KiwiSaver changes more work

The National Party’s proposed changes to KiwiSaver have some pros and cons for employers, consultancy firm Aventine says.
The negatives are that KiwiSaver rules keep changing meaning more work for employers to comply with the scheme. The fact that there have already been changes such as to salary sacrifice, within the scheme’s first year of operation have been a contentious point.


The key proposed changes in this area are to unwind the changes Labour made to the Employment Relations Act to stop employers from reducing remuneration because of KiwiSaver.


National is also proposing to make the two-plus-two option a permanent feature. Employees will be able to choose making contributions at either two or four or eight percent.


A key issue with this change is that the resulting benefits for people putting money into KiwiSaver will be lower at retirement age than under the current scheme.


“The resulting benefits that will emerge will be lower and in many cases, inadequate.


This will increase the likelihood of future changes, or put pressure on employers to put in place supplementary arrangements,� Aventine says.


The other concern for employers is that National is proposing to limit the compulsory employer subsidy to 2%, meaning it won’t increase after April 2010. Also it plans to eliminate the employer tax credit.


Aventine says this creates problems for employers that have adopted up to now, a more generous approach.


“Under National’s policy, any employer contributions above 2% will become taxable and therefore contributions will need to be split between those that are taxable and those that are not.�

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KiwiSaver Performance Survey results

The range of returns from KiwiSaver funds is very wide according to the first performance report from research house Morningstar.This survey groups KiwiSaver options according to their mix of income and growth assets, known as their ‘asset allocation’. This is one of the most important decisions to make when saving for retirement income.

The survey does not include all KiwiSaver providers. Organisations like Mercer, Gareth Morgan Investments and Huljich did not participate.

Use these quick links to take you directly to a section on the table.

Default Options
Multisector
– Conservative
– Moderate
– Balanced
– Growth
– Aggressive
Single Sector Options
– Cash
– Fixed Income
– Property
– Australasian Equity
– International Equity
– Miscellaneous

