On 30 April 2025, the Generate KiwiSaver Defensive Fund will be renamed the Generate KiwiSaver CashPlus Fund. Along with the new name, we’re also adjusting its target investment mix to better align with its investment strategy and reducing its fees.
What is a target investment mix and how is it changing?
The target investment mix shows how types of investments - like shares, bonds, property, and cash - are balanced in a portfolio. The mix is based on the desired return and risk appetite of the fund.
Currently, the target investment mix for the Generate KiwiSaver Defensive Fund is 25% cash and 75% fixed income (bonds).
With the new CashPlus Fund, the target investment mix will shift to 100% cash and cash equivalents.
Cash equivalents are term deposits and short-dated debt securities. Short-dated securities are debt instruments, such as treasury bills or promissory notes, that will typically mature in less than a year.
We're making this change away from long-dated fixed income and towards cash and cash equivalents to help reduce volatility (which affects the value of the fund). This means that members who need their cash balances to be stable (for example, those that are about to buy a house using their KiwiSaver savings) should be less impacted by market conditions.
How are the fees changing?
In line with the change in the target investment mix, the CashPlus Fund fees will reduce from .79% to .40%.
What does this mean for investors in the fund?
This change doesn’t significantly impact investors, as the fund’s purpose remains the same; It’s a a lower-risk option for short-term investors seeking capital preservation or where certainty of the amount available to be withdrawn is important.
It will still be suitable for those planning to withdraw soon, such as for a first home deposit.
This fund provides more stability over the very short term and is expected to have the lowest volatility among our Generate funds.
Are there any other changes?
We are also updating some of the benchmarks for our funds, to better reflect our investment portfolios, aligning them with the new asset allocations.
For more information on benchmarks, please download our SIPO or contact our team.
These changes will automatically take place on the 30th of April 2025.
If you have questions about this fund, we have a team of advisers here to help.