The latest data released for KiwiSaver performance as at March 31, 2013 is from OnePath, SIL and ANZ funds, Our stories covering the returns to December 31, 2012 can be found here and here.
In a move that does not appear to have gathered any media attention, as at March 31, National Bank's KiwiSaver scheme was closed to new investors. A majority of existing members have been subsequently transferred to an equivalent ANZ scheme.
We had commented previously that with the death of the National Bank brand we expected their KiwiSaver scheme to be folded into one of the ANZ offerings. This is just another example of the recent trend of consolidation among providers and the KiwiSaver industry.
For ex-National Bank KiwiSaver customers you should not notice any difference as the two schemes were providing similar returns, but they will notice the ANZ scheme returns lag those of the SIL Scheme.
ANZ via its funds management business OnePath, continues to dominate the KiwiSaver market share with approximately $3.5 bln in member's funds (approximately 17% of the market).
Looking across the data we note that all the funds are showing positive returns over a wide number of time periods and all returns since inception are positive, albeit a couple of the funds are only just in positive territory.
We have experienced a general pick up in returns from the managers we are surveying and not just from the ANZ group. This reflects the more bullish sentiment in markets over the past three years and also the dropping off of some of the poorer investment quarters from the performance calculations.
The Growth funds continue their dominance in the performance stakes with returns in excess of 15% for the past year for both ANZ and SIL Growth Funds (ANZ was 14.9%). Within the single sector funds the Australasian Share and Australaisian Property funds returned 25.8% and 22.1% respectively.
While the focus on the 12-month data was skewed towards equity investments, when it comes to the longer term performance (i.e. 5 years and since inception) the Conservative and Fixed Income funds are the clear winners. Investors in these strategies have averaged around 6% per annum after fees and before tax since inception which we believe is a very good return given the events of the past five or so years.
The main drivers behind performance are generally viewed as asset allocation and security selection. With OnePath responsible for the security or fund manager selection for all portfolios the main contributor to any variance to performance will predominately be the asset allocation.
Examining the various asset allocations it becomes evident that the mix between the domestic and international asset classes has made a difference to the underlying performance of the various funds. We have outlined the asset allocations for the various funds in a table below.
We note both the ANZ and SIL strategies contain an exposure to International Property which is missing from the OnePath's funds. The OnePath portfolios have a preference for Australasian Property but when adding the Australasian and International Property exposures together the total property exposure remains similar.
The SIL and ANZ asset allocations do not vary significantly from each other. The largest deivation is 0.92% in the Cash sector which when you extrapolate this out in terms of performance, the overall contribution to the portfolio is small.
In terms of comparisons between the ANZ and OnePath portfolios, apart from the exposure to International Property (or lack thereof) the other notable differences are in the holdings of Cash, Bonds, Australasian shares. OnePath portfolios have been 'underweight' Australasian shares compared to both ANZ and SIL at a time when New Zealand's share market has been one of the leaders.
Over the past 12-months the growth strategies across all three providers have been star performers. OnePath's Growth Fund lags the other two by approximately 3% over the past year but this variance narrows to approximately 1.5% per annum on a since inception basis.
The one bright spot this time around for the OnePath folk is the relative outperformance of their Cash Fund compared to its stable mates.
Looking at out-and-out performance across all the funds and across a wide variety of time horizons, the SIL funds.
OnePath's Conservative Fund is also ahead of both SIL and ANZ on a since inception basis.
Neither of OnePath or SIL currently have an exposure to Alternative Assets, although they are permitted to as part of their active tilts away from the benchmark.
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.)
