The results are in and we’ve now got definitive answers for the top performing KiwiSaver funds for the start of 2022. Take a look at the standings across major fund categories and see how your fund performed.
KiwiSaver continued to grow throughout 2021, with total funds invested in the scheme nearing $89 billion by the end of the year. Although 2021 wasn’t all plain sailing, many KiwiSaver funds performed well through adversity, as we can see with the latest data obtained by the Morningstar KiwiSaver Survey. We have ranked the funds on their average performance over the past 5 years as of 31 December 2021. Note that all performance is after fees, but before tax.
Conservative Funds – Best Performing
1. Milford Conservative = 5.6%
2. ANZ Default Conservative = 5.5%
3. Simplicity Conservative = 5.4%
4. Aon Russell Lifepoints 2015 = 5.2%
5. Aon Russell Lifepoints Conservative = 5.2%
The figures above display the average yearly return over 5 years for the corresponding funds. The average return across all Conservative KiwiSaver funds for the most recent 5 years was 4.9%, therefore Milford Conservative fund outperformed the market average by +0.7%
Milford Conservative v Market Average Conservative
Milford Conservative Fund Fees Compared to Market Average
Most KiwiSaver fees are calculated as a percentage of your total KiwiSaver balance. Some KiwiSaver providers also charge a fixed fee, however this is slowly being phased out and relatively small in comparison to the percentage fee. Please note that all performance figures stated above are net of any percentage fees.
Milford Conservative Fund fees = 0.95%
Market Average for Conservative Fund fees = 0.68%
About the Milford Conservative Fund
The Milford Conservative Fund is a diversified fund that primarily invests in fixed interest securities, with a moderate allocation to equities. The fund was started on the 1st of October 2012, with a total number of investors reaching 4,296.
The target asset allocation for the Milford Conservative fund is 18% growth assets, 82% income assets. For a detailed breakdown of the target asset allocation, please refer to the chart below.
For more information on the Milford Conservative fund, please find their most recent quarterly fund update.
Should you switch to the Milford Conservative Fund?
Conservative KiwiSaver funds are suited for those who want to withdraw their KiwiSaver investment within the next 3 years, and will do a great job in protecting your KiwiSaver savings from market declines, while providing a small potential for generating returns. However, there is a lot more to consider when deciding on a KiwiSaver fund including:
– Is the KiwiSaver fund invested in an ethical manner?
– Does the KiwiSaver provider offer a mobile phone app?
– Is the KiwiSaver provider New Zealand owned?
– Is the KiwiSaver fund actively managed, or is it a passive investment?
If you want a recommendation regarding KiwiSaver to make sure that you’re invested in a fund that is a top performer and aligns with your goals and values, please feel free to fill out our online fact find. This fact find takes no more than 5 minutes to complete, and once submitted we will send you a free no-obligation KiwiSaver recommendation.
Moderate Funds – Best Performing
1. AON Russell Lifepoints Moderate 2025 = 7.2%
2. MAS Moderate = 6.9%
3. BNZ Moderate = 6.8%
4. OneAnswer Conservative Balanced = 6.8%
5. ANZ Conservative Balanced = 6.8%
The figures above display the average yearly return over 5 years for the corresponding funds. The average return across all Moderate KiwiSaver funds for the most recent 5 years was 6.0%., therefore the AON Russell Lifepoints 2025 fund outperformed the market average by +1.2%
Aon Russell Lifepoints 2025 v Market Average – Moderate
AON Russel Lifepoints 2025 Fund fees Compared to Market Average
Most KiwiSaver fees are calculated as a percentage of your total KiwiSaver balance. Some KiwiSaver providers also charge a fixed fee, however this is slowly being phased out and relatively small in comparison to the percentage fee. Please note that all performance figures stated above are net of any percentage fees.
AON Russell Lifepoints 2025 Fund fees = 1.08%
Market Average for Moderate Fund fees = 0.89%
About the AON Russell Lifepoints 2025 Fund
The AON Russell Lifepoints 2025 Fund is a diversified fund that aims to produce returns that provide capital growth and income consistent with its current asset allocation. The allocation to income assets increases progressively until it reaches 80% in 2025. The fund started on the 30th of September 2007, and now has a total number of investors equalling 540.
The target asset allocation for the AON Russell Lifepoints 2025 Fund is 28% growth assets, 72% income assets. For a detailed breakdown of the target asset allocation, please refer to the chart below.
For more information on the AON Russell Lifepoints 2025 Fund, please find their most recent quarterly fund update.
Should you switch to the AON Russel Lifepoints 2025 Fund?
Moderate KiwiSaver funds are suited for those who want to withdraw their KiwiSaver investment within the next 3 – 5 years, and will provide your KiwiSaver savings with a generous amount of protection from market declines, while also providing a modest potential for generating returns. However, there is a lot more to consider when deciding on a KiwiSaver fund including:
– Is the KiwiSaver fund invested in an ethical manner?
– Does the KiwiSaver provider offer a mobile phone app?
– Is the KiwiSaver provider New Zealand owned?
