Have a go at making a plan

You’ll be given a risk rating from 1 (low) to 7 (high) that reflects how much the value of your KiwiSaver portfolio’s assets might go up and down over time.

A higher rating generally means higher potential returns over time, but with more ups and downs along the way. A lower rating generally means lower potential returns over time, but with less extreme ups and downs.

Keep in mind that even the lowest rating doesn’t mean an investment plan is risk-free, and there are other risks that aren’t captured by this rating.

We use an industry-standard formula known as portfolio variance to calculate the historical volatility of your investment plan, weighted to accommodate the percentage you’ve allocated to each investment.

Some things to keep in mind about the rating:

• it’s not a guarantee of your KiwiSaver portfolio’s future performance

• it’s calculated using historical returns data

• it might shift from time to time.

We’ll continue to update the risk indicator over time—we’ll let you know if the way we calculate the rating changes.

Different levels of risk will suit different people depending on goals, risk appetite, and circumstances. There’s no right level—just what’s right for you!

To help you figure out your own attitude to risk, seek financial advice or work out your risk profile at Sorted.

The estimated annual fund charge can help you to: 

• get a more accurate estimation of the fees charged on your KiwiSaver balance over a year

• have more control over your investment plan’s annual fees by adjusting which funds you invest in and how much you allocate into each

• make easier comparisons with the annual fund charges of funds in other schemes.

The estimated annual fund charge is calculated on:

• annual fund charge(s) of your base fund(s)

• admin fee(s) on your pick(s)

• underlying management fee(s) for any ETFs you’ve picked.

Transaction fees and currency exchange fees aren’t included.

It’s calculated by multiplying the annual fees of each fund in your investment plan by the percentage you’ve allocated into them. The results are then added together to give you the estimated annual fund charge for your investment plan.

An example investment plan that includes a 25% allocation to the Pie Global Growth Fund, a 50% allocation to the Pathfinder Ethical Growth Fund, and a 25% allocation across 5 self-select picks would have an estimated annual fund charge of 1.08%.