Read this First: Fees, Performance and Understanding What's Best For Your Situation
A lot of media attention focuses on KiwiSaver fees, but this is only one thing to consider when picking the most suitable provider and fund for your retirement needs. Fisher Funds would likely argue fees should be far less of a consideration and instead point to the past returns (although this is no indication of future performance) and the value for money the fees offer given the services of leading international investment managers.

​We believe that being comfortable with what you're investing in is the most important aspect of saving for your retirement, not the fee you'll pay. For example, if you are not willing to risk your money in the sharemarket, it wouldn't be in your interests to invest in a growth fund.
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Our Review 
In this guide, we outline what the Fisher Funds KiwiSaver scheme is, what funds they offer to KiwiSaver members and how they're different to other funds, as well as looking at alternatives and the level of fees involved.
 
Please note: MoneyHub is not a Financial Adviser, and this guide has been published to explain the investment fundamentals and outline the pros and cons of Fisher Funds as a KiwiSaver investment option.
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This Guide covers:

• The Specs of Fisher Funds KiwiSaver, Fees and Where Your Money Is Invested
• ​Fisher Funds KiwiSaver Media Claims - What You Need To Know
• Who is Fisher Funds KiwiSaver Suited to?
• 9 Things To Know About Fisher Funds KiwiSaver
• Conclusion​

1: Conservative Fund
This fund invests 78% of its money into income assets (term deposits and fixed interest), and 22% in growth assets (equities and listed property).

• Average annual return (after fees, pre-tax) since fund launch (2009): ~5.00%
• Annual management fee: 0.99%
• Risk factor: 3
• Expected annual return: 
• Suggested minimum investment period: 2 years 

Investment Composition targets
Income Assets

• Cash and cash equivalents: 23%
• New Zealand fixed interest: 22%
• International fixed interest: 33%

Growth Assets

• Australasian equities: 6%
• International equities: 9%
• Listed property: 3.5%
• Unlisted property: 3.5%

We say: Fisher Funds' conservative fund sees active investment managers chasing the highest interest rates offered by banks and company bonds while ensuring what they invest in has suitable credit ratings. The Conservative fund invests primarily in New Zealand assets; the top three recent holdings included a cash deposit with the ANZ Bank (5%) and two different bonds with the New Zealand Government (5%). 

The annual management fee of 0.99% is higher than most conservative funds operated by other KiwiSaver schemes, but Fisher Funds' active management structure incurs higher costs which need to be passed on to investors. 

2: Growth Fund
This fund invests 80% of its money into growth assets (equities and listed property), keeping 20% in income assets such as fixed-term deposits.

• Average annual return (after fees, pre-tax) since fund launch (2007): ~7.50%*
• Annual management fee: 1.11%
• Performance fee range: 0% - 2.00%
• Risk factor: 4
• Expected annual return: 
• Suggested minimum investment period: 6 years 

*The Growth Fund, launched in 2007, has underperformed the Balanced Fund since inception due the to the fact the Balanced Fund launched in 2009 and consequently avoided the effects of the 2008 global financial crisis. 

Investment Composition targets
Income Assets

• Cash and cash equivalents: 5%
• New Zealand fixed interest: 6%
• International fixed interest: 9%

Growth Assets

• Australasian equities: 29%
• International equities: 42%
• Listed property: 4.5%
• Unlisted property: 4.5%

Performance Fee Explanation

• The Growth Fund has a performance-fee, set at '10% of any return that is in excess of the Official Cash Rate (OCR) plus 5% per annum, divided by the Growth Fund’s average net asset value during the period 1 July to 30 June'.
• This performance fee is capped at 2% of the Growth Fund’s average net asset value per year.
• If that wasn't clear, don't worry. In plain English, it means if the Growth fund makes a return above 6.75% per year (the 5% hurdle + 1.75% which is the current OCR), Fisher Funds will take 10% of the return as a performance fee.
• As an example, if your $10,000 KiwiSaver fund performed well and increased $1,000 in one year (excluding any of your contributions), this is a 10% return. Fisher Funds would then take 3.25% of this increase (calculated based on the 10% return less 6.75%, being the threshold of the performance fee) or $33.25, as a performance fee.
• This performance fee is in addition to the management fee of 1.11% ($111 on a $10,000 fund) and the $36 membership fee. The total fees charged would be then $180.25 ($33.25 +$111.00 + $36) or 1.80%. 
• Fisher Funds confirms in its Product Disclosure Statement that the highest performance fee paid by the Growth Fund was 1.41% in the year to 30 June 2018. The corresponding performance of the Growth Fund in that 12 month period was 19.97%. We calculate that at the current OCR rate (1.75%), the Growth Fund would need to exceed an 18% p.a. return to reach the 2% cap. In any such case, the performance fee would be $200 on a $10,000 investment, with a $1,800 return. 

