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Nikko AM KiwiSaver GoalsGetter Scheme Review

Our guide to the Nikko AM GoalsGetter KiwiSaver scheme looks at the fund choices, fees and options available to KiwiSaver members.
​Updated 10 December 2024
Summary of GoalsGetter KiwiSaver
  • Funds: Nikko AM GoalsGetter KiwiSaver, known as 'GoalsGetter', offers members the choice of eighteen funds, with around $58 million under management as at 30 September 2024. It's one of the smallest KiwiSaver schemes, having launched in 2018 and then relaunched as GoalsGetter in May 2024. 
  • Fund managers managing the GoalsGetter KiwiSaver funds include Milford, Pathfinder, Nikko AM, Salt, Generate and Harbour Asset Management.
  • A leading feature is that you don't need to pick just one fund - GoalsGetter allows you to create your own portfolio of investments by choosing any combination of their funds. This means you can allocate 20% to one fund, 60% to another and 10% for two others etc.
  • ​100% Active Management: All of the funds are actively managed by a fund manager, with fund managers actively managing their portfolio of investments to achieve long term capital growth. The costs associated with an active fund means that fund fees will be higher, relative to index-tracking schemes like Simplicity and Kernel.
  • Fees:
  1. There is an annual account fee of $30 for being a GoalsGetter KiwiSaver member, which is standard for most KiwiSaver schemes. 
  2. There is a management and administration fee of 0.40% (the GoalsGetter Nikko AM NZ Cash Fund) to 1.61% p.a. (the GoalsGetter Generate Focus Growth Fund) which is charged to your KiwiSaver balance per year. The fee you pay depends on your fund. 
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​Our Review
In this guide, we outline what the GoalsGetter KiwiSaver scheme is, it's pros, cons, alternatives and fees. This Guide covers:
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 Nikko AM as a KiwiSaver investment option.
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.
  • 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.
  • While we don't focus on the latest returns, we encourage readers to make their own comparisons.
  • Ultimately, deciding upon whether GoalsGetter is right for you will most likely come down to your interpretation of the fund performances in the medium term, their investment strategy and their fees.

GoalsGetter KiwiSaver Funds Summary

  • ​​The scheme is managed by Nikko Asset Management New Zealand Limited, which is part of the Japanese giant Nikko Asset Management which manages around US$230 billion of investments.
  • In New Zealand Nikko AM managers around $5 billion of investments, but despite this, it lacks brand awareness and only launched its KiwiSaver scheme in 2018, before relaunching GoalsGetter in 2024. 
  • Quarterly fund performance reports are available on the GoalsGetter website.
  • Each of the eighteen funds has a unique risk factor (1 = lowest, 7 = highest), which is driven by its distinct investment profile.
  • Fees, returns, risks and the suggested investment timeframe differ between funds.

The eighteen funds fall into four different categories, which focus on a particular asset class and risk level:

​Growth Funds:
  1. Generate Focus Growth Fund
  2. Harbour Active Growth Fund
  3. Milford Active Growth Fund
  4. Nikko AM Growth Fund
  5. Pathfinder Ethical Growth Fund
  6. Salt Sustainable Growth Fund

Balanced Funds:
  1. Generate Balanced Fund
  2. Harbour Sustainable Impact Fund
  3. Milford Balanced Fund
  4. Nikko AM Balanced Fund

Conservative Funds:
  1. Milford Conservative Fund
  2. Nikko AM Conservative Fund

​Other Funds:
  1. Generate Thematic Fund
  2. Nikko AM ARK Disruptive Innovation Fund
  3. Nikko AM Global Shares Fund
  4. Nikko AM SRI Equity Fund
  5. Nikko AM NZ Cash Fund
  6. Nikko AM NZ Corporate Bond Fund