KiwiSaver Performance Survey – Returns to 30 September 2008
Fund Name Underlying Investment
Manager		 3-month
%		 6-month
%		 1-year
%
Default Options
AMP KiwiSaver Default Fund AMP 0.86 3.41 3.45
ASB KiwiSaver Conservative Fund (Default) ASB Group Invmts 0.95 1.59 1.47
AXA KiwiSaver Income Plus AXA Asia Pacific -1.23 -0.72 -2.71
ING KiwiSaver – Conservative Fund ING 1.1 1.34 2.36
TOWER KiwiPlan-Cash Enhanced Tower 0.18 1.45 3.36
Return to top
Multisector Options
Conservative
AMP KiwiSaver Default Fund AMP 0.86 3.41 3.45
ANZ KiwiSaver – Conservative Fund ING 1.67 1.87 2.39
ASB FirstChoice KiwiSaver Tracker Conserv Fund ASB Group Invmts 0.83 1.48 1.22
ASB KiwiSaver Conservative Fund (Default) ASB Group Invmts 0.95 1.59 1.47
Asteron KiwiSaver Conservative Fund Tyndall 0.27 0.23 -2.11
AXA KiwiSaver Income Plus AXA Asia Pacific -1.23 -0.72 -2.71
Fidelity KiwiSaver-Capital Guaranteed Kiwi Fidelity Life 2.04
–
–
Fidelity KiwiSaver-Conservative Kiwi Fund Fidelity Life 1.36 2.9 3.62
ING KiwiSaver – Conservative Fund ING 1.1 1.34 2.36
ING KiwiSaver SIL Conservative Fund ING 1.72 1.9 3.15
National Bank KiwiSaver – Conservative ING 1.68 1.86 2.49
Smartshares Smartkiwi Conservative Fund NZ Exchange 2.32 2.32 0.59
TOWER KiwiPlan-Cash Enhanced Tower 0.18 1.45 3.36
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Moderate
AMP KiwiSaver Conservative Fund AMP 1.88 4.65 3.47
AMP KiwiSaver Moderate Fund AMP 0.22 3.08 -0.57
ANZ KiwiSaver – Conservative Balanced Fund ING 0.7 0.36 -2.13
ASB FirstChoice KiwiSaver Active Conservative Fund ASB Group Invmts -0.6 -0.46 -4.19
ASB FirstChoice KiwiSaver Tracker Moderate Fund ASB Group Invmts -0.27 -0.86 -4.87
ASB KiwiSaver Moderate Fund ASB Group Invmts 0.05 -0.48 -4.21
AXA KiwiSaver Conservative AXA Asia Pacific -1.1
–
–
ING KiwiSaver – Conservative Balanced ING -0.16 -0.42 -2.9
ING KiwiSaver SIL Conservative Balanced Fund ING 0.68 0.34 -1.57
National Bank KiwiSaver – Conservative Balanced ING 0.66 0.31 -2.13
Smartshares Smartkiwi Balanced Fund NZ Exchange -2.44 -2.22 -13.68
TOWER KiwiPlan-Conservative Tower -1.19 -0.66 -0.41
Westpac KiwiSaver-Conservative Fund BT NZ 0.4 0.9 -1.38
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Balanced
AMP KiwiSaver Balanced – Other Fund AMP -2.12 -0.59 -8.75
AMP KiwiSaver Balanced Fund AMP -2.01 0.83 -6.49
AMP KiwiSaver-ING Balanced Fund ING -0.67 0.96 -4.46
AMP KiwiSaver Moderate Balanced Fund AMP -1.35 1.59 -4.03
AMP KiwiSaver-TOWER Balanced Fund Tower -2.18 -0.99 -4.73
ANZ KiwiSaver – Balanced Fund ING -0.4 -1.32 -6.58
ASB FirstChoice KiwiSaver Active Balanced Fund ASB Group Invmts -3.33 -3.98 -11.55
ASB FirstChoice KiwiSaver Tracker Balanced Fund ASB Group Invmts -2.33 -3.31 -10.71
ASB KiwiSaver Balanced Fund ASB Group Invmts -1.9 -2.85 -10.22
Asteron KiwiSaver Balanced Fund Tyndall -1.52 -1.89 -8.55
AXA KiwiSaver Balanced AXA Asia Pacific -5.43 -6.19 -14.6
Brook Professional KiwiSaver Scheme Balanced Fund Brook Asset Mgmt -1.6 0.98 5.35
Fidelity KiwiSaver-Balanced Kiwi Fund Fidelity Life 1.16 1.75 0.69
Fidelity KiwiSaver-Ethical Kiwi Fidelity Life -1.35
–
–
ING KiwiSaver – Balanced ING -1.68 -2.53 -8.14
ING KiwiSaver SIL Balanced Fund ING -0.41 -1.32 -6.02
National Bank KiwiSaver – Balanced ING -0.35 -1.29 -6.56
TOWER KiwiPlan-Balanced Tower -3.44 -3.51 -5.2
Westpac KiwiSaver-Balanced Fund BT NZ -1.81 -2.53 -9.85
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Growth
AMP KiwiSaver Growth Fund AMP -4.34 -1.28 -10.83
ANZ KiwiSaver – Balanced Growth Fund ING -1.45 -2.99 -11.16
