Using the most recent returns and fund update reports from the December Quarter 2022, we will examine BNZ’s recent KiwiSaver Performance.
Since 1861, the Bank of New Zealand (BNZ) has assisted Kiwis in developing sound financial habits. The BNZ KiwiSaver program’s dedication to its current 186,668 participants includes low fees, a large number of fund options, and ethical investing options. The BNZ KiwiSaver Scheme oversees six funds with a total asset under management of NZ$3.6 billion.
Due to COVID-19 it was evident that the high levels of inflation would persist for a longer period of time than initially anticipated due to tight labour markets and supply chain problems. This caused fixed-interest markets to lose value and numerous central banks to raise interest rates. The Russian invasion of Ukraine had a detrimental impact on stock markets as well. The Reserve Bank of New Zealand is attempting to mitigate this volatility and inflation by raising the official cash rate. More specifically for BNZ, funds with a higher allocation to international shares (like their Growth Fund) generated positive returns, while funds with a higher allocation to fixed interest (such as their Conservative Fund) experienced negative returns (BNZ, Bloomberg).
Table of Contents
News about BNZ
Performance of BNZ KiwiSaver Funds
BNZ Cash Fund
BNZ Conservative Fund
BNZ Moderate Fund
BNZ Balanced Fund
BNZ Growth Fund
News about BNZ
BNZ’s KiwiSaver Plan has once again won the Canstar Award. This honour is presented to the company that has demonstrated exceptional investment performance and value over the last five years across three key funds: conservative, balanced, and growth. The award evaluates the performance, costs, and features of various entities.
Performance of BNZ KiwiSaver Funds
Sourced from BNZ fund performance report.
* These returns are to the 30th of September 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 BNZ’s Quarterly Fund updates, published on the 26th of October 2022.
BNZ Cash Fund
The Cash Fund primarily invests in cash and cash equivalents. The Cash Fund seeks to achieve consistent returns over the short term. The Cash Fund has had a 1-month return of 0.06%, and a 1-year return of 1.01%, both of which are lower since the inception return of 2.16%.
*The following is Sourced from BNZ Cash Fund Update
Returns
Fees
The total annual fees for investors in the BNZ Cash Fund are 0.30% 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 BNZ’s top 10 investments in the Cash KiwiSaver Fund, which make up 28.90% of the fund.
BNZ First Home Buyer Fund
The First Home Buyer Fund aims to provide stable returns over the short to medium term by primarily investing in income assets. The BNZ First Home Buyer fund saw a 1-month return of 0.58%, despite over 64.38% of its assets being in cash and cash equivalents. The 1-year return of -4.09% is lower than the inception of 2.49%, showing that the First Home Buyer Fund is currently underperforming. In addition, the fund earns a lower rate of return over 1-year than the Cash fund.
Returns
*Sourced from BNZ First Home Buyer fund updates
Fees
The total annual fees for investors in the BNZ First Home Buyer Fund are 0.47% per year. Which has decreased from the 0.50% in May 2022. 
Investment mix
The investment mix shows the type of assets that the fund invests in.
Top ten investments
This table shows BNZ’s top 10 investments in the First Home Buyer KiwiSaver Fund, which make up 18.63% of the fund.
BNZ Conservative Fund
The BNZ Conservative Fund aims to provide exposure to a portfolio of income assets, which generally have lower levels of risk. Therefore, the objective to achieve relatively stable returns over the short to medium term. The Conservative Fund has a 1-month return of 0.58% and a 1-year return of -2.30% lower than the since inception return of 4.07%.
*The following is sourced from BNZ Conservative Fund Update
Returns
Fees
The total annual fees for investors in the BNZ Conservative Fund are 0.48% per year.
Investment mix
The investment mix shows the type of assets that the fund invests in.
Top ten investments
This table shows BNZ’s top 10 investments in the Conservative KiwiSaver Fund, which make up 8.77% of the fund.
BNZ Moderate Fund
The BNZ Moderate Fund aims to generate moderate returns over the medium term by investing primarily in income assets and a limited amount of growth assets. The Moderate Fund saw a 1-month return of 1.29%. The fund has a low 1-year return of -10.82% which is not close to the 4.61% return since the inception of the fund. Hence, the Moderate Fund has been underperforming.
Returns
Fees
The total annual fees for investors in the BNZ Moderate Fund are 0.51% per year.
Investment mix
The investment mix shows the type of assets that the fund invests in.
Top ten investments
This shows BNZ’s top ten investments in BNZ’s Moderate Fund, which makes up 8.81% of the fund.
BNZ Balanced Fund
The BNZ Balanced Fund aims to provide exposure to a portfolio of sizable allocation to income assets. Therefore, the objective is to achieve medium returns over the medium to long term. The Balanced Fund has a 1-month return of 2.02% and a 1-year return of -12.16% lower than the since inception return of 5.83%.
*The following is Sourced from BNZ Balanced Fund Update
Returns
Fees
The total annual fees for investors in the BNZ Balanced Fund are 0.51% per year.
Investment mix
The investment mix shows the type of assets that the fund invests in.
Top ten investments
This table shows BNZ’s top 10 investments in the Balanced KiwiSaver Fund, which make up 13.68% of the fund.
BNZ Growth Fund
The BNZ Growth Fund aims to provide exposure to a portfolio of mostly growth assets. Therefore, the objective is to achieve higher returns over the long term. The Growth Fund has a 1-month return of 2.75% and a 1-year return of -12.71% lower than the since inception return of 7.35%.
*The following is Sourced from BNZ Growth Fund Update
Returns
Fees
The total annual fees for investors in the BNZ Growth Fund are 0.51% per year.
Investment mix
The investment mix shows the type of assets that the fund invests in.
Top ten investments
This table shows BNZ’s top 10 investments in the Growth KiwiSaver Fund, which make up 18.45% of the fund.
Data for BNZ KiwiSaver funds have been sourced from BNZ KiwiSaver Funds. Past performance is not necessarily an indicator of future performance, and return periods may differ.
To see if BNZ has the appropriate fund that aligns with your values, retirement goals and situation, complete National Capital’s KiwiSaver Healthcheck.