Milford Asset Management’s KiwiSaver funds enjoyed a better performance than all other KiwiSaver funds in the March quarter but returns were generally poor, the latest Melville Jessup Weaver survey shows.

ANZ enjoyed a rare quarter with its growth and balanced KiwiSaver funds second-best performers for the quarter after spending long periods languishing at or near the bottom of the performance tables.

Milford’s $6.53 billion growth fund was the best performer in that category but still produced a negative 0.2% return for the quarter while the median return for all 15 growth funds was negative 2.8%.

Milford’s growth fund was sixth best performer over one year but best over three, five and 10 years.

“Predictably enough, investors with higher policy weights to growth assets will have had a disappointing quarter, ” said MJW’s William Nelson.

“Most of the funds in this group still have a respectable allocation to global bonds (median 9.3%) which helped to dull the pain of their share portfolios, ” Nelson said.

“Many of the more conservative KiwiSaver funds managed to avoid losses this quarter entirely, ” he said.

The median return from balance funds, which have between 50% and 65% in growth assets, was still negative 1.7%, as was the return from moderate funds, those with 30% to 49% in growth assets, which was negative 0.8%.

But the median conservative fund, those with between 15% and 29% in growth assets, eeked out a positive 0.1% return.

Milford’s balanced, moderate and conservative funds were the best performers in their categories with a positive 0.3% return, positive 0.6% and positive 1.3% respectively for the quarter.

ANZ’s almost $5 billion growth fund was the second best performer with a negative 2.2% return, though it was still second-last performer over the year ended March with a 2.8% return compared with the median 5.9%.

ANZ’s $3.59 billion balanced fund also ranked second in the quarter with a negative 1% return but was 15th out of the 16 balanced funds for the year and the worst performer over three, five and 10 years.

Generate’s $674 million moderate fund was the worst performer in that category for the quarter with a negative 2.1% return but it was eighth over the year with a 5.4% return, just shy of the median.

The worst performing growth fund in the quarter was Generate’s $1.8 billion fund with a negative 4.3% return but it was ninth over the year, second over both three years and 10 years.

Booster’s $383 million balanced fund was the worst performer in that category in the quarter with a negative 2.4% return and it ranked 12th over the year, 10th over three years, 13th over five years, but fourth over 10 years.

Booster’s $51 million conservative fund was the worst performer out of 18 funds with a negative 0.3% return and it was second last in the year with a 4.6% return.

ANZ’s $1.49 billion conservative fund was the fifth best performer in the quarter but the worst for the year with a 4% return.

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