KiwiSaver

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Default Options
Multisector
– Conservative
– Moderate
– Balanced
– Growth
– Aggressive
Single Sector Options
– Cash
– Fixed Income
– Property
– Australasian Equity
– International Equity
– Miscellaneous

KiwiSaver Performance Survey – Returns to 31 March 2009
Default Options	Underlying Manager	3-month (%)	6-month (%)	1-year (%)
AMP KiwiSaver Default Fund	AMP	0.36	-1.45	1.91
ASB KiwiSaver Conservative Fund (Default)	ASB	-1.16	-0.28	1.44
AXA KiwiSaver Income Plus	AXA	-0.81	-1.48	-2.19
ING KiwiSaver – Conservative Fund	ING	-1.47	-0.66	0.67
TOWER KiwiPlan-Cash Enhanced	Tower	-0.83	-1.93	-0.48
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Multisector Options
Conservative	Underlying Manager	3-month (%)	6-month (%)	1-year (%)
AMP KiwiSaver Default Fund	AMP	0.36	-1.45	1.91
ANZ KiwiSaver – Conservative Fund	ING	-1.55	-1.50	0.34
ASB FirstChoice KiwiSaver Tracker Conserv Fund	ASB	-1.16	-0.13	1.51
ASB KiwiSaver Conservative Fund (Default)	ASB	-1.16	-0.28	1.44
Asteron KiwiSaver Conservative Fund	Asteron	-3.84	-3.94	-3.72
AXA KiwiSaver Income Plus	AXA	-0.81	-1.48	-2.19
Fidelity KiwiSaver-Capital Guaranteed Kiwi	Fidelity	0.16	0.26	–
Fidelity KiwiSaver-Conservative Kiwi Fund	Fidelity	-2.10	-3.40	-0.60
ING KiwiSaver – Conservative Fund	ING	-1.47	-0.66	0.67
ING KiwiSaver SIL Conservative Fund	ING	-1.47	-1.32	0.55
National Bank KiwiSaver – Conservative	ING	-1.54	-1.48	0.35
Smartshares Smartkiwi Conservative Fund	NZX	0.32	-1.50	0.78
TOWER KiwiPlan-Cash Enhanced	Tower	-0.83	-1.93	-0.48
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Moderate	Underlying Manager	3-month (%)	6-month (%)	1-year (%)
AMP KiwiSaver Conservative Fund	AMP	-0.01	1.45	6.17
AMP KiwiSaver Moderate Fund	AMP	-0.59	-4.47	-1.52
ANZ KiwiSaver – Conservative Balanced Fund	ING	-2.80	-5.74	-5.40
ASB FirstChoice KiwiSaver Active Conservative Fund	ASB	-1.62	-3.31	-3.60
ASB FirstChoice KiwiSaver Tracker Moderate Fund	ASB	-4.23	-8.43	-9.01
ASB KiwiSaver Moderate Fund	ASB	-4.22	-8.37	-8.61
AXA KiwiSaver Conservative	AXA	-1.15	-2.06	–
Huljich Conservative Diversified KiwiSaver Fund	Huljich	-1.33	5.83	7.39
ING KiwiSaver – Conservative Balanced	ING	-2.79	-4.26	-4.66
ING KiwiSaver SIL Conservative Balanced Fund	ING	-2.67	-5.55	-5.23
National Bank KiwiSaver – Conservative Balanced	ING	-2.82	-5.73	-5.44
Smartshares Smartkiwi Balanced Fund	NZX	-3.73	-12.74	-14.68
TOWER KiwiPlan-Conservative	Tower	-2.12	-5.25	-5.84
Westpac KiwiSaver-Conservative Fund	Westpac	-1.38	-1.76	-0.88
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Balanced	Underlying Manager	3-month (%)	6-month (%)	1-year (%)
AMP KiwiSaver – TYNDALL Balanced Fund	Tyndall	-1.96	-12.81	-13.32
