The majority of funds in the Melville Jessup Weaver (MJW) investment survey universe across almost all asset classes posted double-digit returns over the 12 months to September 30.
Upbeat bond and equity markets also translated to similar double-digitness (after fees) in the MJW KiwiSaver cohort, which covers about 95 per cent of funds under management in the sector.
Among the wholesale funds included in the report, before-fees one-year returns ranged from more than 69 per cent for the Wellington boutique, Lighthouse, to the -0.4 per cent result clocked by the Mercer trans-Tasman direct property vehicle (the only below-zero figure in the 12-month performance numbers),
Similarly, all bar one of the more than 60 KiwiSaver diversified funds tracked by MJW ended the annual period up by 10 per cent or more: only the cash-heavy BNZ first home-buyer fund dipped below double-digits for the year, returning 9.6 per cent.
“The returns for the trailing twelve months are now firmly in double-digits for most funds, with the top spot in our survey going to the Westpac Growth Fund with a return of 21.3% for the one year period,” the report says. “Longer term, the Milford Active Growth Fund retains its first ranking, but Generate has narrowed the gap to just 0.6 percentage points per annum over the three year period.”
Milford lost some of its shine in the balanced sector, too, with its fund last out of 17 over the quarterly and 12-month periods – but retaining number-one status for the three-, five- and 10-year timespans.
Westpac and ANZ, both laggards in recent years, finished well in the September quarter after topping the KiwiSaver growth category with 5 per cent returns: the two bank-owned schemes outperformed across all risk categories over the three-month period.
ANZ changed its underlying global equities manager line-up in July, replacing long-time incumbent, MFS, with a BlackRock factor fund in a $4.6 billion mandate. Last month ANZ also confirmed BlackRock would take over some risk management and operational functions for the $30 billion plus fund house.
The MJW study, authored by principal, Ben Trollip, also found the usual swings-and-roundabouts at play in the now almost $4.2 billion default KiwiSaver fund sector.
For example, the Fisher Funds (ex Kiwi Wealth) default option rose from last of six in the June quarter to top-of-the-table in the latest quarterly performance race.
At the same time, Simplicity and SuperLife sank from first and second, respectively, in the June numbers to fifth and sixth in the default rankings.
The re-balanced default funds, which launched in December 2021, have yet to notch up three-year results but the variety of asset allocation decisions – possible despite tight legal risk parameters – have divided the pack over the two years to September 30.
“Among the default funds, BNZ is top over the two year period with a return of 13.3% per annum,” the MJW report says. “Interestingly, this would place BNZ’s Default Fund second in our broader balanced fund peer group. This might partly reflect the lower average fee level of default funds.”
Simplicity and Booster default funds also reported returns of 13.3 per cent for the two-year period followed by Fisher (12.6 per cent) and SuperLife and Westpac (both on 11.6 per cent).