With returns of 15.2% in the quarter and 20.3% in the past 12 months, Fisher Funds was the best performer in the two growth categories. The annual median growth fund return was 1.2% with a quarterly return of 10.8%, according to the survey.
“In the last six months balanced and growth funds have pegged back approximately half the losses experienced through the global financial crisis,” New Zealand head Martin Lewington said in a statement. “This return to positive growth territory is good news for investors, particularly those with a long-term horizon who can afford to ride out the short-term volatility.”
The best performing default fund in the quarter and the over the past 12 months was the Mercer KiwiSaver Conservative Fund at 6.5% and 3.2% respectively. The median return was 4% and 5.9% respectively. The best performing conservative funds were the Mercer Conservative Fund for the quarter at 7.3% and the AXA Conservative Fund over the past 12 months at 8.5% compared to a median of 5% and 4.8%.
The best balanced fund in the quarter was the Mercer Active Balanced Fund at 10.9% and the Mercer Moderate Fund which returned 7.4% in the past 12 months. The median was 7.8% and 3.1%.
Lewington said KiwiSaver funds under management were growing at an “unprecedented rate” with the six default funds surging 36% in the past quarter to $1.64 billion. Almost 1.2 million New Zealanders were enrolled in KiwiSaver at September 30, with some $4.25 billion under management.
Stronger returns in the past quarter encouraged a shift to growth assets among providers, he said.
“Multi-strategy funds, even at the conservative end of the spectrum, have tilted their allocations towards the growth assets,” he said.