MAS KiwiSaver Scheme Review

Our guide to the MAS KiwiSaver Scheme looks at the fund choices, fees and options available to KiwiSaver members.

Updated 17 December 2021

Summary of MAS KiwiSaver

MAS KiwiSaver offers seven KiwiSaver funds, with the aim of making market-beating returns by outsourcing management and investing to decision to trusted external managers.
Unlike schemes like Milford, Fisher Funds, JUNO and Booster, MAS doesn't employ in-house investment managers, which likely keeps costs (invariably passed on to the investors) lower. Fund industry giants JBWere, Blackrock, Bancorp and Hunter Investment Management make all investment decisions.
Most KiwiSaver schemes have two fees - an annual membership fee (which is usually a flat amount of money) and an annual management fee (which is usually a percentage of your fund balance). MAS KiwiSaver, rather helpfully, has one fee - just the annual management fee.
Every MAS KiwiSaver fund has an average balance well above the national average, suggesting that many high-earning (and high contributing) New Zealanders have selected MAS KiwiSaver as their provider. We believe the driving force is the health profession's loyalty and commitment to MAS as a financial service provider.
MAS KiwiSaver follows a Responsible Investing Policy (outlined here).
Medical Funds Management Ltd (MFM), the Manager of MAS KiwiSaver, is a subsidiary of the Medical Assurance Society New Zealand Limited (MAS), which itself is a mutual society and therefore not a profit-focused company.
Switching between any MAS KiwiSaver fund is free. If you take your money to another fund, there are no joining fees or exit fees.

Read this First: Fees, Performance and Understanding What's Best For Your Situation

Much 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. Being comfortable with what you're investing in is the most important aspect of saving for your retirement.
With seven fund options available, MAS KiwiSaver offers investors a choice of actively managed funds without the limitation of performance fees which can be contentious.
While MAS doesn't charge an annual membership fee, there is a minimum management fee of $12.50 per calendar quarter ($50 per annum). This would be the same as around $10,000 if you invest in MAS KiwiSaver's Cash fund, or around $5,000 if you invest in any of the other six funds. The $50 fee does not apply to members aged under 25 at the time the fee is calculated.

Our Review
In this guide, we outline the MAS KiwiSaver scheme, what funds they offer to KiwiSaver members, how they're different from other funds, and look at alternatives and the level of fees involved.

Please note: MoneyHub is not a Financial Adviser. This guide has been published to explain the investment fundamentals and outline the pros and cons of MAS KiwiSaver as a KiwiSaver investment option.

This Guide covers:

How does MAS KiwiSaver compare with other options?

Read our Favourite KiwiSaver Funds guide to find out more.
Worried about not having enough money when you retire? Don't retire poor - read our Retirement in a Nutshell guide (warning: it's brutally honest).

Advertising Disclosure: We include the funds below based on merit, although we may have commercial arrangements with specific innovative and market-leading schemes for general promotion. Our Advertising Policy has more details. We rely on Morningstar data for all fund returns information.

Medical Assurance Society (MAS) KiwiSaver Review

MAS KiwiSaver Fees

The table below outlines the seven different funds, their fees, suggested investment time frame (as guided by MAS), the ratio of growth assets (i.e. shares) to income assets (i.e. term deposits and bonds) in the fund, as well as the fund size and average balance size. Source: MAS KiwiSaver updates.

Table 1 - MAS KiwiSaver Fees and Figures

Fund	Annual Fund Fee (Management + Admin)	Minimum Suggested Investing Time Frame	Growth Assets vs Income Asset Ratio	More Details (from Sorted's Tool)	Size of Fund at 30 June 2021	Average Balance per member
Global Equities	1.10%	12 years	100:0	Click here	$83,097,384	$44,652
Aggressive	1.12%	11 years	90:10	Click here	$144,874,376	$40,660
Growth	1.13%	10 years	80:20	Click here	$349,738,851	$54,655
Balanced	1.09%	7 years	60:40	Click here	$332,195,750	$61,803
Moderate	1.02%	5 years	40:60	Click here	$77,420,746	$46,001
Conservative	0.99%	3 years	20:80	Click here	$71,400,794	$33,871
Cash	0.51%	No minimum	0:100	Click here	$11,790,052	$26,614