ANZ KiwiSaver – Growth Fund ING -2.64 -4.88 -15.74
ASB FirstChoice KiwiSaver Active Growth Fund ASB Group Invmts -5.13 -6.18 -16.81
ASB FirstChoice KiwiSaver Tracker Growth Fund ASB Group Invmts -4.38 -5.6 -15.82
ASB KiwiSaver Growth Fund ASB Group Invmts -3.99 -5.1 -15.6
Asteron KiwiSaver Balanced Growth Fund Tyndall -4.25 -3.66 -14.92
Fidelity KiwiSaver-Growth Kiwi Fund Fidelity Life -0.35 -0.67 -3
ING KiwiSaver – Balanced Growth ING -3.11 -4.48 -13.08
ING KiwiSaver – Growth Fund ING -4.52 -6.37 -17.36
ING KiwiSaver SIL Balanced Growth Fund ING -1.5 -3.05 -10.63
ING KiwiSaver SIL Growth Fund ING -2.56 -4.84 -15.32
National Bank KiwiSaver – Balanced Growth ING -1.47 -3.04 -11.16
National Bank KiwiSaver – Growth ING -2.58 -4.84 -15.85
Westpac KiwiSaver-Growth Fund BT NZ -3 -4.13 -13.39
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Aggressive
AMP KiwiSaver Aggressive Fund AMP -5.72 -2.61 -13.77
AXA KiwiSaver Growth AXA Asia Pacific -7.94 -8.78 -20.8
Brook Professional KiwiSaver Scheme Growth Fund Brook Asset Mgmt -3.05 -0.89 2.33
Fidelity KiwiSaver-Aggressive Kiwi Fund Fidelity Life -0.78 0.31 -8.01
First NZ Capital KiwiSaver Scheme First NZ Capital
–
–
–
Fisher Funds Growth KiwiSaver Scheme Fisher Funds -7.87 -4.67 -17.76
TOWER KiwiPlan-Growth Tower -5.78 -7.52 -15.71
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Single Sector Options
Cash
AMP KiwiSaver Cash Fund AMP 2.17 4.46 8.62
ASB FirstChoice KiwiSaver NZ Cash Fund ASB Group Invmts 2.03 4.26 8.54
ASB KiwiSaver Cash Fund ASB Group Invmts 2.04 4.22 8.57
Asteron KiwiSaver Capital Fund Tyndall 2.17 4.21 8.24
AXA KiwiSaver Cash AXA Asia Pacific
–
–
–
ING KiwiSaver – Cash Plus Fund ING 2.04 4.21 8.28
ING KiwiSaver SIL Cash Plus Fund ING 1.96 3.95 8.73
NZ Guardian ANZ KiwiSaver Cash Fund ING
–
–
–
NZ Guardian National Bank KiwiSaver Cash Fund ING
–
–
–
TOWER KiwiPlan-Preservation Tower 2.05 4.18 8.52
Westpac KiwiSaver-Cash Fund BT NZ 1.41 3.54 5.57
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Fixed Income
Asteron KiwiSaver High Yield Fixed Interest Fund Tyndall 0.79 0.6 0.19
ING KiwiSaver SIL New Zealand Fixed Interest Fund ING 2.52 4.81 6.82
ING KiwiSaver SIL International Fixed Int Fund ING 4.2 3.49 10.97
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Property
Asteron KiwiSaver Global Property Fund Tyndall 0.47 -7.7 -16.38
ING KiwiSaver SIL Australasian Property Fund ING -4.39 -6.15 -20.73
ING KiwiSaver SIL International Property Fund ING -2.87 -11.05 -22.47
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Australasian Equity
AonSaver AMT KiwiSaver Milford Aggressive Fund Milford -0.24 3.01 7.59
Asteron KiwiSaver SRI Share Fund Tyndall -3.84 -10.66 -27.64
Asteron KiwiSaver Trans-Tasman Small Companies Shr Tyndall -9.35 -9.34 -28.18
ING KiwiSaver SIL Australasian Share Fund ING -1.7 -8.91 -25.06
Smartshares Smartkiwi Growth Fund NZ Exchange -5.21 -6.6 -26.13
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International Equity
ASB FirstChoice KiwiSaver Active High Growth Fund ASB Group Invmts -10.53
–
–
ASB FirstChoice KiwiSaver Global Sustainability Fd ASB Group Invmts -4.16
–
–
Asteron KiwiSaver International Share Fund Tyndall -5.93 -3.7 -18.07
ING KiwiSaver SIL International Share Fund ING -3.3 -3.66 -16.51
ING Kiwisaver SIL Sustainable Growth Fund ING
–
–
–
TOWER KiwiPlan-Equity Tower -9.74 -11.7 -25.34
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Miscellaneous
Fidelity KiwiSaver-Options Kiwi Fund Tyndall 5.34 13.89 23.28
Return to top

