AE KiwiSaver Review (2026)

What is AE KiwiSaver?

Always Ethical is a New Zealand ethical investment manager behind the AE KiwiSaver Plan.

The KiwiSaver scheme is managed by AE KiwiSaver Limited, with investment management outsourced to its parent company, Always-Ethical Limited.

Unlike most KiwiSaver providers, AE does not offer a range of conservative, balanced and growth funds. There is only one KiwiSaver fund, built around what it calls its Strict Ethical Mandate.

The fund is classified as an aggressive investment option and is designed for investors with a high tolerance for volatility and a long investment timeframe.

AE KiwiSaver is also recognised by Mindful Money as a Mindful Fund, meaning it meets Mindful Money’s standards for ethical investment.

How does it invest?

The AE KiwiSaver Plan invests through AE Investor, a related managed fund run by Always-Ethical Limited, as well as cash.

AE Investor can invest in up to 50 ordinary shares listed on the New York Stock Exchange or Nasdaq.

The manager says its investment universe is narrowed to roughly 350 companies that meet its financial and ethical criteria before individual stocks are selected.

AE applies two broad sets of tests.

First, companies must meet financial-strength requirements. These include:

• interest-bearing debt of less than 30%
• interest-bearing investments of less than 30%
• more than 67% of company assets being involved in activities considered to be for the good of humanity

If these financial ratios are breached, AE says the investment is sold on the next trading day.

Second, the fund applies its Strict Ethical Mandate.

Restricted activities include:

• interest-based financial businesses
• gambling and speculative investments
• derivatives
• alcohol
• tobacco
• weapons of war
• adult entertainment
• gold and silver hedging
• certain pork-related businesses
• leverage
• fossil-fuel exploration

Some underlying companies can have up to 5% of their business activity in otherwise prohibited areas, subject to AE’s rules and its “purification” process.

AE says compliance with its ethical mandate is monitored daily, and investments that cease to comply can be sold on the next trading day.

Active risk management

AE KiwiSaver is not a conventional buy-and-hold share fund.

Its Investment Committee can actively move money between shares and cash depending on its view of market conditions.

Its general target is around 80% shares and 20% cash, but the manager has wide discretion to depart from this.

That discretion can produce substantial changes in the portfolio.

As at 30 June 2026, for example, the fund was approximately:

• 30.75% international shares
• 69.25% cash and cash equivalents

So although AE KiwiSaver is formally classified as an aggressive fund, its actual share exposure can vary significantly over time.

Products

Always Ethical currently offers two main investment products.

The AE KiwiSaver Plan is its KiwiSaver product and is denominated in New Zealand dollars.

The separate AE Investor fund is a non-KiwiSaver managed investment scheme denominated in US dollars.

AE Investor follows the same broad Strict Ethical Mandate and can invest in up to 50 US-listed stocks plus cash.

Investors can contribute to AE Investor in either New Zealand or US dollars, although the fund itself is US-dollar denominated.

Performance

For the period to 31 July 2026, AE KiwiSaver reported:

• 1-year Return: 2.45%
• 3-year Return p.a.: 3.19%
• 5-year Return p.a.: 5.59%
• 10-year Return p.a.: 7.95%

Fees

There are no contribution, establishment, termination, withdrawal or bonus fees.

As an example, on a $10,000 balance with no further contributions you would pay about $316.00 in fund charges plus the $32.40 member fee, or $348.40 in total for the year.

The bottom line

Always Ethical is a very different KiwiSaver provider from most of the market.

It offers just one fund, built around a tightly defined ethical mandate rather than giving members a range of risk-based options.

Its investment team actively selects up to 50 US-listed companies, screens them against both financial and ethical criteria, checks compliance daily and can move large amounts of the portfolio between shares and cash when market conditions change.

That creates a distinctive strategy, but it also comes at a high cost.

The current PDS estimates annual fund charges of 3.16% plus a $32.40 annual member fee, while actual fund charges for the year to March 2026 were 4.26%.

For comparison with other KiwiSaver providers, the estimated PDS fee is the most consistent figure to use — but investors should understand that AE’s actual administration expenses can vary materially from year to year.