Best performing KiwiSaver funds going into 2024
After a soft 2022 for markets, many investors were apprehensive about what 2023 would deliver. The year began with inflation still elevated, central banks continuing to increase interest rates, and many were concerned about the possibility of a global recession. On top of that, Kiwis were faced with the impacts of Cyclone Gabrielle and a slowing housing market, whilst globally we saw the collapse of several US banks, the continuation of the war in Ukraine, and a new conflict arise in the Middle East. Despite all of these concerns, markets delivered very strong returns for the year. Global share markets were up over 20% and global fixed interest markets delivered over 6%. For many investors, returns of this magnitude may come as a surprise, given the concerns highlighted above. However, there are many different things that drive markets, and they continuously look forward, anticipating what will come next.
To help New Zealand investors assess the past performance of the funds available and other key characteristics of their KiwiSaver superannuation option, we collated data from the Morningstar KiwiSaver Survey 31 December 2023 the most recent survey conducted and ranked them on performance.
Note that all funds have been ranked on their most recent 5 year average yearly performances as at 31 December 2023, after fees before tax.
Contents:
Conservative fund category top performers
Kiwi Wealth Default Conservative: 4.0% (five year average return)
Quay Street Income: 3.9% (five year average return)
Milford Conservative Fund: 3.9% (five year average return)
What difference would this make to my KiwiSaver?
The industry average return for Conservative fund types over the most recent 5 years was 3.2%*.
Best KiwiSaver Funds - Kiwi Wealth Default Conservative Fund vs Conservative Fund Average
What are the fees compared to industry average?
KiwiSaver fees are typically calculated as a % of your total balance. The majority of KiwiSaver funds also charge a fixed admin fee, however this is relatively small and consistent across varying KiwiSaver schemes. Please note that all returns stated are net of fees (returns after fees, before tax).
Industry Average for Conservative Funds fees = 0.60%
Kiwi Wealth Default Conservative Fund fees = 0.52%
Kiwi Wealth Default Conservative Fund Description
The Kiwi Wealth Default Conservative description was obtained directly from Kiwi Wealth’s most recent funds fact sheet as at 31 December 2023.
The Fund’s objective is to meet or exceed the return of the investment benchmark before fees and tax over the long term. It aims to provide stable returns over the long term by investing mainly in income assets with a small allocation to growth assets. It is is generally suitable for a short term or naturally cautious investor who is nearing retirement or intends on making a withdrawal in the short term. It also suits an investor who values lower volatility of returns over achieving potential higher returns.
Kiwi Wealth Default Conservative Fund Asset Allocation
To find Kiwi Wealth’s target asset allocation percentages for their Default Conservative Fund as at 31 December 2023, hover over each of the graphs elements.
Thinking about the Kiwi Wealth Default Conservative Fund?
The Kiwi Wealth Default Conservative Fund is suitable for investors who have a minimum recommended investment timeframe of 3 years before planning on withdrawing. Do note that past performance is no guarantee of future performance, further there are several other factors to consider when deciding on a KiwiSaver fund that is right for you including:
Responsible Investing Considerations
Process and portfolio composition
Organisational Stability
Fees
Customer service
If you want to know if your KiwiSaver fund is both being maximised and suitable for your personal situation, follow the link below to our KiwiSaver advice page. The page contains a link to our KiwiSaver Discovery Quiz that takes approximately 5 minutes to complete, and once you have finished we will provide you with a complimentary no-obligation KiwiSaver recommendation.
Moderate fund category top performers
Generate Moderate Fund (Formerly known as Conservative Fund): 4.8% (five year average return)
MAS Moderate: 4.6% (five year average return)
ANZ Conservative Balanced: 4.5% (five year average return)
What difference would this make to my KiwiSaver?
The industry average return for Moderate fund types over the most recent 5 years was 3.8%.
Best KiwiSaver Funds - Generate Moderate Vs Moderate Fund Average
What are the fees compared to industry average?
Industry Average for Moderate Funds fees = 0.80%
Generate Conservative Fund fees = 1.14%
Generate Moderate Fund Description
The Generate KiwiSaver Moderate Fund description was obtained directly from Generate’s most recent quarterly update.
The Moderate Fund aims to provide a modest to medium return over the short to medium term. It invests in an actively managed portfolio made up of slightly more income assets than growth assets. Volatility is likely to be medium to high. Returns will vary and may be low or negative at times.
Generate Moderate Fund Asset Allocation
To find Generate’s Moderate actual asset allocation percentages for their Moderate Fund as at 31 December 2023, hover over each of the elements of the graph.
Thinking about the Generate KiwiSaver Moderate Fund?
The Generate Moderate Fund is suitable for investors who have a minimum recommended investment timeframe of 3 years before planning on withdrawing. Do note that past performance is no guarantee of future performance, further there are several other factors to consider when deciding on a KiwiSaver fund that is right for you including:
Responsible Investing Considerations
Process and portfolio composition
Organisational Stability
Fees
Customer service
If you want to know if your KiwiSaver fund is both being maximised and suitable for your personal situation, follow the link below to our KiwiSaver advice page. The page contains a link to our Discovery Quiz that takes approximately 5 minutes to complete, and once you have finished we will provide you with a complimentary no-obligation KiwiSaver recommendation.
Balanced fund category top performers
Milford Balanced: 8.3% (five year average return)
SuperLife Ethica: 7.7% (five year average return)
QuayStreet Balanced: 7.5% (five year average return)
What difference would this make to my KiwiSaver?
