Looking at fisher funds and wondering if it fits your savings or KiwiSaver goals? This guide breaks down what fisher funds is, how its funds operate, the types you might consider, and the trade-offs to weigh. You’ll also get a step-by-step process to choose a fund with confidence, plus clear answers to common questions New Zealanders ask.
What is
Fisher Funds is a New Zealand fund manager best known for running KiwiSaver schemes and non‑KiwiSaver managed funds. In simple terms, fisher funds collects money from many investors, invests it in shares, bonds, and other assets, and manages those investments on your behalf. It focuses mainly on active management, which means its team picks investments rather than tracking a market index.
Like other managers here, fisher funds operates under New Zealand’s financial markets rules. Client money is held by an independent custodian, and each scheme has a formal disclosure document you can read on the Disclose Register. Fees, risks, and past performance are published and updated regularly so you can compare options.
How it works
Whether you invest through a KiwiSaver fund or a standard managed fund, the mechanics are similar.
- You buy “units” in a fund. The unit price moves up and down with the value of the assets the fund holds.
- Your return comes from changes in the unit price and any distributions (if the fund pays them).
- Fees are deducted from the fund and reflected in the unit price you see.
KiwiSaver through fisher funds
With KiwiSaver, you contribute from your pay (usually 3%, 4%, 6%, 8%, or 10% of gross salary). Your employer must contribute at least 3% if you’re eligible, and the Government may add an annual contribution if you qualify. You choose a fisher funds KiwiSaver option that fits your risk level, and you can switch if your situation changes. Withdrawals are restricted to first home and retirement (or in approved hardship cases).
Tax and PIR
Most fisher funds products are PIEs (Portfolio Investment Entities). You set your Prescribed Investor Rate (PIR), and tax is handled within the fund. Getting your PIR right matters: too low and you may need to square up with Inland Revenue, too high and you could overpay.
Active management
Fisher funds is known for active management. The investment team researches companies and bonds, builds a portfolio, and adjusts it over time. Active funds aim to beat the market or manage risk in different conditions. They can outperform or underperform, and their fees are usually higher than simple index trackers.
Fees you’ll see
- Management and administration fees: ongoing, expressed as a percentage of your balance.
- Other fund costs: such as trading and custody, already included in reported total fund charges.
- Performance fees: may apply to some non‑KiwiSaver funds; check the fund’s Product Disclosure Statement (PDS).
Types / examples
Fisher funds groups its options by risk and asset mix. Names and exact line‑ups change over time, but you’ll commonly see:
KiwiSaver risk profiles
- Conservative: More bonds and cash, less volatility, lower long‑term growth potential.
- Balanced: A mix of shares and bonds for a middle‑of‑the‑road ride.
- Growth: More shares, higher expected growth and bigger ups and downs.
- High Growth/Aggressive: Mostly shares, designed for long timeframes and higher risk tolerance.
Non‑KiwiSaver managed funds
- New Zealand and Australian share funds: Focused on local and trans‑Tasman companies.
- Global share funds: International companies across regions and sectors.
- Income or bond funds: Government and corporate bonds for steadier returns.
- Property or infrastructure: Sector‑specific exposure for diversification.
Responsible investment is part of mainstream investing now. Fisher funds publishes its approach, including how it considers environmental, social, and governance (ESG) factors and any exclusions. If this matters to you, read the latest policy and holdings reports to confirm they match your values.
Pros and cons
Pros
- Active research: Aiming to add value through stock selection and risk management.
- Clear risk options: From conservative to high growth across KiwiSaver and managed funds.
- Local expertise: A team based in New Zealand with a close eye on NZ and global markets.
- Tools and support: Investor portals, reporting, and access to guidance or advice.
Cons
- Higher fees than passive index funds, reflecting active management costs.
- Performance can vary: No guarantee of beating the market in every period.
- Active style may be less tax‑efficient than simple index approaches in some cases.
- Choice overload: Many options can make selection harder without a framework.
How to use or choose
Here’s a simple process you can follow to select a fisher funds option or review the one you have.
- Set your goal and timeframe. Is this KiwiSaver for retirement, a first‑home withdrawal in 5–8 years, or long‑term investing outside KiwiSaver?
- Pin down your risk tolerance. If a 15–25% drop would keep you up at night, lean more conservative. If you can ride out volatility for higher long‑term growth, consider growth options.
- Match a fund to your risk level. Conservative for short horizons, balanced for medium, growth/high growth for long horizons. Fisher funds lists its risk indicators for each fund—check them.
- Compare fees and track record. Look at the total fund charge and how returns stack up against similar funds over 5–10 years. Past returns aren’t a guarantee, but they show how the style has behaved.
- Set your PIR and contributions. Make sure your Prescribed Investor Rate is correct and, for KiwiSaver, pick a contribution rate that fits your budget and goals.
