KiwiSaver

The latest KiwiSaver Performance Survey results from Morningstar.

KiwiSaver Performance Survey – Returns to 30 June 2010
Default Options	3-month (%)	6-month (%)	1-year (%)	2-year (%pa)
AMP (Default)	-0.46	0.58	5.05	3.13
ASB Conservative (Default)	-0.40	1.63	6.78	4.99
AXA Income Plus (Default)	-0.48	1.74	9.08	5.14
ING Conservative (Default)	0.15	2.08	7.82	5.17
Mercer Conservative (Default)	0.71	3.56	12.30	6.41
TOWER Cash Enhanced (Default)	-0.08	1.69	6.87	4.17
Multisector Options
Conservative	3-month (%)	6-month (%)	1-year (%)	2-year (%pa)
AMP (Default)	-0.46	0.58	5.05	3.13
ANZ Conservative	0.03	2.01	8.20	5.14
Aon Russell Lifepoints Cnsrv	1.39	4.63	15.57	6.94
ASB Conservative (Default)	-0.40	1.63	6.78	4.99
Asteron Conservative	0.20	2.30	8.91	4.65
AXA Income Plus (Default)	-0.48	1.74	9.08	5.14
Fidelity Capital Guaranteed Kiwi	-0.04	1.44	5.04	4.27
Fidelity Conservative Kiwi	-1.50	1.53	7.98	4.35
FirstChoice Tracker Conserv	-0.42	1.60	6.76	4.99
Fisher Funds Conservative	-0.37	0.01	0.36	—
Gareth Morgan Conservative	-0.03	1.63	5.15	4.01
Grosvenor Enhanced Income	0.53	1.80	3.87	5.00
ING Conservative (Default)	0.15	2.08	7.82	5.17
ING SIL Conservative	0.02	2.06	8.31	5.33
Kiwibank Conservative	—	—	—	—
Mercer Conservative (Default)	0.71	3.56	12.30	6.41
National Bank Conservative	0.01	2.01	8.22	5.20
Smartshares Smartkiwi Conservative	-1.44	-0.30	4.53	3.37
TOWER Cash Enhanced (Default)	-0.08	1.69	6.87	4.17
Average	-0.12	1.78	7.27	4.84
Moderate	3-month (%)	6-month (%)	1-year (%)	2-year (%pa)
AMP Conservative	-0.14	1.30	6.74	5.45
AMP Moderate	-1.31	0.06	6.94	2.08
ANZ Conservative Balanced	-1.56	0.79	9.45	3.71
Aon Russell Lifepoints 2015	0.18	3.33	16.64	4.83
Aon Russell Lifepoints Mod	-0.58	2.56	16.59	3.73
ASB Moderate	-2.30	0.50	9.53	2.81
AXA Conservative	-0.79	1.68	10.00	5.51
FirstChoice Active Conservative	-1.94	0.51	8.47	4.44
FirstChoice Tracker Moderate	-2.32	0.46	9.57	2.61
Grosvenor Conservative	0.09	2.52	8.26	5.33
Huljich Conservative Diversified	-2.41	-3.87	5.02	6.19
ING Conservative Balanced	-1.53	0.50	8.01	3.35
ING SIL Conservative Balanced	-1.50	0.94	9.73	3.97
Mercer Super Trust Conservative	0.01	2.73	12.09	4.50
National Bank Conservative Balanced	-1.56	0.81	9.48	3.71
Smartshares Smartkiwi Balanced	-6.73	-5.64	7.36	-1.83
TOWER Conservative	-0.04	2.96	11.16	4.42
Westpac Conservative	-0.92	0.99	7.33	4.04
Average	-1.41	0.73	9.57	3.69
Balanced	3-month (%)	6-month (%)	1-year (%)	2-year (%pa)
AMP Balanced	-3.13	-1.91	7.27	-1.02
AMP Moderate Balanced	-2.45	-1.15	7.18	-0.20
AMP TOWER Balanced	-1.66	1.61	12.97	1.56
ANZ Balanced	-3.10	-0.44	10.50	2.28
Aon ING Balanced	-2.75	0.50	15.51	3.77
Aon Russell Lifepoints 2025	-1.73	1.35	17.14	1.10
Aon Russell Lifepoints Bal	-2.61	0.38	17.40	0.09
ASB Balanced	-4.77	-1.45	10.15	-0.09
