Morningstar KiwiSaver survey results show good outcome for Milestone clients

On 25 July 2012, Morningstar released its latest quarterly KiwiSaver performance survey. This survey is designed to assist New Zealanders to assess the performance of their KiwiSaver funds.

Milestone has consistently taken the approach of “quality investing pays off in the long run” and this is demonstrated in the performance in this latest survey of the funds that Milestone advisers recommend. Contact a Milestone adviser to see how your specific fund has performed and how it compares with others in the same sector.

Morningstar reported that the mixed returns from sharemarkets resulted in KiwiSaver options with higher exposures to income assets (cash and fixed interest) outperforming those with more invested in growth assets (shares and property) over the June 2012 quarter. Multi-Sector Conservative and Moderate options were generally the best performers over the three months to 30 June 2012, and KiwiSaver options with hefty sovereign bond and listed property allocations were among the best performers.

The Morningstar report also advised that OnePath was the standout performer across the multi-sector categories. This fund manager – also responsible for the ANZ, SIL, and The National Bank KiwiSaver schemes – again produced strong results in volatile market conditions. Grosvenor and TOWER were among the other providers deserving mention for strong results across a number of risk profiles.

According to Morningstar, looking out over three and four years is a better indicator of a fund manager's performance track record. While we are still three months short of five-year results, the best-performing KiwiSaver options over the past four years have been Aon KiwiSaver Russell Lifepoints within the Multi-Sector Conservative and Moderate categories, and SIL KiwiSaver and OnePath KiwiSaver in the Conservative, Moderate, Balanced, and Growth Multi-Sector categories. Fisher Funds KiwiSaver Growth was the best-performing option across the combined Multi-Sector Growth and Aggressive categories.

This survey produced analysis to confirm that just being in KiwiSaver was the most important decision regardless of the fund an investor happened to be in. Fortunately for Milestone clients, if they are in a Milestone-recommended KiwiSaver they will also be in a KiwiSaver fund that has consistently performed well relative to its peer group.

Contact a Milestone adviser to discuss the survey and what you can do to obtain the greatest benefit from being a member of a KiwiSaver fund.

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