Using the most recent returns and fund update reports from December 2021, we will examine Milford’s recent KiwiSaver Performance.
Milford Asset Management was established in 2003 by experienced investors who saw the need for a world-class investment partner for New Zealanders. Brian Gaynor co-founded Milford Asset Management and sat on the boards of several listed and public companies, including the New Zealand Superannuation Fund (NZ Super). Milford Asset Management Limited owns 100% of Milford KiwiSaver Plan. It was created to allow investors to benefit from Milford Asset Management Limited’s investment expertise. The Milford KiwiSaver Plan manages six funds with over 47,000 members and has total Assets Under Management (AUM) of over $3.3 Billion NZD (as of 31st Mar 2021).
Fund returns were strong in December, as domestic and international equity markets shrugged off the threat of the new ‘Omicron’ Covid wave. Certain drops in funds’ returns were mainly caused by this new wave of “Omicron” at the end of 2021. While growth is predicted to drop slightly due to the Omicron wave, it is expected to rebound later in the year, and worldwide recession is highly improbable. With moderate economic growth, earnings for businesses should also be favorable. Indeed, the recent market turbulence is a hangover from an 18-month run of excellent stock market success driven by loose monetary policy. This year, the market is likely to be very volatile. When prices go up and down, it can be stressful, but we can see this volatility as an opportunity to outperform the markets. Investors should keep their eye on long-term investment goals despite the volatility and not get distracted by short-term gains.
Table of Contents
News about Milford
Performance of Milford KiwiSaver Funds
Milford Cash Fund
Milford Conservative Fund
Milford Moderate Fund
Milford Balanced Fund
Milford Active Growth Fund
Milford Aggressive Fund
News about Milford
In December, the Milford-owned company Neuren Pharmaceuticals announced positive phase 3 clinical trial outcomes for their experimental drug trofinetide in treating Rett syndrome, resulting in a 135% increase in the stock price. Since October 2007, Milford has been the sole owner of Neuren Pharmaceuticals. More recently, in June 2020 and September 2021, Milford has supported capital raisings and announced its substantial shareholder position of 5.2 % in 2021.
Performance of Milford KiwiSaver Funds
|
3 months |
1 year |
3 years |
5 years |
Since Inception |
|
|
Cash Fund |
0.22% |
0.55% |
n/a |
n/a |
0.46% |
|
Conservative Fund |
-0.63% |
0.00% |
4.74% |
5.14% |
7.68% |
|
Moderate Fund |
-0.73% |
4.06% |
n/a |
n/a |
10.09% |
|
Balanced Fund |
-1.08% |
8.78% |
11.18% |
9.81% |
10.10% |
|
Active Growth Fund |
-0.62% |
14.54% |
14.13% |
12.32% |
12.74% |
|
Aggressive Fund |
-2.28% |
15.13% |
n/a |
n/a |
15.65% |
*Sourced from Milford fund performance report
*These returns are to 31 December 2021 and are calculated after deducting Management Fees and before deducting tax.
Note: The following information is sourced from Milford Quarterly Fund updates published on 10 February 2022.
Milford Cash Fund
The Cash Fund invests mainly in cash and cash equivalents. It primarily invests in New Zealand cash, short-dated debt securities, and term deposits. The Cash Fund has had a 1-month return of 0.08%, a 3-month return of 0.22%, a 1-year return of 0.55%, and a since inception return of 0.46%.
*The following is Sourced from Milford Cash fund updates
Returns
Fees
The total annual fees for investors in the Milford Cash Fund are 0.20% per year.
*Note: From 1 December 2020, this fee was reduced from $36 to $18 per annum, hence the figure reported is based on the prorated charge. This fee is not charged for members under 21 years of age and those 65 and over. As of 1 July 2021, this fee will no longer be charged to any Member.
Investment mix
The investment mix contains 21.74% cash and cash equivalents and 78.26% New Zealand Fixed Interest including currency derivatives used to manage foreign exchange risk.
Top ten investments
This table shows Milford’s top 10 investments in the Cash KiwiSaver fund, which make up 72.87% of the fund.
*Note: The Fund’s foreign currency exposure is actively managed, with the neutral currency exposure being 0%.
Milford Conservative Fund
Milford’s Conservative Fund aims to provide moderate returns and has an investment timeframe of three years. It is a diversified fund that primarily invests in fixed income assets, with a moderate allocation to growth assets. The Milford Conservative Fund saw a 1-month return of -1.44% and a 1-year return of 0.00, which were both lower than its since inception return of 7.68%.
*The following is Sourced from Milford Conservative fund updates
Returns
Fees
The total annual fees for investors in the Milford Conservative Fund were 0.95% per year in the year to 31 March 2021.
*Note: From 1 December 2020, this fee was reduced from $36 to $18 per annum, hence the figure reported is based on the prorated charge. This fee is not charged for members under 21 years of age and those 65 and over. As of 1 July 2021, this fee will no longer be charged to any Member.
Investment mix
The investment mix shows the type of assets that the fund invests into.
