There's a lot more to selecting a KiwiSaver fund than just checking past returns and fees. If your hard-earned money is invested in KiwiSaver, you need to ask the important questions to understand where and how that money is invested.
Note: The following information is taken from ANZ Kiwisaver Scheme's own website, fund updates, and the product disclosure statement published in May 2020.
Facts & History of the KiwiSaver provider
Beginning in 1835, the bank of ANZ was established in Sydney, Australia under the Royal Charter. It was established in New Zealand in 1840, making it New Zealand’s oldest bank. It has a strong heritage in Business Banking and offers a full range of banking options, including Personal, Rural, Corporate, Commercial, Institutional and Private Banking. In 1951, UBA and the Bank of Australasia merged to become Australia and New Zealand Bank (ANZ Bank).
ANZ moved its corporate headquarters to Melbourne, Australia in 1976, and three years later an Act of Parliament permitted ANZ to incorporate its branches in New Zealand as ANZ Banking Group (New Zealand) Ltd. ANZ sold 25% of the shares to the public.
In 1983, ANZ opened its New Zealand head office in Wellington. In December 2003, the ANZ Banking Group bought The National Bank from Lloyds TSB. The banks operated as separate brands until 2012 when they were brought together under the ANZ brand.
Below is a link to more information about their History :
ANZ is one of the world's largest banks and their businesses serve more than 5 million customers. ANZ manages six funds under its OneAnswer KiwiSaver scheme and has total Assets Under Management (AUM) of more than $NZD 10 billion and 592,230 members.
- Morningstar Awards - New Zealand Fund Manager of the Year 2020
- SuperRatings Platinum Rating 2019
- Morningstar Kiwisaver Bronze Rating 2019
- Morningstar Default Kiwisaver Bronze rating 2019
The investment team, structure and their alignment with clients
Paul Huxford - Chief Investment Officer
Paul has overall investment responsibility for ANZ Investments across all asset classes, in addition to managing the investment team. He joined ANZ in 2018 with over 25 years of global capital markets risk experience in Europe, Asia, Australia and New Zealand.
Before joining ANZ, Paul held the following key roles: Managing Director - Europe Middle East and Africa Equities Research (JPMorgan), Managing Director - Australian Equities Research (JPMorgan) and Head of New Zealand Country Credit Risk (Bankers Trust/Deutsche).
Alan Clarke - Co-Head of Diversified Portfolio Management
Alan is jointly responsible for the Diversified Funds across ANZ Investments, which includes KiwiSaver, retail, wholesale, and private bank portfolios. In addition to diversified portfolio management duties, Alan leads the selection, appointment, and monitoring of external managers and ANZ Investments’ approach to responsible investing.
Alan has over 18 years of industry experience and joined ANZ in 2006 before moving to the investment team as an analyst in 2007. From 2000 to 2005, Alan worked with investment firm Morley Funds Management (UK) and with Dutch fund-of-hedge-funds company, Theta Capital Management.
Maaike Van Tol - Co-Head of Diversified Portfolio Management
Maaike is jointly responsible for the management of the Diversified Funds across ANZ Investments, which includes KiwiSaver, retail, wholesale, and private bank portfolios. In addition to diversified portfolio management responsibilities, Maaike is focused on the asset allocation process, which includes both strategic and tactical asset allocation.
Maaike has over 13 years’ industry experience and started at ANZ in 2015. Before ANZ, she worked as a Strategic Advice Specialist at ING Investment Management advising large Dutch pension fund clients on asset allocation, and Structured Products Portfolio Manager for IMC Asset Management in the Netherlands.
Mathew Young - Head of Foreign Exchange and Investment Implementation
Mathew is responsible for the implementation of investment decisions across our KiwiSaver, retail, private bank, and wholesale portfolios. He also leads the research for setting the strategic direction of foreign exchange positions for our portfolios and is involved in the wider strategy discussions.
Mat has been involved in the fund’s management industry for over 18 years and joined ANZ in 2002. Prior to that, he worked for a variety of firms in London including Old Mutual Fund Management and Hemscott.net.
The investment team monitors the attractiveness of each asset class and adjusts the allocation depending on how they believe each will perform. The funds invest in underlying funds that ANZ manages. ANZ believes this management structure is a benefit because it creates efficiencies and we have greater control of the overall cost.
Their investment management team selects the assets for most of the underlying funds investing in Australasian assets. For the underlying funds investing in international assets, they are selected by a small number of external fund managers who they believe are among the best in their class.
ANZ is responsible for the investment of the Scheme’s assets, in accordance with legislative requirements, the Trust Deed, the Product Disclosure Statement (PDS), and the SIPO.
Their responsibilities include:
ANZ is responsible for reviewing the performance of its investment managers and that is undertaken on a regular basis.
Governance & Compliance processes
All KiwiSaver Scheme Providers must ensure they meet regulatory standards and act with customer interests in mind.
KiwiSaver Scheme Managers must exercise care, diligence and skill in the investment of scheme assets, and act in accordance with the stated investment policy and objectives. The FMA monitors that KiwiSaver Schemes are compliant with their obligations. Additionally, KiwiSaver Scheme Trustees also have a responsibility as front-line supervisors for monitoring the management and administration of these schemes.
