Morningstar Releases KiwiSaver Performance Survey

Morningstar today released its KiwiSaver Performance Survey to 30 September 2010, designed to help New Zealand investors assess the performance of KiwiSaver superannuation options.

"This marks the point at which many KiwiSaver funds have achieved three-year medium-term returns," said Morningstar Co-Head of Fund Research Chris Douglas. "This enables investors and advisers to make more meaningful judgements of performance characteristics and peer-relative comparisons, and to get a better understanding of how Kiwis' retirement savings are being managed."

Morningstar's KiwiSaver database is free for all fund managers to join, and reports are made freely available to investors and financial services professionals alike.

Other Key Findings

• Market volatility means that Multi-Sector Conservative funds with higher weightings to fixed income and cash were the best performers over the past three years. Growth and Aggressive options with higher allocations to shares and property have not performed as well, despite a stronger September quarter.

• The six default options accounted for just under 40.0 percent of all KiwiSaver assets, making the Multi-Sector Conservative category the largest at 30 September 2010.

• Three providers – ING, ASB, and AMP – dominate with over half of all KiwiSaver assets, while eight of the 21 scheme providers each have less than one percent share, revealing significant fragmentation at this end of the market.

• Morningstar has surveyed all participating KiwiSaver providers to ensure returns data published is net of all fees except for dollar-based account levies, which are also disclosed in the survey.

ENDS

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