KiwiSaver scheme providers are starting to release their latest quarterly KiwiSaver data for the period ending September 30, 2012. This is another instalment in the 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 ».
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.
ANZ and National Bank
Between the ANZ and National Bank schemes members have a choice of 12 funds (six from each). The schemes are managed by OnePath who is owned by ANZ.
These September returns show that not only has there been a shift in performance away from Cash and Conservative funds there has also been the opportunity to pick up some additional returns through active management over the past 12 months.
Active managers seek to provide investors with returns over and above the benchmark by frequently trading in and out of markets. This increased trading activity will generally attract a higher level of fees which ultimately the investor pays for.
In the Growth Fund segment we have compared a passive fund against both the ANZ and National Bank equivalents and found the actively managed offerings have added approximately 3% in additional performance to investors for the past 12 months.
We have also witnessed a noticeable flip flop between Conservative and Growth Funds in terms of short term out-performance on a quarter-by-quarter basis. However, over the long term the trend of more defensive funds out-performing the more aggressive ones continues.
Cash Funds continue to under-perform what investors can receive from a bank term deposit (TD). Given the scheme managers have access to a wider range of cash and short term debt securities than the average investor, there is natural expectation that cash returns within KiwiSaver should be much higher.
Since inception the various schemes have provided investors with a postive return before tax and after fees.
Readers will also note there is very little difference in performance between the two fund providers across the various time periods. With the pending disestablishment of the National Bank brand we would expect the National Bank KiwiSaver funds would be wound into the existing ANZ offering.
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.)
|
ANZ KiwiSaver Scheme (30 Sept 2012) |
1 year (p.a.) | 5 year (p.a.) | Since inception (p.a.) |
| Cash Fund | 2.96% | 3.20% | |
| Conservative Fund | 8.45% | 5.41% | 5.41% |
| Conservative Balanced Fund | 10.75% | 4.58% | 4.59% |
| Balanced Fund | 12.88% | 3.63% | 3.63% |
| Balanced Growth Fund | 14.81% | 2.49% | 2.50% |
| Growth Fund | 16.92% | 1.29% | 1.29% |
|
National Bank KiwiSaver Scheme (30 Sept 2012) |
1 year (p.a.) | 5 year (p.a.) | Since inception (p.a.) |
| Cash Fund | 2.97% | 3.21% | |
| Conservative Fund | 8.47% | 5.46% | 5.46% |
| Conservative Balanced Fund | 10.81% | 4.60% | 4.60% |
| Balanced Fund | 12.88% | 3.65% | 3.65% |
| Balanced Growth Fund | 14.95% | 2.51% | 2.51% |
| Growth Fund | 16.85% | 1.19% | 1.20% |
More detailed performance reporting can be found here ».
2 Comments
Well, I'm still sticking to a pure Cash Fund for my Kiwisaver account.
I'm not interested in chasing 'returns' on the amount invested. The main aim in KS is to gain the Employer & Govt benefits. And then minimise loss.
And I aim to avoid the prospect of the units all being devalued just before 65 - which is quite likely in the Growth funds. Cash Funds are least likely to suffer a large fall in unit price on the last lap.
Agree.....of course unlike my old private pensions you can move the funds about depending on the economic situation. Right now I'd go low risk, the GFC isnt solved or bottomed out and with the markets rigged and in bubble territory I cant see how you can take the risk.
What worries me is a future govn aka Labour and Russel Norman and co hijacking the funds for "worthy causes" ie prop up various debt crippled public institutions, like councils. Im sure there will be a scrambling for $s at some stage. I can but see it being desperate somewhere in the next decade....so right now Im just paying down debt as fast as I can, pointless having much in savings if the Govn takes it all but leaves you with your debt.
regards
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