The Logical approach to Kiwisaver planning
SMARTER
A Multi-Manager Strategy gives you a team of up to five experts instead of one, working side by side to achieve your target performance. You put ANZ, Mercer, ASB, NIKKO and AMP together, that's powerful and smart!
STRONGER
Stronger - You could potentially add tens, even hundreds of thousands of dollars to your outcome by avoiding single-manager underperformance. This is impossible with one manager but easy to engineer with five.
SAFER
Use one manager and you risk everything on their successes or failures. Use five of NZ's top managers together and that risk is significantly reduced.
Get the facts and download your personalised report.
Complete the simple questionnaire below and request your personalised KiwiSaver report. You'll see why our approach works and what it could mean for you.
You are years old and earn $ a year.
Your personal contributions are % and
your current KiwiSaver balance is $
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We believe our approach to KiwiSaver planning is unique. The majority of KiwiSaver schemes have just one investment manager, with just one investment approach, creating, in our opinion, unreliable and random outcomes. Through AMP's product suite, we use up to five top investment managers, simultaneously and side by side, each with different philosophies, styles and methods, spreading your expertise risk and capturing more opportunities.
At Fusion, we believe the expertise of five managers working for you, eliminates the risk of any one manager derailing your retirement plans.
Lower risk means better outcomes
With single-manager strategies, you have no control over your managers' results. With a Multi-Manager Strategy however, you're in control. When we judge by performance, your one KiwiSaver manager could be top, bottom or anywhere in between. With five managers, covering most major investment philosophies, the result closely follows the industry median result. (To end March 2018, Balanced funds on average, after fees but before tax, returned 7.3% for 12 months (Morningstar KiwiSaver Survey) The Fusion approach also returned 7.3% for the same period. = Zero tracking error) This fundamental difference creates a very low performance risk. Statistically, 50% of all managers must underperform the average but with a Multi-Manager Strategy, the chances of all five being poor performers is very low. Fusion Investing is about avoiding underperformance and giving you a reasonable return, rather than chasing "stars" and risking a poor one. If we project forward, using the last five years' performance figures, choosing a below average performer could cost you hundreds of thousands of dollars. Our Multi-Manager Strategy prevents those losses from occurring.
You are years old and earn $ a year.
Your personal contributions are % and
your current KiwiSaver balance is $
Reducing Relative Performance Risk
KiwiSaver is a long-term investment, with many providers and managers to choose from. Inevitably, some will deliver poor returns compared to their peers, failing their investors. We call this "Peer Performance Risk" (PPR). If you use just one fund manager, you can't avoid this risk, but with multiple managers, we believe you can virtually eliminate it.
Our Multi-Manager Strategy (MMS) uses a selection of up to five managers with different styles and philosophies. Each is given the same portion of your funds to manage. The chances of all five underperforming the industry average is very low. So we can say our Multi-Manager Strategy has virtually "Zero Peer Performance Risk". We know what the historic average underperformance is (Morningstar KiwiSaver Surveys), and if we project these historic figures forward to your age 65, we can estimate what your dollar "advantage" could be with multiple managers.
We can't engineer specific returns, that's impossible, but we can prevent below industry-average returns ie. if the average industry Growth Profile return is 7.5% p.a. over the next 20 years, that's what a MMS should deliver, or very close to it.
Remember, in a universe of single managers, there will be "winners" and "losers". At Fusion, we call this "gambling".
Of course, if you're confident your current manager will remain an above-average performer for the rest of your life, you don't need a MMS. But if you think they're "infallible", do you remember Prudential, Tower, National Mutual, Spicers and Huljich? Once household names, but where are they now? We've already seen several managers change since KiwiSaver started, and it's certain there'll be more changes. If you don't want to be watching managers and performance for the rest of your life, MMS is a great solution so you can get on with life with one less worry.
Enter your details below to get our free infosheet on the Fusion Advantage and how it can work for you.
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