- Use tools and advice. Fisher funds provides calculators and updates; consider impartial guidance if you’re unsure.
- Review annually. Revisit your choice after major life changes or if your timeframe shifts.
Side‑by‑side comparison
This table contrasts common features you’ll see between fisher funds, a typical bank‑run KiwiSaver provider, and a low‑fee passive provider. Use it as a starting point—always check the latest disclosures.
| Feature | Fisher Funds (active) | Bank provider (mixed) | Passive low‑fee provider |
|---|---|---|---|
| Investment style | Mainly active security selection | Mix of active and index | Index tracking |
| Typical fees | Moderate to higher | Moderate | Lower |
| Fund range | Broad across risk levels and sectors | Broad, often with in‑house funds | Broad but mostly index options |
| Performance pattern | Can vary vs benchmark; aims to add alpha | Close to market with some tilts | Tracks market less fees |
| Advice and support | Access to guidance; investor portal | Branch and online support | Digital tools and education |
| Best suited for | Investors who want active oversight | Existing bank clients seeking convenience | Fee‑sensitive, long‑term index investors |
Smart ways New Zealanders use fisher funds
For KiwiSaver first‑home buyers, a balanced fund often strikes a middle path: some growth potential without the full swings of a high growth option. As your settlement date gets closer, stepping down risk can help protect gains before you withdraw.
For long‑term retirement savers, growth or high growth funds can make sense if you can stay invested through market dips. The compounding effect of time in the market matters more than precise entry points, and active management can help navigate changing conditions.
For non‑KiwiSaver investing, fisher funds offers sector and regional funds to diversify around your KiwiSaver core. Keep an eye on total fees across all your investments so you’re not doubling up on similar exposures.
Risks to remember
- Market risk: Shares and bonds go down as well as up. Short‑term drops are normal.
- Manager risk: Active calls can add or subtract value. Diversify across styles if that worries you.
- Interest rate risk: Bond funds can fall when rates rise.
- Currency risk: Global funds may move with exchange rates (some are hedged, some not).
- Behaviour risk: Switching after a downturn can lock in losses. Set a plan and stick with it.
Costs and value: what to check before you invest
Fees are one of the few things you control. Lower isn’t always better, but you should understand what you’re paying for. With fisher funds, look at:
- Total fund charges (not just the headline fee).
- Whether performance fees apply and how they’re calculated.
- Any transaction or buy/sell spreads shown in the PDS.
Balance that against service quality, reporting, responsible investment approach, and how the strategy fits your goals. If you value active stewardship and research, a higher fee can be acceptable. If you only want market exposure at minimum cost, a passive option may suit you better.
FAQ
Is fisher funds safe?
All investing carries risk. However, fisher funds operates under New Zealand regulation. Client assets are held by an independent custodian, and each scheme is independently supervised. Safety comes from good processes and diversification, not guarantees.
Are fisher funds products guaranteed?
No. They are not bank deposits and not guaranteed by the Government or any other party. Values can go up and down.
How do fees work at fisher funds?
Fees are deducted within the fund and reflected in the unit price. You’ll see the total fund charge in the PDS and on the fund’s website. Some non‑KiwiSaver funds may have performance fees—read the details carefully.
What return should I expect?
No one can promise returns. As a rule of thumb, higher‑risk funds target higher long‑term returns but swing more along the way. Look at 5‑ to 10‑year records across market cycles to understand behaviour, not to predict the future.
Can I switch my KiwiSaver to fisher funds?
Yes. Switching is free and straightforward. Apply online with your IRD number, set your PIR, choose a fund, and fisher funds will arrange the transfer from your current provider.
What’s the difference between a KiwiSaver fund and a managed fund at fisher funds?
KiwiSaver has special rules, employer and Government contributions, and withdrawal restrictions. Managed funds are flexible—you can add or withdraw (subject to terms)—but they don’t include KiwiSaver incentives.
How do I pick the right risk level?
Match your timeframe and temperament. Short horizon or sleepless nights? Go conservative. Long horizon and comfort with volatility? Consider growth. If in doubt, balanced can be a reasonable middle ground.
What about responsible investing?
Fisher funds publishes its responsible investment policy and stewardship reports. Review the latest documents to see how ESG is integrated and whether any exclusions align with your values.
How often should I review my fisher funds choice?
Once a year, or after life changes like a new job, home purchase, or nearing retirement. Avoid reacting to short‑term market noise.
Can I hold more than one fund?
Yes. You can split across funds to fine‑tune risk. Keep it simple enough to manage, and avoid overlapping strategies that dilute your plan.
Bottom line
Fisher funds offers a well‑known active approach across KiwiSaver and managed funds in New Zealand. If you value research‑driven investing, a clear spread of risk options, and local support, it’s worth a close look. Weigh the fees against the service and strategy, match the fund to your goals and timeframe, and commit to a plan you can stick with through market ups and downs.