At National Capital, our goal is to help every Kiwi achieve financially security. Our rigorous KiwiSaver investment selection process ensures that your hard-earned money is invested wisely.
Through our comprehensive, data-driven approach, we evaluate KiwiSaver providers (with some exclusions) collectively managing over 300 funds. We leverage advanced analytics along with independent research to provide tailored recommendations that align with your unique financial situation and goals. Our ongoing research ensures that we remain aligned with your interests as market conditions evolve.
A. Performance
While historical performance does not guarantee future results, it provides valuable insights. We prioritise funds with a track record of strong returns, which often reflects robust investment strategies and skilled management.
B. Organisation Capability
An organisation’s capabilities are often overlooked by investors when selecting a fund. We evaluate the experience, expertise, and resources of fund managers to ensure they can effectively manage your investments. A stable organisation is typically better positioned to attract top talent and achieve growth.
C. Fees
Our focus is on value for money, ensuring that clients invest in funds with reasonable fees that still deliver strong returns. A study by Vanguard (2022) concluded that access to financial advice could add up to three percentage points per annum or more in net returns.
D. Organisation Stability
We assess the stability of the organisation managing your KiwiSaver funds, keeping an eye on any changes in key personnel that may influence your investment.
E. Processes & Portfolio Composition
We assess funds based on risk tolerance and asset allocation to ensure they align with their label. A Growth Fund, for example, should have a growth-focused allocation, not a conservative one. Funds with misaligned allocations typically receive lower ratings.
F. Ethical Investing Considerations
Our Investment Committee conducts independent research to evaluate the ESG factors influencing each fund’s selection process, ensuring responsible and ethical considerations are integral to our evaluations.
We perform thorough research on a quarterly basis, following these steps:
Step 1 – KiwiSaver Fund Universe Review
We review KiwiSaver providers and their funds, starting with the FMA’s disclose register for fund data. Funds are broadly categorised based on the % allocation of growth assets from Cash to Aggressive.
Step 2 – Exclusion of certain providers
We exclude providers with insufficient public data. This could be because the provider is too small, not available to the public or has chosen not to provide data to research houses.
Step 3 – Exclusions of certain funds
We exclude non-diversified, geared, duplicate, and non-fixed allocation funds. Lifecycle funds are excluded as asset allocation should suit personal circumstances, not just age. Identical funds are filtered by lowest fees.
Step 4 – Data Gathering
Our Investment Committee sources data from independent sources.
Step 5 – Data Analysis & Scoring
We use our proprietary methodology to analyse and rate each fund across six pillars, ensuring stability and minimizing rating changes from short-term fluctuations or fee adjustments.
Step 6 – Investment Committee Review and Authorisation
We have an Investment Committee, chaired by Craig Stobo, consisting of CFA and AIFA professionals, financial advisers, and independent research partners.
Step 7 – Personalised Advice
We then consider your individual goals, circumstances, and preferences to identify the best investment strategy for you.
Our investment selection process operates independently from providers with whom we may partner. As a licensed Financial Advice Provider regulated by the Financial Markets Authority, we prioritise fairness and integrity in delivering financial advice to our clients.
For more information or to access our latest fund list, please contact us. Your journey to financial security begins with informed choices — we’re here to help.
