KiwiSaver Ratings

The FundSource KiwiSaver ratings are designed to act as a guide to the comparative performance of a KiwiSaver fund to it’s peers.

To determine what kind of rating a fund gets, FundSource conducts in-depth analysis. This includes both quantitative assessments (financial performance) and qualitative assessments (how well we believe the managers are set up to deliver) .

It’s important to first figure out what kind of KiwiSaver sector group and risk profile you fall into. Using the services of a professional Financial Advisor is a good way to plan your financial future, and they will help you decide what kind of KiwiSaver plan is right for you.

The Ratings and what they mean:

"AAA" Preferred
Funds which have excellent managers, stable senior personnel, and a sound track record in a variety of market conditions. The fund will have a clearly defined investment philosophy, and a portfolio consistent with that philosophy, with effective control procedures established to maintain that philosophy. The fund will also have performed well over a period of time when compared with peer funds from the same sector.

"AA" Highly Recommended
Funds with high quality, experienced managers, a sound track record and reasonable stability of senior personnel. The management philosophy must be coherent and consistent with existing portfolios. The fund will also have performed well over a period of time.

"A" Recommended
This category of funds covers most of the reasonably experienced, competent managers, but often with less stability of personnel than the higher rating trusts. Standards of control systems and administration, should be competitive.  The fund will have performed in a mid range when compared with peer funds from the same sector over a period of time.

"S" Switch
A fund that may not be recommended for a variety of reasons, such as a fundamental change in the management company or in the manager's investment strategy, or because a fund does not meet up to its promised expectations. The fund may be performing at the lower range when compared with peer funds from the same sector over a period of time.

Other indicators used in the fund ratings are:
"p" (Provisional) based on a qualitative assessment only due to insufficient performance history
"UR" not yet rated
"Alert" on a negative ratings watch

Please read the FundSource Disclosure Statement (PDF, 32KB)