BNZ, or the Bank of New Zealand, has been helping Kiwis be good with money since 1861. The BNZ KiwiSaver scheme is committed to giving its customers low fees, an extensive range of fund options, and ethical investing options.
Using the most recent returns as of 30th September 2021, we’ll examine BNZ’s KiwiSaver schemes performances. As well as returns, we’ll be diving into BNZ’s fee structure and asset allocation for an overview of how they manage their funds.
Throughout September, the majority of BNZ’s KiwiSaver Funds had negative returns. These numbers were consistent with the negative market in New Zealand overall. The negative returns could be on account of Auckland remaining in Level 3 lockdown, the market calming down after last year’s excessive returns or any other external factor. However, investors in KiwiSaver should continue to watch the market before worrying, as it tends to fluctuate, and the rest of 2021 may bring better returns.
Table of Contents
Recent BNZ KiwiSaver News
Performance of BNZ KiwiSaver Funds
BNZ Cash Fund
BNZ First Home Buyer Fund
BNZ Conservative Fund
BNZ Moderate Fund
BNZ Balanced Fund
BNZ Growth Fund
Recent BNZ KiwiSaver News
From the 28th of September, BNZ’s KiwiSaver Scheme’s fees will be reduced to 0.45% per year, excluding the BNZ KiwiSaver Cash fund.
The new BNZ KiwiSaver Default Fund will be available from 1st December and will have a fee of 0.35% per year.
For BNZ, these are substantial fee reductions. For BNZ KiwiSaver investors, this is more money in their accounts over the long term and should offer them more value.
Performance of BNZ KiwiSaver Funds
|
1 Month |
3 Months |
1 Year |
3 Years (p.a) |
5 Years (p.a) |
Since inception (p.a) |
|
|
CASH FUND |
0.02% |
0.05% |
0.21% |
1.24% |
1.71% |
2.23% |
|
FIRST HOME BUYER FUND |
-0.57% |
0.02% |
1.92% |
2.95% |
3.46% |
3.65% |
|
CONSERVATIVE FUND |
-1.00% |
-0.08% |
1.99% |
3.82% |
4.20% |
4.75% |
|
MODERATE FUND |
-1.32% |
0.22% |
6.17% |
6.23% |
6.47% |
6.58% |
|
BALANCED FUND |
-1.58% |
0.58% |
10.17% |
7.99% |
8.33% |
8.11% |
|
GROWTH FUND |
-1.78% |
0.99% |
14.82% |
9.91% |
10.63% |
9.88% |
*These returns are to 30 September 2021 and are calculated after deducting Management Fees and before deducting tax.
Note: The following information is sourced from BNZ KiwiSaver fund updates published on 27th October 2021.
BNZ Cash Fund
The BNZ Cash Fund aims to achieve stable returns over the short term by investing in only income assets. The BNZ Cash fund had the highest 1-month return and was the only BNZ fund with a positive return of 0.02%. However, it currently has a 1-year return of 0.21%, which is significantly lower than the 2.23% return since the inception of this fund. This month shows the Cash Fund is performing as intended by generating low-volatility returns.
Returns
*Source BNZ Cash Fund Update
Fees
The total annual fees for investors in the BNZ cash fund are 0.30% per year.
*No GST is currently payable on BNZ KiwiSaver Scheme charges above.
*Source BNZ Cash Fund Update
Investment mix
This shows the type of assets that the fund invests into.
*Source BNZ Cash Fund Update
Top ten investments
This shows BNZ’s top ten investments in BNZ’s Cash Fund, which make up 26.66% of the fund.
*Note: Investor flows not yet unitised, unsettled trades, currency hedging gains (or losses) and any operating accruals are excluded from the Top 10 investments.*Source BNZ Cash Fund Update
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 -0.57%, despite over 60% of its assets being in cash and cash equivalents. The 1-year return of 1.92% is lower than the expected return of 3.65% since inception, showing that the First Home Buyer Fund is currently underperforming. Nevertheless, the fund does have a larger 1-year return than the Cash fund while remaining stable and not overly volatile.
Returns
*Source BNZ First Home Buyer Fund Update
Fees
The total annual fees for investors in the BNZ First Home Buyer fund were 0.50% per year until the 28th of September 2021, during which it changed to 0.45% per year.
*Source BNZ First Home Buyer Fund Update
Investment mix
This shows the type of assets that the fund invests into.
