National Capital understands that there is an abundance of KiwiSaver providers to choose from and that reading about the differences in hundreds of KiwiSaver funds aren’t exactly written out in your weekend plans.
This is why we’ve put together some detailed information on the top-performing KiwiSaver funds based on their 5-year returns for each category. The data is derived from the quarterly Morningstar Survey.
Looking for a simpler list? – Click the image below for our Best Performing KiwiSaver Funds page.
The S&P/NZX50 Index recorded a 16.9% recovery and is now only 0.4% down since the start of the year (Source: MorningStar). These improved returns in the June Quarter are a good reflection of the improved market conditions since the previous quarter.
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Conservative Fund Category: Milford Conservative Fund (Five Year Returns: 6%).
About Milford Conservative Fund
Milford’s Conservative Fund is for investors seeking moderate returns and capital protection over the minimum investment timeframe of 3 years. It is a lower risk investment that is diversified to primarily fixed interest securities with a moderate allocation to equities.
Fund’s Net Returns vs Morningstar Conservative Index
The chart below shows the post fee and before tax returns of Milford’s Conservative Fund compared to Morningstar’s NZ Multi-Sector Conservative Index. The five-year return of Milford’s Conservative Fund is 6% whereas the 5-year return on Morningstar’s index is 5.20%.
Milford Conservative vs Morningstar NZ Multi-Sector Conservative Index
Asset Allocation Detailed Breakdown
Taking a look at the asset allocation can show what the fund invests in. Asset allocation is a good indicator as it impacts the volatility, risk, and return of an investment.
As of June 2020, the target asset allocation of Milford Conservative Fund was as follows:
Fees Compared to Industry Average
|
FEES |
MILFORD CONSERVATIVE FUND |
PEER GROUP – CONSERVATIVE FUND |
|
Total Annual Fund Fees |
0.95% |
0.69% |
|
+ Membership Fee (annual) |
$36.00 |
$27.00 |
Is the Milford Conservative Fund right for you?
If you’re in a conservative KiwiSaver fund, you’re likely to value stability and low risk over high returns. You may be a few years away from withdrawing your KiwiSaver funds for your first home or retirement, meaning you don’t want to experience a sudden drop in your KiwiSaver balance when it comes to withdrawing your funds.
If you’re not sure whether you should or shouldn’t be in a conservative fund, you don’t have to make this decision on your own. By submitting a KiwiSaver HealthCheck, you can get free, digital, KiwiSaver advice.
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Moderate Fund Category: Aon Russell LifePoints Moderate (Five Year Returns: 6.4%).
About Aon Russell LifePoints Moderate Fund
Aon Russell LifePoints Moderate Fund aims to produce returns that beat inflation. The fund has a target investment mix of 60% in income assets and 40% in growth assets (Source: Aon). This fund is suitable for investors with a minimum investment holding period of 5 years.
Fund’s Net Returns vs Morningstar Moderate Index
The chart below shows the post-fee and before-tax returns of Aon Russell LifePoints Moderate Fund compared to Morningstar’s NZ Multi-Sector Moderate Index. The five-year return of Aon Russell LifePoints Moderate Fund is 6.4% whereas the 5-year return on Morningstar’s index is 5.9%.
Aon Russell LifePoints vs Morningstar NZ Multi-Sector Moderate Index
Asset Allocation Detailed Breakdown
As of June 2020, the target asset allocation of Aon Russell LifePoints Moderate Fund was as follows:
Fees Compared to Industry Average
|
FEES |
AON RUSSELL LIFEPOINTS MODERATE FUND |
PEER GROUP – MODERATE FUND |
|
Total Annual Fund Fees |
1.09% |
0.90% |
|
+ Membership Fee (annual) |
$48.80 |
$29.22 |
Is the Aon Russell LifePoints Moderate Fund right for you?
Although this fund has higher fees than the average moderate fund, fees are only one factor you should be looking at. If you are in a moderate fund, you are also mainly concerned about the stability of your investment rather than the level of returns.
If you’re not sure on whether you are maximising your KiwiSaver opportunities, take our KiwiSaver HealthCheck below.
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Balanced Fund Category: Milford Balanced Fund (Five Year Returns: 8%).
About Milford Balanced Fund
Milford’s Balanced fund aims to provide investors with capital growth over the suggested investment timeframe of at least 5 years. This is a low-to-medium risk diversified fund that invests in primarily invests in equities, with a significant allocation to fixed interest securities.
Fund’s Net Returns vs Morningstar Balanced Index
The chart below shows the post fee and before-tax returns of Milford Balanced Fund compared to Morningstar’s NZ Multi-Sector Balanced Index. The five-year return of Milford Balanced Fund is 8% whereas the 5-year return on Morningstar’s index is 7%.
Milford Balanced vs Morningstar NZ Multi-Sector Balanced Index
Asset Allocation Detailed Breakdown
As of June 2020, the target asset allocation of Milford Balanced Fund was as follows:
Fees Compared to Industry
|
FEES |
MILFORD BALANCED FUND |
PEER GROUP – BALANCED FUND |
|
Total Annual Fund Fees |
1.28% |
1.02% |
|
+ Membership Fee (annual) |
$36.00 |
$30.00 |
Is the Milford Balanced fund right for you?