Top ten investments
This table shows Milford’s top 10 investments in the Conservative KiwiSaver fund, which make up 23.73% of the fund.
*Note: The Fund’s foreign currency exposure is actively managed, with the neutral currency exposure being 0%
Milford Moderate Fund
The Milford Moderate Fund aims to reach moderate returns and has a recommended investment timeframe is four years. It is a diversified fund that primarily invests in fixed interest assets with a significant allocation to growth assets. The Moderate Fund saw a low 1-month return of -2.57%. Besides, the fund is achieving its yearly goal by having a 1-year return of 4.06% which is less than half of the 10.09% return since the inception of the fund.
*The following is Sourced from Milford Moderate fund updates
Returns
Fees
The total annual fees for investors in the Milford Moderate Fund were 0.58% per year until the 28th of September 2021, where fees changed to 0.45% per year.
*Note: From 1 December 2020, this fee was reduced from $36 to $18 per annum, hence the figure reported is based on the prorated charge. This fee is not charged for members under 21 years of age and those 65 and over. As of 1 July 2021, this fee will no longer be charged to any Member.
Investment mix
The investment mix shows the type of assets that the fund invests into.
Top ten investments
This shows Milford’s top ten investments in Milford’s Moderate Fund, which make up 19.35% of the fund.
*Note: The Fund’s foreign currency exposure is actively managed, with the neutral currency exposure being 0%.
Milford Balanced Fund
The Milford Balanced Fund aims to provide a balanced return over the minimum recommended investment timeframe of five years. It is a diversified fund that invests in a balance of growth assets and an allocation to fixed income assets. The Balanced fund saw a low 1-month return of -3.46%. However, its 1-year return of 8.78% appears to be quite close to its 10.10% return since the inception of the fund.
*The following is Sourced from Milford Balanced fund updates
Returns
Fees
The total annual fees for investors in the Milford Balanced Fund were 1.48% per year.
*Note: From 1 December 2020, this fee was reduced from $36 to $18 per annum, hence the figure reported is based on the prorated charge. This fee is not charged for members under 21 years of age and those 65 and over. As of 1 July 2021, this fee will no longer be charged to any Member.
Investment mix
The investment mix shows the type of assets that the fund invests into.
Top ten investments
This table shows Milford’s top 10 investments in the Balanced KiwiSaver fund, which make up 18.83% of the fund.
*Note: The Fund’s foreign currency exposure is actively managed, with the neutral currency exposure being 0%.
Milford Active Growth Fund
The Milford Active Growth Fund aims to provide returns to growth investors over the minimum recommended investment timeframe of seven years. It is a diversified fund that primarily invests in growth assets, with a moderate allocation to fixed interest assets. Despite its low 1-month return of -2.96%, its 1-year return is 14.54%, which is significantly higher than the inception return of 12.74%.
*The following is Sourced from Milford Active Growth fund updates
Returns
Fees
The total annual fees for investors in theMilford Active Growth Fund were 2.00% per year.
*Note: From 1 December 2020, this fee was reduced from $36 to $18 per annum, hence the figure reported is based on the prorated charge. This fee is not charged for members under 21 years of age and those 65 and over. As of 1 July 2021, this fee will no longer be charged to any Member.
Investment mix
The investment mix shows the type of assets that the fund invests into.
Top ten investments
This table shows Milford’s top 10 investments in the Active Growth KiwiSaver fund, which make up 17.61% of the fund.
*Note: The Fund’s foreign currency exposure is actively managed, with the neutral currency exposure being 0%.
Milford Aggressive Fund
The Milford Aggressive Fund is Milford’s Fund with the highest returns and highest volatility, and a minimum recommended investment timeframe of ten years. It primarily invests in international growth assets, with a moderate allocation to Australasian growth assets. The Milford Aggressive Fund saw a low 1-month return of -5.29%. This negative return is due to the nature of its investments, which are fairly sensitive to any change in the market. Despite its low 1-month return, its 1-year return of 15.13% is extremely close to its inception return of 15.65%.
*The following is Sourced from Milford Active Aggressive fund updates
Returns
Fees
The total annual fees for investors in the Milford Aggressive Fund were 1.30% per year.
*Note: From 1 December 2020, this fee was reduced from $36 to $18 per annum, hence the figure reported is based on the prorated charge. This fee is not charged for members under 21 years of age and those 65 and over. As of 1 July 2021, this fee will no longer be charged to any Member.
Investment mix
The investment mix shows the type of assets that the fund invests into.
Top ten investments
This table shows Milford’s top 10 investments in the Aggressive KiwiSaver fund, which make up 25.30% of the fund.
*Note: The Fund’s foreign currency exposure is actively managed, with the neutral currency exposure being 0%.
Data for Milford KiwiSaver funds has been sourced from Milford KiwiSaver Funds. Past performance is not necessarily an indicator of future performance, and return periods may differ.
To see if Milford has the appropriate fund that aligns with your values, retirement goals, and situation, complete National Capital’s KiwiSaver Healthcheck.