Generate Gives Kiwis More Long-term Investment Options With Two Exciting New Managed Funds

Generate is pleased to launch its new Thematic Managed Fund and Australasian Managed Fund, for customers who want to invest in long-term growth assets that are professionally and actively managed by fund managers with specific expertise.

The Thematic Managed Fund invests predominantly (98%) in mid- to large-cap international equities, including a number of high-profile global companies, based on investment themes that Generate considers to have high growth potential. For example, Nike and Lululemon are some of the equities the fund is invested in under the athleisure investment theme, with other themes including AI, waste management and energy transition.

Managed by Nathan Field, one of New Zealand’s top global equities portfolio managers who has a proven track record in thematic-based global equities investment, the Thematic Managed Fund is invested in line with Generate’s Responsible Investment Policy and also excludes fossil fuels.

Mr Field says that this new fund provides everyday kiwis with an opportunity to invest in a diversified portfolio of international growth assets, which may otherwise be out of reach to those who are not professional investors.

“While many of the equities within the fund portfolio are household names, the key is that they fit within the investment themes we believe will underpin long-term growth as well as meet the other rigorous investment criteria we apply to all investments. It’s all about active management to achieve our investment objective of delivering a higher return for our customers over the long-term,” says Field.

The Australasian Managed Fund invests in an actively managed portfolio of New Zealand infrastructure and property equities, such as Contact Energy and Infratil, and selected Australasian equities identified as having high long-term growth potential.

Portfolio Managers Andrew Bolland and Dan Frost have managed Generate’s Australasian investment strategy and the Australasian portion of Generate’s other funds for the past five years, which have demonstrated strong performance.

Mr Bolland says the new Australasian Managed Fund is expected to appeal to those who want an exposure to growth assets with defensive characteristics.

“Our investment approach favours companies that generate sustainable cashflows with attractive growth pathways. These companies tend to be lower risk than early-stage non-profitable growth companies,” says Bolland.

Like all Generate’s managed funds, customers have the flexibility to withdraw their money from the funds at any time, unlike KiwiSaver investments which are locked-in. Both the Thematic Managed Fund and the Australasian Managed Fund are designed to be long-term investments.

The launch of these new funds comes at an exciting time for Generate, having recently reached a major milestone of $4 billion in funds under management, making it one of New Zealand’s largest boutique KiwiSaver and wealth management providers.

“The key to Generate’s consistent growth to date is its ongoing focus on easy to understand advice and active management to drive fund performance, and adding these two exciting new managed funds to our offering is another opportunity to continue to drive growth,” says Dan Frost.

Generate recommends customers talk to an adviser before selecting a managed fund, to make sure their choices suit their savings goals, investment timeframe and risk appetite (given all investments involve risk, and returns are never guaranteed).

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