[ | | | | ]

KiwiSaver Performance Survey results

Use these quick links to take you directly to a section on the table.

Default Options
Multisector

– Conservative
– Moderate
– Balanced
– Growth
– Aggressive
Single Sector Options

– Cash
– Fixed Income
– Property
– Australasian Equity
– International Equity
– Miscellaneous

KiwiSaver Performance Survey – Returns to 30 September 2008
Fund Name Underlying Investment
Manager		 3-month
%		 6-month
%		 1-year
%
Default Options
AMP KiwiSaver Default Fund AMP 0.86 3.41 3.45
ASB KiwiSaver Conservative Fund (Default) ASB Group Invmts 0.95 1.59 1.47
AXA KiwiSaver Income Plus AXA Asia Pacific -1.23 -0.72 -2.71
ING KiwiSaver – Conservative Fund ING 1.1 1.34 2.36
TOWER KiwiPlan-Cash Enhanced Tower 0.18 1.45 3.36
Return to top
Multisector Options
Conservative
AMP KiwiSaver Default Fund AMP 0.86 3.41 3.45
ANZ KiwiSaver – Conservative Fund ING 1.67 1.87 2.39
ASB FirstChoice KiwiSaver Tracker Conserv Fund ASB Group Invmts 0.83 1.48 1.22
ASB KiwiSaver Conservative Fund (Default) ASB Group Invmts 0.95 1.59 1.47
Asteron KiwiSaver Conservative Fund Tyndall 0.27 0.23 -2.11
AXA KiwiSaver Income Plus AXA Asia Pacific -1.23 -0.72 -2.71
Fidelity KiwiSaver-Capital Guaranteed Kiwi Fidelity Life 2.04
–
–
Fidelity KiwiSaver-Conservative Kiwi Fund Fidelity Life 1.36 2.9 3.62
ING KiwiSaver – Conservative Fund ING 1.1 1.34 2.36
ING KiwiSaver SIL Conservative Fund ING 1.72 1.9 3.15
National Bank KiwiSaver – Conservative ING 1.68 1.86 2.49
Smartshares Smartkiwi Conservative Fund NZ Exchange 2.32 2.32 0.59
TOWER KiwiPlan-Cash Enhanced Tower 0.18 1.45 3.36
Return to top
Moderate
AMP KiwiSaver Conservative Fund AMP 1.88 4.65 3.47
AMP KiwiSaver Moderate Fund AMP 0.22 3.08 -0.57
ANZ KiwiSaver – Conservative Balanced Fund ING 0.7 0.36 -2.13
ASB FirstChoice KiwiSaver Active Conservative Fund ASB Group Invmts -0.6 -0.46 -4.19
ASB FirstChoice KiwiSaver Tracker Moderate Fund ASB Group Invmts -0.27 -0.86 -4.87
ASB KiwiSaver Moderate Fund ASB Group Invmts 0.05 -0.48 -4.21
AXA KiwiSaver Conservative AXA Asia Pacific -1.1
–
–
ING KiwiSaver – Conservative Balanced ING -0.16 -0.42 -2.9
ING KiwiSaver SIL Conservative Balanced Fund ING 0.68 0.34 -1.57
National Bank KiwiSaver – Conservative Balanced ING 0.66 0.31 -2.13
Smartshares Smartkiwi Balanced Fund NZ Exchange -2.44 -2.22 -13.68
TOWER KiwiPlan-Conservative Tower -1.19 -0.66 -0.41
Westpac KiwiSaver-Conservative Fund BT NZ 0.4 0.9 -1.38
Return to top
Balanced
AMP KiwiSaver Balanced – Other Fund AMP -2.12 -0.59 -8.75
AMP KiwiSaver Balanced Fund AMP -2.01 0.83 -6.49
AMP KiwiSaver-ING Balanced Fund ING -0.67 0.96 -4.46
AMP KiwiSaver Moderate Balanced Fund AMP -1.35 1.59 -4.03
AMP KiwiSaver-TOWER Balanced Fund Tower -2.18 -0.99 -4.73
ANZ KiwiSaver – Balanced Fund ING -0.4 -1.32 -6.58
ASB FirstChoice KiwiSaver Active Balanced Fund ASB Group Invmts -3.33 -3.98 -11.55