AMP KiwiSaver Balanced Fund	AMP	-1.36	-9.89	-9.14
AMP KiwiSaver-ING Balanced Fund	AMP	-2.66	-13.71	-12.88
AMP KiwiSaver Moderate Balanced Fund	AMP	-1.18	-8.32	-6.86
AMP KiwiSaver-TOWER Balanced Fund	AMP	-1.04	-9.27	-10.16
ANZ KiwiSaver – Balanced Fund	ING	-3.79	-9.32	-10.51
ASB FirstChoice KiwiSaver Active Balanced Fund	ASB	-4.01	-10.91	-14.27
ASB FirstChoice KiwiSaver Tracker Balanced Fund	ASB	-5.92	-13.76	-16.35
ASB KiwiSaver Balanced Fund	ASB	-5.91	-14.05	-16.24
Asteron KiwiSaver Balanced Fund	Asteron	-2.25	-9.58	-11.29
AXA KiwiSaver Balanced	AXA	-3.51	-10.64	-16.17
Brook Professional KiwiSaver Scheme Balanced Fund	Brook	-0.14	-2.71	-1.71
Fidelity KiwiSaver-Balanced Kiwi Fund	Fidelity	-4.67	-6.13	-4.49
Fidelity KiwiSaver-Ethical Kiwi	Fidelity	-3.03	-10.89	–
Huljich Balanced Diversified KiwiSaver Fund	Huljich	-1.06	1.82	-1.40
ING KiwiSaver – Balanced	ING	-3.91	-7.63	-9.97
ING KiwiSaver SIL Balanced Fund	ING	-3.62	-8.95	-10.15
National Bank KiwiSaver – Balanced	ING	-3.78	-9.23	-10.40
TOWER KiwiPlan-Balanced	Tower	-4.71	-10.14	-13.26
Westpac KiwiSaver-Balanced Fund	Westpac	-3.72	-6.96	-9.32
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Growth	Underlying Manager	3-month (%)	6-month (%)	1-year (%)
AMP KiwiSaver Growth Fund	AMP	-2.32	-17.05	-18.11
ANZ KiwiSaver – Balanced Growth Fund	ING	-4.92	-13.09	-15.69
ANZ KiwiSaver – Growth Fund	ING	-5.82	-16.59	-20.66
ASB FirstChoice KiwiSaver Active Growth Fund	ASB	-4.96	-13.99	-19.09
ASB FirstChoice KiwiSaver Tracker Growth Fund	ASB	-7.52	-19.15	-23.37
ASB KiwiSaver Growth Fund	ASB	-7.51	-19.15	-22.98
Asteron KiwiSaver Balanced Growth Fund	Asteron	-1.90	-15.65	-18.74
Fidelity KiwiSaver-Growth Kiwi Fund	Fidelity	-6.81	-12.27	-12.85
Huljich Growth Diversified KiwiSaver Fund	Huljich	-1.08	1.67	-3.68
ING KiwiSaver – Balanced Growth	ING	-5.02	-10.87	-14.86
ING KiwiSaver – Growth Fund	ING	-6.19	-14.25	-19.71
ING KiwiSaver SIL Balanced Growth Fund	ING	-4.74	-12.76	-15.42
ING KiwiSaver SIL Growth Fund	ING	-5.61	-16.30	-20.36
National Bank KiwiSaver – Balanced Growth	ING	-4.87	-13.10	-15.74
National Bank KiwiSaver – Growth	ING	-5.91	-16.70	-20.73
Westpac KiwiSaver-Growth Fund	Westpac	-4.52	-9.82	-13.54
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Aggressive	Underlying Manager	3-month (%)	6-month (%)	1-year (%)
AMP KiwiSaver Aggressive Fund	AMP	-2.92	-20.64	-22.71
AXA KiwiSaver Growth	AXA	-5.66	-16.88	-24.18
Brook Professional KiwiSaver Scheme Growth Fund	Brook	-0.80	-5.53	-6.30
Fidelity KiwiSaver-Aggressive Kiwi Fund	Fidelity	-2.14	-15.01	-14.75
First NZ Capital KiwiSaver Scheme	FNZC	-2.86	-19.06	-26.15
Fisher Funds Growth KiwiSaver Scheme	Fisher	2.89	-11.92	-16.04
TOWER KiwiPlan-Growth	Tower	-6.58	-17.02	-23.19
