KiwiSaver

AMP dominated KiwiSaver fund growth in the December 2009 quarter with its conservative, balanced and growth funds all the best performers toppling Huljich Wealth Management from the top.

FundSource’s Latest KiwiSaver Report showed that AMP’s KiwiSaver Conservative Fund produced a return of 2.19%, its AMP KiwiSaver ING Balanced Fund a return of 5.03% and its AMP KiwiSaver Aggressive Fund a return of 4.99%.

In contrast Huljich Wealth Management’s conservative, balanced and growth funds were all ranked either bottom or second from the bottom for the quarter, although those funds still remain top over the two years to December 31.

FundSource business manager T J Singh says any fund manager can have a poor performance over the short period of three-months, it just depends on the underlying securities held and how they perform.

“FundSource looks at the minimum of a three-year risk adjusted performance to judge a fund’s performance.”

He says asset allocation has contributed to the performance of AMP funds which allocated a greater proportion towards global equities over the December quarter.

“AMP were more aggressive in terms of growth asset allocation and it’s worked well for them,” he says.

The report also looked at fund performance over longer periods and found on a one year, six month and quarterly basis growth funds have performed better than balanced funds; and balanced funds have performed better than conservative funds.

 

However, over the two year period, on average, conservative funds have performed better than balanced and growth funds.

 

Singh says the two year period to December 2009 has seen quite a lot of volatility in markets and you would expect variations in returns across fund managers that adopt different investment strategies.

 

“Also you would generally expect growth funds to outperform the conservative funds over a longer time period, however, the past two years have meant that funds with a higher weighting to defensive assets, such as cash and fixed interest, have outperformed the others.”

 

He says over the two year period, boutique fund managers like Brook and Fisher Funds, that take a very active approach to portfolio management, also appeared to have performed well as compared to their competitors.

 

“If we are to draw some conclusions from the statistics, it would be that KiwiSaver members should ensure they are in an investment vehicle that is aligned with their own risk appetite, investment objective and time horizon.”

 

Singh says many KiwiSaver members will have been automatically enrolled in a defensive or conservative fund.

 

“While this has been a great strategy over the past two years, it may be appropriate for some investors with greater ability to take risk and greater risk appetite, to look at growth oriented funds.”

KiwiSaver Performance Survey – Returns to 31 December 2009

 

 

