From today, members of the BNZ KiwiSaver Scheme and investors in YouWealth have the option of investing into High Growth Fund options.
The two High Growth Funds invest 100% in growth assets, providing the potential for higher returns for those who are more long-term minded and understand that it means holding investments through the market cycle which can have its ups and downs.
BNZ’s General Manager of Wealth Peter Forster says the funds provide those with a long investment timeframe with the opportunity to take a more aggressive approach.
“We’re excited to give our customers the choice of a fund that will suit people who are prepared to weather the inevitable market turbulence through their investment journey,” he says.
BNZ has chosen to charge the same low 0.45% per annum fee for the two High Growth Funds as it does across the majority of its BNZ KiwiSaver Scheme and YouWealth funds (the exceptions being the BNZ KiwiSaver Scheme Cash Fund (0.30% p.a.) and Default Fund (0.35% p.a.).
“A management fee of just 0.45% for funds that invest 100% in equities represents real value in a market where investors are frequently charged in excess of 1% for more aggressive funds,” says Mr Forster.
BNZ is also launching an updated version of its KiwiSaver Navigator tool today that will recommend the High Growth Fund when appropriate.
The tool will provide users with a detailed breakdown of steps they need to take to get back on track if they are not currently predicted to reach their savings targets. These steps could include increasing contribution rate, changing fund choice or delaying retirement or first home purchase.
BNZ customers can request a KiwiSaver Navigator session by visiting a BNZ branch or over the phone.
BNZ Investment Services Limited, a wholly owned subsidiary of Bank of New Zealand (‘BNZ’), is the issuer and manager of the BNZ KiwiSaver Scheme and YouWealth. Download a copy of the relevant Product Disclosure Statement from bnz.co.nz/kiwisaver or bnz.co.nz/youwealth.
Investments made in the BNZ KiwiSaver Scheme and YouWealth are not bank deposits or other liabilities of the Bank of New Zealand (BNZ) or any other member of the National Australia Bank Limited group. They are subject to investment risk, including possible delays in repayment. You could get back less than the total contributed. No person (including the New Zealand Government) guarantees (either fully or in part) the performance or returns of the BNZ KiwiSaver Scheme and YouWealth Funds or the repayment of amounts contributed. National Australia Bank Limited, the ultimate owner of BNZ, is not a registered bank in New Zealand but a licensed bank in Australia and is not authorised to offer the products and services mentioned in this document to customers in New Zealand.