|
OnePath KiwiSaver Scheme 31 March 2013 |
1 year (p.a.) |
5 year (p.a.) |
Since inception (p.a.) |
| Cash Fund | 2.9% | 3.8% | 4.2% |
| Conservative Fund | 8.5% | 6.3% | 5.9% |
| Conservative Balanced Fund | 10.1% | 6.1% | 5.1% |
| Balanced Fund | 11.8% | 5.7% | 4.1% |
| Balanced Growth Fund | 13.4% | 5.4% | 3.1% |
| Growth Fund | 14.9% | 4.9% | 2.1% |
|
SIL KiwiSaver Scheme 31 March 2013 |
1 year (p.a.) |
5 year (p.a.) |
Since inception (p.a.) |
| Cash Fund | 2.8% | 3.3% | 3.9% |
| Conservative Fund | 8.9% | 6.3% | 5.9% |
| Conservative Balanced Fund | 11.4% | 6.6% | 5.6% |
| Balanced Fund | 13.7% | 6.6% | 5.1% |
| Balanced Growth Fund | 15.9% | 6.6% | 4.4% |
| Growth Fund | 18.0% | 6.4% | 3.6% |
| New Zealand Fixed Interest Fund | 7.1% | 6.9% | 6.7% |
| International Fixed Interest Fund | 6.6% | 6.9% | 7.7% |
| Australasian Property Fund | 22.1% | 6.9% | 3.0% |
| International Property Fund | 19.9% | 2.9% | 0.1% |
| Australasian Share Fund | 25.8% | 6.6% | 2.3% |
| International Share Fund | 11.9% | 3.2% | 0.4% |
| Sustainable Growth Fund | 5.1% | n/a | 1.2% |
|
ANZ KiwiSaver Scheme 31 March 2013 |
1 year (p.a.) |
5 year (p.a.) |
Since inception (p.a.) |
| Cash Fund | 2.9% | n/a | 3.2% |
| Conservative Fund | 8.7% | 6.2% | 5.8% |
| Conservative Balanced Fund | 11.3% | 6.4% | 5.4% |
| Balanced Fund | 13.6% | 6.5% | 4.9% |
| Balanced Growth Fund | 15.8% | 6.4% | 4.2% |
| Growth Fund | 18.0% | 6.2% | 3.4% |
More detailed performance reporting can be found here ».
The table below outlines the assset allocation for each fund as at 31 March 2013.
|
ANZ, OnePath & SIL KiwiSaver |
Cash (%) |
NZ Bonds (%) |
Global Bonds (%) |
Property (%) |
Global Property (%) |
NZ & AU Shares (%) |
Global Shares (%) |
| ANZ Cash | 100 | ||||||
| OnePath Cash | 100 | ||||||
| SIL Cash | 100 | ||||||
| ANZ Conservative | 27.9 | 18.0 | 32.5 | 1.9 | 1.5 | 6.3 | 11.9 |
| OnePath Conservative | 21.0 | 17.4 | 41.0 | 3.1 | 5.1 | 12.5 | |
| SIL Conservative | 28.4 | 17.8 | 32.2 | 1.9 | 1.5 | 6.3 | 12.0 |
| ANZ Conservative Balanced | 22.8 | 14.9 | 25.3 | 3.7 | 3.0 | 11.0 | 19.2 |
| OnePath Conservative Balanced | 15.7 | 15.1 | 34.9 | 9.0 | 9.0 | 19.3 | |
| SIL Conservative Balanced | 21.6 | 14.8 | 25.4 | 3.8 | 3.0 | 11.4 | 20.0 |
| ANZ Balanced | 16.9 | 11.9 | 18.4 | 4.9 | 4.0 | 15.9 | 28.0 |
| OnePath Balanced | 11.1 | 12.1 | 27.9 | 8.0 | 13.0 | 28.0 | |
| SIL Balanced | 16.4 | 11.7 | 18.2 | 4.9 | 4.0 | 16.2 | 28.7 |
| ANZ Balanced Growth | 11.0 | 9.0 | 10.5 | 6.2 | 5.0 | 19.7 | 38.6 |
| OnePath Balanced Growth | 6.4 | 9.1 | 20.1 | 10.0 | 15.9 | 38.5 | |
| SIL Balanced Growth | 11.1 | 8.8 | 10.4 | 6.2 | 5.0 | 19.6 | 38.8 |
| ANZ Growth | 6.1 | 5.0 | 4.1 | 7.4 | 6.0 | 23.8 | 47.6 |
| OnePath Growth | 5.5 | 5.0 | 11.0 | 12.0 | 20.1 | 46.5 | |
| SIL Growth | 7.1 | 4.6 | 3.8 | 7.4 | 6.0 | 23.6 | 47.6 |
| SIL NZ Fixed Interest | 24.3 | 75.7 | |||||
| SIL International Fixed Interest | 15.5 | 84.5 | |||||
| SIL Australasian Property | 1.5 | 98.5 | |||||
| SIL International Property | 0.3 | 99.7 | |||||
| SIL Australasian Shares | 2.4 | 97.6 | |||||
| SIL International Shares | 2.2 | 97.8 | |||||
| SIL Sustainable Growth | 2.8 | 97.2 |
Note: due to rounding the numbers may not add up to 100%.
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