The Specs of the MAS KiwiSaver Scheme and Where Your Money is Invested

MAS outsources its portfolio management to wealth manager JBWere and investment bank Bancorp.
The MAS KiwiSaver scheme offers seven actively managed funds, ranging in risk from a cash fund to a global equities fund, with fees between 0.51% and 1.13% p.a. Unlike most other KiwiSaver schemes, MAS does not charge an annual membership fee.
The seven funds have distinct investment profiles, which we outline below:

1: MAS KiwiSaver Cash Fund

Risk factor: 1
Fee: 0.51% p.a.
Minimum suggested investment timeframe (per MAS): None.
Investment Composition: Cash (100%)
Investor type: MAS's says the fund is "suitable for investors who require an investment with very low volatility".
Our view: This MAS fund invests only in cash: term deposits and call accounts. Given how low New Zealand interest rates are, returns will be low, and the deduction of a 0.51% p.a. fee will reduce them further.

2: MAS KiwiSaver Conservative Fund

Risk factor: 3
Fee: 0.99% p.a.
Minimum suggested investment timeframe (per MAS): 3 years.
Investment Composition: International Equities (14%), Australasian Equities (6%), International Fixed Interest (45%), New Zealand Fixed Interest (25%) and Cash & Cash Equivalents (10%)
Investor type: MAS's says the fund is "suitable for investors who want to take a more cautious approach and accept a smaller amount of investment risk to potentially achieve a more stable return".
Our view: This MAS fund invests 80% of its money in fixed interest investments and 20% of the money in shares. Again, like the Cash Fund (above), the deduction of a 0.99% p.a. fee will reduce interest paid them further. The fee for a Conservative fund is higher than any index fund (0.99% vs 0.31% p.a if you compare MAS and Simplicity), so it's worth keeping that in mind.

3: MAS KiwiSaver Moderate Fund

Risk factor: 4
Fee: 1.02% p.a.
Minimum suggested investment timeframe (per MAS): 5 years
Investment Composition: International Equities (27.5%), Australasian Equities (12.5%), International Fixed Interest (35%), New Zealand Fixed Interest (19.5%) and Cash & Cash Equivalents (5.5%)
Investor type: MAS's says the fund is "investors who are prepared to accept some investment risk to potentially achieve a moderate return".
Our view: The Moderate Fund invests 60% into income assets; the fees are arguably relatively high for a moderate fund (just as they are for the Conservative Fund above).

4: MAS KiwiSaver Balanced Fund

Risk factor: 4
Fee: 1.09% p.a.
Minimum suggested investment timeframe (per MAS): 7 years
Investment Composition: International Equities (41.5%), Australasian Equities (18.5%), International Fixed Interest (22.5%), New Zealand Fixed Interest (14%) and Cash & Cash Equivalents (3.5%)
Investor type: MAS's says the fund is "suitable for investors who are prepared to accept a medium level of investment risk to potentially achieve a medium return".
Our view: This MAS fund is the flip-side of the Moderate fund and invests 60% of its money into shares and 40% into fixed-interest. This gives it more growth potential in the long run than any other non-growth focused fund, but that also comes with added risk.

5: MAS KiwiSaver Growth Fund

Risk factor: 5
Fee: 1.13% p.a.
Minimum suggested investment timeframe (per MAS): 10 years
Investment Composition: International Equities (55.5%), Australasian Equities (24.5%), International Fixed Interest (12%), New Zealand Fixed Interest (6.5%), Cash & Cash Equivalents (1.5%).
Investor type: MAS's says the fund is "suitable for investors who are prepared to accept a high level of investment risk to potentially achieve a high return".
Our view: This is MAS KiwiSaver's most popular fund, with close to $400 million invested. 80% of the investment is applied to growth shares and ETFs. Recent examples include Microsoft, Infratil, Fisher & Paykel Healthcare, Mainfreight and Alphabet. MAS charges the highest fee for this fund, although the difference is small between growth-focused funds.

6: MAS KiwiSaver Aggressive Fund

Risk factor: 5
Fee: 1.12% p.a.
Minimum suggested investment timeframe (per MAS): 11 years
Investment Composition: International Equities (62.5%), Australasian Equities (27.5%), International Fixed Interest (6.5%) and New Zealand Fixed Interest (3.5%).
Investor type: MAS's says the fund is "suitable for investors who are prepared to accept a higher level of investment risk to potentially achieve a higher return".
Our view: This MAS fund invests 90% of its money into shares - it's aggressive, but not as aggressive as the Global Equities fund (below). Recent holdings include Microsoft, Mainfreight and Alphabet, as well as some sector ETFs. The fee is competitive based on 90% of the money going into shares (which adds costs compared to investing into fixed interest).

