Using the most recent Fund Reports from September 2021 and recent performance reports, we will examine Westpac’s recent KiwiSaver Performance.
Westpac KiwiSaver Scheme is Australia’s oldest bank and company, one of four major banking organisations in Australia, and one of the largest banks in New Zealand. Their funds are managed by BTNZ, the investment arm of Westpac NZ, which is committed to seeking ways of improving the outcomes for its customers. BTNZ takes a long-term approach to implementing its investment strategies, recognising that the short term is unpredictable.
During September, the share market and Westpac’s KiwiSaver Funds had a drop in returns. This could be because of Covid restrictions, the market settling down after last year’s significant returns or other external factors. However, KiwiSaver investors shouldn’t worry as it’s natural for the market to fluctuate and doesn’t always indicate the performance of these funds long term.
Table of Contents
News about Westpac
Performance of Westpac KiwiSaver Funds
Westpac Cash Fund
Westpac Conservative Fund
Westpac Moderate Fund
Westpac Balanced Fund
Westpac Growth Fund
News about Westpac
Westpac NZ is reducing fees on its Westpac KiwiSaver Scheme funds, delivering significant savings for more than 380,000 members. As well as removing its annual $12 administration fee, the bank is cutting a range of fund charges by up to 39%.
Performance of Westpac KiwiSaver Funds
|
3 months |
1 year |
3 years |
5 years |
|
|
Cash |
0.1% |
0.5% |
1.3% |
1.6% |
|
Conservative |
0.2% |
3.7% |
4.8% |
4.7% |
|
Moderate |
0.4% |
6.8% |
6.3% |
6.2% |
|
Balanced |
0.7% |
11.4% |
8.1% |
8.3% |
|
Growth |
1.1% |
15.9% |
9.5% |
9.9% |
Sourced from Morningstar KiwiSaver 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 Westpac Quarterly Fund updates published on the 29th of October.
Westpac Cash Fund
The Cash Fund aims to provide stable returns over the short term. The fund invests in income assets of a short term nature such as bank deposits, floating-rate notes and money market securities. Volatility is expected to be the lowest of the funds in the Westpac KiwiSaver Scheme. The Cash Fund has had a 1-year return of 0.5% and a 5-year return of 1.6%.
*The following is Sourced from Westpac Cash Fund Update
Returns
Fees
The total annual fees for investors in the Westpac Cash fund are 0.27% per year. There are no longer any membership fees for Westpac funds.
Investment mix
The investment mix is 100% cash and cash equivalents due to being a cash fund.
Top ten investments
This table shows Westpac’s top 10 investments in the Cash KiwiSaver fund, which make up 11.90% of the fund.
Westpac Conservative Fund
The Conservative Fund aims to provide stable returns over the short to medium term. The fund invests primarily in income assets but also has a 25% allocation to growth assets. The Conservative Fund has had a 1-year return of 3.7%, slightly below the 5-year return of 4.7%.
*The following is Sourced from Westpac Conservative Fund Update
Returns
Fees
The total annual fees for investors in the Westpac Conservative fund are 0.58% per year, and have been reduced to 0.50% since the report was published. There are also no longer any annual membership fees for Westpac funds.
Investment mix
The investment mix shows the type of assets that the fund invests into.
Top ten investments
This table shows Westpac’s top 10 investments in the Conservative KiwiSaver fund, which make up 8.59% of the fund.
Westpac Moderate Fund
The Moderate Fund aims to provide moderate returns over the medium term. The fund has a higher benchmark allocation to income assets than to growth assets. Volatility is expected to be higher than the Conservative Fund but lower than the Balanced Fund in the Westpac KiwiSaver Scheme. The Moderate Fund has had a 1-year return of 6.8%, slightly over the 5-year return of 6.2%.
*The following is Sourced from Westpac Moderate Fund Update
Returns
Fees
The total annual fees for investors in the Westpac Moderate fund are 0.65% per year, and have been reduced to 0.53% since the report has been published. There are also no longer any annual membership fees for Westpac funds.
Investment mix
The investment mix shows the type of assets that the fund invests into.
Top ten investments
This table shows Westpac’s top 10 investments in the Moderate KiwiSaver fund, which make up 10.11% of the fund.
Westpac Balanced Fund
The Balanced Fund aims to provide medium returns over the medium to long term. The fund has a higher benchmark allocation to growth assets than to income assets. Volatility is expected to be higher than the Moderate Fund but lower than the Growth Fund in the Westpac KiwiSaver Scheme. The Balanced Fund has had a 1-year return of 11.4% which is larger than the 5-year return of 8.3%.
*The following is Sourced from Westpac Balanced Fund Update
Returns
Fees
The total annual fees for investors in the Westpac Balanced fund are 0.72% per year and have been reduced to 0.62% since the report has been published. There are also no longer any annual membership fees for Westpac funds.
Investment mix
The investment mix shows the type of assets that the fund invests into.
Top ten investments
This table shows Westpac’s top 10 investments in the Balanced KiwiSaver fund, which make up 13.91% of the fund.
Westpac Growth Fund
The Growth Fund aims to provide higher returns over the long term. The fund invests primarily in growth assets but also has an allocation to income assets. The Volatility is expected to be the highest of the funds in the Westpac KiwiSaver Scheme. The Growth Fund has had a 1-year return of 15.9% which is significantly higher than the 5-year return of 9.9%.
*The following is Sourced from Westpac Growth Fund Update
Returns
Fees
The total annual fees for investors in the Westpac Growth fund are 0.79% per year, and have been reduced to 0.68% since the report has been published. There are also no longer any annual membership fees for Westpac funds.
Investment mix
The investment mix shows the type of assets that the fund invests into.
Top ten investments
This table shows Westpac’s top 10 investments in the Growth KiwiSaver fund, which make up 18.06% of the fund.
Data for Westpac KiwiSaver funds has been sourced from Westpac KiwiSaver Funds. Past performance is not necessarily an indicator of future performance, and return periods may differ.
To see if Westpac has the appropriate fund that aligns with your values, retirement goals and situation, complete National Capital’s KiwiSaver Healthcheck.