Asteron Balanced	-2.71	-0.13	11.26	2.60
AXA Balanced	-4.93	-2.15	11.49	1.30
Brook Professional Balanced	-5.67	-3.59	3.70	0.95
Fidelity Balanced Kiwi	-4.36	-0.86	7.29	3.59
Fidelity Ethical Kiwi	-4.07	-1.15	6.68	-0.03
FirstChoice Active Balanced	-5.06	-2.11	9.21	0.34
FirstChoice Tracker Balanced	-4.80	-1.49	10.20	-0.13
Forsyth Barr Balanced Portfolio	-4.26	-2.74	5.90	-0.50
Gareth Morgan Balanced	-3.77	-2.05	2.84	-0.63
Grosvenor Balanced	-2.96	-0.08	9.12	3.35
Huljich Balanced Diversified	-3.70	-6.84	4.42	1.98
ING Balanced	-3.25	-1.04	8.14	1.39
ING SIL Balanced	-3.11	-0.35	10.72	2.59
Kiwibank Balanced	—	—	—	—
Mercer Balanced	-3.06	0.20	13.71	0.76
Mercer Super Trust Active Balanced	-3.19	0.07	13.46	0.71
Mercer Super Trust Moderate	-2.94	0.63	12.06	3.73
Milford Balanced	—	—	—	—
National Bank Balanced	-3.09	-0.40	10.49	2.35
TOWER Balanced	-3.07	0.62	10.77	1.44
Westpac Balanced	-4.79	-2.20	7.87	1.60
Average	-3.75	-1.13	9.64	1.27
Growth	3-month (%)	6-month (%)	1-year (%)	2-year (%pa)
AMP ING SIL Balanced	-2.99	-0.83	13.16	0.73
AMP Growth	-4.65	-3.47	7.65	-5.45
AMP TYNDALL Balanced	-2.15	0.82	12.32	0.17
ANZ Balanced Growth	-4.58	-1.58	11.60	0.77
ANZ Growth	-6.19	-2.95	12.40	-0.90
Aon Russell Lifepoints 2035	-3.33	-0.33	17.29	-1.99
Aon Russell Lifepoints Growth	-3.83	-0.86	17.27	-2.66
Aon Tyndall Balanced	-1.68	1.18	12.76	0.07
ASB Growth	-7.33	-3.61	10.16	-3.16
Asteron Balanced Growth	-5.77	-2.96	11.92	-0.89
Fidelity Growth Kiwi	-6.82	-2.98	6.31	0.22
FirstChoice Active Growth	-7.58	-4.42	8.78	-1.96
FirstChoice Tracker Growth	-7.36	-3.64	10.21	-3.35
Forsyth Barr Growth Portfolio	-6.70	-5.32	4.64	-4.34
Gareth Morgan Growth	-7.67	-5.11	-0.78	-5.60
Huljich Growth Diversified	-5.09	-10.14	2.73	0.12
ING Balanced Growth	-5.00	-2.69	8.12	-0.52
ING Growth	-6.80	-4.42	7.93	-2.65
ING SIL Balanced Growth	-4.68	-1.65	11.73	1.02
ING SIL Growth	-6.13	-2.88	12.69	-0.57
Kiwibank Growth	—	—	—	—
Mercer Super Trust Growth	-4.58	-1.47	12.42	-1.41
National Bank Balanced Growth	-4.61	-1.56	11.62	0.73
National Bank Growth	-6.15	-2.90	12.45	-0.98
Staples Rodway Balanced	-4.55	-1.99	10.57	-1.63
Staples Rodway Growth	-3.99	-0.26	10.00	-1.14
Westpac Growth	-6.04	-3.62	8.15	-0.02
Average	-5.24	-2.68	10.16	-1.42
Aggressive	3-month (%)	6-month (%)	1-year (%)	2-year (%pa)
AMP Aggressive	-5.82	-4.71	7.71	-7.75
Aon Russell Lifepoints 2045	-4.77	-1.84	17.59	-5.04
AXA Growth	-7.95	-5.24	11.29	-2.44
Brook Professional Growth	-9.23	-6.37	5.58	0.34
Fidelity Aggressive Kiwi	-8.20	-2.42	9.98	1.20
First NZ Capital	-7.41	-4.17	4.17	-11.17
Fisher Funds Growth	-7.05	-3.38	16.93	6.12
Grosvenor Geared Growth	-7.73	-3.41	—	—
Grosvenor High Growth	-8.07	-3.91	8.42	-2.28
Mercer High Growth	-6.06	-2.81	13.11	-3.77
Mercer Super Trust High Growth	-6.22	-3.04	12.67	-3.91
