KiwiSaver Spotlight: SBS Growth Fund
SBS Lifestages KiwiSaver Growth Fund
Provider: SBS Bank
Fund: Lifestages KiwiSaver Growth Fund
Overview: Growth funds usually have most of their money in shares and a smaller chunk in bonds and cash, and this fund takes that idea further than average.
This SBS fund has no money in bonds, choosing instead to put the extra money in shares.
Overall the fund has 82 per cent of its total invested in shares plus an extra 6 per cent stake in property.
The share investment is split into a 48 per cent stake in international shares (this was about average for growth funds in December, when Fundsource last produced an asset breakdown) and a 34 per cent chunk invested in Australian and New Zealand shares (the average for growth funds was 24 per cent).
That extra share investment sucked up the 10-11 per cent that another growth fund might have had invested in bonds.
The 6 per cent invested in cash was about typical for a growth fund.
Finally there is another 4 per cent in infrastructure and other alternative investments, rounding out the fund.
Fees are markedly high, according to Sorted.org.nz, at 2.65 per cent last year compared with the growth fund average of 1.66 per cent.
Fund size: $25.7 million as at March 31.
Unit price: $1.34.
Total return over 1 year:* 12.03 per cent compared with a growth fund average of 15.2 per cent (to the end of March).
Total return over 3 years:* 10.34 per cent compared with a growth fund average of 13.62.
*After fees but before tax
KiwiSaver spotlight was written by Eloise Gibson using information from Fundsource and sorted.co.nz (fees), and the information is considered general in nature. Please consult a professional adviser before any investment decisions.