KiwiSaver scheme providers are starting to release their latest quarterly KiwiSaver data for the period ending September 30, 2012. This is the first of a continuing series where we will be summarising the results for each scheme as they come to hand.
When enough results have been received we will be updating the benchmark summaries and comparatives and these tables can be found here>>.
ASB & FirstChoice
ASB & FirstChoice KiwiSaver schemes provide members with a choice of 15 funds (5 ASB and 10 FirstChoice). The FirstChoice KiwiSaver scheme is provided and managed by ASB Group Investments.
These September returns show an interesting shift - funds with a higher risk profile are starting to show much better returns. Funds with a conservative profile are showing very modest returns. In fact over the most recent periods, cash-heavy funds are barely holding their own. Bank term deposits (TDs) are providing much better returns even though those themselves are pretty modest. This is a noticeable turnaround from long-term results. If cash rates are going to be lower-for-longer, cash funds are unlikely to perform as they did a few years ago.
In a majority of cases for the period ending 30 September 2012 the funds have returned positive results to investors across all time frames. The exceptions however are the ASB Growth and FirstChoice Growth, Active Growth and Active High Growth funds which had small negative returns across either six months, five years or since inception.
For the past 12 months superior performance has been reported by those funds containing a higher exposure to equities. The funds with heavier equity exposure have returned on average between 4% to 5% above the Cash and Conservative schemes. Investors should be expecting excess returns of this magnitude to compensate them for taking on the additional levels of risk associated with a greater exposure to equities.
The story is different over the last 5 years (to 30 September) where the more conservative offerings have provided superior returns to investors.
The effects of the Global Financial Crisis (GFC) have impacted the more aggressive funds over the last five years and this is evident in the level of returns received.
Over the next 12 months as the worst of the 2007 returns are excluded from the rolling period performance calculations we are expecting to see some improvement in the data.
Below is a table of the longer term performance of the various funds. The return data is before tax and after fees and is as published by the managers. (No adjustments have been made to take into account those additional fees which scheme providers may charge and which are not included in calculating the fund performance. We do make such adjustments, but they will not be included until the full benchmarking is published.)
|
ASB KiwiSaver Scheme (30 Sept 2012) |
1 year (p.a.) | 5 year (p.a.) | Since inception (p.a.) |
| NZ Cash Fund | 2.32% | 4.05% | 4.05% |
| Conservative Fund | 6.99% | 4.87% | 4.87% |
| Moderate Fund | 9.73% | 3.56% | 3.56% |
| Balanced Fund | 11.84% | 1.78% | 1.78% |
| Growth Fund | 13.65% | -0.14% | -0.14% |
|
FirstChoice KiwiSaver Scheme (30 Sept 2012) |
1 year (p.a.) | 5 year (p.a.) | Since inception (p.a.) |
| NZ Cash Fund | 2.32% | 4.03% | 4.03% |
| Conservative Fund | 6.99% | 4.84% | 4.84% |
| Moderate Fund | 9.74% | 3.39% | 3.39% |
| Balanced Fund | 11.84% | 1.73% | 1.73% |
| Growth Fund | 13.65% | -0.19% | -0.19% |
| Active Conservative Fund | 8.17% | 3.77% | 3.77% |
| Active Balanced Fund | 11.03% | 1.18% | 1.18% |
| Active Growth Fund | 12.66% | -0.62% | -0.62% |
| Active High Growth Fund | 13.50% | -4.23% | |
| Global Sustainability Fund | 13.59% | 3.28% |
More detailed performance reporting can be found here>>.
2 Comments
I got it wrong!!!
15 month ago shifted from the growth fund to the cash fund as nearing retirement and was uncertain as to how things were going to pan out globally and in particular Europe and USA.
However, not to fret. It is great to see that the worst hasn't happened (as yet) and in particular New Zealand has so far survived the worst of the GFC.
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