Using the most recent returns and fund update reports from June 2022, we will examine Westpac’s recent KiwiSaver Performance.
One of Australia’s four largest financial institutions, Westpac KiwiSaver Scheme is also one of the biggest banks in New Zealand. It is the oldest bank and company in Australia. BT Assets Management Limited (BTNZ), which has more than $15 billion in funds under management, manages the Westpac investment funds, including the Active Series and Westpac KiwiSaver Scheme.
The coronavirus pandemic has begun to decline in recent months, allowing the entire border between New Zealand and Australia to reopen. However, the pandemic’s negative effects have had a big impact on the economy of New Zealand. The cost of living has significantly increased for New Zealanders, with a quarterly inflation rate of 1.7% and an annual inflation rate of 7.3%. An additional 50 basis points were added to the official cash rate (OCR) recently in mid-August, bringing the total OCR to 3.0 per cent. Therefore, the performance of Westpac KiwiSaver has been significantly impacted by these societal contemporary concerns.
Table of Contents
Performance of Westpac KiwiSaver Funds
News about Westpac
This year, a “Platinum” rating has been given to the Westpac KiwiSaver Program by independent rating organisation SuperRatings. The highest possible grade denotes a KiwiSaver plan that offers the “greatest value for money.” According to the judges, all major evaluation factors for the Westpac KiwiSaver Scheme are fairly balanced within a robust, secure, and tried-and-true risk framework. The Scheme has elements that ought to help most people reach their retirement savings goals.”
Performance of Westpac KiwiSaver Funds
|
1 Month |
3 Month |
1 Year |
3 Years |
5 Years |
Since Inception |
|
|
Cash |
0.19% |
0.48% |
1.13% |
1.02% |
1.47% |
2.65% |
|
Conservative |
2.63% |
-0.07% |
-5.35% |
1.03% |
2.97% |
4.36% |
|
Moderate |
3.36% |
-0.59% |
-6.37% |
1.80% |
3.83% |
4.76% |
|
Balanced |
4.29% |
-1.29% |
-7.41% |
2.90% |
5.07% |
5.48% |
|
Growth |
5.17% |
-2.12% |
-8.21% |
3.60% |
6.05% |
5.99% |
Sourced from Westpac fund performance report
*These returns are to 31 July 2022 and are before tax and after fund management fees. Past performance is not necessarily an indicator of future performance, and return periods may differ.
Note: The following information is sourced from Westpac Quarterly Fund updates published on 28 July 2022.
Westpac Cash Fund
Over the short term, the Cash Fund aims to provide steady returns. The fund makes short-term income investments in assets such as bank deposits, floating-rate notes, and money market instruments. Volatility is anticipated to be the lowest of the funds in the Westpac KiwiSaver Scheme. The fund has one year return of 1.13%, and three years return of 1.02%
*The following is Sourced from Westpac Cash Fund Update
Returns
Fees
The total annual fees for investors in the Westpac Cash Fund are 0.25% per year, due to the fund manager reducing fees from 28 September 2021, with additional membership fees of $5.90 per year.
Investment mix
The investment mix is 100% cash and cash equivalents due to being a Cash Fund.
Top ten investments
This table shows Westpac’s top 10 investments in the Cash KiwiSaver Fund, which comprise 9.05% of the fund.
Westpac Conservative Fund
Over the short to medium term, the Conservative Fund aims to provide stable returns. The fund primarily invests in income assets, with a 25% benchmark allocation to growth assets. In the Westpac KiwiSaver Scheme, volatility is anticipated to be lower than the Moderate Fund. The fund has one year return of -5.35%, and three years return of 1.03%
*The following is Sourced from Westpac Conservative Fund Update
Returns
Fees
The total annual fees for investors in the Westpac Conservative Fund are 0.40% per year, due to the fund manager reducing fees from 28 September 2021, with additional membership fees of $5.90 per year.
Investment mix
The investment mix shows the type of assets that the fund invests into.
Top ten investments
This table shows Westpac’s top 10 investments in the Conservative KiwiSaver Fund, which comprise 5.83% of the fund.
Westpac Moderate Fund
Over the medium term, the Moderate Fund seeks to provide moderate returns. Compared to growth assets, the fund has a higher benchmark allocation to income assets. In the Westpac KiwiSaver Scheme, volatility is anticipated to be higher than the Conservative Fund. The fund has one year return of 6.37%, and three years return of 1.80%
*The following is Sourced from Westpac Moderate Fund Update
Returns
Fees
The total annual fees for investors in the Westpac Moderate Fund are 0.40% per year, due to the fund manager reducing fees from 28 September 2021, with additional membership fees of $5.90 per year.
Investment mix
The investment mix shows the type of assets that the fund invests into.
Top ten investments
This table shows Westpac’s top 10 investments in the Moderate KiwiSaver Fund, which comprise 7.24% of the fund.
Westpac Balanced Fund
Over the medium to long term, the Balanced Fund aims to provide medium returns. The fund has a greater benchmark allocation for growth assets than income assets. Volatility in the Westpac KiwiSaver Scheme is anticipated to be higher than the Moderate Fund but lower than the Growth Fund. The fund has one year return of -7.41%, and three years return of 2.90%
*The following is Sourced from Westpac Balanced Fund Update
Returns
Fees
The total annual fees for investors in the Westpac Balanced Fund are 0.50% per year, due to the fund manager reducing fees from 28 September 2021, with additional membership fees of $5.90 per year.
Investment mix
The investment mix shows the type of assets that the fund invests into.
Top ten investments
This table shows Westpac’s top 10 investments in the Balanced KiwiSaver Fund, which comprise 10.64% of the fund.
Westpac Growth Fund
The Growth Fund aims to provide higher returns over the long term. The fund invests primarily in growth assets but also has an allocation to income assets. Volatility is expected to be the highest of the funds in the Westpac KiwiSaver Scheme. The fund has one year return of -8.21%, and three years return of 3.60%.
*The following is Sourced from Westpac Growth Fund Update
Returns
Fees
The total annual fees for investors in the Westpac Growth Fund are 0.55% per year, due to the fund manager reducing fees from 28 September 2021, with additional membership fees of $5.90 per year.
Investment mix
The investment mix shows the type of assets that the fund invests into.
Top ten investments
This table shows Westpac’s top 10 investments in the Growth KiwiSaver Fund, which comprise 14.93% of the fund.
Data for Westpac KiwiSaver funds have been sourced from Westpac KiwiSaver Funds. Past performance is not necessarily an indicator of future performance, and return periods may differ.
To see if Westpac has the appropriate fund that aligns with your values, retirement goals and situation, complete National Capital’s KiwiSaver Healthcheck.