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May 15, 2024
Investment update

New funds and enhanced advice mixes for your goal

We’re launching an exciting update for Tempo customers – we’ve added some new funds, and released improved versions of our advice mixes. Available in Tempo from today.

These changes are based on a recent review by the Tempo Investment Committee (TIC), our team keeping an eye on what’s happening in the market so you don’t have to. Excitingly, these updates bring access to some managed funds that are not otherwise easily accessed by New Zealand retail investors.

The new funds

Leveraging the Forsyth Barr Wealth Research capabilities, the TIC has completed a thorough search of active managers for global equities and selected funds that they believe to be the best in class for a range of investment objectives.

These new funds invest in actively managed funds, and will ultimately replace our current ones, which were investing in passive ETFs.

The new funds include:

We believe these new funds are improvements which offer a better balance of risk and return in global equities and ESG thematic funds.

The new and enhanced advice mixes

We have also introduced a new series of enhanced advice mixes which contain our new funds. We believe these new mixes present a better balance of risk and reward, and are great options for reaching your goals with Tempo.

Customers who have a goal with one of our recommended ‘advice mixes’ can now change their mix to one of our new and improved ones. For those that prefer to wait, in the next few days, we will also send a recommendation on which one we suggest you update to, based on your goal. This will appear in the Tempo app in the coming days.

In the future we will be closing some funds

At some stage in the future, we intend to close our ‘original global series’ funds (which contained passive ETFs), and remove the mixes that contain them. 

If you are a customer who already invests in these funds, you can keep investing in them for the time being. Eventually these funds won't be available, and they are no longer available to select unless you already invest in the fund. If you’re a customer who is currently on an advice mix that contains these funds, you can also continue to use that mix for now. However we will be sending you recommendations to move to our enhanced mixes.

The funds that will eventually close are:

Why we update investments

As a Tempo customer, you get access to guidance throughout your investment journey, which comes in many forms. Sometimes we make recommendations to change the composition of your portfolio based on things like your risk profile or the duration to your goal completion. In partnership with the TIC, we may also add and remove funds in Tempo, or change the weightings of funds, all with the aim to optimise and improve your investing experience. 

All the settings that underpin the fund mix recommendations you receive from Tempo are regularly reviewed by the TIC. Collectively, they have decades of experience analysing markets.

What about fees?

There is no change to our fee of 0.85%. During selection of the new funds, fees are one of many factors considered. Actively managed funds generally have higher fees than passively managed funds, however we believe that the potential for improved investment returns outweighs the higher cost of active management (vs passive) over the medium to longer-term. 

For a typical Tempo portfolio the total fee is now estimated to be approximately 1.21% (up 0.09% prior to the change). 

If you’ve built your own portfolio, and are looking at individual funds, an example would be our Global Quality Fund - one of our new global funds which invests in an actively managed underlying fund - is estimated at 1.35%. This compares to the existing Global Variety Fund which invests in a passively managed fund, with a total cost estimated at 1.05%. 

These fee changes reflect what is paid to the underlying fund managers, there is no change to our fee, or therefore the money we receive.

I’m a Tempo customer, 

What do I need to do?

Short answer - not a lot! You’ll get an investment update in the Tempo app. This will have the relevant information and steps you can follow to update your advice mix. If you’re not an advice customer, you can keep investing in your current funds for the time being. We will provide plenty of notice before we intend to close the Original Global Series funds.

Where can I find out more?

For more about this update check out the FAQs. For more about the Funds and fees refer to the Product Disclosure Statement and our website. Have more questions? You are always welcome to contact us at help@tempo.co.nz

Not a customer, but want to see what investments Tempo will recommend for you? 

Download Tempo today to give setting a goal a go! There’s no commitment to invest.