Investment Strategy
ANZ Investments manages one of the largest KiwiSaver funds in New Zealand, with approximately $15 billion in retirement savings for New Zealand workers. KiwiSaver is New Zealand’s primary voluntary retirement savings scheme, with total system assets exceeding $100 billion across all providers.
ANZ’s KiwiSaver options range from conservative to growth-oriented, with the growth options including the most significant alternatives exposure. The fund targets approximately 5% in alternatives across private equity, infrastructure, and real estate in its growth options. As KiwiSaver assets continue to grow, the scale to support meaningful private market allocations is increasing.
The investment approach for KiwiSaver is influenced by the defined contribution nature of the scheme and the need for daily pricing and reasonable liquidity. This creates some constraints on alternatives exposure compared to defined benefit pension funds, but the growing asset base is enabling greater private market diversification.
How to Approach
ANZ Investments’ institutional team operates from Auckland. GPs should approach the team with strategies appropriate for a large defined contribution retirement savings context. The fund’s daily pricing requirements mean alternatives are typically accessed through structures that offer periodic liquidity or through open-ended vehicles.
Managers with Australasian expertise or global strategies designed for DC pension contexts will find the most relevance. The team attends Australasian institutional investor conferences and is accessible through the New Zealand financial industry network.
Frequently Asked Questions
How much do KiwiSaver funds allocate to alternatives?
KiwiSaver funds generally allocate between 3-8% to alternative investments depending on the fund type (conservative, balanced, or growth). ANZ's growth-oriented KiwiSaver options have the highest alternatives exposure at approximately 5%, including private equity, infrastructure, and real estate. Alternatives allocations have been growing as KiwiSaver assets scale.
How can fund managers approach ANZ Investments for KiwiSaver?
ANZ Investments manages its KiwiSaver assets through both internal capabilities and external mandates. GPs should approach ANZ Investments' institutional team in Auckland. As KiwiSaver assets continue to grow, the scale to support meaningful alternatives allocations is increasing. Managers with Australasian expertise or global strategies appropriate for a defined contribution context will find the most relevance.
What is the KiwiSaver system?
KiwiSaver is New Zealand's voluntary, government-incentivized retirement savings scheme introduced in 2007. Total KiwiSaver assets across all providers exceed $100 billion. Multiple providers compete for members, with ANZ being one of the largest. KiwiSaver funds operate under Financial Markets Authority (FMA) regulation and must comply with specific governance and disclosure requirements.
