MILFORD FUNDS LIMITED

Who is MILFORD FUNDS LIMITED?

Milford Funds Limited is the regulated fund management subsidiary of Milford Asset Management Limited, a privately held firm founded in 2003 by investors who believed everyday New Zealanders deserved access to institutional-quality, research-driven investment management. Today, the group manages more than $34 billion in funds under management across more than 200,000 clients, making it one of New Zealand's largest retail fund managers by assets.

Licensed by the Financial Markets Authority (FMA) as a Managed Investment Scheme Manager (FSP36001) since May 2016, Milford operates under the Financial Markets Conduct Act 2013. The firm has grown from a boutique Auckland-based manager into a nationally recognised brand with offices across New Zealand and a Sydney presence serving Australian investors.

The KiwiSaver scheme sits at the heart of Milford's retail offering, structured across six funds — Cash, Conservative, Diversified Income, Balanced, Active Growth, and Aggressive — each targeting a distinct risk and return profile. Beyond KiwiSaver, the group offers standalone investment funds, a private wealth service for clients investing over $500,000, and wholesale solutions for institutional investors and independent financial advisers.

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Investment Philosophy

Milford's defining characteristic is its commitment to active management — a deliberate and unapologetic philosophical stance. Portfolio managers do not replicate indices; instead, they apply fundamental research and market analysis to build portfolios they believe will outperform on a risk-adjusted basis over time.

One of Milford's most distinctive cultural commitments is staff co-investment: the investment team puts its own money into the same funds as clients. This alignment of incentives is more than a marketing point — it means Milford's managers personally absorb underperformance alongside the people they serve. Combined with a long-term wealth-building focus and regular published market commentary, this creates a culture of genuine accountability.

The firm also integrates sustainable investing as a formal pillar of its investment framework, not a peripheral add-on. Milford lists it alongside active investing, global expertise, and co-investment as a core value — though investors seeking granular ESG screening criteria should review the relevant Product Disclosure Statements directly.

*Past performance is not an indicator of future returns.*

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Fee Structure Explained

Milford charges management fees across its KiwiSaver and investment fund ranges, consistent with industry practice for actively managed funds. The firm does not compete on the ultra-low fee model typical of passive index-tracking providers, and nor does it claim to. Its value proposition is performance and service relative to cost.

That positioning appears to resonate with independent assessors. Milford has received the Canstar Outstanding Value KiwiSaver Scheme Award, suggesting its fee-to-outcome ratio is considered competitive within the active management peer group. Investors should note, however, that active management fees are structurally higher than those charged by passive KiwiSaver providers, and the compounding effect of fees over decades materially affects final balances.

Specific, current fee rates are published in each fund's Product Disclosure Statement (PDS), available on the Milford website and the Companies Office Disclose register. We strongly recommend reviewing the PDS for whichever fund you are considering before making any decision.

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Who Should Consider MILFORD FUNDS LIMITED?

Milford is well-suited to investors who:

• Believe in active management and are willing to pay moderately higher fees for a team making deliberate investment decisions rather than tracking an index
• Prioritise long-term wealth accumulation over minimising short-term fee drag
• Value fund manager alignment, given the staff co-investment model
• Want fund range breadth, from capital-preservation Cash through to high-growth Aggressive options within a single KiwiSaver scheme
• Seek a private wealth relationship at the $500,000+ level, with bespoke portfolio management

Milford is less suited to cost-first investors who prioritise the lowest possible management fees above all else, or those who philosophically favour passive management and believe markets are too efficient for active strategies to add consistent net-of-fee value. Younger investors with very long time horizons may find that a low-cost passive KiwiSaver scheme produces comparable or superior outcomes once fee compounding is factored in.

The scheme has won Canstar's KiwiSaver Provider of the Year for six consecutive years — a consistency of recognition that is genuinely difficult to dismiss, even for sceptics of industry awards.

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The WealthWatch Verdict

Milford Funds Limited represents one of the most credible and substantiated active management propositions in the New Zealand KiwiSaver scheme market. The combination of $34 billion in assets, 200,000-plus clients, two decades of operating history, and sustained award recognition places it firmly in the top tier of domestic providers.

The staff co-investment model and FMA licensing provide meaningful structural protections for investors, and the six-fund range gives genuine flexibility across the full risk spectrum. The firm's track record in private markets — dating to 2011 — and its Australian expansion also signal institutional depth that smaller providers cannot match.

Our primary caution is the same one we apply to any active manager: management fees are higher than passive alternatives, and active outperformance is not guaranteed. Investors should interrogate net-of-fee, long-run return data for each specific fund — not headline award wins — before committing.

WealthWatch Sentiment Score: 4.2 / 5.0

*Strong overall proposition, with a slight discount for fee levels relative to passive alternatives and the inherent uncertainty of sustained active outperformance. This review is general information only and does not constitute personalised financial advice.*