Generate KiwiSaver Scheme is an active manager based in Auckland, established in 2013. It was one of the nine default KiwiSaver providers appointed in 2021. Here’s a detailed look at how it compares.
Generate at a Glance
| Feature | Detail |
|---|---|
| Provider type | Active fund manager (independent) |
| Established | 2013 |
| Default provider | Yes (from 2021) |
| Funds available | Conservative, Balanced, Growth, Focused Growth |
| Growth fund fee | ~1.05–1.15% |
| Member fee | None |
| PIE fund | Yes |
| FMA regulated | Yes |
Generate’s Investment Approach
Generate is an active manager — fund managers make active investment decisions rather than tracking an index. Generate’s investment team manages portfolios with significant NZ and Australian equity exposure alongside global holdings.
Key features of Generate’s approach:
- Concentrated portfolios (not trying to replicate the whole market)
- Significant NZ and Australian shares alongside global equities
- ESG (environmental, social, governance) screening applied across portfolios
- Active currency management on offshore holdings
The Focused Growth Fund is Generate’s highest-growth option — a more concentrated, higher-conviction portfolio than the standard Growth Fund.
Generate Fund Range
| Fund | Approx. asset allocation | Approx. fee |
|---|---|---|
| Conservative | ~25% growth / 75% income | ~0.85% |
| Balanced | ~50% growth / 50% income | ~1.00% |
| Growth | ~80% growth / 20% income | ~1.05% |
| Focused Growth | ~100% growth | ~1.15% |
Fees approximate — confirm in current PDS. Asset allocations vary.
Performance
Generate has had competitive long-run performance relative to peers in the active management category. Its Growth and Focused Growth funds have delivered solid returns over 5–10 year periods, though results vary year to year.
For current performance data, use the Sorted.org.nz KiwiSaver Fund Finder — it provides standardised after-fee returns across all providers. Always compare like-for-like fund types (growth vs growth, same time period).
Fees — How Generate Compares
Generate’s fees (~1.05–1.15%) are in the active manager range — similar to Milford, ANZ, and Fisher Funds. Compared to low-cost passive providers:
| Provider | Growth fund fee |
|---|---|
| Simplicity | ~0.31% |
| Kernel | ~0.25% |
| Generate | ~1.05–1.15% |
| Milford | ~1.05% |
| ANZ | ~1.06% |
The fee premium over passive providers is approximately 0.7–0.9% per year. Whether this is justified depends on Generate’s after-fee outperformance vs passive funds over the comparison period.
Pros
- Active management with a NZ-focused investment team
- ESG screening across all funds
- Default provider status (government-vetted)
- Focused Growth Fund option for higher-conviction investing
- No member fee (management fee only)
Cons
- Fees significantly higher than passive providers
- Active management doesn’t consistently outperform net of fees
- Smaller fund compared to bank-backed providers
Who Is Generate Suited To?
Generate is worth considering for members who:
- Prefer active management and believe it can add value
- Want a NZ-based independent manager (not a bank)
- Value ESG screening alongside active management
- Are comfortable paying higher fees for potential outperformance
For members primarily focused on minimising fees, Simplicity or Kernel are better options.
How to Join Generate
Join at generate.co.nz — online enrolment, no application fee.