The industry average return for Balanced fund types over the most recent 5 years was 6.2%*.
Best KiwiSaver Funds - Milford Balanced Vs Balanced Fund Average
What are the fees compared to industry average?
Industry Average for Balanced Funds fees = 0.76%
Milford Balanced Fund fees = 1.05%
Milford Balanced Fund Description
The Milford Balanced Fund description was obtained directly from Milford’s latest fund fact sheet as of 31 January 2024.
The Fund’s objective is to provide capital growth after the base fund fee but before tax and before the performance fee, over the minimum recommended investment timeframe of five years. It is a diversified fund that primarily invests in equities, with a significant allocation to fixed interest securities.
Milford Balanced Fund Asset Allocation
To find Milford’s actual asset allocation percentages for their Balanced Fund as at 31 January 2024, hover over each of the graphs elements.
Thinking about the Milford Balanced Fund?
The Milford Balanced Fund is suitable for investors who have a minimum recommended investment timeframe of 5 years before planning on withdrawing. Do note that past performance is no guarantee of future performance, further there are several other factors to consider when deciding on a KiwiSaver fund that is right for you including:
Responsible Investing Considerations
Process and portfolio composition
Organisational Stability
Fees
Customer service
If you want to know if your KiwiSaver fund is both being maximised and suitable for your personal situation, follow the link below to our KiwiSaver advice page. The page contains a link to our fact find that only takes 5 minutes to complete, and once you have finished we will provide you with a free no-obligation KiwiSaver recommendation.
Growth FUND CATEGORY TOP PERFORMERS
Milford Active Growth: 10.6% (five year average return)
QuayStreet Growth: 9.1% (five year average return)
Simplicity Growth: 8.9% (five year average return)
What difference would this make to my KiwiSaver?
The industry average return for Growth fund types over the most recent 5 years was 7.9%*.
Best KiwiSaver Funds - Milford Active Growth Vs Growth Fund Average
What are the fees compared to industry average?
Industry Average for Growth Funds fees = 0.95%
Milford Active Growth Fund Fees
Base fee = 1.05%
Performance fee = 0.15% (only charged where the fund return outperforms its benchmark)
Milford Active Growth Fund Description
The Milford Active Growth Fund description was obtained directly from Milford's latest Fund Fact Sheet.
The fund aims to provide annual returns of 10% over at least 7 years, and is a medium to high risk investment. It provides a diversified exposure to primarily equities and moderate allocation to fixed interest securities.
Milford Active Growth Fund Asset Allocation
To find Milford’s actual asset allocation percentages for their Growth Fund as of 31 January 2024, hover over each of the elements of the graph.
Thinking about the Milford Active Growth Fund?
The Milford Active Growth Fund is suitable for investors with a minimum recommended investment timeframe of 7 years before planning on withdrawing. Do note that past performance is no guarantee of future performance, further there are several other factors to consider when deciding on a KiwiSaver fund that is right for you including:
Responsible Investing Considerations
Process and portfolio composition
Organisational Stability
Fees
Customer service
If you want to know if your KiwiSaver fund is both being maximised and suitable for your personal situation, follow the link below to our KiwiSaver advice page. The page contains a link to our KiwiSaver Discovery Quiz that takes approximately 5 minutes to complete, and once you have finished we will provide you with a complimentary no-obligation KiwiSaver recommendation.
aggressive FUND CATEGORY TOP PERFORMERS
Booster Socially Responsible High Growth Fund: 11% (five year average return)
Kiwi Wealth Scheme Growth: 9.6% (five year average return)
Booster High Growth: 9.5% (five year average return)
What difference would this make to my KiwiSaver?
The industry average return for Aggressive fund types over the most recent 5 years was 8.8%*.
Best KiwiSaver Funds - Booster Socially Responsible High Growth Vs Aggressive Fund Average
What are the fees compared to industry average?
Industry Average for Aggressive Funds fees = 0.97%
Booster Socially Responsible High Growth Fund fees = 1.17%
Booster Socially Responsible High Growth Fund Description
The Booster Socially Responsible High Growth description was obtained directly from the funds latest monthly fact sheet.
The Socially Responsible High Growth Fund aims to achieve a rate of return (net of fees but before tax) of at least 4.5% per annum above inflation over any ten year period. The fund invests predominantly in growth assets, with little or no income assets.
Booster Socially Responsible High Growth Fund Asset Allocation
To find this fund’s actual asset allocation percentages as of 31 December 2023, hover over each of the graphs elements.
Thinking about the Booster Socially Responsible High Growth Fund?
The Booster Socially Responsible High Growth Fund is suitable for investors who have a minimum suggested investment timeframe of at least 10 years before planning on withdrawing. Do note that past performance is no guarantee of future performance, further there are several other factors to consider when deciding on a KiwiSaver fund that is right for you including:
Responsible Investing Considerations
Process and portfolio composition
Organisational Stability
Fees
Customer service
*Please note that all graphs depicting projections use a $10,000 starting balance, with compounding interest at the rates stated. They exclude any further contributions (such as your employee, employer or Government contributions).
If you want to know if your KiwiSaver fund is both being maximised and suitable for your personal situation, follow the link below to our KiwiSaver advice page. The page contains a link to our fact find that only takes 5 minutes to complete, and once you have finished we will provide you with a free no-obligation KiwiSaver recommendation.
Compound Wealth is a KiwiSaver, Retirement and Private Wealth Financial Advice Firm based in Mount Maunganui, Bay of Plenty.