KiwiSaver Performance Survey – Returns to 31 December 2009
Default Options	3-month (%)	6-month (%)	1-year (%)	2-year (%pa)
AMP KiwiSaver (Default) Fund	1.87	4.44	6.78	3.94
ASB KiwiSaver Conservative Fund (Default)	1.23	5.09	6.43	4.24
AXA KiwiSaver Income Plus (Default)	1.79	7.21	10.74	3.57
ING KiwiSaver – Conservative Fund (Default)	1.44	5.62	6.30	4.24
Mercer KiwiSaver Conservative (Default)	1.78	8.45	13.99	4.84
TOWER KiwiPlan-Cash Enhanced (Default)	1.64	5.09	7.68	3.98
Multisector Options
Conservative	3-month (%)	6-month (%)	1-year (%)	2-year (%pa)
AMP KiwiSaver (Default) Fund	1.87	4.44	6.78	3.94
ANZ KiwiSaver – Conservative Fund	1.78	6.07	6.53	4.28
ASB FirstChoice KiwiSaver Tracker Conserv Fund	1.24	5.10	6.41	4.19
ASB KiwiSaver Conservative Fund (Default)	1.23	5.09	6.43	4.24
Asteron KiwiSaver Conservative Fund	2.18	6.46	6.89	2.30
AXA KiwiSaver Income Plus (Default)	1.79	7.21	10.74	3.57
Fidelity KiwiSaver-Capital Guaranteed Kiwi	1.12	3.55	4.93	—
Fidelity KiwiSaver-Conservative Kiwi Fund	2.16	6.35	7.22	4.21
Fisher Funds Conservative KiwiSaver Fund	0.35	0.35	—	—
Gareth Morgan Kiwisaver Scheme Conservative Fund	1.43	3.43	3.90	4.24
Grosvenor KiwiSaver Enhanced Income Fund	1.33	2.03	3.28	6.47
ING KiwiSaver – Conservative Fund (Default)	1.44	5.62	6.30	4.24
ING KiwiSaver SIL Conservative Fund	1.75	6.13	6.70	4.53
Mercer KiwiSaver Conservative (Default)	1.78	8.45	13.99	4.84
National Bank KiwiSaver – Conservative	1.79	6.09	6.65	4.35
Smartshares Smartkiwi Conservative Fund	1.70	4.85	6.69	2.52
TOWER KiwiPlan-Cash Enhanced (Default)	1.64	5.09	7.68	3.98
Average	1.56	5.08	6.95	4.13
Moderate	3-month (%)	6-month (%)	1-year (%)	2-year (%pa)
AMP KiwiSaver Conservative Fund	2.19	5.37	6.20	5.70
AMP KiwiSaver Moderate Fund	2.73	6.88	8.13	2.19
ANZ KiwiSaver – Conservative Balanced Fund	2.39	8.59	9.28	2.26
ASB FirstChoice KiwiSaver Active Conservative Fund	1.60	7.95	11.04	2.58
ASB FirstChoice KiwiSaver Tracker Moderate Fund	1.86	9.11	9.77	0.79
ASB KiwiSaver Moderate Fund	1.85	9.02	9.75	1.17
AXA KiwiSaver Conservative	2.08	8.18	11.73	—
Grosvenor KiwiSaver Conservative Fund	1.39	5.60	7.23	3.39
Huljich Conservative Diversified KiwiSaver Fund	0.81	9.24	12.08	12.89
ING KiwiSaver – Conservative Balanced	1.75	7.47	8.10	1.93
ING KiwiSaver SIL Conservative Balanced Fund	2.38	8.70	9.61	2.49
Mercer Super Trust KiwiSaver Conservative	1.73	9.11	15.00	2.59
National Bank KiwiSaver – Conservative Balanced	2.36	8.60	9.25	2.23
Smartshares Smartkiwi Balanced Fund	3.30	13.78	15.51	-3.88
TOWER KiwiPlan-Conservative	2.06	7.96	10.66	2.52
Westpac KiwiSaver-Conservative Fund	1.71	6.27	7.15	2.75
Average	2.01	8.17	9.89	2.05
Balanced	3-month (%)	6-month (%)	1-year (%)	2-year (%pa)
AMP KiwiSaver Balanced Fund	3.61	9.36	11.59	-1.31
AMP KiwiSaver Moderate Balanced Fund	3.29	8.43	10.10	-0.22
AMP KiwiSaver-TOWER Balanced Fund	3.12	11.18	13.18	-0.16
ANZ KiwiSaver – Balanced Fund	2.94	10.99	11.93	0.19
ASB FirstChoice KiwiSaver Active Balanced Fund	2.35	11.61	14.56	-2.12
ASB FirstChoice KiwiSaver Tracker Balanced Fund	2.45	11.92	12.89	-2.41
ASB KiwiSaver Balanced Fund	2.46	11.83	12.84	-2.18
Asteron KiwiSaver Balanced Fund	2.95	11.41	15.72	-0.41
AXA KiwiSaver Balanced	3.57	13.94	19.74	-1.58