– Is the KiwiSaver fund actively managed, or is it a passive investment?
If you want a recommendation for your KiwiSaver investment to make sure that you’re invested in a fund that is a top performer and aligns with your goals and values, please feel free to fill out our online fact find. This online fact find takes no more than 5 minutes to complete, and once submitted we will send you a free no-obligation KiwiSaver recommendation.
Balanced Funds – Best Performing
1. Milford Balanced = 10.6%
2. Booster SRI Balanced = 9.6%
3. SuperLife Ethical = 9.5%
4. Fisher Two Balanced = 9.4%
5. Simplicity Balanced = 9.3%
The figures above display the average yearly return over 5 years for the corresponding funds. The average return across all Balanced KiwiSaver funds for the most recent 5 years was 8.4%, therefore the Milford Balanced Fund outperformed the market average by +2.2%
Milford Balanced v Market Average – Balanced
Milford Balanced Fund Fees Compared to Market Average
Most KiwiSaver fees are calculated as a percentage of your total KiwiSaver balance. Some KiwiSaver providers also charge a fixed fee, however this is slowly being phased out and relatively small in comparison to the percentage fee. Please note that all performance figures stated above are net of any percentage fees.
Milford Balanced Fund fees = 1.48%
Market Average for Balanced Fund fees = 0.98%
About the Milford Balanced Fund
The Milford Balanced Fund is a diversified fund that primarily invests in equities, with a significant allocation to fixed interest securities. The fund was started on the 1st of April 2010, and now has a total number of investors equalling 14,437.
The target asset allocation for the Milford Balanced Fund is 61% growth assets, 39% income assets. For a detailed breakdown of the target asset allocation, please refer to the chart below.
For more information on the Milford Balanced Fund, please find their most recent quarterly fund update.
Should you switch to the Milford Balanced Fund?
Balanced KiwiSaver funds are suited for those who want to withdraw their KiwiSaver investment within the next 4 – 8 years, and will provide your KiwiSaver savings with both a reasonable amount of protection from market declines, and a decent potential for generating returns. However, there is a lot more to consider when deciding on a KiwiSaver fund including:
– Is the KiwiSaver fund invested in an ethical manner?
– Does the KiwiSaver provider offer a mobile phone app?
– Is the KiwiSaver provider New Zealand owned?
– Is the KiwiSaver fund actively managed, or is it a passive investment?
If you want a recommendation on your KiwiSaver investment to make sure that you’re invested in a fund that is a top performer and aligns with your goals and values, please feel free to fill out our online fact find. This online fact find takes no more than 5 minutes to complete, and once submitted we will send you a free no-obligation KiwiSaver recommendation.
Growth Funds – Best Performing
1. Milford Active Growth = 13.1%
2. Aon Milford = 13.1%
3. Fisher Growth = 12.4%
4. Simplicity Growth = 12.0%
5. Generate Growth = 11.9%
The figures above display the average yearly return over 5 years for the corresponding funds. The average return across all Growth KiwiSaver funds for the most recent 5 years was 10.8%, therefore the Milford Active Growth Fund outperformed the market average by +2.3%
Milford Active Growth v Market Average – Growth
Milford Active Growth Fund Fees Compared to Market Average
Most KiwiSaver fees are calculated as a percentage of your total KiwiSaver balance. Some KiwiSaver providers also charge a fixed fee, however this is slowly being phased out and relatively small in comparison to the percentage fee. Please note that all performance figures stated above are net of any percentage fees.
Milford Active Growth Fund fees = 2.00%
Market Average for Growth Fund fees = 1.15%
About the Milford Active Growth Fund
The Milford Active Growth Fund is a diversified fund that primarily invests in equities, with a moderate allocation to fixed interest securities. The fund was started on the 1st of April 2010, and now has a total number of investors equalling 42,605.
The target asset allocation for the Milford Active Growth Fund is 78% growth assets, 22% income assets. For a detailed breakdown of the target asset allocation, please refer to the chart below.
For more information on the Milford Active Growth Fund, please find their most recent quarterly fund update.
Should you switch to the Milford Active Growth Fund?
Growth KiwiSaver funds are suited for those who want to withdraw their KiwiSaver investment within the next 6 – 10 years, and will provide your KiwiSaver savings with a great potential for generating returns, while still giving a small amount of protection from market declines. However, there is a lot more to consider when deciding on a KiwiSaver fund including:
– Is the KiwiSaver fund invested in an ethical manner?
– Does the KiwiSaver provider offer a mobile phone app?
– Is the KiwiSaver provider New Zealand owned?
– Is the KiwiSaver fund actively managed, or is it a passive investment?
If you want a recommendation on your KiwiSaver investment to make sure that you’re invested in a fund that is a top performer and aligns with your goals and values, please feel free to fill out our online fact find. This online fact find takes no more than 5 minutes to complete, and once submitted we will send you a free no-obligation KiwiSaver recommendation.
