KiwiSaver spotlight : Fidelity Life
Two million New Zealanders are now in KiwiSaver. To help build awareness about how your retirement savings is invested, each week a different KiwiSaver scheme will be profiled.
Provider: Fidelity Life
Scheme: Ethical Kiwi Fund
Who runs it: Tyndall Investment Management, managed by Rickey Ward, head of equities, and Fergus McDonald, head of bonds and currencies.
Overview: Look below the hood of Fidelity's Ethical KiwiSaver Fund and it is effectively a diversified balanced fund, albeit one aimed at savers who want to make sure their money isn't being used to fund the so-called "sin" industries, namely tobacco, gambling, alcohol and armaments.
The fund is actually less diversified than the sector average, with a 60/40 split between stocks and bonds, whereas other funds in the balanced category have about a fifth of their assets in cash, property and infrastructure to spread their investment risk.
The fund's fixed income holdings, or bonds, are also less diversified than the market average, being entirely invested in Australian debt. By way of comparison, the sector average is about 30 per cent of assets invested in fixed income securities split between Australian debt (two-thirds) and international debt (one third). Share holdings are tipped a little more heavily towards international stocks than the average, but not so much as to stand out.
Fund size: $7.68 million as at July 31, 2012
Total return over 1 year*: 5.79 per cent versus a sector average of 4.71 per cent
Total return over 3 years*: 4.71 per cent versus a sector average of 6.23 per cent.
Unit price: $2.2399
Fees: $3 per month and an annual management fee of 0. 5 per cent
* After fees but before tax
KiwiSaver spotlight is written by Jason Krupp using information from FundSource, and the information is considered general in nature. Please consult a professional adviser before any investment decisions.