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Single Sector Options
Cash	Underlying Manager	3-month (%)	6-month (%)	1-year (%)
AMP KiwiSaver Cash Fund	AMP	1.25	3.44	8.06
ASB FirstChoice KiwiSaver NZ Cash Fund	ASB	1.00	2.87	7.31
ASB KiwiSaver NZ Bank Deposit Fund	ASB	1.00	2.87	7.26
Asteron KiwiSaver Capital Fund	Asteron	1.90	3.33	7.67
AXA KiwiSaver Cash	AXA	0.72	2.38	6.37
ING KiwiSaver – Cash Plus Fund	ING	1.10	2.91	7.24
ING KiwiSaver SIL Cash Plus Fund	ING	0.93	2.58	6.62
ANZ KiwiSaver Cash Fund	NZGT	1.04	2.76	–
National Bank KiwiSaver Cash Fund	NZGT	1.05	2.77	–
TOWER KiwiPlan-Preservation	Tower	1.13	3.02	7.36
Westpac KiwiSaver-Cash Fund	Westpac	0.92	2.33	5.95
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Fixed Income	Underlying Manager	3-month (%)	6-month (%)	1-year (%)
Asteron KiwiSaver High Yield Fixed Interest Fund	Asteron	-4.81	-2.91	-2.33
ING KiwiSaver SIL New Zealand Fixed Interest Fund	ING	-1.83	-1.72	3.00
ING KiwiSaver SIL International Fixed Int Fund	ING	-0.01	7.34	11.09
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Property	Underlying Manager	3-month	6-month	1-year
Asteron KiwiSaver Global Property Fund	Asteron	-21.24	-52.32	-55.99
ING KiwiSaver SIL Australasian Property Fund	ING	-7.73	-20.08	-25.00
ING KiwiSaver SIL International Property Fund	ING	-26.13	-53.07	-58.26
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Australasian Equity	Underlying Manager	3-month (%)	6-month (%)	1-year (%)
AonSaver AMT KiwiSaver Milford Aggressive Fund	Milford	2.03	3.61	6.74
Asteron KiwiSaver SRI Share Fund	Asteron	-3.95	-13.62	-22.83
Asteron KiwiSaver Trans-Tasman Small Companies Shr	Asteron	5.53	-20.19	-27.65
ING KiwiSaver SIL Australasian Share Fund	ING	-3.48	-12.82	-20.59
Smartshares Smartkiwi Growth Fund	NZX	-6.63	-21.82	-26.98
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International Equity	Underlying Manager	3-month (%)	6-month (%)	1-year (%)
ASB FirstChoice KiwiSaver Active High Growth Fund	ASB	-9.43	-24.46	–
ASB FirstChoice KiwiSaver Global Sustainability Fd	ASB	-4.50	-9.30	–
Asteron KiwiSaver International Share Fund	Asteron	-5.34	-22.39	-25.26
ING KiwiSaver SIL International Share Fund	ING	-7.47	-16.64	-19.69
ING Kiwisaver SIL Sustainable Growth Fund	Super’tion Inv	-6.58	-16.42	–
TOWER KiwiPlan-Equity	Tower	-8.03	-21.41	-30.59
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Miscellaneous	Underlying Manager	3-month (%)	6-month (%)	1-year (%)
Fidelity KiwiSaver-Options Kiwi Fund	Fidelity	12.96	-13.52	-1.51
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Note: Mike Pero and NZF SuperKiwi KiwiSaver products are represented by the Huljich funds.
Estimated Total Ongoing Fee is the sum of the Management Fee, the Trustee Fee, and Administration Fees.

