The Logical approach to Kiwisaver planning

2019 Offer - Free Financial Plan With Every
New KiwiSaver Switch!

Every new KiwiSaver client from now until end of March will get a free financial plan, written by an Authorised Financial Adviser, covering KiwiSaver, Investments, Insurances, Estate Planning, Retirement Cashflows and ACC. This exclusive offer would normally cost you at least $400.

Just complete the following calculator and request your personalised KiwiSaver report. If you like our approach to KiwiSaver, we’ll help you switch to a Multi-Manager Strategy and we’ll draw up your personal Financial Plan, completely free of charge.

Get the facts and download your personalised report.

We want to make sure our clients fully understand the thinking behind our approach.  Complete the simple questionnaire below and request your 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 $

Fusion Investing

  • a year.
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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.

The reason we changed to Fusion's approach to KiwiSaver, is that it makes sense to spread your funds and diversify.  You’re spreading your risk, and to use racing terms you are not just placing your money on one horse but covering the field.  It's a no brainer for us.

John, Christchurch

I chose the Fusion's approach to KiwiSaver planning because I liked the idea of five managers looking after my funds, rather than just one.  It seems a safer way of saving, whilst I’m still targeting good returns.

Andrew, Auckland

It made absolute sense to diversify and spread the risk. No individual is infallible, and having five experts in their field managing a diversified KiwiSaver portfolio makes so much sense, we can’t understand why anyone would want to invest any other way.

Andre, Auckland

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