A custodian plays a key role in protecting your investments. They hold your money and investments (i.e. keep custody of them) on your behalf. So they are the legal holder of your assets while you are the beneficial and ultimate owner.
A supervisor is a licensed entity independent of the KiwiSaver scheme provider that supervises the provider’s management of the scheme. KiwiSaver schemes are trusts, and (except for restricted KiwiSaver schemes) the terms of the trust deed states that the supervisor (or another custodian) must hold all contributions and investments in trust for the investors.
The Custodian and Supervisor are the New Zealand Guardian Trust Company Ltd. Guardian Trust is the corporate trustee for many of New Zealand's leading corporations, financial institutions, fund managers, and banks. Their clients span a broad range of business activities and the quality of their client portfolio reflects our status as a provider of corporate trustee services in New Zealand. As of June 2018, they manage funds in excess of NZ$ 120 billion.
Below you will find a link to a more detailed look into the Guardian trust:
ANZ's Governance Process
ANZ’s Board is composed of eight Non-Executive, independent Directors (including an independent Chair, David Gonski, AC), and one Executive Director — ANZ’s Chief Executive Officer (CEO), Shayne Elliott.
Under ANZ’s Constitution, the Board may delegate any of its powers to committees of the Board. ANZ has five principal Board Committees — the Audit Committee (chaired by Paula Dwyer), the Ethics, Environment, Social and Governance (EESG) Committee (chaired by David Gonski, AC), the Risk Committee (chaired by Graeme Liebelt), the Human Resources Committee (chaired by Ilana Atlas) and the Digital Business and Technology Committee (chaired by Lee Hsien Yang). Each Committee has its own Charter setting out its roles and responsibilities.
At the management level, the Group Executive Committee (ExCo) comprises ANZ’s most senior executives. ANZ has a delegation of authority framework that clearly outlines those matters delegated to the CEO and other members of senior management.
ANZ also has a number of formally established management committees that deal with particular sets of ongoing issues. They operate in accordance with Group Guidelines that define their decision making authority.
Below is a link, for more information about their Corporate Governance Statement:
The investment processes followed by the manager
ANZ Investments is an active manager and is committed to its philosophy of active investment management. ANZ considers itself as long term investors with a preference for holding quality investments, ones that are well diversified, and which are highly liquid.
Underpinning this approach, there are six basic elements to ANZ’s investment philosophy:
ANZ focuses on selecting Investment Managers who are specialists within their particular investment markets and who have demonstrated the capability and conviction in portfolio construction and the execution of investment strategies.
ANZ has a process for selecting external fund managers, who manage some of the international assets in the underlying funds. They select external fund managers that ANZ believes are among the best in their class. They take into account both quantitative and qualitative aspects and look at a number of factors, including:
Once selected, an external fund manager is subject to a rigorous on-going monitoring process. Each external fund manager is regularly assessed against the above criteria. We also regularly compare our external fund managers against other managers we rate highly.
ANZ reviews the investment strategy for each fund as part of their strategic asset allocation process. This is done at least once every three years to set each fund’s target investment mix and ranges. ANZ forecasts how each asset class will perform over the long term, both in isolation and in relation to other asset classes. They then use the forecasts to construct the most effective target investment mix and ranges, with the aim of:
As part of the review, the metrics that may be monitored include:
Social and Ethical Considerations
Socially responsible investing (SRI) or Environmental, Social and Governance investing (ESG), also known as sustainable, socially conscious, “green” or ethical investing, is any investment strategy which seeks to consider both financial return and social/environmental good to bring about social change regarded as positive by society.
Basically, SRI investing is investing in companies that have a positive impact on society, based on a number of factors.
ANZ’s goal is to deliver sustainable performance in a sustainable way. That means assessing investments against both financial and non-financial criteria.
Traditional investment approaches focus mainly on financial criteria such as balance sheet strength and future earnings forecasts. ANZ also takes environmental, social, and governance (ESG) factors into account. As these factors are some of the drivers of long-term investment risks and returns, they believe that including them in their assessment criteria will help them identify investments that can deliver more sustainable long-term performance – which is in the best long-term interest of both their investors and wider.
Below you will find a link to a more detailed look into their Responsible investment Policy.
As a signatory to the United Nations-supported Principles for Responsible Investment, ANZ abides by six principles which provide guidelines for institutions on incorporating environmental, social, and governance factors into their investment processes:
ANZ’s active investment management approach means they continually review their investments and prospective investments against both their financial and ESG criteria. These reviews consider some or all of the following:
ANZ currently excludes investments in companies that are involved in:
A full list of companies that ANZ excludes can be found here:
We have looked at the best performing KiwiSaver funds based on their 5-year returns, however, looking at past performance of a fund is just one aspect when choosing a KiwiSaver fund. Other questions you should be asking include:
Our research team at National Capital looks at over 100+ funds and can recommend the right KiwiSaver investment for you.
Our KiwiSaver recommendations look at the big picture and not just the scorecard. So, what are you waiting for?
ANZ KiwiSaver Scheme has the following KiwiSaver Funds. More details on each of these funds can be found in the links below.