Brook Professional KiwiSaver Scheme Balanced Fund	2.52	7.56	10.20	4.93
Fidelity KiwiSaver-Balanced Kiwi Fund	2.38	8.22	8.66	3.76
Fidelity KiwiSaver-Ethical Kiwi	2.06	7.92	11.54	—
Gareth Morgan Kiwisaver Scheme Balanced Fund	2.12	4.98	3.75	0.65
Grosvenor KiwiSaver Balanced Fund	1.93	9.21	10.87	1.39
Huljich Balanced Diversified KiwiSaver Fund	0.68	12.09	16.10	8.63
ING KiwiSaver – Balanced	2.05	9.27	9.91	-0.75
ING KiwiSaver SIL Balanced Fund	2.93	11.11	12.27	0.50
Mercer KiwiSaver Balanced	2.23	13.48	19.98	-2.48
Mercer Super Trust KiwiSaver Active Balanced	2.23	13.38	19.32	-2.48
Mercer Super Trust KiwiSaver Moderate	2.27	11.36	16.81	-0.21
National Bank KiwiSaver – Balanced	2.89	10.94	11.89	0.21
TOWER KiwiPlan-Balanced	2.98	10.09	12.27	-0.80
Westpac KiwiSaver-Balanced Fund	3.01	10.28	11.23	-0.66
Average	2.57	10.39	12.78	-0.29
Growth	3-month (%)	6-month (%)	1-year (%)	2-year (%pa)
AMP KiwiSaver-ING SIL Balanced Fund	5.03	14.11	16.20	-0.79
AMP KiwiSaver Growth Fund	4.41	11.52	14.01	-5.76
AMP KiwiSaver – TYNDALL Balanced Fund	2.83	11.41	14.33	-2.66
ANZ KiwiSaver – Balanced Growth Fund	3.44	13.39	14.55	-2.09
ANZ KiwiSaver – Growth Fund	4.03	15.82	17.35	-4.44
ASB FirstChoice KiwiSaver Active Growth Fund	2.74	13.86	17.03	-4.46
ASB FirstChoice KiwiSaver Tracker Growth Fund	3.03	14.44	15.70	-5.83
ASB KiwiSaver Growth Fund	3.02	14.35	15.63	-5.44
Asteron KiwiSaver Balanced Growth Fund	3.93	15.33	22.96	-3.75
Fidelity KiwiSaver-Growth Kiwi Fund	2.20	9.58	10.36	0.76
Gareth Morgan Kiwisaver Scheme Growth Fund	1.73	4.01	3.25	-4.55
Huljich Growth Diversified KiwiSaver Fund	0.66	14.33	18.54	11.31
ING KiwiSaver – Balanced Growth	2.39	11.11	11.86	-3.28
ING KiwiSaver – Growth Fund	2.69	12.92	13.61	-5.78
ING KiwiSaver SIL Balanced Growth Fund	3.51	13.61	15.03	-1.76
ING KiwiSaver SIL Growth Fund	4.08	16.02	17.79	-4.20
Mercer Super Trust KiwiSaver Growth	2.28	14.10	19.79	-4.71
National Bank KiwiSaver – Balanced Growth	3.42	13.39	14.53	-2.17
National Bank KiwiSaver – Growth	4.01	15.80	17.07	-4.57
Westpac KiwiSaver-Growth Fund	3.36	12.19	13.16	-2.66
Average	3.14	13.00	14.96	-3.59
Aggressive	3-month (%)	6-month (%)	1-year (%)	2-year (%pa)
AMP KiwiSaver Aggressive Fund	4.99	13.03	15.89	-8.18
AXA KiwiSaver Growth	4.43	17.44	23.83	-5.38
Brook Professional KiwiSaver Scheme Growth Fund	3.85	12.77	16.38	6.50
Fidelity KiwiSaver-Aggressive Kiwi Fund	2.70	12.71	21.80	0.31
First NZ Capital KiwiSaver Scheme	2.57	8.71	12.43	-10.80
Fisher Funds Growth KiwiSaver Fund	4.94	21.02	47.79	3.01
Grosvenor KiwiSaver Geared Growth Fund	2.88	—	—	—
Grosvenor KiwiSaver High Growth Fund	2.41	12.83	14.05	-5.67
Mercer KiwiSaver High Growth	2.53	16.38	22.19	-7.59
Mercer Super Trust KiwiSaver High Growth	2.49	16.20	21.16	-7.64
TOWER KiwiPlan-Growth	3.84	14.36	17.62	-5.65
Westpac KiwiSaver – Capital Protection Plan (1)	4.32	14.95	16.14	—
Average	3.50	14.58	20.84	-4.11
Single Sector Options
Cash	3-month (%)	6-month (%)	1-year (%)	2-year (%pa)
AMP KiwiSaver Cash Fund	0.94	1.89	4.18	6.59
ANZ KiwiSaver Cash Fund	0.51	1.02	2.71	—
ASB FirstChoice KiwiSaver NZ Cash Fund	0.59	1.18	2.93	5.63
ASB KiwiSaver NZ Bank Deposit Fund	0.60	1.19	2.95	5.67
Asteron KiwiSaver Capital Fund	0.73	1.59	4.49	6.11
AXA KiwiSaver Cash	1.02	2.28	4.24	5.74
ING KiwiSaver – Cash Plus Fund	0.57	1.22	3.03	5.90
