MAS has announced changes to how it manages the investment portfolio that sits behind its insurance and savings books, introducing a new BlackRock mandate for part of its international equities exposure and retiring the MSCI Climate Paris Aligned Index methodology it had previously used within that portfolio.
The changes take effect from around September 1, 2026, and apply across the MAS KiwiSaver Scheme, MAS Retirement Savings Scheme and MAS Investment Funds, with the exception of the Cash Funds. Management fees are unchanged and overall risk indicators are not affected, though MAS expects overall charges to reduce for some funds as a result.
MAS chief investment products officer Helen McDowall (pictured) said the changes are about making the portfolios smarter and more adaptable. "International shares play an important role in delivering long-term growth. By refining how we select investments, we're aiming to deliver stronger and more consistent returns over time, without increasing the risk indicators of our Funds or cost for Members," she said.
The new BlackRock portfolio combines data, research and sophisticated modelling to identify companies with strong long-term potential, complementing MAS's existing Global Themes and Direct Equities strategies. McDowall said responsible investing remains a core component of the investment strategy and that the change reflects a preference for a more hands-on and flexible approach to portfolio management rather than a departure from responsible investment principles.
MAS is also moving its Global Equities Fund to a target mix of 100% international shares, dropping its existing exposure to New Zealand and Australian equities on the basis that both markets represent only a small proportion of the total global opportunity set.
MAS posted a $73.1 million profit for the year to March 31, 2026 - its third consecutive profitable year - with equity climbing to $380.5 million and total assets reaching approximately $572 million. Standard & Poor's maintained its A (Strong) financial strength rating for the mutual over the same period. MAS paid out more than $30 million in life, trauma, disability and total permanent disablement claims during the year.
The investment changes sit inside that financial context. A composite mutual that writes general, life, income and commercial insurance alongside its savings products generates investment returns that contribute to its ability to meet insurance obligations. The active management shift - away from a passive index toward a mandate that can respond to evolving market conditions - reflects how MAS is choosing to manage the investment side of that equation heading into its fourth year of consecutive profit.
The general insurance sector it operates in is not having an easy run. Treasury figures show home insurance premiums rose 40% in the two years to early 2026, and weather-related claims activity has been elevated across the New Zealand market. An investment book performing well provides a buffer that premium income alone cannot always supply.
MAS's Growth and Balanced Funds ranked first in their respective categories over the year to June 30, 2026, in the independent MJW Investment Survey covering the 17 largest KiwiSaver schemes, with returns of 19.0% and 14.9% respectively. Medical Funds Management Limited issues and manages the three schemes.