 

New Zealanders clearly recognise the need to save for retirement, despite the current economic conditions, with many believing they must supplement New Zealand Superannuation to enjoy the retirement they want, according to the latest AMP SuperWatch research.

In the survey, when asked if retirement income from the Government’s pension scheme, New Zealand Superannuation, is adequate, nearly three quarters say they require additional income from personal investments or savings to realise their aspirations.

Notwithstanding current economic conditions, New Zealanders continue to save for retirement. Of those who are saving, 58% say they are saving for retirement. This is significantly higher than levels in February 2007 but lower than the high of 65% reached a year ago.

Commenting on the survey, AMP Financial Services NZ managing director Jack Regan said the results reflect New Zealanders’ retirement expectations.

“For many, New Zealand Superannuation will not let them live the life they want in retirement. The additional savings intention, over and above NZ Super, reflects people’s expectations of a better retirement. This is a theme that has been consistently reflected throughout the history of the survey,“ he said.

Two thirds of those already in KiwiSaver do not intend to vary their contribution to the lower minimum contribution level of 2% effective from 1 April 2009. Of the 23% likely to reduce their contribution, a quarter will save the money elsewhere, 13% will use it to pay off debt and less than half will use the extra 2% to cover increased living costs.

“This reinforces people’s commitment to save to match their needs and aspirations for a better retirement. Despite these extraordinary times and the pressure on personal incomes, people continue to embrace retirement savings schemes,� Regan said.

According to the survey, KiwiSaver’s popularity continues, especially among younger people. Almost 40% of those saving for retirement have already joined KiwiSaver and a further 26% say they intend to join this year. Of those aged between 18 and 24 years more than a third intend to join.

For the first time, of those saving for retirement, more see KiwiSaver (51%) as a way to save for retirement than paying off their mortgage (49%) or bank deposits (43%).

The survey also shows, for the first time, the level of confidence people have in their decision to join KiwiSaver. Most are confident they made the right decision with nearly two thirds saying they are confident or very confident.

Regan says New Zealand’s preference for KiwiSaver as a retirement savings option is becoming clearer.

“People are less inclined to connect repaying their mortgage and having the retirement they want. More people are joining KiwiSaver and those already in the scheme don’t intend to reduce their contribution, despite the opportunity to do so. In people’s minds, KiwiSaver is becoming integral to a better retirement,� he said.

According to the survey, more people intend to work beyond the age of eligibility for New Zealand Superannuation. Only a quarter expect to retire before the age of 65, down significantly from 35% a year ago.

AMP has been surveying New Zealanders’ retirement saving attitudes and behaviours since 2000. AMP SuperWatch is currently undertaken twice a year.

The NZ Herald published a feature article on retirement income savings on February 28. The author was strongly critical of the New Zealand Superannuation Fund’s construct and recent performance. In response, Adrian Orr chief executive of the Guardians of New Zealand Superannuation had the following to say:

