Chocolate, escalators, yo-yos and… investing?

ANZ Investments is New Zealand’s most awarded KiwiSaver manager, having received seven accolades from independent research houses Morningstar and FundSource since the awards began nine years ago. Plus, we’re proud to have received the SuperRatings Platinum rating for the third year running across all three of our KiwiSaver schemes.

But investing is about more than just awards. When it comes to your hard earned money, you want to know your investment is being managed by experts! The good news is that ANZ Investments is the smart choice for your retirement savings, and here are a couple of reasons why:

Your investment is actively managed

Our investment management team monitor the market and make adjustments (by buying and selling different assets) with the aim of improving returns for your investment over the long term – this is called ‘active management’. And, it’s important to note that not all KiwiSaver managers practice active management – some use varying degrees of ‘passive management’ (also referred to as ‘index investing’) where they just mirror a market index for each type of investment.

The best way to explain the difference between ‘active’ and ‘passive’ management styles is to think of a box of chocolates. Active managers (like us) pick their favourite flavours to make a tailored box, while passive managers just buy the standard box which may contain some unwanted flavours. This ability to pick and choose is called ‘stock selection’, and it allows us to select what we believe will perform strongly over the long term.

There’s also another aspect of active management called ‘asset class selection’, where our experts buy more or less of a certain asset based on how it’s performing (or likely to perform). Going back to the chocolate comparison, an active manager can pick the size of the box they want to buy to match their appetite.

Your investment is in good hands

The experts in our investment management team have a huge amount of experience between them – which hasn’t gone unnoticed by independent research house Morningstar, who said “the depth and tenure of the ANZ investment team is unmatched amongst the KiwiSaver providers” in the Morningstar Research Report, published 29 September 2016*.

The team also has a strong record of investment performance, with Morningstar providing very favourable feedback in the Morningstar Research Report, published 29 September 2016:

“ANZ takes a long-term view in the strategic positioning of its portfolios, which is the key driver of performance, although the team looks to add value through short-term tactical positioning, currency hedging, and stock selection. While they won’t be perfect, the team has proved that they can get these calls right more often than not. For instance, overweightings in domestic and international equities from 2012 to 2015 propelled returns as ANZ featured among the top performers. This has also been the case over the longer term. Impressively, this outperformance relative to peers has been achieved with lower-than-average volatility.”*

This is a testament to the consistent and disciplined investment management processes followed by the team.

You may have noticed that things have been a bit up and down lately – this is known as market volatility. Market volatility is sometimes described as ‘riding up an escalator while playing with a yo-yo’. Picture it. In the long run you get to the top, but along the way you have some ups and downs. Market volatility is a natural part of investing, so there’s no need to worry. Plus, you can rest assured that our experts are using all of their knowledge and experience with an aim of maximising your returns over the long term.  

Find out more about our awards and ratings, our investment team and our fund performance on our website.

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* Morningstar has consented to the use of these quotes. For more information about Morningstar, see our website.

Published April 2017

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