Sharesies has added the Milford Aggressive Fund to its list of KiwiSaver diversified options, joining SuperLife/Smartshares, Pathfinder and Pie Funds on the roster.
Members of the fast-growing KiwiSaver scheme, which topped $100 million at the end of last year, must direct at least 50 per cent of contributions to one of the now six underlying diversified ‘base’ funds with the rest available to invest in ‘self-select’ direct securities.
The Sharesies hook-up opens another distribution channel for Milford which also vends funds on both the AMP and InvestNow KiwiSaver platforms as well as on its own fast-growing scheme.
As at the end of last year, the Milford stand-alone KiwiSaver scheme stood at more than $7.2 billion after adding almost $800 million during the December quarter alone.
Milford has costed its aggressive strategy – hitting five out of seven on the official risk-ometer – with an annual fee of 1.15 per cent: the Sharesies and InvestNow schemes offer the product at the same price.
Sharesies added four Milford products to the platform’s broader fund menu late in 2022 in a selection that also comprises products from Pie, Pathfinder, Smartshares, Mercer and the Māori-values Australasian equities fund, Tahito.
Currently, the Sharesies KiwiSaver self-select options are limited to some NZX-listed securities but the platform does have ambitions to include direct access to offshore markets – especially Australia and the US.
Last year, Sharesies super and funds head, Matt Macpherson, said the platform was also interested in distributing the new KiwiSaver scheme via financial advisers.
“We think our KiwiSaver product will work well with adviser networks,” Macpherson said at the time.
The Sharesies KiwiSaver documentation does warn that some investments in the self-select option “will not be suitable for all retail investors”.
As well, the document says self-select fund disclosure exemptions render direct comparisons with other investment such as funds more difficult.
“We recommend that you seek independent financial advice before committing yourself,” the Sharesies KiwiSaver disclosure says. “A financial adviser can help you understand your risk profile and assist you to select investments that are suitable for you.”