
One of the reasons for this, would be the forces applying to Covid-19. This includes shifts towards a rise in equity assets. The increase in equity could have been caused by the rollout of vaccines globally, allowing people to get back to work, driving growth in the market and businesses.
Top Investments
The investments below make up 24.21% of the total assets within Fisher Funds Growth Fund. This gives you an idea of where your investments will be placed if you are with this Growth Fund, most being equities placed in New Zealand. This table shows the diversification of what you might see within the portfolio.
|
|
% of fund net assets |
Type |
Country |
|
ANZ 10 A/C – CURRENT ACCOUNTS |
6.39% |
Cash and cash equivalents |
New Zealand |
|
FISHER & PAYKEL HEALTHCARE CORPORATION LIMITED |
3.30% |
Australasian equities |
New Zealand |
|
MAINFREIGHT LIMITED |
2.76% |
Australasian equities |
New Zealand |
|
INFRATIL LIMITED |
2.17% |
Australasian equities |
New Zealand |
|
XERO LIMITED |
1.97% |
Australasian equities |
Australia |
|
FACEBOOK, INC. CLASS A |
1.84% |
International equities |
United States |
|
AUCKLAND INTERNATIONAL AIRPORT LIMITED |
1.70% |
Australasian equities |
New Zealand |
|
ALPHABET INC. CLASS A |
1.46% |
International equities |
United States |
|
CONTACT ENERGY LIMITED |
1.36% |
Australasian equities |
New Zealand |
|
ALIBABA GROUP HOLDING LTD. SPONSORED ADR |
1.26% |
International equities |
United States |
Summary
As we can see from the overview of Fisher Funds Growth Fund, it is a well-diversified portfolio with underlying assets spread throughout the market. While there is still considerable diversification, we still see great returns from the Fund. Fisher Funds always make sure to adapt to changes within the market and change proportions of assets when necessary. When taking a look into the care taken with the portfolio, it is no wonder that so many people trust Fisher Funds when it comes to their KiwiSaver account.
You can check out more on Fisher Funds KiwiSaver schemes here.
Key Takeaways:
- High Volatility
- Relatively High Fees
- Diversified Investment Mix
- Adapted to Market