The latest data released for KiwiSaver performance as at June 30, 2013 is from OnePath, SIL and ANZ funds (our story covering the returns to March 31, 2013 can be found here).
Having reviewed quite a number of KiwiSaver provider returns over the past few weeks we can report the ANZ funds continue to rank highly against their peers and are consistently one of the better performing schemes across many of the sectors.
For more details on where the various fund rank our latest performance table can be viewed here.
The highlight of the last quarter across the OnePath, SIL and ANZ funds has to be the variance of returns across the stable of funds.
For a few quarters now SIL funds have been outperforming their ANZ and OnePath stablemates and this we believe is principally due to the differing asset allocations across the various products.
A breakdown of the asset allocations across the various funds can be found at the bottom of this review.
No surprises either that the ANZ juggernaught continues to dominate KiwiSaver market share.
ANZ has in total approximately NZ$3.9 bln invested across their 25 funds.
The RBNZ data shows as 31 March 2013 the total KiwiSaver market was valued at NZ$16.409 bln which would make ANZ's market share just under 25%.
With volatility having hit the more conservative, fixed income and property funds during the months of May and June, the growth oriented funds have continued to out-perform across most time frames.
The only fund not to record a positive return since inception has been the International Property Fund whichs proves you can lose money investing into property.
Previoulsy, thanks mainly to the global financial crisis (GFC) there had been a large gap between the performance of conservative and growth funds.
Conservative funds had enjoyed a healthy performance buffer however with equity markets having effectively been in a bull market for the last three years the gap has closed right up.
In a few quarters time we expect growth assets to be outperforming the funds which are more heavily weighted to fixed income on a five year and since inception basis.
Investors who have been in Cash funds over the past five years have done themselves a disservice with all funds beating cash by a reasonable margin (at least 1% p.a.). This is a large amount to give away each year and not have it going onto your KiwiSaver balance. It is important to regularly review your KiwiSaver investment with their financial adviser to ensure you are in the right fund.
In terms of performance the best returns over the past 12-months (+30.7%) and five years (+8.4% p.a.) was from the SIL Australasian Share Fund. Of the diversified funds the SIL Growth Fund returned +21.8% over the past 12-months and +7.2% p.a. over the past five years. The SIL Growth Fund has returned 1% p.a. more than the SIL Conservative Fund over the past five years.
Examining the various asset allocations from the last quarter to this one there has been some subtle changes to the various weightings with the general trend being to reduce cash and fixed income assets in favour of offshore equities. Some of the tweaks made have been small in relative terms (i.e. 1% to 2% for example) but these all contribute to the overall performance.
The SIL and ANZ asset allocations do not vary significantly from each other which also would explain the small and insignficant variances in performance between these two schemes. The SIL Fund appears to provide superior performance across the board so maybe ANZ should combine these into one "super" fund based on the SIL asset allocation and mandate and create some additional efficiencies and cost reductions?
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 30 June 2013 |
1 year (p.a.) |
5 year (p.a.) |
Since inception (p.a.) |
| Cash Fund | 2.9% | 3.5% | 4.2% |
| Conservative Fund | 6.6% | 6.2% | 5.6% |
| Conservative Balanced Fund | 9.4% | 6.2% | 4.9% |
| Balanced Fund | 12.5% | 6.1% | 4.1% |
| Balanced Growth Fund | 15.6% | 6.0% | 3.2% |
| Growth Fund | 19.0% | 5.8% | 2.4% |
|
SIL KiwiSaver Scheme 30 June 2013 |
1 year (p.a.) |
5 year (p.a.) |
Since inception (p.a.) |
| Cash Fund | 2.7% | 3.1% | 3.8% |
| Conservative Fund | 7.1% | 6.2% | 5.6% |
| Conservative Balanced Fund | 10.8% | 6.7% | 5.4% |
| Balanced Fund | 14.4% | 6.9% | 4.9% |
| Balanced Growth Fund | 18.1% | 7.1% | 4.4% |
| Growth Fund | 21.8% | 7.2% | 3.7% |
| New Zealand Fixed Interest Fund | 0.9% | 6.0% | 6.1% |
| International Fixed Interest Fund | 2.4% | 6.6% | 7.0% |
| Australasian Property Fund | 19.2% | 7.4% | 3.0% |
| International Property Fund | 14.4% | 4.2% | -0.3% |
| Australasian Share Fund | 30.7% | 8.4% | 2.3% |
| International Share Fund | 24.1% | 4.7% | 1.6% |
| Sustainable Growth Fund | 17.6% | n/a | 2.6% |
|
ANZ KiwiSaver Scheme 30 June 2013 |
1 year (p.a.) |
5 year (p.a.) |
Since inception (p.a.) |
| Cash Fund | 2.8% | n/a | 3.1% |
| Conservative Fund | 7.0% | 6.1% | 5.5% |
| Conservative Balanced Fund | 10.7% | 6.5% | 5.2% |
| Balanced Fund | 14.3% | 6.8% | 4.8% |
| Balanced Growth Fund | 18.0% | 7.0% | 4.2% |
| Growth Fund | 21.7% | 7.0% | 3.5% |
More detailed performance reporting can be found here ».
The table below outlines the assset allocation for each fund as at 30 June 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 | 17.5 | 32.0 | 1.9 | 1.5 | 6.2 | 13.0 |
| OnePath Conservative | 20.3 | 17.6 | 41.6 | 3.2 | 4.9 | 12.5 | |
| SIL Conservative | 27.5 | 17.8 | 32.4 | 1.8 | 1.4 | 6.0 | 13.2 |
| ANZ Conservative Balanced | 20.5 | 14.6 | 25.2 | 3.8 | 3.0 | 11.1 | 21.0 |
| OnePath Conservative Balanced | 15.2 | 14.8 | 34.5 | 6.0 | 9.0 | 20.6 | |
| SIL Conservative Balanced | 21.1 | 14.8 | 25.4 | 3.6 | 2.8 | 10.8 | 21.6 |
| ANZ Balanced | 14.4 | 11.9 | 18.7 | 4.8 | 3.7 | 15.9 | 30.6 |
| OnePath Balanced | 11.3 | 11.9 | 27.8 | 8.0 | 12.8 | 28.3 | |
| SIL Balanced | 15.2 | 11.8 | 18.4 | 6.4 | 5.1 | 15.5 | 30.7 |
| ANZ Balanced Growth | 9.6 | 8.8 | 10.5 | 6.3 | 5.0 | 20.0 | 39.8 |
| OnePath Balanced Growth | 7.7 | 8.8 | 19.7 | 9.9 | 15.8 | 38.1 | |
| SIL Balanced Growth | 9.6 | 8.8 | 10.5 | 6.4 | 5.1 | 19.8 | 39.71 |
| ANZ Growth | 5.2 | 4.9 | 4.1 | 7.5 | 5.9 | 23.9 | 48.6 |
| OnePath Growth | 5.0 | 4.9 | 10.8 | 11.9 | 19.8 | 47.5 | |
| SIL Growth | 4.8 | 4.9 | 4.1 | 7.5 | 6.0 | 24.0 | 48.8 |
| SIL NZ Fixed Interest | 100 | ||||||
| SIL International Fixed Interest | 0.7 | 99.3 | |||||
| SIL Australasian Property | 0.9 | 99.1 | |||||
| SIL International Property | 0.8 | 99.2 | |||||
| SIL Australasian Shares | 0.5 | 99.5 | |||||
| SIL International Shares | 0.3 | 99.7 | |||||
| SIL Sustainable Growth | 1.7 | 98.3 |
Note: due to rounding the numbers may not add up to 100%.
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