*Source BNZ First Home Buyer Fund Update
Top ten investments
This shows BNZ’s top ten investments in BNZ’s First Home Buyers Fund, which make up 16.75% of the fund.
*Note: Investor flows not yet unitised, unsettled trades, currency hedging gains (or losses) and any operating accruals are excluded from the Top 10 investments.
*Source BNZ First Home Buyer Fund Update
BNZ Conservative Fund
BNZ’s Conservative Fund aims to provide investors with a stable return over the long term and therefore has most of its investments in income assets. The BNZ Conservative Fund saw a 1-month return of -1%. The 1-year return of BNZ’s Conservative Fund is 1.99%. The funds return since inception is 4.75%, so this Fund is underperforming.
Returns
*Source BNZ Conservative Fund Update
Fees
The total annual fees for investors in the BNZ Conservative fund were 0.50% per year until it changed to 0.45% on the 28th of September 2021.
*Source BNZ Conservative Fund Update
Investment mix
This shows the type of assets that the fund invests into.
*Source BNZ Conservative Fund Update
Top ten investments
This shows BNZ’s top ten investments in BNZ’s Conservative Fund, which make up 8.93% of the fund.
*Note: Investor flows not yet unitised, unsettled trades, currency hedging gains (or losses) and any operating accruals are excluded from the Top 10 investments.
*Source BNZ Conservative Fund Update
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 low 1-month return of -1.32%, possibly due to recent lockdowns and NZ’s economic state. In spite of the 1-month return, the fund is achieving its yearly goal by having a 1-year return of 6.17%. This amount is very close to the 6.58% return since the inception of the fund.
Returns
*Source BNZ Moderate Fund Update
Fees
The total annual fees for investors in the BNZ Moderate fund were 0.58% per year until the 28th of September 2021, where fees changed to 0.45% per year.
*Source BNZ Moderate Fund Update
Investment mix
This shows the type of assets that the fund invests into.
*Source BNZ Moderate Fund Update
Top ten investments
This shows BNZ’s top ten investments in BNZ’s Moderate Fund, which make up 9.20% of the fund.
*Note: Investor flows not yet unitised, unsettled trades, currency hedging gains (or losses) and any operating accruals are excluded from the Top 10 investments.
*Source BNZ Moderate Fund Update
BNZ Balanced Fund
The BNZ Balanced Fund aims to achieve a medium level of return over the medium to long term by investing primarily in growth assets and a sizeable allocation of income assets. The Balanced fund saw a negative 1-month return of -1.58%. In general, however, this fund is exceeding expectations with its 1-year return of 10.17%, which is higher than the 9.11% return since the inception of the fund.
Returns
*Source BNZ Balanced Fund Update
Fees
The total annual fees for investors in the BNZ Balanced fund were 0.58% per year until the 28th of September 2021 where the fees changed to 0.45%.
*Source BNZ Balanced Fund Update
Investment mix
This shows the type of assets that the fund invests into.
*Source BNZ Balanced Fund Update
Top ten investments
This shows BNZ’s top ten investments in BNZ’s Balanced Fund, which make up 13.19% of the fund.
*Note: Investor flows not yet unitised, unsettled trades, currency hedging gains (or losses) and any operating accruals are excluded from the Top 10 investments.
*Source BNZ Balanced Fund Update
BNZ Growth Fund
The BNZ Growth Fund aims to achieve higher returns over the long term by investing mainly into growth assets, with a moderate allocation into income assets. The fund saw a 1-month return of -1.78%. The fund’s considerable negative return is due to the nature of its investments, which can be affected strongly by any changes in the market. Despite a bad month, the 1-year return is 14.82%, which is significantly higher than the inception return of 9.88%. KiwiSaver investors shouldn’t worry about one bad month and instead focus on the long-term returns.
Returns
*Source BNZ Growth Fund Update
Fees
The total annual fees for investors in the BNZ Growth fund were 0.58% per year, and then 0.45% from the 28th of September 2021.
*Source BNZ Growth Fund Update
Investment mix
This shows the type of assets that the fund invests into.
*Source BNZ Growth Fund Update
Top ten investments
This shows BNZ’s top ten investments in BNZ’s Growth Fund, which make up 17.65% of the fund.
*Note: Investor flows not yet unitised, unsettled trades, currency hedging gains (or losses) and any operating accruals are excluded from the Top 10 investments.
*Source BNZ Growth Fund Update
To see if BNZ has the appropriate fund that aligns with your values, retirement goals and situation, complete National Capital’s KiwiSaver HealthCheck.