Until recently, I had no idea that it took about 300 years before the original potter’s wheel was tipped on its side and used for transportation.

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Isn’t that staggering? Probably the world’s greatest invention was a well-known tool being used for an entirely different purpose for centuries before it was essentially rediscovered.

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It just goes to show, good ideas don’t necessarily need to recreate the wheel.

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One tool can solve many problems

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Of course, innovation involving the wheel didn’t end there either - as it has been central to all sorts of other inventions from the windmill to the engine.

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In much the same way, the ever expanding variations of managed funds continue to solve a growing number of the world’s financial problems.

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But savers continue to miss out

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The emergence of low-cost Exchange Traded Funds (ETFs) has transformed global sharemarkets, opening the door for investors with long-term goals and healthy risk appetites. Yet, New Zealand has largely been left behind when it comes to comparable advances in bank-alternative savings options.

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Without real innovation, nothing has shaken up the unfair status quo. The result? A savings market still ruled by uncompetitive bank products — and a nation missing out on the vibrant savings culture we deserve.

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Solutions to our savings crisis are desperately needed

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An astounding 56% of New Zealanders surveyed in the Canstar Consumer Pulse Report 2024 are living payday to payday, up from 52% the year earlier. While nearly half of all respondents said they don’t even have enough put away to survive for two months without a regular wage.

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Our lack of savings is a huge societal and economic problem which is contributing to rising rates of theft and violent crime, mounting mental health illnesses, and terribly low productivity.

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Contributing to this crisis is the shocking amount of money New Zealanders miss out on by having to accept low interest rates on their bank savings accounts. Wedge estimates this was $3 billion last year alone. A truly outrageous amount of money that should be in the pockets of New Zealanders.

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Making saving rewarding

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The Wedge team has a long history in the management of large, low risk investment funds on behalf of hundreds of thousands of New Zealanders.

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From our vantage point, it’s hard to ignore how unfairly New Zealand savers are being treated. The good news? We’re in a position to do something about it.

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In short, we know what savers should be earning on their money and we know how to deliver it.

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Tipping the managed fund model on its side

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You can’t fix a problem this deep with minor improvements to a system this unfair. It’s time for something new - a fairer way to save that brings together the best of a bank account and a managed fund.

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To do this, Wedge has reinvented the way a conventional managed fund works.

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Instead of paying ourselves first and regardless of the performance of the fund, like other fund managers. The Wedge Savings Fund offers a transparent and consistent rate of return to its members, before Wedge stands to earn anything.

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We’ve heard from thousands of New Zealand savers, and their message is clear. It’s time for a better way to save. This breakthrough in the managed fund model is designed to deliver exactly that: the true alternative to bank savings accounts New Zealand has been missing.

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