ING KiwiSaver SIL Cash Plus Fund	0.42	0.96	2.43	5.33
Mercer KiwiSaver Cash	0.90	1.81	3.95	6.19
Mercer Super Trust KiwiSaver Cash	0.92	1.76	3.78	6.09
National Bank KiwiSaver Cash Fund	0.51	1.01	2.73	—
TOWER KiwiPlan-Preservation	0.81	1.54	3.60	5.95
Westpac KiwiSaver-Cash Fund	0.73	1.55	3.41	4.63
Fixed Income	3-month (%)	6-month (%)	1-year (%)	2-year (%pa)
Asteron KiwiSaver High Yield Fixed Interest Fund	2.87	5.46	4.90	3.13
ING KiwiSaver SIL New Zealand Fixed Interest Fund	2.03	3.77	3.20	4.83
ING KiwiSaver SIL International Fixed Int Fund	0.42	2.98	2.51	8.86
Mercer Super Trust KiwiSaver Fixed Interest	1.96	9.10	17.06	9.42
Property	3-month (%)	6-month (%)	1-year (%)	2-year (%pa)
Asteron KiwiSaver Global Property Fund	3.01	31.28	22.91	-20.70
ING KiwiSaver SIL Australasian Property Fund	2.37	20.99	15.03	-7.90
ING KiwiSaver SIL International Property Fund	6.85	35.03	25.15	-16.34
Mercer Super Trust KiwiSaver Property	3.57	31.72	28.58	-10.60
Australasian Equity	3-month (%)	6-month (%)	1-year (%)	2-year (%pa)
Aon KiwiSaver Milford Aggressive Fund	4.48	12.83	21.98	11.37
Asteron KiwiSaver SRI Share Fund	2.19	14.85	23.25	-7.64
Asteron KiwiSaver Trans-Tasman Small Companies Shr	6.45	27.75	61.67	-4.97
ING KiwiSaver SIL Australasian Share Fund	3.28	17.66	20.11	-7.53
Mercer Super Trust KiwiSaver Trans-Tasman Shares	2.61	18.24	22.13	-6.90
Mercer Super Trust KiwiSaver Shares	2.57	15.64	21.26	-10.46
Smartshares Smartkiwi Growth Fund	4.58	21.30	22.89	-10.29
International Equity	3-month (%)	6-month (%)	1-year (%)	2-year (%pa)
ASB FirstChoice KiwiSaver Active High Growth Fund	3.44	14.07	13.66	—
ASB FirstChoice KiwiSaver Global Sustainability Fd	3.63	12.83	17.91	—
Asteron KiwiSaver International Share Fund	3.74	13.26	12.96	-10.52
ING KiwiSaver SIL International Share Fund	4.78	11.00	10.23	-6.72
ING Kiwisaver SIL Sustainable Growth Fund	4.16	10.23	7.82	—
Mercer Super Trust KiwiSaver Global Shares	2.49	14.42	19.98	-12.45
TOWER KiwiPlan-Equity	5.48	15.88	18.99	-10.96
Miscellaneous	3-month (%)	6-month (%)	1-year (%)	2-year (%pa)
Fidelity KiwiSaver-Options Kiwi Fund	4.15	14.70	38.87	12.80
Returns are before tax and after the fees deducted from the funds unit price. Estimated Total Fee is the sum of the ongoing Management Fees, the Trustee Fees, and Administration Fees that are charged as a percentage of your account balance, and are reflected in the fund’s performance. Additional fees are dollar-based Administration or Membership Fees payable in addition to the Total Fee, and are not reflected in the fund’s performance. (a) Total Fee is the greater of $50 or 1 percent of the account balance. (b) Total Fee is a minimum of $40 or 0.85 percent dependent upon account balance.  *The unit prices supplied by Huljich Funds Management for the period prior to August 2009 include additional payments provided by the investment manager. See the funds prospectus for more details. While these returns do represent the experience of investors in the Huljich funds over this period, they are nonetheless not comparable to the results of other KiwiSaver fund managers. The Huljich funds have not been assigned a rank and have been excluded from the category averages for the affected time periods.

