The ANZ KiwiSaver scheme provides seven funds to invest in, actively manages some funds, and appoints external fund managers to select the assets in some funds.
Lifetimes, unique to ANZ KiwiSaver, is designed to move your KiwiSaver investments through different funds based on your age. Your circumstances or other criteria, such as market conditions or whether you intend to use some funds to purchase your first home, are not considered.
Pros
- Online App
Cons
- High Fees
ANZ KiwiSaver Quick Facts
- Fund start date: 01 October 2007
- Assets Under Management (AUM): $21.8B (30 September 2024)
- Customers: 670,000
ANZ KiwiSaver Funds has solidified its position as the largest KiwiSaver provider in New Zealand, now managing $21,767.8 million in assets under management (AUM). This represents an impressive growth of $1,041.7 million since the June quarter, where its AUM stood at $20,726.1 million. With a commanding 20% market share, ANZ KiwiSaver remains a leader in the competitive KiwiSaver landscape.
ANZ New Zealand Investments Limited, a wholly owned subsidiary of ANZ Bank, manages the ANZ KiwiSaver Scheme. As New Zealand’s largest bank, ANZ Bank NZ dominates the financial sector, holding approximately 28% of all loans and 30% of customer deposits across the country.
To deliver strong, long-term outcomes for its investors, ANZ Investments partners with two global asset management leaders—BlackRock and Mercer. These partnerships ensure a strategic, diversified approach to investment management, leveraging global expertise to maximize returns.
Investors in the ANZ KiwiSaver Scheme benefit from pooled funds, enabling their contributions to be strategically distributed across a variety of low-, medium-, and high-risk investments. This diversification offers the potential for customized returns tailored to individual risk preferences and long-term financial goals.
How are ANZ KiwiSaver Funds performing?
Yearly annual returns after fees but before tax for the last ten years, except for the High Growth Fund reflecting the return since launched in August 2023.
- NZ Cash Funds Total Returns % per year: 2.4%
- Conservative Fund 10-year Total Returns per year: 3.53%
- Conservative Balanced Fund 10-year Total Returns per year: 4.64%
- Moderate Fund 10-year Total Returns % per year: 5.68%
- Balanced Fund 10-year Total Returns % per year: 6.77%
- Growth Fund 10-year Total Returns % per year: 7.79%
How does ANZ KiwiSaver compare?
Best performing KiwiSaver Funds average return over the last ten years, after fees but before taxes:
- Milford Conservative: 6.0%
- Generate Moderate: 5.5%
- Milford Balanced: 9.0%
- Milford Growth: 10.9%
- Generate Focused Growth: 9.4%
How can ANZ KiwiSaver Funds be invested?
ANZ KiwiSaver invests in two categories:
- Growth Assets (equities and listed property) and
- Income Assets (cash, cash equivalents, and fixed interest)
They can also make a limited investment in listed infrastructure assets and alternative assets.
You can track some of the major investments through your ANZ KiwiSaver login.
Each fund is invested in line with a target asset allocation.
The Conservative Balanced Fund invests primarily in income assets (cash and cash equivalents and fixed interest), with some exposure to growth assets (equities, listed property, and listed infrastructure), and has a minimum proposed investment term of four years. The fund may also invest in non-traditional assets.
The Conservative Fund seeks to invest in the following asset classes:
- Cash and Cash Equivalents 15%
- NZ & International Fixed Interest 12.5%
- International Fixed Interest 37.5% Growth
- Australasian Equities 6.5%
- International Equities 22.5%
- Listed Property 4.5%
- Other (listed infrastructure) 1.5%
The High Growth Fund, on the other hand, with a minimum proposed investment term of nine years, invests primarily in growth assets (equities, listed property, and listed infrastructure), with very little exposure to income assets (cash and cash equivalents, and fixed interest). The fund may also invest in non-traditional assets.
The High Growth Fund seeks to invest in the following asset classes:
- Cash and Cash Equivalents 5%
- Australasian Equities 18%
- International Equities 63%
- Listed Property 10.5%
- Other (listed infrastructure) 3.5%
Overall, the High Growth Fund’s 95% allocation to growth assets is likely to give investors higher long-term returns but more volatility (periods of unpredictable and occasionally rapid, price swings) in the short to medium term than the Conservative’s 35%.
ANZ KiwiSaver FAQ's
The ANZ KiwiSaver funds can be withdrawn when you turn 65, which is when you become eligible for New Zealand superannuation.
It’s possible to withdraw money from your KiwiSaver account before retirement under certain circumstances. You’re allowed to make a withdrawal if:
- you purchase your first home,
- permanently move to another country,
- face significant financial hardship,
- suffer from a severe illness or
- were born with a life-shortening condition that reduces your life expectancy below the KiwiSaver retirement age.
In case of your premature death, the money in your KiwiSaver account will be paid to your estate.
KiwiSaver and NZ Superannuation work hand-in-hand to provide a solid foundation for retirement. While NZ Super offers a universal base income, KiwiSaver acts as a personal savings boost, helping bridge the gap between what Superannuation provides and the lifestyle you want to enjoy in retirement.
NZ Superannuation is generally not means-tested but may be reduced due to international pension offsets, tax obligations on total income, or insufficient residency requirements for those who have lived overseas.
With KiwiSaver and the annual adjustments to NZ Super rates, you can better plan for a retirement that meets your financial needs.