Investment Risk
The National Bank KiwiSaver Scheme is administered and managed by OnePath (NZ) Limited
(the Scheme Provider) and distributed through The National Bank of New Zealand.
Understanding and managing risk is the cornerstone of any successful investment
philosophy, so it’s very important you become familiar with the concept of risk.
In simple terms, investment risk is the chance that what you receive back on your
investment will be less than you expect and may involve the loss of some or all
of the money you have invested.
Unfortunately no one can predict with absolute certainty which investments will
perform well over time and which may lose us money. What we can do however, is
classify investments according to their characteristics and construct portfolios
accordingly. When we do this, we generally divide investments into five main categories:
- Cash
- Fixed interest
- Property
- Shares
- Alternatives
We call these five investment categories ‘asset classes’. Generally we expect potential
returns over the long term to increase as we move down the first four asset classes
on the list. However, of equal importance is the need to appreciate that there is
a greater chance of money being lost by investing in the asset classes that have
the higher expected potential returns (i.e. property and shares). This is illustrated
in the diagram below. Alternatives are considered separately as the investments
contained in this asset class are diverse, with differing risk and potential return
characteristics.
Alternative assets is a broad category that encompasses investments that do not
fall into the other four categories, e.g. commodities, hedge funds, private equity
and absolute return investment funds. Any exposure to alternative assets in the
funds offered in the National Bank KiwiSaver Scheme (“Funds”) is carefully considered
and monitored. The extent of these exposures is limited to within set boundaries.
This diagram is for illustrative purposes only. References to property include listed
property
The multi-sector Funds in the National Bank KiwiSaver Scheme will predominately
be invested across the four asset classes shown in the diagram above. The more conservative
Funds will be weighted more heavily to the investments in the bottom left-hand corner
of the graph (i.e. a greater percentage of the Fund will invest in cash and fixed
interest); the balanced and growth Funds will be weighted more heavily to the investments
in the top right hand corner (i.e. a greater percentage of the Fund will invest
in property and shares).
The National Bank KiwiSaver Scheme also offers a single-sector Cash Fund that invests
solely into cash assets.
It is very important to note that none of these investments are guaranteed. There
is always a chance of losing some or all of the money you have invested. We have
provided more detail in the What are my risks? section of the National Bank KiwiSaver
Scheme Investment Statement.
With the National Bank KiwiSaver Scheme you have one
single sector Fund and five multi-sector Funds to choose from. To help you choose
the most appropriate Fund, visit
which fund is right for you?
This web page is for information purposes only. Its content is intended to be of
a general nature, does not take into account your financial situation or goals,
and is not a personalised financial adviser service under the Financial Advisers
Act 2008. It is recommended you seek advice from a financial adviser which takes
into account your individual circumstances before you acquire a financial product.
If you wish to consult one of The National Bank’s financial advisers, please contact
Wealth Direct on 0800 629 325.
A copy of the National
Bank KiwiSaver Scheme Investment Statement is available as a PDF, or you
can request one be sent to you by calling 0800 656 888.
You'll need Adobe Acrobat Reader to read the PDF version. If you don't have it,
don't worry - it's free. Just follow this link to the
Adobe site to download a copy.
Guardian Trust Superannuation Trustees Limited ("GTSTL") is the Trustee and currently the Issuer;
OnePath (NZ) Limited ("OnePath") is the Scheme Provider, Promoter and Administration
and Investment Manager and ANZ National Bank Limited ("ANZ") is the Distributor
of the National Bank KiwiSaver Scheme ("Scheme").
Units or interests in the Scheme do not represent deposits or liabilities of ANZ.
Units and interests are subject to investment risk, including possible delays in repayment and
loss of income and principal invested.
No entity* guarantees (either partially or fully) the capital value or performance
of any products issued or managed by OnePath, including the Scheme.
*Please note, this includes OnePath, ANZ, Australia and New Zealand Banking Group
Limited, GTSTL, their respective directors, any member of their respective groups
of companies and any other person.