TOWER Growth	-5.40	-1.25	12.92	-1.36
Westpac Capital Protection Plan (1)	-9.44	-6.39	7.63	—
Average	-7.18	-3.77	10.67	-2.73
Peer Group Averages	3-month (%)	6-month (%)	1-year (%)	2-year (%pa)
Default Options	-0.09	1.88	7.98	4.83
Conservative	-0.12	1.78	7.27	4.84
Moderate	-1.41	0.73	9.57	3.69
Balanced	-3.75	-1.13	9.64	1.27
Growth	-5.24	-2.68	10.16	-1.42
Aggressive	-7.18	-3.77	10.67	-2.73
Single Sector Options
Cash	3-month (%)	6-month (%)	1-year (%)	2-year (%pa)
AMP Cash	0.93	1.83	3.75	5.23
ANZ Cash	0.49	0.98	2.01	—
Aon ING Cash	0.58	1.27	2.94	3.82
Aon Tyndall Cash	1.71	2.45	3.95	5.20
ASB NZ Bank Deposit	0.62	1.19	2.39	4.06
Asteron Capital	0.68	1.38	2.99	4.76
AXA Cash	0.77	1.64	3.96	4.62
FirstChoice NZ Cash	0.60	1.17	2.37	4.03
ING Cash Plus	0.55	1.13	2.37	4.03
ING SIL Cash Plus	0.42	0.86	1.82	3.47
Kiwibank Cash	—	—	—	—
Mercer Cash	1.54	2.36	4.14	5.28
Mercer Super Trust Cash	1.56	2.49	4.28	5.29
National Bank Cash	0.49	1.00	2.01	—
Staples Rodway Conservative	1.05	1.85	3.18	3.88
TOWER Preservation	0.69	1.43	3.00	4.54
Westpac Cash	0.63	1.30	2.87	3.79
Fixed Income	3-month (%)	6-month (%)	1-year (%)	2-year (%pa)
Asteron High Yield Fixed Interest	2.35	4.56	10.26	6.19
ING SIL New Zealand Fixed Interest	3.11	5.87	9.87	5.89
ING SIL International Fixed Int	2.96	4.48	7.59	9.46
Kiwibank NZ Fixed Interest	—	—	—	—
Kiwibank Global Fixed Interest	—	—	—	—
Mercer Super Trust Fixed Interest	3.72	7.82	17.63	11.47
Property	3-month (%)	6-month (%)	1-year (%)	2-year (%pa)
Asteron Global Property	-1.71	4.20	36.79	-11.74
ING SIL Australasian Property	-4.70	-7.71	11.67	-6.24
ING SIL International Property	-5.02	1.60	37.18	-11.43
Kiwibank Listed Property	—	—	—	—
Mercer Super Trust Real Assets	-3.83	-0.76	30.72	-5.59
Australasian Equity	3-month (%)	6-month (%)	1-year (%)	2-year (%pa)
Asteron SRI Share	-8.19	-6.36	7.54	-0.10
Asteron Trans Tasman Small Companies Shr	-11.15	-8.34	17.09	0.79
ING SIL Australasian Share	-8.50	-7.62	8.69	-0.74
Kiwibank Australasian Share	—	—	—	—
Mercer Super Trust Trans Tasman Shares	-7.68	-6.93	10.05	-0.11
Mercer Super Trust Shares	-9.40	-5.93	8.78	-7.43
Milford Aggressive	-3.76	-1.08	11.62	10.58
Smartshares Smartkiwi Growth	-12.25	-10.58	8.48	-6.61
International Equity	3-month (%)	6-month (%)	1-year (%)	2-year (%pa)
Asteron International Share	-8.32	-5.26	7.30	-9.15
FirstChoice Active High Growth	-10.01	-6.33	6.84	-10.85
FirstChoice Global Sustainability Fd	-7.41	-1.72	10.89	2.71
ING SIL International Share	-8.35	-3.05	7.61	-3.51
ING SIL Sustainable Growth	-7.64	-4.49	5.27	—
Kiwibank Global Share	—	—	—	—
Mercer Super Trust Global Shares	-10.09	-5.55	8.06	-11.06
TOWER Equity	-8.82	-3.94	11.31	-6.10
Miscellaneous	3-month (%)	6-month (%)	1-year (%)	2-year (%pa)
Fidelity Options Kiwi	-4.08	3.63	18.86	7.73