We say: The Growth Fund is designed to maximise returns by beating the markets it investments in. The 80% target allocation of growth assets means the investment managers pick shares they foresee as increasing in value - the most recent fund report included holdings in Fisher & Paykel Healthcare Corporation Limited (2%) and a2 Milk Company Ltd. (2%).

Fisher Funds' managers actively buy and sell investments in an effort to outperform global markets. The scheme does not provide any detail about whether individual overseas equities are held, or if the fund invests in overseas funds managed by overseas institutions.  

3: Balanced Strategy Fund (45% Conservative Fund, 55% Growth Fund)
This fund invests 46% of its money into income assets (term deposits and fixed interest), and 54% in growth assets (equities and listed property).

• Average annual return (after fees, pre-tax) since fund launch (2009): ~8.00%
• Annual management fee: 1.06%
• Performance fee range: 0% - 1.10%
• Risk factor: 3
• Expected annual return: 
• Suggested minimum investment period: 4 years 

Investment Composition targets
Income Assets

• Cash and cash equivalents: 13%
• New Zealand fixed interest: 13%
• International fixed interest: 20%

Growth Assets

• Australasian equities: 19%
• International equities: 27%
• Listed property: 4%
• Unlisted property: 4%

Performance Fee Explanation: Please see the Growth Fund section above.

We say: The Balance Strategy Fund is simply comprised of 45% of the Conservative Fund (above) and 55% of the Growth Fund (below), and invests in income and growth assets at near-equal rates. The fund's performance will be defined solely on how its 'parent' funds do - a downturn in world markets will affect the value of the Growth Fund far more than the Balanced Strategy Fund given there is only 55% exposure to the parent fund. 

Fisher Funds operates the 'GlidePath platform, which allows your KiwiSaver fund to invest in a portion of each fund based on your age. The rationale behind the platform is simple - Fisher Funds wants to grow your savings with higher return/higher risk investments when you're younger and have more years to contribute and ride the markets. By the time you reach 60, more of your savings are invested in safer investments (like fixed-term deposits) which have a lower chance of decreasing in value before you reach retirement age.

The GlidePath service automatically invests your savings in one or a mix of both funds according to your age; investors can opt-in and opt-out of GlidePath at any time. Below is an example of how your savings would be invested at a range of ages if you take up GlidePath.

GlidePath - Investor Age, Fund Composition and Fees

1: Preservation Fund
This fund invests 100% of its money in New Zealand cash and New Zealand short-term fixed interest assets, aiming to provide a return better than the 90-day bank bill rate.

• Average annual return (after fees, pre-tax) since fund launch (2007): ~%
• Annual management fee: 0.66%
• Risk factor: 1
• Expected annual return: 
• Suggested minimum investment period: none 

Investment Composition targets
Income Assets

• Cash and cash equivalents: 50%
• New Zealand fixed interest: 50%

We say: Fisher Funds' Preservation fund is the most conservative of all the nine Fisher Funds offered both schemes. The fund's major objective is to protect savings by investing only in low-risk assets. The fund recently reported that its top five investments were a Rabobank term investment (5%), Fonterra bond (4%), Westpac bank deposit (4%), Auckland Airport bond (4%) and International Finance bonds(4%).  The 0.66% fee is on the higher side for a fund that only invests in fixed interest assets. 

2: Cash Enhanced Fund (Default fund)
This fund invests 79% of its money into income assets (term deposits and fixed interest), and 21% in growth assets (equities and listed property).