When considering what Balanced fund to select, you need to ensure that the assets in the fund give you both the stability and the returns that you are looking for. Everyone has different goals for KiwiSaver – being in a suitable KiwiSaver fund can help save you thousands. Is your KiwiSaver account currently being maximised?
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Growth Fund Category: Milford Active Growth Fund (Five Year Returns: 9.8%).
About Milford Active Growth Fund
The Milford Active Growth Fund aims to provide investors with annual net returns of 10% over the minimum recommended investment time frame of five years. It is a minimum-to-high risk diversified fund that primarily invests in equities, with a moderate allocation to fixed interest securities.
Fund’s Net Returns vs Morningstar Growth Index
The chart below shows the post fee and before-tax returns of Milford Active Growth Fund compared to Morningstar’s NZ Multi-Sector Balanced Index. The five-year return of Milford Active Growth Fund is 9.8% whereas the 5-year return on Morningstar’s index is 7.6%.
Milford Active Growth vs Morningstar NZ Multi-Sector Growth Index
Asset Allocation Detailed Breakdown
As of June 2020, the target asset allocation of Milford’s Active Growth Fund was as follows:
Fees Compared to Industry
|
FEES |
MILFORD ACTIVE GROWTH FUND |
PEER GROUP – GROWTH FUND |
|
Total Annual Fund Fees |
1.06% |
1.07% |
|
+ Membership Fee (annual) |
$36.00 |
$29.22 |
Is the Milford Active Growth fund right for you?
If you are in a growth fund, you’re likely to have a greater volatility tolerance and capacity. As you’re more interested in returns, it’s important to look beyond headline figures. Past performance does not necessarily predict future performance – looking at what your fund is invested in and its investment processes are equally important.
National Capital conducts continuous research on these aspects to not only help you chose a suitable fund but to also make sure that you are informed on what you should do if your circumstances or the circumstances of your provider changes.
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Aggressive Fund Category: Booster Geared Growth Fund (Five Year Returns: 9.6%).
About Booster Geared Growth Fund
Booster’s Geared Growth Fund aims to achieve a rate of return (net of fees but before tax) of at least 5.5% per annum above inflation over any ten year period. The fund aims to allow long-term investors to gain the benefits of a leveraged (geared) exposure to growth assets through borrowing.
Fund’s Net Returns vs Morningstar Aggressive Index
The chart below shows the post fee and before-tax returns of Booster’s Geared Growth Fund compared to Morningstar’s NZ Multi-Sector Aggressive Index. The five-year return of Booster Geared Growth Fund is 9.6% whereas the 5-year return on Morningstar’s index is 8.1%.
Booster Geared vs Morningstar NZ Multi-Sector Aggressive Index
Asset Allocation Detailed Breakdown
As of June 2020, the target asset allocation of Booster Geared Growth Fund was as follows:
Fees Compared to Industry
|
FEES |
BOOSTER GEARED GROWTH FUND |
PEER GROUP – AGGRESSIVE FUND |
|
Total Annual Fund Fees |
1.68% |
1.45% |
|
+ Membership Fee (annual) |
$36.00 |
$36.00 |
Is the Booster Geared Growth fund right for you?
Similar to growth funds, you are likely to have a high tolerance and capacity to volatility if you are in an aggressive KiwiSaver fund type. As you have a longer investment time horizon, you can withstand the fluctuations in your KiwiSaver and ride out the volatility.
Where your money is invested and who is managing it are factors that can greatly affect your long-term outcomes. Not sure what KiwiSaver fund you should be in? The first step in getting help from National Capital is the KiwiSaver HealthCheck.
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How Do I Choose My KiwiSaver Fund?
We have looked at the best performing KiwiSaver funds based on their 5-year returns, however, looking at past performance of a fund is just one aspect when choosing a KiwiSaver fund. Other questions you should be asking include:
- How and where is my money invested?
- What is the level of volatility (risk) of this fund? Does it align with my volatility tolerance and capacity?
- How do the fees compare to other funds with a similar rate of return?
- What are the providers processes when selecting investments and making changes in the funds?
Our research team at National Capital looks at over 100+ funds and can recommend the right KiwiSaver investment for you.
Why Use National Capital?
- Detailed Research: We research various factors of KiwiSaver funds – from asset allocation all the way to ethical investing.
- Answers: How do I know my money is safe? What risks are being taken?
- Monitoring: We’re constantly monitoring the KiwiSaver landscape.
- Expertise: Our team specialise in Investment and KiwiSaver research.
- No cost to you: We get paid by the KiwiSaver providers
- Gift of Time: We do the hard work, so you can focus on life.
Our KiwiSaver recommendations look at the big picture and not just the scorecard. So, what are you waiting for?
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Best Performing KiwiSaver Funds – Mar 2020
Best Performing KiwiSaver Funds -Latest Update