It was more-or-less more-of-the-same for KiwiSaver schemes during Year 11, according to the latest edition of the Investment News New Zealand (IN NZ) annual market study.
The now free-to-download IN NZ report found the same 29 KiwiSaver schemes as in 2017 grew collectively at a similar rate while chalking up an almost exact replica of last year’s 7 per cent investment gains.
Across most metrics – including fastest-growing and best-net-transfers – the 2018 findings closely tracked the 10th anniversary report of last year.
For example, boutique schemes such as Simplicity and Generate continued on their size-enhancing ways: both piling on members and funds under management despite their vastly different distribution and investment strategies.
Likewise, BNZ, Milford and Kiwi Wealth shored up the market for mid-tier players, who as a group managed to carve off share from the tight five at the top for the first time. The five biggest providers – ANZ, ASB, AMP, Westpac and Fisher Funds – shed about 1.5 per cent of their aggregate market share of KiwiSaver funds under management (FUM) over the 12-month period, the IN NZ report shows.
Despite the minor FUM stumble, though, the top-of-the-table schemes retain over 70 per cent of both KiwiSaver members and their money.
However, the year-on-year KiwiSaver market stability is likely due for disruption in the current annual period. Post balance date two new schemes have launched – Nikko Asset Management and Pie Funds – while planned government alterations could bring further fee pressure to bear.
The Sir Michael Cullen-led Tax Working Group could also disturb KiwiSaver comfortable investment assumptions under recommendations due next month that are widely-expected to include a capital gains tax.
For now, though, the 2018 IN NZ report shows KiwiSaver providers and members can reflect on a period that was primarily full of good news. All the numbers behind the news – including a first-time review of net returns (after fees and tax) – are available as per the usual terms and conditions below:
The findings in this report are based on figures collected from the annual reports of 29 KiwiSaver schemes.
A complete set of the data in Excel spreadsheet form, covering member and funds under management trends; fees and expenses; investment returns; scheme transfers and other metrics, is available for a still not-unreasonable fee of $300 plus GST ($345 including GST).
Please contact the author at email@example.com or
ph +64 21 022 575 03 for further details.