Mercer’s KiwiSaver Survey results for March quarter 2013 showed KiwiSaver’s median manager returned 4.4 per cent over the quarter and 11.7 per cent over the last 12 months (after fees but before tax).
"Despite all the events of the past 12 months, shares have continued to rally, providing strong return for investors who have more growth assets in their portfolios," said Philip Houghton-Brown, Head of Investments, Mercer New Zealand.
"After challenging periods over the last 5 years, the recent run of strong performance in share returns has finally seen growth funds post respectable returns. Ultimately however, it is still Conservative Funds that are clinging to their lead."
Since 2008, the average growth fund has been returning 4.9 per cent, marking it just behind the median return of a conservative fund at 6.2 per cent (see table below).
Mr Houghton-Brown said the March quarter for 2013 was largely a continuation of trends during 2012.
"We are still seeing a recovery in share markets - largely as a result of strong support from the world’s largest banks and tentative economic recovery in the US.
"This rally occurred despite ongoing worries in Europe, in particular the negative developments in Cyprus. Overall, the market is looking ahead with some optimism," he said.
|Mercer KiwiSaver Survey||3 mths (%)||1 yr (% pa)||2 yrs (% pa)||3 yrs (% pa)||5 yrs (% pa)|
|Default Universe Median||2.1||7.2||6.3||5.9||5.8|
|Conservative Universe Median||2.6||8.9||7.1||6.7||6.2|
|Balanced Universe Median||4.4||11.6||7.1||7.1||5.5|
|Growth Universe Median||6.1||13.6||6.9||7.3||4.9|
The table below shows annual returns over the past five years, with 2009 showing the impact of the global financial crisis especially on funds with a high allocation to growth assets. The table also illustrates how volatile investments have been over the past 5 years, especially for growth funds.
|Mercer KiwiSaver Survey||Yr to 3/09 (%)||Yr to 3/10 (%)||Yr to 3/11 (%)||Yr to 3/12 (%)||Yr to 3/13 (%)|
|Default Universe Median||0.0
|Conservative Universe Median||-2.6||13.3||5.8||5.4||8.9|
|Balanced Universe Median||-10.6||19.8||7.0||3.7||11.6|
|Growth Universe Median||-19.7||28.8||7.7||0.9||13.6|
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