Important: Fee Differences
  • Please note that fund fees can differ between what the external fund managers charge and the fees applied when these funds are accessed through the GoalsGetter KiwiSaver scheme. This is important for investors to understand, as the additional fees charged by GoalsGetter can impact overall returns over the long term.
  • For example, the Harbour Asset Active Growth Fund, when accessed directly, has a management fee of 0.95% p.a. However, through the GoalsGetter platform, the fee increases to 1.15% p.a., reflecting the additional layer of management and administration provided by GoalsGetter.
  • Similarly, the Milford Active Growth Fund has a direct base fee of 1.15% p.a., but when accessed through GoalsGetter, this increases to 1.25% p.a.. In addition to this base fee, the Milford Active Growth Fund also includes a performance fee, which is charged when the fund outperforms its benchmark. Performance fees can add significant costs during periods of strong market returns, as they are calculated as a percentage of the excess returns generated by the fund.
  • These differences in fees highlight the importance of understanding how costs can vary based on the platform used to access investments. While GoalsGetter provides a unique advantage of combining multiple funds into a single KiwiSaver portfolio, including some funds that are not usually available to KiwiSaver investors, the trade-off is higher fees compared to directly investing with fund managers. Over time, even small differences in fees can compound and affect the overall growth of your KiwiSaver savings.
  • For investors considering GoalsGetter, it’s essential to weigh the benefits of its flexibility and fund selection against the higher fee structure. Comparing the long-term cost implications of these fees with the potential for higher returns and the convenience offered by GoalsGetter can help determine if it aligns with your investment goals.

Who is the GoalsGetter KiwiSaver Scheme Suited To?

GoalsGetter offers a unique approach to KiwiSaver investing, comparable in some ways to the InvestNow KiwiSaver scheme. It provides the flexibility to select and blend KiwiSaver and non-KiwiSaver funds from top-performing fund managers, giving you the opportunity to diversify your KiwiSaver exposure beyond a single fund or manager. This tailored approach empowers you to create a KiwiSaver portfolio that aligns with your specific financial goals and risk tolerance.

We believe this flexibility is a significant advantage because each fund operates with its own distinct investment strategy, objectives, and asset allocations. This diversity means that no single fund will suit everyone, but the variety ensures there’s something for every type of investor. By offering access to multiple high-quality funds, GoalsGetter caters to a broad audience, allowing investors to take control of their KiwiSaver journey and craft a personalised strategy for long-term growth.
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Standout Features:
  • GoalsGetter lets investors create their own portfolio of investments by choosing any combination of any of the GoalsGetter KiwiSaver funds.
  • 18 funds that offer a sliding scale of risk and return, clearly defined in investor statements.

Be aware:
  1. 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. While many global sharemarkets are now at record highs, this is no guarantee of future earnings.
  2. GoalsGetter, via Nikko AM, has an environmental, social and governance (“ESG”) policy, but it's not as definite as other KiwiSaver schemes. Instead, Nikko AM states that it "only invests in companies that the team has thoroughly researched and debated" but then states that the "impact of ESG factors altering investment decisions is subjective". In 2020, we asked Nikko AM to elaborate further, and their response appears below:
  • "We are a signatory to the United Nations' Principles for Responsible Investment, by which we incorporate environmental, social and governance (ESG) issues into investment decisions. We believe that considering these factors is an essential part of good investment decision making for better investment returns and improved risk management.
  • This also enables us to determine, on a case by case basis, whether any necessary changes to an enterprise’s practices can be better achieved by engaging with them or refusing to invest in them.
  • It’s important to note that ESG is separate to ‘ethical’ or ‘socially responsible’ investment criteria which is where companies are specifically excluded or included in portfolios due to personal preferences that are not necessarily related to financial outcomes (e.g. a fund may exclude casinos or alcohol producers).
  • Due to the wide variety of personal preferences and opinions on what should or should not be excluded, our retail funds do not have any specific restrictions apart from banning cluster munitions and landmines (as required by law)".

8 Must-Know GoalsGetter AM KiwiSaver Scheme Facts

GoalsGetter is new and one of the smallest KiwiSaver scheme around

The Nikko AM KiwiSaver funds launched in 2018, before relaunching as GoalsGetter in 2024. It has around $60 million in funds under management which represents a tiny fraction of one percent of the total KiwiSaver investments. It's too early to see if KiwiSaver members will embrace the fund manager given the choice in the market. 

