Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 

Milford, Aon Russell still top long-term KiwiSaver schemes

Milford, Aon Russell still top long-term KiwiSaver performers


By Paul McBeth

Oct. 30 (BusinessDesk) - Milford Asset Management and the Aon Russell Lifepoints aren't the cheapest or the biggest KiwiSaver providers, but they have generated the best performances over the past decade, Morningstar research shows.

The research house prefers long-term returns as the best measure for fund performance, with Milford's active growth fund the best across all categories over a 10-year horizon, with annual returns after fees of 13.8 percent. Of the fund's $1.1 billion of assets, some 42.1 percent are held in New Zealand-domiciled assets and 70.5 percent are in growth assets. Fees of 1.6 percent are higher than the 1.27 percent average.

Tim Murphy, Morningstar's Asia Pacific director of manager research, said Milford's fund initially focused on Australasian equities but has diversified over the past decade as it's grown.

"Performance has stacked up favourably against peers, the strong return has come from a bias to growth assets and exposure to Australasian credit," he said.

The other provider singled out for long-term performance was Aon Russell Lifepoints, which Murphy called one of the most consistent performers across all categories.

Aon Russell schemes were the best in the conservative, moderate, and balanced classes, with after-fees returns of 7.5 percent, 8.2 percent, and 8.9 percent respectively.

Milford is the 10th biggest provider with $1.4 billion under management; Aon is 12th with $537.8 million.

At the other end of the scale, AMP has been one of the worst performing providers. Over a 10-year horizon it generated the lowest annual returns among conservative, moderate, balanced, growth, and aggressive classes. In all but the conservative option, its fees were above average.

AMP's assets under management still grew to $5.43 billion as at Sept. 30 from $5.08 billion at the start of the year, although its market share shrank to 10.5 percent from 12.1 percent.

ANZ Bank New Zealand is the largest provider with $12.92 billion under management, or 24.9 percent. Its after-fees returns beat the average in most classes, with the conservative scheme being the exception. Its fees were also cheaper than average in most classes, except for the conservative fund, which charged a higher average fee.

ASB Bank is the second biggest provider with $9.41 billion under management, or 18.2 percent of the market. Its 10-year performances are largely middle-of-the-pack, although it offers the lowest fees among default providers, and among moderate and growth schemes. In balanced and conservative schemes, its fees are higher only than Simplicity.

Industry disruptor Simplicity was founded by former Tower Investments head Sam Stubs and is run as a not-for-profit. It pitches itself as a much cheaper alternative and talks up the benefits of passive investing. Since its launch in 2016, Simplicity has built $453.5 million of assets under management, or 0.9 percent of the market, ranking 13th in size out of 16 providers.

Meanwhile, in a separate report, fund manager AMP Capital noted the resilience of local equities due to the traditional dividend focus of NZX investors, which has helped attract yield-hungry, exchange-traded funds.

Head of investment Greg Fleming said steady inflows from KiwiSaver funds promoted bargain-hunting and also supported the local market. Rising interest rates may have a disproportionate impact on NZX-listed stocks, by undermining the attraction of those dividend yields, he said.

"The domestic market is expensive on traditional measures and has been seen as a suitable destination for global yield-seeking investors," he said. "Cuts to the dividends paid by major New Zealand corporations would only risk reinforcing the signal that critical fundamentals are changing."

New Zealand's benchmark S&P/NZX 50 index hit a record in the September quarter. The new quarter has seen heightened volatility across international financial markets as investors question the pace of global growth and as the world's major central banks start raising interest rates.

The NZX 50 is the best performing major index across Asia Pacific in the year-to-date, up 2.6 percent, although Fleming doesn't expect New Zealand equities to keep outperforming their international peers over the next three years.

(BusinessDesk)

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

Stats NZ: Largest Drop In Terms Of Trade In A Decade As Dairy Export Prices Sour

Lower export prices for dairy, meat, and logs in the September 2020 quarter led to the biggest drop in terms of trade since June 2009, Stats NZ said today. Export prices fell in the September 2020 quarter, down 8.3 percent from its highest ever ... More>>

ALSO:

Stats NZ: Election Boosts October Job Numbers

Job numbers were boosted by general election staff in October 2020, along with rises in the manufacturing, retail, and hospitality industries, Stats NZ said today. Filled jobs rose by 27,667 to 2.2 million in October 2020 compared with September, after ... More>>

Government: New Year Border Exception For Seasonal Workers In The Horticulture And Wine Industries

2000 additional RSE workers to enter New Zealand early next year employers must pay these workers at least $22.10 an hour employers will cover costs of managed isolation for the RSE workers RSE workers will be paid the equivalent of 30 hours work a week ... More>>

ALSO:


Media: Discovery, Inc. Completes Acquisition Of New Zealand’s Mediaworks TV Ltd

Auckland, New Zealand, December 1, 2020 - Discovery, Inc. (“Discovery”), the global leader in real-life entertainment, has completed its acquisition of New Zealand’s leading independent free-to-air commercial broadcaster, MediaWorks TV Ltd, now operating ... More>>

Department Of Conservation: Big Year Underway At Albatross Colony

Familiar faces are returning for the new season of Royal Cam, with a big breeding year underway for the toroa/northern royal albatross colony on Otago’s windswept Pukekura/Taiaroa Head. More than 120 albatrosses, a taonga species, have returned ... More>>

Real Estate: ASB Survey Reveals Majority Of Kiwis Expect House Prices To Keep Climbing

ALSO:

House price expectations are soaring as New Zealand’s housing market shifts up a gear. But stretched affordability is putting a dent in perceptions of whether it’s a good time to buy. While Kiwis reveal they do expect interest rates to fall further. ... More>>

Stats NZ: Births And Deaths: Year Ended September 2020

Births and deaths releases provide statistics on the number of births and deaths registered in New Zealand, and selected fertility and mortality rates. Key facts For the year ended September 2020: 57,753 live births and 32,670 deaths ... More>>

ALSO: