What inputs do you use to generate portfolios?

kōura generates personalised portfolio recommendations based on a number of inputs:

  • Your age and objective (1st Home Purchase versus Retirement): this provides the time horizon for your investments. For example, if you are 35 and are saving for retirement, you will in all likelihood remain invested for 30 years and this allows us to recommend a long term growth portfolio because you have the time to recover from market ups and downs. If you are 55, you have 10 years to retirement and the model will generate a more conservative profile.
  • Your answers to the risk questions: these questions are aimed at understanding how comfortable you are with accepting higher investment risk in exchange for possibly higher returns - or conversely preferring less risk and a lower return. Your answers will alter the recommended portfolio to reflect these preferences
  • Your answers to the reliance question so that we can assess your reliance on KiwiSaver for retirement. If you are very reliant, the model will recommend a more conservative profile because you may be at risk of financial hardship if your portfolio is too risky and the market crashes.
  • Once we have established the key parameters of your portfolio which reflect your situation, we rely on our investment policies to recommend kōura specific funds. You can find the details of these investment policies in our Statement of Investment Policies and Objectives (SIPO) here.
  • kōura offers you the unique ability to tailor your own portfolio if you wish to do so. For instance, if you are uncomfortable with the risk of our recommended portfolio, you can adjust it to your preferences.