KiwiSaver scheme default fund
A KiwiSaver scheme fund designated by the government as the receiving fund for members who do not actively choose a scheme. Default settings are set out under the KiwiSaver Act 2006.
A KiwiSaver scheme default fund is a KiwiSaver scheme fund designated by the New Zealand government as the receiving fund for new KiwiSaver scheme members who do not actively choose a scheme. Default provider arrangements are renewed periodically by the Crown via a tender process; the current default-provider cohort runs under arrangements set out under the KiwiSaver Act 2006 and accompanying ministerial designations.
Default funds were historically Conservative-profile (around 20% growth assets / 80% income assets) but were redesigned to Balanced-profile (around 50/50) effective 1 December 2021, on the basis that long-horizon KiwiSaver scheme savers benefit from higher growth exposure. The current default-provider cohort and the default-fund mandate is published by Inland Revenue and the FMA.
A KiwiSaver scheme default fund is structurally a KiwiSaver scheme fund and is therefore part of a registered KiwiSaver Managed Investment Scheme — same PDS, SIPO, OMI, QFU disclosures as any other KiwiSaver scheme fund. Members of a default fund can switch to any other fund inside the scheme or to a different scheme at any time.
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Related terms
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kiwisaver-vs-managed-fund
KiwiSaver scheme vs managed fund
A KiwiSaver scheme fund is a tax-advantaged retirement savings product with employer/government contributions and lock-in until age 65. A managed fund has no lock-in and no contribution incentives — but lets you withdraw at any time.
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MIS · Scheme
Managed Investment Scheme (MIS)
The legal vehicle under the Financial Markets Conduct Act 2013 that holds investor money in a pooled fund. Every NZ retail managed fund is part of a registered MIS.