At Aurora, we know everyone’s financial goals are different, so we offer a range of funds and strategies to suit a variety of investment needs, timeframes, and risk profiles. Whether you’re saving for retirement or looking to buy your first home, our investment options are tailored to help you make the most of your KiwiSaver investment.
Let’s compare our range of funds and strategies and help you find the one that’s right for you.
Aurora’s range of KiwiSaver funds and strategies
Our funds and strategies invest in two main types of assets: Growth Assets and Income Assets.
- Growth Assets: These include investments like shares and listed property. They’re generally higher-risk but offer the potential for higher returns over time.
- Income Assets: These are lower-risk options, such as cash and bonds, and are designed to offer more stable but lower returns.
When we talk about returns, we mean the gains you make beyond your original contributions - whether this is from interest, dividends, or the appreciation of asset values over time.
Each of our funds and strategies are designed to match different financial goals, investment timeframes, life stages, and risk tolerance that may affect the ups and downs of your balance over time. That’s why it’s important to choose the option that best fits your situation. If the climate and environment are as important to you, as they are to us, we’ve also outlined which of our funds and strategies are measured on their carbon intensity and temperature alignment metrics as well as their contribution to the UN’s Sustainable Development Goals (SDGs). These metrics are specifically applied to the equity portion of our funds and strategies, focusing on the stocks or shares within our investment portfolios. Additionally, around half of our fixed income holdings are green bonds, meaning they directly fund projects that deliver positive environmental outcomes, such as renewable energy, sustainable agriculture, and clean transportation. This allows your investments to not only grow, but also contribute to building a more sustainable future.
Find out more about our range of funds and strategies below.
Liquidity Fund
This fund is ideal for those who need to access their KiwiSaver money within a year, such as those approaching 65 who wish to make a full withdrawal, or those planning to buy their first home. It focuses on stability and low risk, providing peace of mind for those looking for a short-term, more secure investment option. The Liquidity Fund invests with environmental, social and governance (ESG) factors in mind in a diversified mix of low-risk cash and cash-equivalent assets. These assets typically have short maturities, meaning they can be quickly converted into cash when needed.
First Home Buyer Strategy
As the name suggests, the First Home Buyer Strategy is tailor-made for those planning to buy their first home within one to three years. It’s focused on stability, investing mainly in income assets with a smaller portion in growth assets. Plus, it’s designed with sustainability in mind, tracking the climate and environmental impact of each investment through carbon measures and alignment with sustainable development goals.
Conservative Fund
The Conservative Fund has a suggested investment timeframe of three to five years. It’s for those looking for stable returns through a diversified mix of mainly income assets, with a moderate portion invested in growth assets. We also keep an eye on the environmental impact, tracking each investment’s carbon emissions and alignment with sustainable development goals. This fund is well-suited for those who prioritise stability in returns, over higher growth.
Balanced Strategy
This strategy offers a blend of stability and growth by investing in a balanced mix of growth and income assets. This strategy is ideal for those with an investment timeframe of around six to nine years seeking a moderate, steady approach with the potential for growth over time. We also track the environmental impact of these investments with carbon emission measures and alignment to sustainable development goals.
Growth Fund
The Growth Fund focuses on long-term capital growth, investing primarily in growth assets with a smaller allocation to income assets.
Each investment is monitored for its climate and environmental impact through carbon tracking and alignment with sustainable development goals. This fund is a great fit for those with time on their side who are willing to take on more risk for the potential of higher returns.
Retirement Plus Strategy
RetirementPlus is a set-and-forget retirement strategy that automatically adjusts your investments as you age. The strategy invests in a mix of the Conservative Fund, and the Growth Fund. Before age 50 it’s fully invested in the Growth Fund. Starting from age 51, it gradually reduces risk each year until age 80, ensuring that your investment approach evolves with your needs. We also track environmental impacts, monitoring carbon emissions and alignment with sustainable development goals. This strategy is perfect for those who want a hands-off approach, balancing growth and stability.
Choosing the right investment option
Where you are in life can help determine the most suitable investment option. If retirement is far off, you might choose a higher-growth option, allowing time to navigate market ups and downs and maximise potential returns. But if you’re closer to retirement, or planning a withdrawal for buying a first home, a lower risk option can offer more stability and certainty around your retirement savings and deposit amount.
Selecting the right investment option can make a huge difference to your future KiwiSaver balance, potentially adding hundreds of thousands of dollars to your nest egg. That’s why we offer personalised advice as part of our service, helping you find the best option to fit your goals.
Need help in deciding what’s best for you?
Our specialist KiwiSaver advisers are here to support you every step of the way, giving you confidence that your KiwiSaver investment strategy aligns with both your immediate needs and your long-term goals. A little time invested now in understanding your options can pay off significantly down the road.
For more information on Aurora’s range of investment options, you can read our Product Disclosure Statement or contact us to talk to one of our specialist KiwiSaver advisers.
DISCLAIMER
This information is provided in a general nature only and should not be construed as or relied on as financial advice. This is not a recommendation to invest in a particular financial product or class of financial products. You should seek financial advice specific to your circumstances from a Financial Adviser before making any investment decisions.
Past performance is not a reliable indicator of future performance. The value of your investment may go up and down.