7: MAS KiwiSaver Global Equities Fund

Risk factor: 5
Fee: 1.10% p.a.
Minimum suggested investment timeframe (per MAS): 12 years
Investment Composition: International Equities (70%) and Australasian Equities (30%)
Investor type: MAS's says the fund is "suitable for investors who are prepared to accept a higher level of investment risk to potentially achieve a higher return".
Our view: The Global Equities fund operates exactly as its name suggests, investing only in shares. Recent holdings include Microsoft, Mainfreight and Alphabet, as well as some sector ETFs. The fee is competitive based on 100% of the money going into shares (which adds costs compared to investing into fixed interest).
Additional notes: MAS is one of the few KiwiSaver schemes to offer an aggressive fund – most stop at 'growth'. Aggressive funds are most suitable for those with long investment time frames and strong risk appetites. The fund has significantly outperformed the average KiwiSaver growth fund over the five years to 30 September 2021.

Summary

The seven funds all invest in income and growth assets; the higher the proportion of equity investments, the more aggressive the fund and the expectation of a higher return.
As with any fund, past performances do not indicate future results, but generally, the characteristics of how each fund behaves remain the same.

How does MAS compare with other options?

Read our Favourite KiwiSaver Funds guide to find out more.
Worried about not having enough money when you retire? Don't retire poor - read our Retirement in a Nutshell guide (warning: it's brutally honest).

MAS KiwiSaver - What You Need to Know

Fund Performance - MAS vs Milford vs Fisher Funds vs Booster vs Generate

The table below compares many growth-focused funds from well-known active KiwiSaver funds. We have excluded all index funds such as SuperLife and Simplicity, specialist share funds from AMP etc., so this is not a complete list.
All data is sourced from Morningstar - you can find the most up to date tables here.
The table below shows that, historically, MAS has performed alongside industry leaders such as Milford, Fisher Funds and Booster, which are themselves widely regarded as top-performing investors.

Fund	5 year Return to 30 October 2021
Booster KiwiSaver Geared Growth Fund	15.86%
Fisher TWO KiwiSaver Scheme Equities Fund	14.94%
Booster KiwiSaver Socially Responsible High Growth Fund	13.81%
MAS Kiwisaver Global Equities Fund	13.64%
Generate KiwiSaver Focused Growth Fund	13.06%
Milford KiwiSaver Active Growth Fund	12.72%
MAS Kiwisaver Aggressive Fund	12.27%
Booster KiwiSaver High Growth Fund	12.07%
Fisher Funds Growth KiwiSaver Fund	12.02%
MAS KiwiSaver Growth Fund	11.o6%

Claims made by MAS KiwiSaver vs Reality

In this section, we look at two claims advertised by MAS KiwiSaver on their website and marketing materials and explain what they mean.

1. "Driven by purpose, not by profit".

Is it true?

Yes - MAS is a "mutual society" - this means each customer becomes a MAS member. All profits are held for the benefit of the community and members. This is different to most other KiwiSaver schemes, which charge fees and report high profits.

2. "We're a certified responsible investor, we're helping inspire healthier NZ communities and we're a Kiwi business owned by you"

Is it true?

Yes - MAS has a Responsible Investing Policy which is explained in further detail here. You can read more about ethical investing here.

Who is MAS KiwiSaver Suited To?

The MAS KiwiSaver is a quiet achiever and has flown under the radar for many years while focusing on the medical profession. MAS is now promoting itself to a wider audience and has a track record of strong fund performance to back it up.

If you're looking for an actively managed funds with a track record of high performance, MAS KiwiSaver may appeal to you.

Standout Features:

There are seven funds to choose from; three funds, Global Equities, Aggressive and Growth, have all delivered 11% p.a. returns for the 2016-2021 period per Morningstar data.
MAS invests ethically and was an early adopter of a Responsible Investing Policy (explained in further detail here).
The investment managers are of a high calibre - JBWere is a trusted Australian-based asset manager who also relies on the expertise of Blackrock, the world's largest investment company.
The annual management fees are similar to those charged by Milford, Fisher Funds and other actively-managed funds, and unlike Milford, MAS KiwiSaver doesn't charge performance fees.
It's free to change funds; the monthly membership fee means you can move between funds as often as you like.
If you join MAS KiwiSaver, you become a MAS member. Members are entitled to use exclusive membership benefits, which include discounted loans and finance services via Westpac, invites to speaker series events, health and well being support and EAP (Employee Assistance Programme) counseling.