 

 

 

ING has become the first KiwiSaver provider to hit the $1 billion mark in funds under management.

ING head of KiwiSaver distribution David Boyle says the number of New Zealander’s that have joined KiwiSaver is much greater than was expected when KiwiSaver was first launched in 2007.

“We’re rapt to have reached the $1 billion mark, it’s a milestone we’re very proud to have achieved,” he says.

FundSource research shows that ING has been the leading KiwiSaver provider since the scheme started and that it has around 284,000 members.

ING attributes its success to strong distribution channels through relationships with ANZ National Bank, independent advisers, and through being one of the default providers.

Boyle says the support from the advisory community has been wonderful and he firmly believes financial advice is an important component in making financial decisions.

“I think there will be a greater requirement for advice going forward as balances grow to make sure people are investing in the right type of funds for their circumstances,” he says.

Over the last year an average of 30,000 New Zealanders a month joined KiwiSaver.

It is expected that the growth of new membership will slow over the next year. However the Australian portability legislation scheme is expected to create new opportunities for growth by funds under management as New Zealanders evaluate the pros and cons associated to repatriating their funds back to New Zealand.

So far about 1.25 million New Zealanders have joined the scheme of about 3.8 million under 65 and eligible to join KiwiSaver.

Boyle says a focus for ING next year is to make sure those New Zealander’s that have not joined are aware of the benefits.

Mercer, the only default KiwiSaver provider without a distribution network, has reduced fees on its funds.

It says the reduction is “in response to consumer demand for competitive pricing” and warns investors could be missing the point by focusing on the level of fees alone.

Mercer’s New Zealand boss, Martin Lewington, says a lack of transparency in the system and the inability for consumers to make direct comparisons between products is the real issue around costs.

“Mercer’s member research found that 86% of members rated competitive fees as an important or very important fund feature.”

Its changes include a reduction of more than 25% in the Mercer Superannuation Trust (MST) KiwiSaver product from $3.85 per member per month to $2.85.

Other changes included reductions in fees to its Cash Option, Active Balanced Option, and Membership fee, as well reducing the admin fee (to 0.15%) and Trustee fee (to 0.03%).

“Fees are necessary in most retirement income savings systems and it is true they can impact retirement savings.

“However, this is only one part of the picture: there is a broader problem in New Zealand with fees, which is not necessarily their size, but the lack of standardisation in relation to KiwiSaver, which makes it very difficult for consumers to compare apples with apples,” he said.

Mercer advocates the introduction of standardised fee disclosure and believes it will make product comparisons easier for researchers, advisors and consumers.

“We want to see greater transparency and visibility around the composition of fees, so that New Zealanders can make educated decisions regarding their retirement nest-egg.

“You only need to look as far as the labelling of fees by providers to see that it is inconsistent. For example some providers appear to load their admin fee into their investment fee while others quote their expected returns net of tax, investment fees and other expenses,” he said.

Lewington argues that it’s in the industry’s interests to make KiwiSaver easier to understand and standardisation is also needed around unit pricing.

Mercer has chosen to calculate unit prices net of tax and fees on a daily basis.