What’s the best performing KiwiSaver Scheme? September 2023 Update
Investors seem to be comfortable with the idea that interest rates will remain on the higher side for an extended period, with any potential changes in interest rate policies not expected until 2024. Closer to home, there are factors in the short term that could boost the local economy, such as increased immigration and government spending, which might slow down the expected decrease in prices.
However, there are concerns about the global economy possibly slowing down. This could lead to some risks for those who invest in stocks and bonds, particularly because central banks take time to adjust to economic changes. As we're in a later phase of the economic cycle, there's also a higher chance of issues with corporate earnings and credit due to shifts in global politics and strategy.
Some of these shifts have been beneficial for the U.S., like the return of manufacturing from other countries, notably China. Nonetheless, recent tensions in the Middle East and rising oil prices are making it trickier to control inflation.
In the last quarter, stock markets experienced a decline as the future of interest rates became clearer. This also led to a significant adjustment in the bond market, and both markets started moving in a similar direction again, reminiscent of what happened in 2022. With expectations of inflation becoming more deeply ingrained, the outlook for investments with some level of risk is becoming more complex.
Markets may continue to be volatile as investors continue to weigh the impact of higher interest rates on the global economy and companies. However, volatility can work in the favour of a long-term investor. It can present opportunities to invest in quality investments at attractive valuations that can contribute positively to the returns of their portfolio in the long term.
Almost all multisector KiwiSaver funds produced negative returns over the September quarter. The average multisector category returns ranged from negative 1% for the conservative category to negative 3.1% for the aggressive category.
To help New Zealand investors assess their KiwiSaver investment options, we collated data from the Morningstar KiwiSaver Survey 30 September 2023 the most recent survey conducted and ranked the top 5 funds in each category on performance. Please 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
Note that all funds have been ranked on their most recent 5-year average yearly performances as at 30 September 2023, after fees before tax.
Contents:
Conservative fund category top performers
QuayStreet Income: 3.2% (five year average return)
Milford Conservative: 2.8% (five year average return)
QuayStreet Conservative: 2.7% (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 2.4%*.
Best KiwiSaver Funds - QuayStreet Income 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%
QuayStreet Income Fund fees = 0.77%
QuayStreet Income Fund Description
The QuayStreet Income Fund description was obtained directly from QuayStreet’s most recent monthly fact sheet as at 30 September 2023.
The QuayStreet Income Fund will invest in a diversified portfolio with an emphasis on income-producing assets such as New Zealand and International fixed interest investments and derivatives. The fund may include an allocation to growth assets. The investment objective is to provide a level of return above the fund’s benchmark over the long term.
QuayStreet Income Fund Asset Allocation
To find QuayStreet’s actual asset allocation percentages for their Income Fund as at 30 September 2023, hover over each of the elements of the graph.
Thinking about the QuayStreet Income Fund?
The QuayStreet Income Fund is suitable for investors who have a shorter timeframe or very low tolerance for risk and volatility in the value of their investments. Often suitable for those who are more interested in capital protection and current income than inflation protection or growth. 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): 3.5% (five year average return)
SuperLife Conservative: 2.5% (five year average return)
BNZ Moderate Fund: 2.5% (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 2.2%.
Best KiwiSaver Funds - Generate Moderate Vs Moderate Fund Average
What are the fees compared to industry average?
Industry Average for Moderate Funds Fees = 0.81%
Generate Moderate 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 objective of the Moderate Fund is to provide a moderate investment return over the long term through investment in a portfolio of actively managed cash, fixed interest, property and infrastructure assets, Australasian equities and international equities. The fund has a low to medium level of volatility.
Generate Moderate Fund Asset Allocation
To find Generate’s Moderate actual asset allocation percentages for their Moderate Fund as at 30 September 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: 6.1% (five year average return)
QuayStreet Balanced: 5.2% (five year average return)
SuperLife Ethica: 4.9% (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 3.7%*.
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 = 1.06%
Milford Balanced Fund Description
The Milford Balanced Fund description was obtained directly from Milford’s latest fund fact sheet.
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 30 September 2023, 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: 7.5% (five year average return)
QuayStreet Growth: 6.1% (five year average return)
Simplicity Growth: 5.6% (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 4.8%*.
Best KiwiSaver Funds - Milford Active Growth Vs Growth Fund Average
What are the fees compared to industry average?
Industry Average for Growth Funds fees = 0.93%
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 at 30 September 2023, 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: 7.0% (five year average return)
Booster High Growth Fund: 5.9% (five year average return)
Generate Focused Growth Fund: 5.6% (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 5.1%*.
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 = 1.02%
Booster Socially Responsible High Growth Fund fees = 1.31%
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 provide higher returns on average over long term periods (ten years plus), allowing for short to medium-term ups and downs, whilst excluding investments that do not satisfy certain socially responsible investment criteria.
Booster Socially Responsible High Growth Fund Asset Allocation
To find this fund’s actual asset allocation percentages as at 30 September 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.