Be aware: As with any investment, markets go up and down. The Dotcom bubble in the early 2000s sank global share markets, as did the 2008 Global Financial Crisis. While many global share markets are now at record highs, this is no guarantee of future earnings.

The Bottom Line

We believe MAS KiwiSaver delivers on what it promises (a choice in funds, ethical investing and competitive fees), and we see it as a highly compelling offer in what has become a crowded KiwiSaver market.
Unlike most bank schemes (ASB, ANZ, BNZ and Westpac) and foreign-owned schemes (AMP, Aon and Mercer etc.), the MAS KiwiSaver scheme is 100% New Zealand owned and focused on the local community. Like Simplicity, there is a MAS Charitable Trust tasked with distributing a portion of fee proceeds to local charities and initiatives.
There are no joining fees, no exit fees, no performance fees, and you can transfer between funds for free as many times as you want.
The funds are active funds meaning a team of investment managers are responsible for selecting undervalued equities to anticipate that their share price will go up in the short to medium term. This has more risk and also has the potential for greater returns over an index fund. Our guide to index (passive) vs active funds has more details.
Depending on your KiwiSaver balance, other funds on other platforms can have cheaper management fees, with an example presented in the table below. However, annual fees alone should not be the only criteria when comparing KiwiSaver schemes. MAS KiwiSaver, as an actively managed scheme, is designed to outperform low-fee index schemes like Simplicity. Whether it does in the long-term is something we can't predict.
No two funds are directly comparable, so it's essential to shop around and compare fund objectives as well as fund fees if you're serious about having the biggest KiwiSaver nest-egg possible.
In terms of risk, each fund has a risk number (1 = lowest, 7 = highest). The Cash fund (rated 1) is the most conservative fund while the Global Equities, Aggressive and Growth funds are all rated 5.

Table 2 - Growth Fund Fee Comparison: MAS vs Simplicity vs JUNO vs Milford

All fees (member and management charge) include for KiwiSaver balances between $5,000 and $500,000

Balance	MAS Growth Fund Annual Fee (1.13%)	Simplicity Growth Fund Annual Fee (0.31%)	JUNO Growth Fund (Annual Fee varies)	Milford Active Growth Fund Annual Fee (1.05%*)
$5,000	$56.50 (1.13%)	$15.50 (0.31%)	$60 (1.20%)	$52.50 (1.05%)
$15,000	$169.50 (1.13%)	$46.50 (0.31%)	$96 (0.64%)	$157.50 (1.05%)
$40,000	$452 (1.13%)	$124 (0.31%)	$240 (0.60%)	$420 (1.05%)
$100,000	$1,130 (1.13%)	$331 (0.31%)	$1,080 (1.08%)	$1,050 (1.05%)
$500,000	$5,650 (1.13%)	$1,550 (0.31%)	$2,520 (0.50%)	$5,250 (1.05%)

*Excludes performance fee, currently 15% of any return above 10% p.a. The historical performance fee of the Active Growth Fund is 0.38% p.a.

Eight Must-Know MAS KiwiSaver Facts

MAS KiwiSaver isn't as well known as the likes of Milford, Fisher Funds and Simplicity, but it has a track record of market-leading returns quarter after quarter. Our must-know facts below highlight key information about the scheme and who is behind it.

MAS has long been associated with providing retirement funds for health professionals

MAS offers the same funds in its KiwiSaver scheme to anyone who wants to invest in its retirement savings scheme, "designed as an employer-based superannuation scheme providing employees with flexibility and freedom in how they invest".

The fees match those charged by the KiwiSaver scheme, so there is no difference other than the government doesn't offer the annual contribution bonus if you meet the threshold. Additionally, the MAS Retirement Savings Scheme is also a Recognised Overseas Pension Scheme (ROPS) for UK pension transfers.

Historically, MAS has been recognised and favoured by many health professionals. It has enjoyed close relations with District Health Boards and the New Zealand Royal College of General Practitioners.

It doesn't matter what your employer's default KiwiSaver provider or fund is - you can select MAS KiwiSaver and the fund you want

MAS KiwiSaver is open for everyone, meaning you don't have to work in healthcare etc. While MAS KiwiSaver may be unknown to your employer, you're 100% entitled to pick it as your provider, just as you are with any KiwiSaver scheme.

