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Nikko AM KiwiSaver

Customise your portfolio by choosing from 8 different funds with Nikko AM KiwiSaver.

Nikko AM offers its KiwiSaver members the unique ability to customise their portfolio makeup with more than just one fund, a compelling feature offered by few other scheme providers.

In this article, we will explore the different KiwiSaver schemes offered by Nikko AM, including the returns and fees charged, to help you decide if Nikko AM KiwiSaver is right for you.

About Nikko AM

With over $6.57 billion in assets under management, Nikko AM is one of the leading investment providers in New Zealand. Nikko AM offers a variety of growth, income, diversified and alternate funds under its KiwiSaver plans. It further allows users to build their own investment portfolios from scratch using one or more existing funds.

Nikko AM KiwiSaver fund types

Nikko AM offers eight KiwiSaver funds for its customers to choose from.

As a rule of thumb, income or conservative funds usually hold low-risk low-return assets. Riskier funds offering higher growth often hold riskier assets with potentially higher returns at the cost of higher volatility.

  • NZ Cash Fund. With a portfolio of investment-grade short-term deposits and fixed interest investments, Nikko AM’s NZ Cash Fund is perfect for risk-averse investors who might need to withdraw cash in the short-term.
  • NZ Corporate Bond Fund. The Nikko AM Corporate Bond Fund, like the Cash Fund, produces steady long-term returns in exchange for low volatility. It holds a portfolio of mostly NZ corporate bonds.
  • Option Fund. Nikko AM’s Option Fund uses a leveraged strategy suited for experienced investors with a long investment time frame. Returns may fluctuate significantly from year to year.
  • Conservative Fund. The Nikko Conservative Fund mainly consists of income assets, with 27.56% of the fund allocated to growth assets. This fund is ideal for shorter-term investors who intend to preserve capital.
  • Balanced Fund. With a 55/45 investment ratio in favour of growth assets, the Nikko AM Balanced Fund aims to generate long-term returns for those with a lower risk profile.
  • Global Shares Unhedged Fund. This actively managed fund is highly concentrated in global equities and seeks to achieve long-term capital returns.
  • Core Equity Fund. The Nikko AM Core Equity Fund mainly invests in NZ and Australian equities that have high growth potential. It is one of the riskiest high-growth funds offered by Nikko AM.
  • Growth Fund. The Growth Fund primarily contains growth assets, with 12% catered to income assets and 10% allocated to alternative assets.

Nikko AM KiwiSaver fund fees

Nikko AM’s KiwiSaver schemes come with three types of fees to watch out for:

  • Annual fund charge. Nikko AM charges a flat $30 account fee to KiwiSaver members.
  • Management and administration fee. Ranging from 0.45% to 1.25% of your KiwiSaver balance, this fee is used to compensate Nikko AM for the cost of financial transfers, currency conversion as well as the active management of the funds.
  • Performance Fees. A performance fee is charged for those investing in diversified funds, due to the additional complexity in constructing them and for the outperformance in returns.

Check with Nikko AM on the exact fees you might have to pay before investing in its KiwiSaver schemes. The precise amount will depend on your fund type and KiwiSaver balance.

What other investment products does Nikko AM offer?

Nikko AM has a large range of investment products specialising in the Asia Pacific region. Besides KiwiSaver schemes, it offers a range of funds for the general public to invest in. These include:

  • Growth funds such as the Nikko AM Core Equity Fund, Global Shares Fund, and the ARK Disruptive Innovation Fund.
  • Income funds including the Nikko AM NZ Bond Fund, Global Bond Fund, and the Corporate Bond Fund.
  • Alternative funds such as the Nikko AM Options Fund.
  • Diversified funds like the Nikko AM Conservative Fund, Balanced Fund, and Growth Fund.

On top of this, Nikko AM provides investment solutions to institutions like community trusts, foundations, and corporations. The available funds include:

  • Growth funds such as the Nikko AM Wholesale Core Equity Fund, SRI Equity Fund, and the Wholesale Property Fund.
  • Income funds including the Nikko AM Wholesale NZ Cash Fund, Wholesale NZ Bond Fund, and the Wholesale Global Bond Fund.
  • Alternative funds such as the Nikko AM Wholesale Option Fund and Wholesale Multi-Strategy Fund.
  • Diversified funds like the Nikko AM Wholesale Conservative Fund, Wholesale Balanced Fund, and Wholesale Growth Fund.

Do note that the lists of funds above are not exhaustive. Visit Nikko AM’s website for a comprehensive overview of all available investment funds.

How do I sign up?

To join Nikko AM’s KiwiSaver scheme, go to Nikko AM’s GoalsGetter website and sign up directly.

  1. Select your preferred funds or to take a look at the recommended funds
  2. Provide your personal details to construct your investment risk profile
  3. You will then be sent details on how to log in and complete the signup process on their website

Eligibility criteria

The Nikko AM KiwiSaver scheme is only open to individuals who are:

  • A New Zealand citizen
  • Entitled to live in New Zealand indefinitely

If you are holding a temporary student, visit or work permit, you will not be eligible for the KiwiSaver scheme.

Documents required

You should have the following documents on hand during your application.

  • IRD number (and your accurate PIR)
  • Driver’s license

Our verdict

Nikko AM offers a range of KiwiSaver funds to help you grow your nest egg. On top of this, they allow members to combine one or more funds to create a customised portfolio. This allows you to truly take charge of your KiwiSaver plan, making it the best fit plan for you.

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