We will be looking over Booster’s major funds and how they have performed. This includes their returns, as well as the assets allocation of each fund. The analysis will give you an idea of how Booster manages their KiwiSaver Funds.
Over September, the market has seen a drop in returns overall. This may be attributed to the fact that Auckland is still in lockdown or other external influences. Coming into October, however, we are beginning to see a rise in the stock market again. Therefore, KiwiSaver investors shouldn’t worry too much.
Booster News
Booster’s recent big news is the change to their KiwiSaver fee structure. This change will be from the commonly used ‘flat fee’ structure towards a new fee tiering arrangement. This means that KiwiSaver investors with a large balance will pay a lower rate compared to those with less in their KiwiSaver savings. Over October, Booster has been testing a small pool of their investors to see how this will work going forwards.
To learn more about Booster’s new fee structure, check out our blog on How Booster’s new fee structure is changing KiwiSaver.
Performance of Booster’s KiwiSaver Schemes September 2021
Booster’s performance has continued to show promising returns over the past year. As we can see below, half of Booster’s major funds have been performing above their average returns per annum – apart from the Enhanced Cash Fund, Conservative Fund, and Moderate Fund.
The higher returns from the more volatile funds can be attributed to the recovery from the 2020 Covid-19 pandemic and the global rollout of the vaccines.
|
1 month |
1 year |
5 years (p.a) |
Since Inception (p.a.) |
|
|
Enhanced Cash Fund |
0.00% |
0.10% |
1.30% |
3.10% |
|
Conservative Fund |
-0.70% |
3.30% |
4.50% |
5.30% |
|
Moderate Fund |
-1.00% |
4.90% |
5.40% |
5.50% |
|
Balanced Fund |
-1.40% |
11.10% |
8.10% |
6.20% |
|
Growth Fund |
1.70% |
15.50% |
10.30% |
8.60% |
|
High Growth Fund |
-1.90% |
19.10% |
11.60% |
6.20% |
As of late October, we are seeing many New Zealanders receiving their vaccine. Nearly 60% of New Zealand’s total population have been fully vaccinated, with the government’s goal being 90%. Once we see high levels of vaccination and lockdown regulations being lifted, we may also see higher growth in the market.
You can see how they compare with other providers or view a list of the best KiwiSaver funds here.
Booster’s Balanced Fund
The Balanced Fund is one we see having substantial returns over the past year, with a return of 11.10%. This is a significant increase compared to their average return of 6.20% per annum since inception. This shows us that the fund with growth assets are showing a higher return than those with income assets.
Below is the Target Investment Mix that Booster aims for when investing.
Top investments:
|
% of fund net assets |
|
|
Vanguard International Shares Select Exclusions Fund (NZD Hedged) |
19.30% |
|
Vanguard Ethically Conscious Gbl Agg Bond Index Fund NZD Hgd |
11.39% |
|
Fisher Investments’ Global Focused Strategy |
6.39% |
|
NZ Government Bonds |
4.64% |
|
Westpac Bank Term Deposits |
4.29% |
Booster’s Enhanced Cash Fund
The Enhanced Cash Fund is one of Booster’s lowest volatility funds. Over the past year, it has seen a return of 0.10%. This can be considered relatively low, even for a cash fund. Compared to the average return since inception of 3.10%, the fund has not seen a great year.
Target Investment Mix:
Top investments:
|
% of fund net assets |
|
|
Westpac Bank Term Deposits |
34.30% |
|
KiwiBank Term Deposits |
27.30% |
|
ANZ Bank Bank Bills |
12.30% |
|
BNZ Bank Bank Bills |
9.80% |
|
BNZ Bank Cash |
5.30% |
Booster’s Conservative Fund
Booster’s Conservative Fund, similar to the Enhanced Cash Fund, has seen returns over the past year of 3.30%. Compare that to the average returns since its inception that were 5.30%, and we can see that the Fund hasn’t had the best of years. This shows that this Fund may not be the best suited for those looking to invest in a low volatility KiwiSaver Fund.
Below is the Target Investment Mix that Booster aims for when investing.
Top investments:
|
% of fund net assets |
|
|
Vanguard Ethically Conscious Gbl Agg Bond Index Fund (NZD H) |
20.75% |
|
Westpac Bank Term Deposits |
12.02% |
|
KiwiBank Term Deposits |
9.67% |
|
NZ Government Bonds |
8.21% |
|
ANZ Bank Bank Bills |
4.38% |
Booster’s Moderate Fund
Booster’s Moderate Fund is yet another fund under-performing over the past year, compared to previous years. Over the past year, the Moderate Fund has seen a return of 4.90%, compared to the average return since inception of 5.50%. Again, Booster’s lower volatility options have shown less promising results than one would expect, so going forward as a KiwiSaver investor, make sure to keep an eye out on how Booster changes their investment strategy to better compete with other funds.
Below is the Target Investment Mix that Booster aims for when investing.
Top investments:
|
% of fund net assets |
|
|
Vanguard Ethically Conscious Gbl Agg Bond Index Fund NZD Hgd |
15.52% |
|
Vanguard International Shares Select Exclusions Fund (NZD Hedged) |
10.31% |
|
NZ Government Bonds |
8.94% |
|
Westpac Bank Term Deposits |
6.99% |
|
KiwiBank Term Deposits |
5.63% |
Booster’s Growth Fund
Booster’s Growth Fund is their second highly volatile fund for KiwiSaver investors. The fund has also shown some good returns over the past year, with a return of 15.50%. These are promising results compared to the average return of 8.60% since inception.
Below is the Target Investment Mix that Booster aims for when investing.
Top investments:
|
% of fund net assets |
|
|
Vanguard International Shares Select Exclusions Fund (NZD Hedged) |
25.52% |
|
Fisher Investments’ Global Focused Strategy |
8.44% |
|
Vanguard Emerging Markets Share Index Fund |
5.10% |
|
Booster Global Active Shares |
4.82% |
|
NZ Government Bonds |
2.94% |
|
Westpac Bank Term Deposits |
2.64% |
Booster’s High Growth Fund
Booster’s High Growth Fund is their highest volatile fund for KiwiSaver investors. The fund has also shown excellent returns over the past year, with a return of 19.10%. These are optimistic results compared to the average return of 6.20% since inception. Over the next year, some of these higher volatility funds may see fewer returns. This will be because of the stabilisation within the market from the great past year. But, at the end of the day, anything can happen. With the release of more vaccines across the globe, we may see any amount of unexpected changes in the future.
Below is the Target Investment Mix that Booster aims for when investing.
Top investments:
|
% of fund net assets |
|
|
Vanguard International Shares Select Exclusions Fund (NZD Hedged) |
32% |
|
Fisher Investments’ Global Focused Strategy |
10.60% |
|
Vanguard Emerging Markets Share Index Fund |
6.35% |
|
Booster Global Active Shares |
6.05% |
|
Fisher & Paykel Healthcare Ltd |
2.60% |
Remember
Remember that past performance do not necessarily reflect how the KiwiSaver scheme will perform in the future. For more information, talk to a trusted financial advisor.
Booster KiwiSaver Funds has been sourced from Booster KiwiSaver Scheme.