There is no minimum investment, and it's easy to take contribution holidays

As a MAS KiwiSaver member, you'll pay a percentage of your total investment as a fee, whether you have $1 or $100,000 etc. You also have full freedom to invest as you like - for example, pick the fund and decide on your contribution rate (e.g. 3%, 4%, 8% or more of your salary/wages). If at any time you want to stop contributing (temporarily or permanently), you can do that too. And if you want to switch funds or providers (for example, leave MAS for another scheme), you can do that by contacting the MAS client services team.

The dividends your fund(s) receive are reinvested, meaning more cash is invested on your behalf

Many of MAS' KiwiSaver funds invest in shares, and many will pay dividends. These cash payments represent the profits from companies returning it to the shareholders, i.e. you. When a company declares a dividend, your fund will receive money and it is re-invested into more shares, growing the value of your fund. Despite being a cash payment, and as is the case with ALL KiwiSaver funds, there is no option to take this money as cash until you turn 65.

MAS KiwiSaver offers actively managed funds and it is orientated towards picking market-beating shares and uses external management

Each fund has a unique investing strategy. For example, the Growth fund, as outlined in the MAS KiwiSaver product disclosure statement, "invests mainly in growth assets with a modest allocation to income assets [and] aims to provide strong returns over the long term". While this sounds fairly conservative, the scheme has two investment managers, JBWere and Bancorp. JBWere is an experienced Australian-based wealth manager responsible for MAS KiwiSaver's equities (i.e. growth assets) who also use BlackRock, the world's largest asset manager, to make investing decisions.

Unlike schemes like Milford, Fisher Funds, JUNO and Booster, MAS doesn't employ in-house investment managers. The numbers and costs of doing so can be significant - this 2019 article suggests Milford has close to 100 employees, including a private wealth team of 26 and a similar number of investment specialists. Such costs are passed on to the investors. MAS is arguably cost-effective, given investors will benefit from JBWere and Blackrock's economies of scale.

Signing up isn't complicated, but you’ll need to decide what fund to invest in first

Signing up to MAS KiwiSaver is simple and quick, but you’ll need to decide your fund first. Helpfully, the names of the seven funds - Global Equities, Aggressive, Growth, Balanced, Moderate, Conservative and Cash, are free of buzzwords or spin.

Generally, if you're looking for a safe investment with the lowest risk of seeing your original investment fall, a cash or conservative fund could be a suitable option. If you're looking for a higher return and are prepared to have your money in higher-risk investments that could fall in value, a global equities, aggressive or growth fund would likely be a suitable starting point.

If you're not sure of what to invest in and want to have a range of options to pick from, look at Sorted's FundFinder tool, which includes all seven MAS KiwiSaver funds.

None of the seven funds invest specifically in New Zealand shares

Most of MAS KiwiSaver's funds invest in shares, but none of these are specifically investing in New Zealand shares. However, a recent review of top 10 holdings by growth-focused funds confirmed investments in local companies such as Infratil, Fisher & Paykel Healthcare, Mainfreight and Meridian Energy.

The investment manager will look for the best opportunities to grow the value of your investment - whether or not that's a New Zealand or overseas company won't be a major factor during the decision making process.

The scheme's performance continues to be strong, but past results are no guarantee of future growth

The funds have 5+ years of performance data and have reported consistently strong results per Morningstar data. MAS doesn't promote the performance of its funds like other KiwiSaver schemes do (and some of them arguably do it quite aggressively). Instead, it likely prefers to focus on improving the quality of its is scheme and keep fees low to benefit its members.

Having recently added performance data to Morningstar in 2021 it's likely there will be media comments going forward around MAS' fund performances.

Our Conclusion

The MAS scheme offers a diverse range of seven funds, and its fees for an actively managed fund are lower than those charged by Milford and Fisher Funds, among others.
Fund performance is easy to track via MAS' fund performance. In terms of comparison, you'll need to compare different KiwiSaver schemes' fund reports to get a full picture. We have taken the "after deductions for charges and tax" figures to make a consistent comparison.
With over $1 billion in management, MAS KiwiSaver is half the size of the more well-known Simplicity yet goes relatively unnoticed in the media. With high average balances and a top-performing growth-focused funds, we confer that MAS's KiwiSaver scheme is a strong offering and worth considering if you're looking to switch (or sign up to KiwiSaver as a new member).
With seven different funds, MAS offers a wide number of choices, and we like the structure, fees and not-for-profit nature of this historically high-performing scheme.