• Average annual return (after fees, pre-tax) since fund launch (2007): ~%
• Annual management fee: 0.56%
• Risk factor: 2
• Expected annual return: 
• Suggested minimum investment period: 2 years 

Investment Composition targets
Income Assets

• Cash and cash equivalents: 31%
• New Zealand fixed interest: 19%
• International fixed interest: 29%

Growth Assets

• Australasian equities: 6%
• International equities: 8%
• Unlisted property: 7%

We say: Fisher Funds'  Cash Enhanced fund operates exactly as its name suggests - 79% of the assets are allocated to fixed interest such as New Zealand government debt, term deposits with banks and on-call accounts. The remainder, 21%, is invested into shares and property - this 'enhances' the fund beyond a basic cash fund. The fund would suit anyone close to the retirement age who wants to lock-in their KiwiSaver balance in a relatively risk-free investment. 

3: Conservative Fund
This fund invests 

• Average annual return (after fees, pre-tax) since fund launch (2007): ~%
• Annual management fee: 0.98%
• Risk factor: 2
• Expected annual return: 
• Suggested minimum investment period: 2 years 

Investment Composition targets
Income Assets

• Cash and cash equivalents: 23%
• New Zealand fixed interest: 22%
• International fixed interest: 33%

Growth Assets

• Australasian equities: 8%
• International equities: 12%
• Unlisted property: 10%

We say: Fisher Funds' conservative fund sees active investment managers chasing the highest interest rates offered by banks and company bonds while ensuring what they invest in has suitable credit ratings. The Conservative fund invests primarily in New Zealand assets; the top three recent holdings included a cash deposit with the ANZ Bank (5%) and two different bonds with the New Zealand Government (5%). 

The annual management fee of 0.99% is higher than most conservative funds operated by other KiwiSaver schemes, but Fisher Funds' active management structure incurs higher costs which need to be passed on to investors. ​​

4: Balanced Fund
This fund invests 43% of its money into income assets (term deposits and fixed interest), and 57% in growth assets (equities and listed property).

• Average annual return (after fees, pre-tax) since fund launch (2009): ~.00%
• Annual management fee: 1.01%
• Risk factor: 3
• Expected annual return: 
• Suggested minimum investment period: 4 years 

Investment Composition targets
Income Assets

• Cash and cash equivalents: 17%
• New Zealand fixed interest: 10%
• International fixed interest: 16%

Growth Assets

• Australasian equities: 19%
• International equities: 28%
• Unlisted property: 10%

We say: Fisher Funds' balanced fund is designed to favour growth assets such as shares and private property investments over fixed-income assets. With a 57:43 split favouring growth assets, there is a focus on international shares which are most likely picked by overseas fund managers. Recent top 5 holdings included an ANZ current account (10%), shopping malls in Tauranga (3%) and Christchurch (1%), an Auckland commercial property in the viaduct (1%) and New Zealand government bonds (1%). 

The annual management fee of 1.01% is higher than most balanced funds operated by other KiwiSaver schemes, but Fisher Funds' active management structure incurs higher costs which need to be passed on to investors. ​​

5: Growth Fund
This fund invests 25% of its money into income assets (term deposits and fixed interest), and 75% in growth assets (equities and unlisted property).

• Average annual return (after fees, pre-tax) since fund launch (2007): ~0.00%
• Annual management fee: %
• Risk factor: 4
• Expected annual return: 
• Suggested minimum investment period: 5 years 

Investment Composition targets
Income Assets

• Cash and cash equivalents: 10%
• New Zealand fixed interest: 6%
• International fixed interest: 9%

Growth Assets

• Australasian equities: 27%
• International equities: 40%
• Unlisted property: 8%

We say: Fisher Funds' Growth fund is the second most aggressive offering, targeting high-performing local and overseas equity opportunities. The Growth fund invests primarily in New Zealand assets; the top five recent holdings included a cash deposit with the ANZ Bank (10%), a private purchase of shares in Tauranga's Bayfair shopping mall (2%), Fisher & Paykel Healthcare shares (2%), A2 Milk shares (2%) and Mainfreight shares (1%). The fund's active investment managers look for growth opportunities globally, although the ten most valuable investments in 2018 were all New Zealand businesses. 

6: Equity Fund
This fund invests 78% of its money into income assets (term deposits and fixed interest), and 22% in growth assets (equities and listed property).