 

(NB: Returns are before tax and after the fees deducted from the funds unit price.)

 

 

An investor pressure group is preparing a Petition to Parliament to request the Government review the default KiwiSaver provider status of ANZ-owned fund manager ING.

This comes after the Commerce Commission reached a record $45 million settlement with ANZ over the promotion of ING’s Diversified Yield and Regular Income Funds last month.

The Commerce Commission alleged that the promotion of the degree of investment risk in the two ING Funds was “misleading” and that there was sufficient evidence to pursue proceedings against both ING and ANZ for breaching the Fair Trading Act. The regulator decided against this course of action, saying the settlement was the best outcome for investors in the funds.

The Frozen Funds Group said it had decided to draw public attention to the risks that ANZ/ING’s behaviour presents to all New Zealanders who are saving on a regular basis for their retirement.

The Group says more than 14,000 New Zealander have seen $700 million of their life savings in the Frozen Funds jeopardised by ANZ/ING, yet currently, the same companies hold more than $1 billion of savings from nearly 300,000 New Zealanders in their KiwiSaver schemes.

“The fact the government contracted ANZ/ING in 2007 to be one of the six default KiwiSaver providers, gives ANZ/ING a level of respectability and trust that these companies may have merited at the time, but have lost since then.”

The Group believes there are four compelling reasons to review ANZ/ING as a default KiwiSaver provider.

Firstly, the Commission has concluded after its investigation that ANZ/ ING “engaged in misleading or deceptive conduct and/or made false or misleading representations”.

The Frozen Funds Group says ANZ/ING is a default KiwiSaver that challenges the regulator’s conclusions and yet “deftly avoids full disclosure by settling out-of-court”.

Secondly, the Group says a majority in Parliament wishes to debate a Private Member’s Bill that challenges the legality of the waiver that ANZ/ING made 99% of the investors sign as condition for a partial compensation, while the Commerce Commission’s inquiry was still on-going.

Thirdly, the Group believes the Commission also made the most damning assessment of the performance of ING as a fund manager.

The Commission said: “ING did not measure or manage risks, bought investments that it could not know the contents of, and did not perform appropriate returns attribution analysis.”

Fourth, the Frozen Funds Group believes a review and possible removal of ANZ/ING from the list of default providers would enhance competition in the market and signal to the other default providers to maintain standards.

“It would also signal to non-default KiwiSaver providers that there will be occasional vacancies at the top and that cooperative and ethical behaviour is rewarded. We believe non-default providers will support the envisaged Petition to Parliament,” says the Group.

Kiwibank has registered its KiwiSaver scheme with the office of the Government Actuary (GA), joining Milford as the second new provider to enter the fray this year.

The scheme was registered on May 5, just days after the Asteron KiwiSaver scheme closed its doors.

While further details of the new scheme are yet to be released, it is understood AMP Capital would provide most of the funds management services with the exception of the cash portfolios, which would be run by Kiwibank itself.

Last year KiwiBank ended its relationship with the Mercer KiwiSaver scheme after signing up as its distribution partner early in 2007.

It is understood KiwiBank attracted somewhere between 5,000-10,000 members on behalf of the Mercer KiwiSaver scheme.

KiwiBank was unable to comment, however, its KiwiSaver prospectus is due to be published this week.

Both Kiwibank and Milford entered the KiwiSaver market this year despite what many consider to be an over-crowded scene with 54 KiwiSaver schemes now registered with the GA, of which about 40 are open to the public – the rest either specific employer or industry-based funds.

The exit of Asteron this April from the KiwiSaver market highlighted the difficulties of growing member numbers and funds under management to a profitable size for players outside the default schemes.

Asteron, which was the third provider after Eosaver and IRIS to shut up a KiwiSaver scheme, struck a deal to recommend members transfer to the Grosvenor product.

While it was still unclear how many Asteron members had transferred to Grosvenor, the group estimated its KiwiSaver funds under management would reach $100 million by September as a result of the deal.

As at the end of March last year, Grosvenor recorded about $27 million under management and just over 14,000 members in its KiwiSaver scheme.

 

An industry body argues the biggest risk to KiwiSaver is over-zealous regulation, rather than fund manager behaviour.

WSNZ chief executive Bruce Kerr says the industry body was monitoring “how sweeping the changes will be”.

Under proposed changes announced by Commerce Minister Simon Power late in April, all KiwiSaver providers would have to adhere to the same rules applied to default schemes – in particular the requirements for more regular reporting and stronger trustee oversight.

Kerr said while the organisation supported the broad thrust of proposed KiwiSaver changes but it was opposed to “regulation that simply adds compliance cost for no member value”.

“We believe there is currently no systemic problem with KiwiSaver. In fact in our view, the biggest risk KiwiSaver faces is that overly zealous regulation is rolled out without adequate and effective engagement with all stakeholders to ensure those changes will be optimal.”

He said, for example, many existing employer superannuation schemes and master trusts continued to operate effectively under current regulatory arrangements and could face unnecessary disruption if the proposed new regime was extended to incorporate them.

While Power has excluded non-retail KiwiSaver schemes and other employer-based savings schemes from the proposed changes, he said that decision could be revisited later.

According to Kerr, the Ministry of Economic Development (MED) has indicated the KiwiSaver changes will be included in a new piece of legislation expected to be drafted by August.

“Initially, we thought the changes would be part of the Securities law review.”

WSNZ, which has about 130 representing about 90% of the industry, was also drafting a “high level policy” document for presentation at its conference to be held at the end of August in Christchurch.

Kerr said the policy was unlikely to include a view on the banning of commissions on KiwiSaver products.

“But we’re certainly starting to have conversations about [commissions],” he said.