About Good Returns  |  Advertise  |  Contact Us  |  Terms & Conditions  |  RSS Feeds Other Sites:   depositrates.co.nz  |   landlords.co.nz
Last Article Uploaded: Wednesday, October 1st, 12:04PM
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
  • Naylor: Time to rename advisers
    “Pragmatic - the current system of regulation was the product of an excellent, extensive process of consultation. One conclusion...”
    2 hours ago by Mike Naylor
  • AMP: Concern over advice quality
    “Brent. Thanks, I have been engaging for a long time, to some advisers' annoyance. The CFP is not a degree, but an international...”
    1 day ago by Mike Naylor
  • Naylor: Time to rename advisers
    “Let me preface my comments by saying that these are my personal views and not necessarily the views of any business or organisation...”
    1 day ago by Keith Walter
  • Naylor: Time to rename advisers
    “Crazy idea: why don't we simply call anyone who dispenses financial advice an authorized financial advisor (ie: level playing...”
    1 day ago by Pragmatic
  • AMP: Concern over advice quality
    “I'm convinced that the CFP designation is a step back not forward for many in the industry, as it merely demonstrates academic...”
    2 days ago by Pragmatic
Subscribe Now

Weekly Wrap

Previous News

MORE NEWS»

Most Commented On
Mortgage Rates Table

Full Rates Table | Compare Rates

Lender Flt 1yr 2yr 3yr
AMP Home Loans 7.24 5.79 6.39 6.65
AMP Home Loans $200k+ 7.14 5.69 6.29 6.55
AMP Home Loans LVR <80% - - 5.85 6.29
ANZ 6.74 6.15 6.49 6.49
ANZ LVR > 90 6.74 6.65 6.99 6.99
ANZ Special - 5.75 5.99 -
ASB Bank 6.75 6.09 6.40 6.65
ASB Bank Special - - 5.99 6.19
BankDirect 6.75 6.09 6.99 6.65
BankDirect Special - - 5.99 6.19
BNZ - Classic - - 5.99 6.19
Lender Flt 1yr 2yr 3yr
BNZ - GlobalPlus 6.74 5.99 6.39 6.59
BNZ - Mortgage One 7.15 - - -
BNZ - Rapid Repay 6.74 - - -
BNZ - Std, FlyBuys 6.74 5.99 6.39 6.59
BNZ - TotalMoney 6.74 - - -
Credit Union Auckland 6.70 - - -
Credit Union Baywide 6.45 5.90 6.50 -
Credit Union North 6.45 - - -
Credit Union South 5.75 - - -
eMortgage 6.04 6.15 6.69 7.19
Finance Direct 6.10 6.45 6.69 7.10
Lender Flt 1yr 2yr 3yr
First Credit Union 6.45 - - -
General Finance 5.95 6.25 6.50 7.10
HBS Bank 6.15 5.85 5.99 6.19
HBS Special - - - 5.89
Heartland 6.70 7.00 7.25 7.85
Heretaunga Building Society 6.70 6.00 6.50 -
Housing NZ Corp 6.74 5.99 6.39 6.59
HSBC Premier 6.84 5.95 5.95 6.39
HSBC Premier LVR > 80% - 5.75 5.75 5.75
HSBC Special - - - -
ICBC 6.75 5.99 6.39 -
Lender Flt 1yr 2yr 3yr
Kiwibank 6.65 5.79 6.39 6.65
Kiwibank - Capped 5.65 6.50 - -
Kiwibank - Offset 6.55 - - -
Kiwibank LVR > 80% - - 5.89 6.19
Liberty - - - -
Napier Building Society 5.80 6.00 6.70 -
Nelson Building Society 6.95 6.15 6.60 -
NZ Home Loans 6.85 6.09 6.40 6.65
Perpetual Trust 7.70 - - -
Resimac 6.59 6.35 6.58 6.77
SBS Bank 6.15 5.85 5.99 6.19
Lender Flt 1yr 2yr 3yr
SBS Bank Special - - - 5.89
Silver Fern 5.95 6.10 6.55 7.05
Sovereign 6.85 6.09 6.40 6.65
Sovereign Special - - - 6.19
The Co-operative Bank 6.70 5.95 5.99 6.19
TSB Bank 6.74 5.95 6.19 6.30
TSB Special - - 5.79 -
Wairarapa Building Society 6.20 5.75 5.95 -
Westpac 6.59 6.09 6.39 6.65
Westpac - Capped rates - 6.74 6.99 -
Westpac - Offset 6.59 - - -
Lender Flt 1yr 2yr 3yr
Westpac Special - - 5.99 6.19
Median 6.70 6.00 6.39 6.57

Last updated: 23 September 2014 9:10am

News Quiz

What is back in the market for the first time since 2010 thanks to RESIMAC?

Securitisation

reverse mortgages

Chinese currency

a sense of security

MORE QUIZZES »

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