• Average annual return (after fees, pre-tax) since fund launch (2007): ~%
• Annual management fee: 1.29%
• Risk factor: 4
• Expected annual return: 
• Suggested minimum investment period: 5 years 

Investment Composition targets
Growth Assets

• Australasian equities: 40%
• International equities: 60%

We say: Fisher Funds' equity fund is the most aggressive in the scheme with a focus given to the larger companies listed on the New Zealand Stock Exchange. In the most recent report, the fund had holdings in familiar names such as Fisher & Paykel Healthcare, A2 Milk, Mainfreight, Freightways, Fletcher Building Limited, Ryman Healthcare and Auckland Airport. The fund also had a cash deposit with the ANZ Bank (13%). 

The annual management fee of 1.29% is higher than the other funds, primarily due to the costs incurred by buying and selling equities as well as Fisher Funds' active management structure incurring higher costs which need to be passed on to investors. 

What Others Are Saying - Fisher Funds KiwiSaver in the Media

"The active KiwiSaver schemes like Summer, Milford, Fisher Funds, Booster and Generate charge relatively high fees, and aim to earn them by using fund manager skill to beat the market. Their fund managers research companies, and markets, and try to earn high returns by picking winners, and avoiding losers".
- Rob Stock, Stuff.co.nz, April 2018

"The best of the conservative funds was the Aon KiwiSaver scheme's conservative fund, followed by SuperLife KiwiSaver scheme's conservative fund, followed by the Fisher Funds Two KiwiSaver's conservative fund" with both schemes, Fisher Funds TWO and Fisher Funds KiwiSaver, being rated 'Platinum' and 'Gold' respectively in a 2017 survey by SuperRatings, an Australian research firm.
- KiwiSaver's biggest money earners, Tamsyn Parker, NZ Herald, November 2017

"FundSource Awards' Fund Manager of the Year 2016, Fisher Funds, was lauded for the client-centric approach and were named as a finalist across four award categories".
- Top fund managers recognised, NZ Herald, October 2016

"Fisher Funds, the largest New Zealand-owned and -operated KiwiSaver provider, has been named Consumer NZ’s 2016 People’s Choice award winner for KiwiSaver. Fisher Funds achieved an overall satisfaction rating of 67 percent compared with the industry average of 48 percent. It also scored above average for keeping customers updated about their investments, returns on investments and fees and charges". 
- Fisher Funds wins People’s Choice, Consumer, June 2016

Fisher Funds continues to perform solidly year on year, although since the 2008 global financial crisis the NZX and most international markets have only gone up. By offering nine investment options and its age-based GlidePath options, Fisher Funds cements itself as a KiwiSaver option for those looking for a safe investment, higher-growth investments and an actively aggressive growth option. Fisher Funds' managers have a track record of delivering returns that have previously outperformed markets, ultimately returning significant value to investors.
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Standout Features:

1. A diverse range of funds - nine in total - and the age-based option, there is lots of choice but deciding which fund is for you could lead to decision paralysis. 
2. Fisher Funds has been around since the birth of KiwiSaver and has a solid reputation among investors, growing to the fifth largest KiwiSaver provider in terms of funds under management by 2017.
3. In a sample of five Growth funds (see table below) managed by Fisher Funds, Generate, ANZ, SuperLife and Simplicity, Fisher Funds returned the second highest pre-tax growth (after Generate) in the year to 30 June 2018.
4. The GlidePath age-based investment option, which assigns money into more conservative (i.e. less risky) holdings as the investor heads towards retirement age, is offered at no additional fee. Such options provide an excellent way to protect KiwiSaver balances while letting investors 'set and forget' their nest egg saving. 
5. It's free to change funds; the monthly membership fee means you can move between funds as often as you like.

​Be aware:

1. The more aggressive funds and are not suitable for short-term investments. 
2. Fees are slightly higher than standard bank and index-following KiwiSaver schemes - this is due to the costs associated with an actively managed fund, such as the cost of brokerage when an investment manager buys and sells investments.
3. As with any investment, markets go up and down. The Dotcom bubble in the early 2000s sank global sharemarkets, as did the 2008 Global Financial Crisis. Carmel Fisher, the provider's founder, stated in an interview in 2013 that with the global financial crisis, "people who had invested with the (funds) in late 2007 saw a third of their (investment) wiped out in six months". 
4. While many global sharemarkets are now at record highs, this is no guarantee of future earnings.

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