KiwiSaver mirrors difficult market in Q3

Challenging underlying market conditions experienced over the September quarter were evident in returns listed in the Morningstar KiwiSaver Survey Q3.

Average multisector category returns ranged from –1.3% for the Conversative category to –1.8% for the Growth Category. KiwiSaver assets ended the quarter at NZ$83.5 billion. Top performers over the quarter against their peer group includes: Milford Conservative 0.5% (Multisector Conservative), InvestNow Mind Divresif Inc

1.3% (Multisector Moderate), InvestNow Milford Balanced 1.2% (Multisector Balanced), QuayStreet Growth 1.6% (Multisector Growth), and Milford Aggressive 0.4% (Multisector Aggressive).

Taking the longer view, in the past ten years the Aggressive category average has given investors an annualised return of 8.5%, followed by Growth (8.0%), Balanced (6.4%), Moderate (4.3%), and Conservative (3.9%).

Morningstar Director of Manager Selection and report author Tim Murphy said globally, as financial conditions tighten and policy-induced recession becomes more likely, the trade-off between growth and inflation has become increasingly clear.

ANZ led the market share with more than NZ$17.07 billion, with ASB in second with a market share of 16%. Westpac was third ahead of Fisher Funds, with Kiwi Wealth fifth. The six largest KiwiSaver providers accounted for approximately 69% of assets on the database.

The MSCI World Index was up 3.12% in the September quarter, helped by the depreciation of the NZD.

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