GENERATE INVESTMENT MANAGEMENT LIMITED

Who is GENERATE INVESTMENT MANAGEMENT LIMITED?

Generate Investment Management Limited — operating under the consumer brand Generate Wealth — is a New Zealand-owned and independent fund manager founded in 2012. It was built with a deliberate purpose: to offer Kiwi investors a credible, research-driven alternative to the bank-owned KiwiSaver giants that dominated the market at the time.

Today, Generate manages over $8 billion in funds on behalf of more than 185,000 investors, a remarkable growth trajectory for a firm that started as a boutique operation little over a decade ago. It offers two core product lines: the Generate KiwiSaver Scheme and Generate Managed Funds, covering nine KiwiSaver fund options — from the capital-stable CashPlus Fund through to the concentrated Focused Growth Fund.

The firm sits under the regulatory oversight of the Financial Markets Authority (FMA), with full fund disclosures available on the Disclose register. Its most recent product expansion in April/May 2025 added six new retail funds across both its KiwiSaver and Managed Fund ranges, signalling continued ambition to serve a wider investor audience.

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Investment Philosophy

Generate's defining characteristic is its commitment to active management. Rather than tracking a market index, Generate's in-house investment team conducts proprietary research — assessing company fundamentals, management quality, competitive positioning, and macroeconomic themes — to select individual securities across New Zealand, Australia, and global markets. All key portfolio decisions are made internally, which distinguishes Generate from managers that outsource international stock selection to offshore sub-advisers.

The firm frames its long-term performance record as the justification for this approach. The Focused Growth Fund has delivered a 10-year return of 9.9% per annum, compared to a Morningstar industry average of 9.5% for the Aggressive fund category. *Past performance is not an indicator of future returns.*

Generate also holds full Mindful Money accreditation across every single fund in its range — a status confirmed as of December 2025. This makes it one of the few KiwiSaver providers where responsible investing standards apply uniformly, rather than selectively. The firm publishes a Responsible Investing Policy detailing its exclusions from harmful industries, which is freely available on its website.

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Fee Structure Explained

Generate operates as an active management KiwiSaver scheme, and its management fees reflect that. Investors should expect fees broadly in line with other active New Zealand fund managers — meaningfully higher than passive-only providers such as Simplicity, but consistent with the cost of running a dedicated in-house research operation.

Specific fee percentages vary by fund and are disclosed in each fund's Product Disclosure Statement (PDS), available on both the Disclose register and the Generate website. We strongly encourage investors to review these documents in full before investing.

Key fee considerations:

• Active funds carry higher costs than index-tracking alternatives — this is the fundamental trade-off investors must evaluate
• Fee structures vary by fund type — growth-oriented funds may carry different rates than conservative or income funds
• Performance fees are not prominently featured in Generate's public materials, though the current PDS for each fund should be checked for the complete schedule
• Generate's stated position is that long-term outperformance justifies the cost of active management — a claim investors should assess against their own return expectations and time horizons

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Who Should Consider GENERATE INVESTMENT MANAGEMENT LIMITED?

Generate suits investors who believe active management can add value over time and are willing to pay a premium in management fees for the potential of above-index returns. Its strong 10-year performance record gives that argument credibility, though market conditions can and do change.

Generate may suit you if:

• You prefer a New Zealand-owned, independent provider over a bank-affiliated scheme
• You want active, research-driven stock selection rather than index exposure
• Responsible investing matters to you — Generate's full Mindful Money accreditation across all funds is a genuine differentiator
• You want flexibility beyond KiwiSaver — the Managed Funds range allows withdrawals at any time, useful for goals like home deposits or education funding
• You're a hands-off investor — the Stepping Stones lifecycle option automatically shifts your allocation to more conservative funds as you approach retirement

Generate may not suit you if:

• You are primarily fee-sensitive and prioritise low-cost passive investing
• You believe passive index funds consistently outperform active managers net of fees over long periods
• You want a globally passive, diversified portfolio at minimal cost

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The WealthWatch Verdict

We at WealthWatch consider Generate Investment Management Limited one of the more compelling active-management options within the New Zealand KiwiSaver scheme landscape. Its independent ownership, fully in-house investment process, and expanding fund range of nine KiwiSaver options position it as a substantive alternative to the default bank-owned providers.

The 10-year return of 9.9% per annum on its Focused Growth Fund outpacing the Morningstar category average is noteworthy — but active management carries no guarantee of continued outperformance, and fees will always represent a structural headwind relative to passive alternatives. *Past performance is not an indicator of future returns.*

What genuinely differentiates Generate is the combination of active capability, full Mindful Money fund accreditation, and the complementary Managed Funds range that sits outside the KiwiSaver lock-in structure. For investors who want one provider to serve both retirement and broader wealth-building goals, that breadth has real practical value.

WealthWatch Sentiment Score: 7.8 / 10 — A well-run, independently owned active manager with a credible performance track record and strong responsible investing credentials. The primary caveat is fees: investors must honestly assess whether the active premium is worth it for their individual situation. This review is general information only and does not constitute personalised financial advice.