The fund is a simple concept. The government has legislated to invest money today to gain a return over the long-term. That return is to be used in the future to smooth the tax burden of the rising cost of superannuation income. One measure of financial success is whether the returns to the fund over decades are above the cost of government borrowing. This may or may not be the case over any randomly selected day, week, month, or year. In keeping with that we have deliberately and repeatedly highlighted the wide range of year-to-year outcomes we expect over the life-time of the fund, including negative ones. We have used our annual reports to illustrate this. A government is in a great position to benefit from investing over decades, more so than any individual. It can focus on the long-term and hence make investment decisions not available to many. It has the ability to ride out the tough patches and avoid ‘fire sales’. And, it can fund this activity at the cheapest rate and receive the tax on its local investment. The chance of investment success is as good as it can get. Right now, the earnings prospects for long-term investors have improved significantly. This is great for the Super Fund with the majority of contributions ahead. The global recession has seen asset prices fall and the rewards for accepting investment risk rise to historical levels. History also teaches us that the best time for investment returns is after significant downward corrections. However, we do not manage the portfolio around expectations of near-term events. Forecasting short-term is near impossible and leads to a lot of cost and lost opportunities. Exactly when a boom or bust will happen, what will trigger it, how it will unfold, and what the investment implications might be can not be forecast with useful precision – otherwise they would not happen. The forecasts the author of the feature article mentioned are long-term returns. Likewise, putting money only into cash or fixed interest dooms the fund to failure from the outset. The future retirement income liabilities, which follow nominal wages, will outpace the returns. Instead, the fund is invested for the long-term across a very wide range of assets that give us the best chance of buffering rising future retirement income payments. Diversification is the best means of managing investment risk. Imagine if we only had one asset and it happened to be the worst performing. A diversified portfolio removes that risk. And, we spend a lot of time on investment manager due diligence. Furthermore, whether a government’s operating accounts are in surplus or deficit makes no difference to the investment proposition of the fund. Neither do the returns to the Fund impact on the variability of the government’s debt program. The Guardians’ legislation was designed to provide clarity of purpose, operational independence, and transparency. It is recognised internationally for those features. When I took over two years ago following my role at the Reserve Bank, I inherited a set of investment assets selected to grow and to weather the long-term. These were chosen on a set of investment beliefs. Since then, we have been able to attract and retain world class people, and continue to implement a significant NZ and global investment strategy. We greatly increased our ability to manage and monitor our risk and liquidity, and invest in market-tracking indices, so that we are cost-effective and can avoid being forced to sell illiquid assets. We have raised the hurdle on our investment managers and let some go, and we have introduced tougher due diligence processes. And, we have deliberately reconsidered our global private equity and property strategies. Finally, we have benchmarked ourselves against the best in class long-term investing fraternity. They have all experienced the same challenges and remain committed to long-term investing. These are testing times which create the opportunities for long-term investors.

Unite has signed up “hundreds� of its 28,000 members to the Huljich KiwiSaver scheme, according to the union chief, Matt McCarten.

McCarten said while member sign-ups to Huljich have been minimal “this is just the start of the relationship�.

“This really a trial to see how it works,� he said.

Unite, which bills itself as the country’s “fastest growing private sector community unionâ€?, struck up a deal with Huljich in January to promote the KiwiSaver scheme to its members.

McCarten said Unite engaged a consultant to select an appropriate scheme to distribute after receiving numerous enquiries from members about how to choose a KiwiSaver provider.

“I did consider IRIS [a union-based KiwiSaver and superannuation scheme] and was approached by other unions to use it,� he said. “But we got a view of each scheme based around some criteria: it had to be New Zealand-owned; have an ethical investment policy, and; returns were also important.�

Huljich emerged from the pack based on these three crucial factors but it also “got� the message that many Unite members wanted to save for a house deposit through the KiwiSaver concessions.

McCarten said most of Unite’s members worked in highly transient service industries such as restaurants, were lowly-paid and mainly young.

“About half of the members are in their first job,� he said.

Unite collects a $40 fee for each sign-up to Huljich, which “just covers administration costs�, McCarten said.

Despite coming from different ends of the political spectrum – McCarten is a high-profile advocate of the left while Huljich directors include former National Party chief, Don Brash, and Auckland mayor, John Banks – he said the two organisations also share a “cultural affinity�.

“We’re both growing organisations, we work hard and we back ourselves,â€? McCarten said. “Although I would fight [Brash and Banks] all the way on political issues I’d trust them with my wallet.â€?

Huljich has also formed distribution relationships with associated mortgage-broking companies NZF and Mike Pero.

As at March 31, 2008, the Huljich KiwiSaver scheme reported just over $100,000 in funds under management, equating to about 50 members.