ASB FirstChoice KiwiSaver Tracker Balanced Fund ASB Group Invmts -2.33 -3.31 -10.71
ASB KiwiSaver Balanced Fund ASB Group Invmts -1.9 -2.85 -10.22
Asteron KiwiSaver Balanced Fund Tyndall -1.52 -1.89 -8.55
AXA KiwiSaver Balanced AXA Asia Pacific -5.43 -6.19 -14.6
Brook Professional KiwiSaver Scheme Balanced Fund Brook Asset Mgmt -1.6 0.98 5.35
Fidelity KiwiSaver-Balanced Kiwi Fund Fidelity Life 1.16 1.75 0.69
Fidelity KiwiSaver-Ethical Kiwi Fidelity Life -1.35
–
–
ING KiwiSaver – Balanced ING -1.68 -2.53 -8.14
ING KiwiSaver SIL Balanced Fund ING -0.41 -1.32 -6.02
National Bank KiwiSaver – Balanced ING -0.35 -1.29 -6.56
TOWER KiwiPlan-Balanced Tower -3.44 -3.51 -5.2
Westpac KiwiSaver-Balanced Fund BT NZ -1.81 -2.53 -9.85
Return to top
Growth
AMP KiwiSaver Growth Fund AMP -4.34 -1.28 -10.83
ANZ KiwiSaver – Balanced Growth Fund ING -1.45 -2.99 -11.16
ANZ KiwiSaver – Growth Fund ING -2.64 -4.88 -15.74
ASB FirstChoice KiwiSaver Active Growth Fund ASB Group Invmts -5.13 -6.18 -16.81
ASB FirstChoice KiwiSaver Tracker Growth Fund ASB Group Invmts -4.38 -5.6 -15.82
ASB KiwiSaver Growth Fund ASB Group Invmts -3.99 -5.1 -15.6
Asteron KiwiSaver Balanced Growth Fund Tyndall -4.25 -3.66 -14.92
Fidelity KiwiSaver-Growth Kiwi Fund Fidelity Life -0.35 -0.67 -3
ING KiwiSaver – Balanced Growth ING -3.11 -4.48 -13.08
ING KiwiSaver – Growth Fund ING -4.52 -6.37 -17.36
ING KiwiSaver SIL Balanced Growth Fund ING -1.5 -3.05 -10.63
ING KiwiSaver SIL Growth Fund ING -2.56 -4.84 -15.32
National Bank KiwiSaver – Balanced Growth ING -1.47 -3.04 -11.16
National Bank KiwiSaver – Growth ING -2.58 -4.84 -15.85
Westpac KiwiSaver-Growth Fund BT NZ -3 -4.13 -13.39
Return to top
Aggressive
AMP KiwiSaver Aggressive Fund AMP -5.72 -2.61 -13.77
AXA KiwiSaver Growth AXA Asia Pacific -7.94 -8.78 -20.8
Brook Professional KiwiSaver Scheme Growth Fund Brook Asset Mgmt -3.05 -0.89 2.33
Fidelity KiwiSaver-Aggressive Kiwi Fund Fidelity Life -0.78 0.31 -8.01
First NZ Capital KiwiSaver Scheme First NZ Capital
–
–
–
Fisher Funds Growth KiwiSaver Scheme Fisher Funds -7.87 -4.67 -17.76
TOWER KiwiPlan-Growth Tower -5.78 -7.52 -15.71
Return to top
Single Sector Options
Cash
AMP KiwiSaver Cash Fund AMP 2.17 4.46 8.62
ASB FirstChoice KiwiSaver NZ Cash Fund ASB Group Invmts 2.03 4.26 8.54
ASB KiwiSaver Cash Fund ASB Group Invmts 2.04 4.22 8.57
Asteron KiwiSaver Capital Fund Tyndall 2.17 4.21 8.24
AXA KiwiSaver Cash AXA Asia Pacific
–
–
–
ING KiwiSaver – Cash Plus Fund ING 2.04 4.21 8.28
ING KiwiSaver SIL Cash Plus Fund ING 1.96 3.95 8.73
NZ Guardian ANZ KiwiSaver Cash Fund ING
–
–
–
NZ Guardian National Bank KiwiSaver Cash Fund ING
–
–
–
TOWER KiwiPlan-Preservation Tower 2.05 4.18 8.52
Westpac KiwiSaver-Cash Fund BT NZ 1.41 3.54 5.57
Return to top
Fixed Income
Asteron KiwiSaver High Yield Fixed Interest Fund Tyndall 0.79 0.6 0.19
ING KiwiSaver SIL New Zealand Fixed Interest Fund ING 2.52 4.81 6.82
ING KiwiSaver SIL International Fixed Int Fund ING 4.2 3.49 10.97
