Strong markets help bolster KiwiSaver funds to $57b

KiwiSaver funds had a strong run in the last quarter. Photo / 123RF NZH 28

Strong share market growth both locally and internationally helped boost the performance of KiwiSaver funds over the three months to June 30, Morningstar figures show.

The S&P/NZX50 rose 6.7 per cent over the quarter and the S&P/ASX200 rose 8 per cent pushing all KiwiSaver funds it monitors into positive territory.

International equities also had a good quarter, and for the year to July 31 the MSCI World Index rose 17.1 per cent.

"Returns of KiwiSaver funds generally reflected the strength of underlying market conditions," said Tim Murphy, Morningstar's director of manager research for the Asia Pacific Region.

The top performing fund for the conservative category was Milford Conservative which rose 2.9 per cent against the average for the sector of 2.1 per cent for the quarter.

But over one year the top performer was Simplicity Conservative with a return of 8 per cent compared to the sector average of 5.8 per cent.

In the balanced category Milford's Balanced fund was also top over the quarter at 4.9 per cent growth but AMP's Income Generator fund rose the most over one year at 9.5 per cent compared to the sector average of 6.7 per cent.

The Aon Milford fund took out the top spot in the growth sector with a return of 5.9 per cent over the quarter. While over the year the Generate Growth fund was top with a 10.2 per cent return compared to the sector average of 7.4 per cent.

The amount of money invested in KiwiSaver grew to $57.2 billion as of June 30 - up from $48.7b a year earlier.

ANZ remains the largest provider with $14b in funds under management and a 24.5 per cent market share while ASB is the second largest at $10.5b and 18.3 per cent.

Aon and Booster dropped down the rankings of largest providers. Booster fell from 9th to 10th largest and Aon from 12th to 13th.

While Milford and Simplicity rose in the ranks. Milford moved from 10th to 9th place and Simplicity from 13th to 12th.