No matter what your employer's preferred KiwiSaver provider or fund is, you are entitled to select GoalsGetter as your KiwiSaver scheme

Your employer may offer another KiwiSaver provider as their preferred provider, but you are free to choose GoalsGetter KiwiSaver as your provider if you feel it's right for you. ​You don't have to be a client of Nikko AM either - the scheme is available to everyone.

GoalsGetter has a range of fees, with growth-orientated funds costing the most

No matter how many funds you invest in, as a GoalsGetter KiwiSaver member, you'll pay two fees:
  • 0.40% to 1.61% p.a. of your KiwiSaver balance per year, depending on your fund, which represents the management and administration fees.
  • $30 per year, which is the membership fee for being in the GoalsGetter KiwiSaver scheme.

If you want to contribute to your fund at a level above your fixed salary contribution, you can do this via the online banking or manually by contacting the client services team. If you stop contributing, you will still pay both fees.

Dividends your fund receives are reinvested, meaning more cash is invested on your behalf

Many of the GoalsGetter 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. 

All of GoalsGetter's KiwiSaver funds are actively managed, with pre-defined investment objectives

All GoalsGetter KiwiSaver funds invest into existing funds which state their performance targets in the Product Disclosure Statement. All these funds are actively managed, some by Nikko AM and others by external managers such as Milford, Pathfinder and Salt. Each fund has its own key personnel, tasked with the responsibility of portfolio management and analysis. Each fund manager will then select specific investments it sees as undervalued, anticipating that in time, the value of the investment will grow and ultimately make a profit for the fund.

How does this work in practice?
  • Each GoalsGetter fund and its respective investment team follows the agreed-upon target investment mix. For example, the target of equities in the GoalsGetter Nikko AM Growth Fund is 80%. This allows the fund manager to invest up to 80% of fund's assets into anything that is 'equities', e.g. shares in local and international sharemarkets.
  • The manager can use all of the allocation on one listed property company, or diversify into many investments (which is what happens in practice). As international equities are not without its risks, investment managers will diversify and purchase many different international equities. Recent favourites across all KiwiSaver schemes have included shares in Amazon.com, Microsoft, Apple, Alphabet and NVIDIA.
  • As market conditions change, the investment manager buys and sells individual investments as they see fit.
  • Important: Past fund performance is no guarantee of future results; what you ultimately invest in will be determined by your level of comfort with a fund. ​

​Signing up to GoalsGetter isn't complicated, and you are not limited to only one fund

Signing up to the GoalsGetter scheme is easy, and you can create your own portfolio of investments by choosing any combination of the funds. This means you can allocate 20% of your money to one fund, 40% to another, and 10% to another two, giving you diversity.

The performance data is easy to follow, and updated regularly

​Fund performance details are published on the Nikko AM website and GoalsGetter website. Unit prices, which track the performance, are updated daily. Unlike many other KiwiSaver schemes, Nikko AM and GoalsGetter doesn't offer online portfolio tracking, which limits the amount of information you'll see between quarters. 

Our Conclusion​

  • The Nikko AM GoalsGetter KiwiSaver scheme offers a compelling choice for those seeking flexibility and control over their KiwiSaver investments.
  • With the ability to select from 18 funds and create a personalised portfolio, GoalsGetter caters to investors who want a hands-on approach to managing their KiwiSaver account.
  • This scheme’s diversity of fund managers - including names like Milford, Pathfinder, Generate, Salt and Harbour Asset Management - means access to a broad spectrum of strategies and asset classes.
  • However, as an actively managed scheme, GoalsGetter comes with higher fees compared to passive options like Simplicity or Kernel. While these fees reflect the active management and potential for higher returns, they may not appeal to cost-sensitive investors.
  • Additionally, the scheme’s relatively small size and limited online tracking tools may deter those who prioritise scale or user experience.
  • Ultimately, choosing a KiwiSaver provider needs consideration. The GoalsGetter scheme is a solid option for investors who are confident in navigating fund options and prioritise personalised portfolio construction. ​
Do you have experience with Nikko AM/GoalsGetter KiwiSaver scheme that you would like to share with our readers? Email our research team who would be delighted to hear from you. 

How does Nikko AM compare with other options?