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ANZ KiwiSaver Scheme Performance - August 2021

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We will deep dive into ANZ’s most recent performance and what it means to you and your KiwiSaver money. This will cover the major KiwiSaver schemes and give some insight on what it means going forward.

Performance of ANZ KiwiSaver Schemes as of July 31, 2021

 

1 Year
5 Years (p.a)
Since Launch (p.a)
Growth

23.81%

10.79%

8.01%

Balanced Growth

18.74%

9.33%

7.54%

Balanced

14.16%

7.77%

6.96%

Conservative Balanced

9.91%

6.24%

6.31%

  Conservative

5.35%

4.63%

5.54%

Cash

0.54%

1.78%

2.62%

The above table shows the performance of ANZ’s KiwiSaver Funds since its launch. Over the past year, they have mostly shown good returns.

You can see how they compare with other providers or view a list of best KiwiSaver funds here.

What has happened over the last 3 Months?

ANZ has reported 5 trends that have affected this quarter's performance.

  • One key trend which has recently had a positive impact on shares has been the release of vaccines globally. This has allowed for businesses to reopen around the world, giving strong company earnings post lock-down. The easing of inflation has also meant more are inclined to save and invest over these past 3 months. 

  • Global bond markets also saw a slight rise. This was based on the central banks in the US and Europe reiterating their view that the current inflationary pressures were likely to be transitory. This just means they won’t be lasting for much longer, and will give money a higher purchasing power and people would be inclined to save.

  • Another positive that came from this last quarter, was ANZ’s tactical asset allocation that was overweight to the strong-performing share markets and underweight to weaker-performing bond markets. This led to favoring international shares over New Zealand's, which is why later on, we will see assets in countries such as Australia and other countries take precedence over New Zealand in the interest of short-term gains.

  • This goes into the strong choices from ANZ’s corporate bond manager, and selections in international bond holdings. This led to out-performance in bond holdings compared to previous projections this quarter.
  • ANZ expects that these diversified asset classes will deliver strong returns when more countries reopen for businesses post Covid. As KiwiSaver Investors, this forecasts that we will be seeing increased returns in the near future if people continue to vaccinate and get back to business.
ANZ’s Recent Views on Level 4 Lock-down and it means for KiwiSaver Investors

With New Zealand going back into Lock-down Level 4, it again has caused some panic on what Kiwis should do with their finances. Remember that the markets are unpredictable and requires mind over matter. Ask for financial guidance if you are unsure. ANZ has again reminded investors to stay aware of what's happening and gave some advice for the best course of action.

This includes:

  • Active Management 
  • Staying Diversified 
  • Holding your assets
  • There shouldn’t be anything to worry about as an investor
Growth Fund

Over this past year, ANZ’s Growth Fund has seen good returns of 23.81%. This has been the biggest return on investment throughout the lifetime of the Growth Fund.

For knowing where your money is going when you choose your scheme, ANZ provides their targets for what they intend to invest in. As seen below, the Growth Fund has a variety of diversification within it. 

What does the fund invest in?

Top investments:

  • Cash Deposit (J.P. Morgan USD)
  • Visa Inc.
  • Fisher & Paykel Healthcare
  • Nestle SA

These companies also make up 1.56%, 1.40%, 1.29%, and 0.90% of the portfolio respectively. This gives you, as an investor, insight into what you are investing in.

Balanced Growth

Balanced growth is similar to the Growth Fund with their diversification strategy, with most assets within International equities. Their actual investments show more emphasis on Australian and International areas. This is again because of the overweight share markets overseas, which are showing promising results. 

What does the fund invest in?

Top investments:

  • Cash Deposit (J.P. Morgan USD)
  • Visa Inc.
  • Fisher & Paykel Healthcare
  • Nestle SA

This time more reserved investments with 1.41%, 1.15%, 1.03%, and 0.74%. The investment scheme is still considered moderately volatile when compared to other investment schemes.

Balanced Fund

Just like the other investments this past year, the balanced fund has seen large returns since last year's Covid-19 crisis. With a return of 14.16% this last year and 7.77% over the past 5 years annually.

What does the fund invest in?

Top investment:

  • Cash Deposit (J.P. Morgan USD)
  • Visa Inc.
  • Fisher & Paykel Healthcare
  • Cash Deposit (J.P Morgan AUD)

These companies are making up 1.22%, 0.85%, 0.83%, and 0.59% of the portfolio respectively.

Conservative Balanced Fund

As we see with the conservative balanced fund below, there is more being invested into New Zealand fixed interest, and cash and cash equivalents. This is why we see returns on this scheme of  9.91% for the past year.

What does the fund invest in?

Top investments include:

  • Cash Deposit (J.P. Morgan USD)
  • NZ Govt Stock 15/04/25 2.75%
  • NZ Govt Stock 20/04/29 3.0%
  • NZ Govt Stock 15/05/24 0.5%

These investments make up 1.06%, 0.73%, 0.66%, and 0.61% of the portfolio respectively. With lower volatility and returns on average than the previous KiwiSaver Schemes.

Conservative Fund

This year, the conservative fund has seen a return on investment of 5.35%. Their actual investment mix leaned outside of their intended International fixed interest into the areas of investment, which may have hindered its performance compared to previous returns.

What does the fund invest in?

Top Investments:

  • NZ Govt Stock 15/04/25 2.75%
  • NZ Govt Stock 20/04/29  3.0%
  • NZ Govt Stock 15/05/24  0.05%
  • NZ Govt Stock 15/04/27 4.5%

These Investments make up 0.93%, 0.85%, 0.78%, and 0.73% of this fund's assets.

Cash Fund

As the Cash has the lowest volatility out of the KiwiSaver schemes it is expected to get the lowest returns. This past year it has had a return of 0.54%. This is considerably low compared to previous years, but may see some rise once businesses that are opening up.

What does the fund invest in?

Top Investments:

  • ASB Registered Certificate of Deposit 10/09/21 
  • ASB Registered Certificate of Deposit 30/09/21 
  • Westpac Term Deposit 20/09/21 0.705%
  • ASB Registered Certificate of Deposit 03/09/2021

These investments make up 2.77%, 2.68%, 2.60% and 2.37% of the fund’s net assets.

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