Growth funds continue top run in KiwiSaver funds

Fairfax Media

GOING STRONG: Growth funds are the standout performers for the second consecutive quarter, a Mercer survey of KiwiSaver funds shows.

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Growth funds are the standout performers for the second consecutive quarter, a Mercer survey of KiwiSaver funds shows.

Balanced and growth funds were well on the way to reclaiming the losses experienced through the global financial crisis, Martin Lewington, head of Mercer in New Zealand, said.

At September 30, there were 1.2 million KiwiSaver accounts with $4.25 billion invested in them.

Growth funds produced a median return of 10.8 per cent in the September quarter. The best performing growth fund during the quarter was the Fisher Funds Growth Fund, with a 15.2 per cent return.

Growth funds tend to have the highest exposure to shares and property.

The best performing default fund in the quarter was Mercer KiwiSaver Conservative Fund with a 6.5 per cent return. Default funds have been the best performers since the inception of KiwiSaver funds.

"In the last six months balanced and growth funds have pegged back approximately half the losses experienced through the global financial crisis," Mr Lewington said. "This result is in stark contrast to the previous 12 months in which only conservative funds, on average, provided a positive return for Kiwisaver investors."

The best-performing conservative fund in the quarter was the Mercer Conservative Fund, up 7.3 per cent. The Axa Conservative Fund was the best performing in the last 12 months, with a rise of 8.5 per cent.

NZPA