About Good Returns  |  Advertise  |  Contact Us  |  Terms & Conditions  |  RSS Feeds Other Sites:   depositrates.co.nz  |   landlords.co.nz
Last Article Uploaded: Tuesday, August 4th, 6:48AM
rss
Latest Headlines

Equities boost KiwiSaver growth funds

Continued strong sharemarket performance has boosted KiwiSaver growth funds, which have been the best performers for the quarter ended September 30, according to Mercer’s KiwiSaver Survey.

Thursday, November 15th 2012, 6:53AM

by Niko Kloeten

Growth funds recorded a median return of 5.7% for the period, while KiwiSaver default funds produced the lowest results, with a median return of 2.7%. Conservative funds saw a median gain of 3.4% and balanced funds 4.6%. 

The best performing fund for the quarter was growth fund Aon Russell Lifepoints, which returned 8.5% for the quarter.  

In the 12 months to September 30, the median fund return for growth funds was 13.8%, with the best performing fund OnePath SIL Growth, returning 17.0% over the past 12 months.

The median manager (across all fund types) returned 4.8% over the quarter and 11.6% over the last 12 months (after fees but before tax). 

Philip Houghton-Brown, head of investments, Mercer New Zealand said recent fund performance is encouraging for KiwiSaver members.

“Following improved market conditions in previous months, shares were the main benefactor with growth funds faring best over the quarter,” he said.

“Despite the market unrest over the past year, growth funds continue to perform the best during this period however, they are still behind the other three multi-sector options when compared over the five years since KiwiSaver’s inception.”

Houghton-Brown said internationally the big unknown is how the US will deal with the looming “fiscal cliff”. 

“New Zealand saw a spike in the unemployment rate however, there are positive signs for local investors with additional stimulus from the rebuild of Canterbury and room to move with the official cash rate staying steady at 2.5%,” he said.

Mercer’s quarterly data shows markets united in the September quarter as announcements surrounding quantitative easing in Europe, USA and China spurred markets on to heights not reached since the Global Financial Crisis. 

“The positive returns seen in recent months for growth funds reflect a steady increase in overall market sentiment,” Houghton-Brown said.

“New Zealand shares were up 13.4% over the quarter, benefitting from the improved macroeconomic outlook, as well as a better than expected domestic earnings season.”

Niko Kloeten can be contacted at niko@goodreturns.co.nz

« Advisers asked to help default reviewFund managers call for level playing field »

Special Offers

Comments from our readers

No comments yet

Sign In to add your comment

 

print

Printable version  

print

Email to a friend
News Bites
Latest Comments
  • Attitudes to advice cost must change
    “I am delighted to read a paper that is pro-advice and recognises the vital role that good financial advice does play in society....”
    5 hours ago by Dirty Harry
  • Attitudes to advice cost must change
    “The challenge for the industry is to outline & justify what value they're adding, in exchange for payment. Unfortunately...”
    1 day ago by Pragmatic
  • Massey calls for Act overhaul
    “Completely agree with Tash, unfortunately common sense does not prevail and the last few years have been a complete waste...”
    2 days ago by Broker
  • Massey calls for Act overhaul
    “@tash if these "experts" understood or at least willing to listen to us, we will not be having this dialogue in the first...”
    3 days ago by w k
  • HSBC does it again
    “Apologies for the typo - the above should read "$1.020m for two years at 4.69%"...”
    3 days ago by Laurie
Subscribe Now

Weekly Wrap

Previous News

MORE NEWS»

Most Commented On
Mortgage Rates Table

Full Rates Table | Compare Rates

Lender Flt 1yr 2yr 3yr
ANZ 6.24 5.10 5.59 5.59
ANZ Special - 4.89 4.99 -
ASB Bank 6.50 ▼5.05 ▼5.25 ▼5.35
ASB Bank Special - ▼4.69 ▼4.89 ▼4.99
BankDirect 6.50 ▼5.05 ▼5.25 ▼5.35
BankDirect Special - ▼4.69 ▼4.89 ▼4.99
BNZ - Mortgage One 6.65 - - -
BNZ - Rapid Repay 6.24 - - -
BNZ - Special - - 4.69 -
BNZ - Std, FlyBuys 6.24 5.19 5.39 5.29
BNZ - TotalMoney 5.99 - - -
Lender Flt 1yr 2yr 3yr
Credit Union Auckland 6.70 - - -
Credit Union Baywide 6.45 5.75 5.75 -
Credit Union North 6.45 - - -
Credit Union South 6.45 - - -
Finance Direct 6.10 6.45 6.69 7.10
First Credit Union 6.45 - - -
HBS Bank 6.14 5.39 5.39 5.39
HBS Special - 4.99 4.99 4.99
Heartland 6.70 7.00 7.25 7.85
Heretaunga Building Society 6.45 5.10 5.40 -
Housing NZ Corp 6.49 5.19 5.49 5.59
Lender Flt 1yr 2yr 3yr
HSBC Premier 6.60 4.89 4.89 ▼4.99
HSBC Premier LVR > 80% - - - -
HSBC Special - ▼4.49 ▼4.49 ▼4.49
ICBC 6.75 5.99 6.39 -
Kiwibank 6.15 5.39 5.49 5.69
Kiwibank - Capped - - - -
Kiwibank - Offset 6.40 - - -
Kiwibank Special - 5.09 4.99 5.39
Liberty - - - -
Napier Building Society 6.50 5.80 6.70 -
Nelson Building Society 6.70 5.65 5.95 -
Lender Flt 1yr 2yr 3yr
NZ Home Loans 6.60 5.39 5.49 6.29
Perpetual Trust 7.70 - - -
Resimac 5.84 5.60 5.65 5.79
SBS Bank 6.14 5.39 5.39 5.39
SBS Bank Special - 4.99 4.99 4.99
Sovereign 6.35 ▼5.05 ▼5.25 ▼5.35
Sovereign Special - ▼4.69 ▼4.89 ▼4.99
The Co-operative Bank 6.20 4.89 4.99 5.20
TSB Bank ▼6.24 5.45 5.49 ▼5.40
TSB Special - - 4.99 5.40
Wairarapa Building Society 6.20 5.75 5.95 -
Lender Flt 1yr 2yr 3yr
Westpac 6.15 5.39 5.39 5.59
Westpac - Capped rates - ▼6.15 ▼6.15 -
Westpac - Offset 6.15 - - -
Westpac Special - - ▼4.69 -
Median 6.45 5.19 5.39 5.39

Last updated: 31 July 2015 11:25am

News Quiz

The maximum remuneration model for Australian life insurance advisers is to be set at what?

Upfront 40% + trail 20%

Upfront 50% + trail 10%

Upfront 50% + trail 20%

Upfront 60% + trail 10%

Upfront 60% + trail 20%

MORE QUIZZES »

About Us  |  Advertise  |  Contact Us  |  Terms & Conditions  |  Privacy Policy  |  RSS Feeds  |  Letters  |  Archive  |  Toolbox
 
Site by Web Developer and eyelovedesign.com