You might have noticed your KiwiSaver savings balance has reduced lately – particularly if you’re in an aggressive or growth fund.
Market volatility has had an impact on performance. So, which KiwiSaver scheme providers have had the best returns, and is negative growth a cause for concern?
Morningstar has released its list of top performing KiwiSaver plans over the first quarter of 2018, from its data records of 147 schemes from 16 providers on its database.
Top performers over the quarter against their peer group, a Morningstar press release says, were:
Multisector Conservative: Westpac KiwiSaver Scheme - Default Fund 0.36%
Multisector Moderate: Westpac KiwiSaver Scheme - Conservative Fund 0.31%
Multisector Balanced: Westpac KiwiSaver Scheme - Balanced Fund -0.09%
Multisector Growth: Milford KiwiSaver Scheme - Active Growth Fund 1.06%
Multisector Aggressive: Mercer KiwiSaver Scheme - High Growth Fund -1.14%
Paul Gregory, Head of Investments at Pie Funds Management Ltd, says, “KiwiSaver members may have been surprised, or even unhappy, seeing a loss in their account.
"However, in the sort of market conditions we had at the start of the year, a lot of investments struggled and losing ground was the norm.
“It’s good for KiwiSaver members to remind themselves that they have a long-term investment. This was just a quarter of results. When markets are rough, there can be losses, but the most important thing is that you remain on track for your goal," Gregory says.
According to Morningstar, during the trailing 10 years, Milford KiwiSaver Active Growth Fund, Milford KiwiSaver Balanced Fund, Fisher Funds KiwiSaver Growth Fund and Aon Russell Lifepoints Fund, and the ANZ KiwiSaver Scheme have been the top-performing options in their respective categories.
KiwiSaver assets on the Morningstar database grew marginally to NZ$46.5 billion at 31 March 2018 up from NZ$38.8 billion as at the same date last year. ANZ leads the market share with more than NZ$11.7 billion. ASB remains in second position, with a market share of 18.3%. Westpac holds third spot ahead of AMP, while Fisher Funds sits in fifth spot.
“Volatility returned to markets during the first quarter of 2018 and as share markets around the world dipped into negative territory over the first three months of the year,” Morningstar Director of Manager Research Ratings Asia-Pacific Chris Douglas says in a press release.
“There remain some very strong fundamentals driving the global economy, though, so investors should not worry if they see their KiwiSaver [savings] balance fall slightly over short periods. This is all part and parcel of investing,” Douglas says.
Gregory says if you have concerns, you should contact your KiwiSaver provider.
“They should be able to answer your questions. They may already have talked about market conditions in their communications with you.”
Read the full report here:
First published 4 May, 2018
Written by Claire Connell
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