Date: 1 September 2025

Upcoming Changes to the Foundation Series Balanced and Growth Funds

The Foundation Series Balanced Fund or the Foundation Series Growth Fund (Funds) have some upcoming changes designed to keep the Funds cost-effective and aligned with modern market standards.

Key changes at a glance:

• New underlying fund managers: We are replacing some of the current underlying investments with new funds from leading global managers in Harbour Asset Management (Australasian Equities), Vanguard (International Equities), and BlackRock (International Fixed Interest).
• Introduction of a responsible investment lens: These new underlying funds incorporate a responsible investment approach, using mainly negative screens to limit exposure to companies involved in certain activities including tobacco, thermal coal, and controversial weapons.
• A minor asset allocation shift: We are slightly adjusting the Funds’ target asset allocation, moving 3% from Australasian Equities to International Equities to better align with wider market practice and the broader Foundation Series Funds range.
• Good news on costs: Your annual management fee remains unchanged at 0.37%. The Funds’ estimated buy/sell spreads will reduce to 0.00%/0.00%.
• No change to targeted risk/return profile: The risk indicator for both funds will remain at 4. The investment objective will also remain the same: to perform broadly in line with the return of its investment benchmark. While some of the underlying benchmark indices will be adjusted slightly to reflect the new underlying managers, it is expected that the risk/return profile of the Funds’ will remain consistent over the long-term.

These changes are the result of a strategic review and are being made to maintain the funds’ low costs, incorporate responsible investment principles, and ensure the funds remain competitively positioned for the long term.

What happens next?

New disclosure material will be issued on 1 October 2025 to reflect these changes, with the transition to the new underlying funds also beginning on or around this date, and expected to be completed before the end of the year.

There is no action required from you. Applications and redemptions will not be affected.

For more details:

This is a summary of the key changes. For full details of the upcoming changes, please see the specific notices for each fund below. You can also find a summary of all upcoming disclosure changes on our dedicated updates page.

• Foundation Series Balanced Fund: Here
• Foundation Series Growth Fund: Here
• Summary of all PDS Updates: Here

Updated Product Disclosure Statements and other documents will be available on the Foundation Series Funds Landing Page on the InvestNow website when the changes take effect.

Should you have any questions please do not hesitate to contact us on 0800 499 466 or at contact@investnow.co.nz

Mike Heath
General Manager
InvestNow
Mob: +64 27 285 9178
mikeheath@investnow.co.nz

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The issuer and manager of the InvestNow KiwiSaver Scheme and Foundation Series Funds is FundRock NZ Limited. For the InvestNow KiwiSaver Scheme Product Disclosure Statements click here.