Return to top
Property
Asteron KiwiSaver Global Property Fund Tyndall 0.47 -7.7 -16.38
ING KiwiSaver SIL Australasian Property Fund ING -4.39 -6.15 -20.73
ING KiwiSaver SIL International Property Fund ING -2.87 -11.05 -22.47
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Australasian Equity
AonSaver AMT KiwiSaver Milford Aggressive Fund Milford -0.24 3.01 7.59
Asteron KiwiSaver SRI Share Fund Tyndall -3.84 -10.66 -27.64
Asteron KiwiSaver Trans-Tasman Small Companies Shr Tyndall -9.35 -9.34 -28.18
ING KiwiSaver SIL Australasian Share Fund ING -1.7 -8.91 -25.06
Smartshares Smartkiwi Growth Fund NZ Exchange -5.21 -6.6 -26.13
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International Equity
ASB FirstChoice KiwiSaver Active High Growth Fund ASB Group Invmts -10.53
–
–
ASB FirstChoice KiwiSaver Global Sustainability Fd ASB Group Invmts -4.16
–
–
Asteron KiwiSaver International Share Fund Tyndall -5.93 -3.7 -18.07
ING KiwiSaver SIL International Share Fund ING -3.3 -3.66 -16.51
ING Kiwisaver SIL Sustainable Growth Fund ING
–
–
–
TOWER KiwiPlan-Equity Tower -9.74 -11.7 -25.34
Return to top
Miscellaneous
Fidelity KiwiSaver-Options Kiwi Fund Tyndall 5.34 13.89 23.28
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KiwiSaver law changes expensive for employers

The “total remuneration” approach to KiwiSaver has been effectively banned in legislation rushed through Parliament under urgency last week.In essence, the new law says a KiwiSaver member cannot be offered lesser terms (or be otherwise disadvantaged) in comparison with a “comparable” non-member employee of similar skills, experience and circumstances.


The government’s rapid U-turn on total remuneration and KiwiSaver isn’t good law and shouldn’t have been rushed through Parliament, Chapman Tripp says.


It agrees there is a legitimate policy debate around whether or not total remuneration should be allowed.


Proponents say this approach ensures non-KiwiSaver members aren’t disadvantaged and total remuneration also gives employers certainty about their wage and salary costs.


On the other hand, KiwiSaver becomes a less attractive proposition for total remuneration employees as they bear a greater cost if they join the scheme, and they don’t get any “free money” from their employer. This cost (and disincentive to join) will grow, as the compulsory employer contribution moves from 1% to 4% over the next three years. Government has also expressed concern that total remuneration allows employers, if they choose, to pocket the Government funded employer tax credit when it is the employees who actually meet the costs of the scheme.


Chapman Tripp says because the law was rushed it has a number of technical problems and unintended consequences which have the potential to create real uncertainty, and which will need to be fixed.

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