Fisher Funds is continuing to add private equity to select funds in its KiwiSaver schemes, aiming to maximise long-term returns for clients, access global opportunities for wealth creation and back successful New Zealand businesses.
More private equity investments will be added to its Balanced, Growth and Equity KiwiSaver funds, and will be part of the Aggressive Fund in late 2025. This builds on Fisher Funds’ long-standing track record of strong, diversified investments that deliver lasting value to KiwiSaver clients.
Fisher Funds has earmarked more than $1 billion over the medium term for its wider private equity strategy over the next few years, with several hundred million dollars for New Zealand businesses.
CEO Simon Power says the New Zealand direct private equity strategy will focus on high-potential companies across the country, providing capital and expertise to help them accelerate growth.
“Private equity is well-suited to KiwiSaver because both are about building wealth over the long-term.
“We want more New Zealanders to benefit from that growth and to help our clients secure the successful retirement they deserve.
“The evolution of the strategy not only enhances outcomes for our clients but also helps great New Zealand businesses to thrive,” says Power.
Fisher Funds Chief Investment Officer Ashley Gardyne says his team will take an active role in supporting its portfolio companies in New Zealand, providing strategic guidance alongside financial backing.
“Private equity offers unique opportunities to unlock value in growing businesses,” says Gardyne.
“We’re targeting established companies with strong leadership, a clear growth trajectory, and a need for capital and partnership to take them to the next level.”
With fewer new companies being listed on stock exchanges, embracing private assets is a way to strength and diversify KiwiSaver and other managed funds.
“Fisher Funds has been investing in private equity for several years through trusted local establishments like Movac, Pioneer and Direct Capital,” says Gardyne.
“We believe it’s the right time to scale that up, particularly in international growth markets, while also backing ambitious New Zealand businesses.
“We’ve been deliberately building our capabilities in this space by investing in a specialist in-house private equity team led by Michael Walmsley to ensure we’re set up for long-term success,” says Gardyne.
“If we look across the Tasman, some Australian superannuation funds have 20% allocations to private markets, compared to about 2% in KiwiSaver, says Gardyne.”
Fisher Funds expects about 10% of its KiwiSaver funds under management will be allocated to private equity in the next three to five years.
“These asset classes have a long history of giving the opportunity for higher returns, than public markets. Even an extra 0.5% return per annum on your KiwiSaver investments could result in tens of thousands of extra dollars in retirement,” says Gardyne.
Private market investments have their own unique risks, but Gardyne says these can be managed carefully, and believes the benefits outweigh the risks.
“Super funds around the world have been investing in private markets successfully for many years,” says Gardyne. “We’re now ensuring New Zealand investors can share in those opportunities.”