Aggressive Funds – Best Performing
1. Booster Socially Responsible High Growth = 14.1%
2. Generate Focused Growth = 13.3%
3. KiwiWealth Growth = 12.4%
4. MAS Aggressive = 12.3%
5. Booster High Growth = 12.2%
The figures above display the average yearly return over 5 years for the corresponding funds. The average return across all Aggressive KiwiSaver funds for the most recent 5 years was 11.8%, therefore the Booster Socially Responsible High Growth fund outperformed the market average by +2.3%
Booster Socially Responsible High Growth v Market Average – Aggressive
Booster Socially Responsible High Growth Fund Fees Compared to Market Average
Most KiwiSaver fees are calculated as a percentage of your total KiwiSaver balance. Some KiwiSaver providers also charge a fixed fee, however this is slowly being phased out and relatively small in comparison to the percentage fee. Please note that all performance figures stated above are net of any percentage fees.
Booster Socially Responsible High Growth fund fees = 1.37%
Market Average for Aggressive Fund fees = 1.15%
About the Booster Socially Responsible High Growth Fund
The Booster Socially Responsible High Growth fund invests predominantly in growth assets, with little or no income assets. It excludes investments which do not satisfy certain socially responsible investment criteria. It is suited to investors looking for an investment that reflects their personal values, who are comfortable with a high level of risk in order to potentially achieve higher returns. This fund has been certified by the Responsible Investment Association Australasia (RIAA). The fund was started on the 21st of May 2010, and now has a total number of investors equalling 10,495.
The target asset allocation for the Booster Socially Responsible High Growth Fund is 98% growth assets, 2% income assets. For a detailed breakdown of the target asset allocation, please refer to the chart below.
For more information on the Booster Socially Responsible High Growth Fund, please find their most recent quarterly fund update.
Should you switch to the Booster Socially Responsible High Growth Fund?
Aggressive KiwiSaver funds are suited for those who want to withdraw their KiwiSaver investment in at least 10 years, and will provide your KiwiSaver savings with the best potential for generating returns, in exchange for relatively significant market volatility. However, there is a lot more to consider when deciding on a KiwiSaver fund including:
– Is the KiwiSaver fund invested in an ethical manner?
– Does the KiwiSaver provider offer a mobile phone app?
– Is the KiwiSaver provider New Zealand owned?
– Is the KiwiSaver fund actively managed, or is it a passive investment?
If you want a recommendation on your KiwiSaver investment to make sure that you’re invested in a fund that is a top performer and aligns with your goals and values, please feel free to fill out our online fact find. This online fact find takes no more than 5 minutes to complete, and once submitted we will send you a free no-obligation KiwiSaver recommendation.
Other Funds – Best Performing
There are other KiwiSaver funds that don’t fall into a conservative, moderate, balanced, growth or aggressive nature. This can be a for a range of reasons, however we thought it’s important to touch on a unique fund that’s best suited for an investor with a 10+ year investment time frame.
- Booster Geared Growth = 15.9%
The Booster Geared Growth fund has generated average year-on-year returns of 15.9% over the last 5 years, outperforming any aggressive KiwiSaver fund over that time frame. The Booster Geared Growth funds annual fees are 1.61%. With the fund starting on the 15th of July 2009, the total number of investors is now equal 9,222.
The Booster Geared Growth fund is a highly diversified fund with a high weighting towards growth assets in comparison to income assets. However, the Booster Geared Growth fund receives its name for its leverage component, whereby the fund increases its effective size by borrowing money to invest additional funds on your behalf. The target leverage ratio is 35%, however the level of leverage can sit anywhere between 0% – 50% of your balance.
For example, if the Booster Geared Growth fund was leveraged at 35%, and the underlying assets increased by 10%, the fund would generate a 13.5% return (excluding any fees). Conversely, if the underlying assets in the fund incurred a decrease of 10%, the fund would generate a 13.5% loss.
For graphical purposes, we will compare against the market average return for aggressive funds, which for the most recent 5 years was 11.8%.
Booster Geared Growth fund outperformance of the market average = +4.1%
Booster Geared Growth v Market Average – Aggressive
The target asset allocation for the Booster Geared Growth Fund is 99% growth assets, 1% income assets. For a detailed breakdown of the target asset allocation, please refer to the chart below.
For more information on the Booster Geared Growth Fund, please find their most recent quarterly fund update.
Should you switch to the Booster Geared Growth Fund?
Leveraged KiwiSaver funds are suited for those who can handle seeing their KiwiSaver savings experience significant volatility, and want to withdraw their KiwiSaver balance in at least 10 years. However, there is a lot more to consider when deciding on a KiwiSaver fund including:
– Is the KiwiSaver fund invested in an ethical manner?
– Does the KiwiSaver provider offer a mobile phone app?
– Is the KiwiSaver provider New Zealand owned?
– Is the KiwiSaver fund actively managed, or is it a passive investment?
If you want a recommendation on your KiwiSaver investment to make sure that you’re invested in a fund that is a top performer and aligns with your goals and values, please feel free to fill out our online fact find. This online fact find takes no more than 5 minutes to complete, and once submitted we will send you a free no-obligation KiwiSaver recommendation.