MAS enhances investment schemes for members

MAS is committed to continuously reviewing and assessing the investment proposition of the MAS KiwiSaver Scheme, MAS Retirement Savings Scheme and MAS Investment Funds (the Schemes) in order to achieve the best possible outcome for Members. This review process saw the introduction of 3 significant enhancements to its Schemes at the beginning of this month.

Transition to Nikko Asset Management for New Zealand fixed interest

Nikko Asset Management New Zealand Limited (Nikko) has replaced Bancorp Treasury Services Limited (Bancorp) in managing the New Zealand fixed interest asset class within the MAS Schemes.

“Nikko’s active management approach aligns perfectly with MAS’s investment philosophy,” says Helen McDowall, MAS Chief Investment Products Officer.

“Known for their strong track record and well-established team, Nikko’s local investment team benefits from robust connections with their parent company, enhancing the resources available for managing the MAS Schemes.

“Nikko currently manages $3 billion¹ in New Zealand fixed interest assets, showcasing their reputation in this area.”

New international equities strategy

A new strategy has been introduced in the Schemes’ international equities asset class managed by JBWere. This new strategy will complement the existing two strategies and is characterised by a high conviction, large-cap approach. Typically investing in around 20 securities listed on major global exchanges, this strategy aligns with MAS’s active management approach and offers diversification benefits to the other strategies and potential return enhancements.

Increasing the equities allocation for Aggressive funds

We regularly review the target asset mix for our funds to optimise the potential for returns while balancing investment risk. As a result of the latest review, we have increased the target growth asset allocation from 90% to 95% for the Aggressive funds in the MAS Schemes. Growth assets can include international shares and Australasian shares. The corresponding mix of income assets in the Aggressive funds has been correspondingly reduced.

“The enhancements are part of MAS’s ongoing efforts to provide robust and effective investment solutions, reinforcing our dedication to the financial wellbeing of our members,” added Helen.