by Susan Edmunds
The quarterly survey reports on the performance and risk characteristics of the majority of New Zealand’s investment funds.
It found the OneAnswer Growth KiwiSaver fund returned 19.9% in the 12 months ended December, compared to an average of 17.8% for growth funds.
MJW principal Mark Weaver said the performance of the OneAnswer Growth Fund’s performance was boosted by the fund’s high allocation to growth assets, nearly 83%, and the strong performance from the underlying global shares.
“It was a good year for sharemarket investors with global markets up 27% and the NZX50 up 17.9%,” he said.
Global bond markets were up just 2.2% and the local government bond index was in negative territory because of the New Zealand economy’s strong outlook.
Of the balanced funds, the OneAnswer offering also topped the sector, with a return of 16.3% against an average 12.5%.
The fund had nearly 68% in growth assets, a reasonably high level for a balanced fund.
The best performing conservative fund was Mercer’s. It was up 7.4% and had a 38% allocation to cash.
Weaver said over the last one-, three- and five-year periods KiwiSaver funds have performed in line with their risk profiles.
Average annual returns over the five years to December 31 for growth, balanced and conservative options were 10.6%, 9.1% and 6.2% respectively.
“With the major market dislocation of the global financial crisis now five years behind us, it seems asset class returns are starting to conform again with long-term historical trends,” he said.
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