Sharechat Logo

Sound first quarter for KiwiSaver funds

Monday 16th May 2011

Text too small?

KiwiSaver funds had a sound start to 2011, although the good performance was fading by March.

Mercer's KiwiSaver survey found that in the first three months of the year the median return among default funds was 1.6%, while for the year to March it was 5.3%.

For conservative funds the quarterly median return was 1.8% and the 12-month return 5.8%. The balanced fund median was 2.5% for the quarter and 7% for the year, while for growth funds the quarter was 3.8% and the 12 months 7.7%.

The best performing fund for the quarter was the Fidelity Life aggressive growth fund, which returned 5.6% for the quarter.

Mercer New Zealand head Martin Lewington said funds were faring well given encouraging economic data and a robust corporate earnings season, but the upward movement was not without bumps during the quarter.

"Gains from January and February were given back in March as a result of investor nervousness around recent events in Japan and the Middle East and re-emerging concerns about Europe's sovereign debt crisis. Volatility is far from over, and could impact on returns in the upcoming quarter," Lewington said.

Volatility of investment returns might continue to be elevated in the short term, while in the medium to long term investors would have to face the challenge of investing in inflationary times.



  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

Scott Technology Limited (NZX: SCT) Announces FY21 Results
21st October 2021 Morning Report
Greenfern Industries Limited (NZX: GFI) L&Q Notice
TruScreen Group Limited (NZX: TRU) Clinical Trial Results Highlight Efficacy of TRU Technology
20th October 2021 Morning Report
Freightways Limited (NZX: FRE) Acquisition of ProducePronto
19th October 2021 Morning Report
PGG Wrightson Limited (NZX: PGW) Guidance Update
Vital Limited (NZX: VTL) Provides Update on PSN LMR
18th October 2021 Morning Report